Waterdrop Inc. Reports Record Q2 Growth and Special Dividend
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Waterdrop Inc. Unveils Q2 2024 Financial Highlights
Waterdrop Inc. (NYSE: WDH), a prominent technology platform focused on insurance and healthcare services aimed at delivering a positive social impact, has released its unaudited financial results for the second quarter of 2024. The company revealed significant growth, reporting net operating revenue of RMB 676 million. Net profit attributable to ordinary shareholders was RMB 88.3 million, reflecting a remarkable 306.9% increase compared to the previous year. This achievement marks the tenth consecutive quarter of profitability for Waterdrop Inc.
Special Cash Dividend Announced
In addition to its stellar performance, Waterdrop has announced the initiation of its second special cash dividend, totaling approximately US$7.5 million. This follows the successful execution of the first special cash dividend earlier in the quarter, showcasing the company’s commitment to returning value to its shareholders.
Share Repurchase Program Renewed
Waterdrop has been proactively managing its shares, repurchasing about 49.3 million American Depositary Shares (ADSs) since the introduction of its share repurchase program in September 2021. The company’s board has recently approved a new program, allowing the repurchase of its own ordinary shares valued at up to US$50 million over the next 12 months. This initiative strengthens the company’s efforts to enhance shareholder value during the period through September 2025.
Robust Growth in Insurance Operations
The insurance segment of Waterdrop has also demonstrated robust performance. Revenue in the insurance business reached RMB 573.8 million, with operating profit standing at RMB 123 million in Q2 2024. First-year premiums generated from new policies amounted to RMB 1,778.6 million, underlining the growth trajectory of the business.
Improving User Engagement
Waterdrop Insurance Marketplace has achieved a 15.8% increase in new users, reflecting improved online traffic conversion capabilities and operational efficiency. The company has also successfully maintained a high policy renewal rate, contributing to its continued success.
Technological Advancements in Services
Demonstrating a commitment to innovation, Waterdrop has been piloting its Shuishou large language model, known as "Waterdrop Guardian", across various service scenarios, such as medical and auto insurance. Notably, the company has established strategic cooperation with property and casualty insurers, marking a significant step into the non-life insurance sector and demonstrating its potential to enhance industry capabilities using AI solutions.
Medical Crowdfunding and Community Impact
Waterdrop Medical Crowdfunding has made strides in supporting patients, raising RMB 65.1 billion for approximately 3.25 million individuals as of June 30, 2024. While the crowdfunding initiative recorded an operating loss of RMB 22.9 million, this is an improvement from previous periods, emphasizing the positive impact of their community support efforts.
Healthcare Business Growth
Waterdrop's healthcare services continue to flourish, generating revenues of approximately RMB 26.4 million during the quarter. The company has enrolled nearly 8,600 patients into over 1,050 clinical trial programs, demonstrating its ongoing efforts in supporting healthcare innovation.
Vision for the Future
Founder and CEO Shen Peng remarked on the quarter's accomplishments, stating, "We firmly implemented our high-quality development strategy, enhancing user experience through technological innovation and driving sustainable growth across all our businesses. Looking ahead, we will strengthen our core operations and explore opportunities in AI to maximize our commercial and social value. We deeply appreciate the trust and support from our users, partners, shareholders, and investors, and remain dedicated to delivering exceptional service and profitability."
Frequently Asked Questions
What were Waterdrop's revenue and profit for Q2 2024?
Waterdrop reported net operating revenue of RMB 676 million and a net profit of RMB 88.3 million for Q2 2024.
What is the amount of the special cash dividend announced?
The company announced a special cash dividend of approximately US$7.5 million.
How much has Waterdrop repurchased in shares?
Waterdrop has repurchased approximately 49.3 million American Depositary Shares since launching its share repurchase program.
What is the significance of the insurance business's performance?
The insurance segment generated RMB 573.8 million in revenue, with an operating profit of RMB 123 million, showcasing sustained growth.
What initiatives is Waterdrop undertaking in healthcare and technology?
Waterdrop continues to invest in technology and has raised RMB 65.1 billion for patients via its crowdfunding platform while enhancing its medical and technical services through AI.
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