Waterdrop Inc. Reports Record Q4 and FY 2024 Results with Dividends
Waterdrop Inc. Reports Fourth Quarter and Fiscal Year 2024 Results
Waterdrop Inc. (NYSE: WDH), a leading technology platform focused on insurance and healthcare services, has announced its unaudited financial results for the fourth quarter and the full fiscal year 2024, along with the declaration of a cash dividend. These results highlight the Company's strong financial performance and commitment to making a positive social impact.
Financial Highlights of Q4 2024
During the fourth quarter of 2024, Waterdrop showcased significant growth in key financial metrics:
- Net profit attributable to ordinary shareholders stood at RMB 99.6 million (approximately US$ 13.6 million), marking a remarkable year-over-year growth of 68.7%. The Company continued to generate positive operating cash flow.
- First-year premiums (FYP) from the insurance business totaled RMB 1,897.9 million (around US$ 260.0 million), reflecting a solid year-on-year increase of 24.5%. Net operating revenue was RMB 686.8 million (about US$ 94.1 million), up 4.2% compared to the previous year.
- Waterdrop Medical Crowdfunding has expanded its reach, with around 470 million people donating a total of RMB 67.5 billion to support 3.40 million patients.
- The Company successfully recruited 10,395 patients into clinical trial programs through its E-Find Platform.
Mr. Peng Shen, the Founder and CEO, expressed his enthusiasm about the impressive financial outcomes, noting a strong focus on optimizing customer acquisition and product diversification.
Overview of 2024 Financial Performance
Waterdrop's financial results for the entire fiscal year of 2024 reflect a robust growth trajectory:
- Net operating revenue grew by 5.4% year-over-year to RMB 2,771.8 million (approximately US$ 379.7 million).
- Insurance-related income reached RMB 2,363.8 million (about US$ 323.8 million), representing a 1.0% increase from the previous year.
- Crowdfunding service fees surged by 64.5% year-over-year to RMB 267.7 million (around US$ 36.7 million).
- Operating costs and expenses decreased by 1.7% to RMB 2,593.7 million (approximately US$ 355.3 million) due to cost control measures.
These results demonstrate Waterdrop's strategic focus on enhancing operational efficiency and customer experience, positioned for sustained growth in the insurance and healthcare sectors.
Dive into Strategic Initiatives and Innovations
In 2024, the Company ramped up its technological advancements, integrating sophisticated AI models into its insurance ecosystem. These AI-driven solutions provide enhanced customer interactions through voice and text communications, significantly improving customer engagement and operational efficiency.
Waterdrop Medical Crowdfunding also received recognition as a pioneering platform within China's regulated crowdfunding market, following state endorsement, validating its social contribution and operational excellence.
Share Repurchase and Cash Dividend Announcement
In line with its commitment to returning value to shareholders, Waterdrop has repurchased approximately 52.1 million ADSs by the end of February 2025. The Board has approved a cash dividend of approximately US$ 7.3 million, equivalent to US$ 0.02 per ADS.
The Company planned this dividend to acknowledge the support of its shareholders while reinforcing its focus on continuous growth and profitability.
Looking Forward to 2025
As Waterdrop moves into 2025, the Company remains focused on accelerating its growth strategies and enhancing its competitive edge through technological improvements. Company leadership is optimistic about the future and committed to making healthcare more accessible through innovative solutions at scale.
Frequently Asked Questions
What are Waterdrop's recent financial results?
Waterdrop posted significant growth in Q4 2024, with a net profit of RMB 99.6 million and operating revenue of RMB 686.8 million.
What is Waterdrop's strategy for 2025?
The Company aims to improve growth and profitability by leveraging technology to enhance its insurance and healthcare services.
How has Waterdrop expanded its crowdfunding efforts?
Waterdrop has helped 3.40 million patients through its Medical Crowdfunding platform, raising RMB 67.5 billion cumulatively.
What is the significance of the cash dividend declared?
The cash dividend of approximately US$ 7.3 million reflects Waterdrop’s commitment to enhancing shareholder value amidst its growth initiatives.
How is Waterdrop integrating technology into its operations?
Waterdrop is incorporating advanced AI models to improve customer interactions and streamline its sales processes.
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