Waterdrop Inc. Reports Remarkable Financial Growth and Innovations
Waterdrop's Impressive Financials for 2024
Waterdrop Inc. (NYSE: WDH), a notable technology platform focused on insurance and healthcare services, recently announced its financial results for the fourth quarter and full year. The company has successfully showcased its financial robustness and growth, boasting a staggering net profit increase of 119.8% year-on-year.
Fourth Quarter Highlights
In the fourth quarter, Waterdrop's net operating revenue reached RMB 686.8 million. The net profit attributable to ordinary shareholders for this period was RMB 99.6 million, marking a significant 68.5% rise compared to the same quarter in the prior year. This profitability streak has now extended to twelve consecutive quarters, reinforcing Waterdrop’s solid performance in the competitive market.
Controlling Operating Expenses
Operating expenses, which encompass sales and marketing, administrative, and research and development costs, constituted 45.1% of total revenue in this quarter. The company remains committed to controlling these expenses effectively, ensuring the balance sheet stays healthy while investing in growth opportunities.
Annual Performance Overview
For the entire year of 2024, Waterdrop recorded a net operating revenue increase of 5.4%, amounting to RMB 2,771.8 million. The net profit attributable to ordinary shareholders soared to RMB 367.5 million, substantially up by 119.8% from the previous year, demonstrating the company’s emphasis on strategic growth and enhanced operational efficacy.
Dividend Declaration
To express gratitude to its shareholders, Waterdrop declared a cash dividend of US$0.02 per ADS and US$0.002 per ordinary share for shareholders on record. This move illustrates the company's commitment to returning value to its investors amidst impressive growth.
Share Buyback Program Success
Waterdrop has repurchased around 52.1 million American Depositary Shares (ADS) from the open market since the initiation of its share repurchase program, totaling nearly US$103.7 million by the end of February 2025. This strategic initiative reflects sustainable shareholder value enhancement.
Strong Cash Position
As of December 31, 2024, Waterdrop's cash position demonstrated strength, reaching RMB 3,670.3 million (approximately US$502.8 million), which was a slight increase from RMB 3,571.6 million at the end of the previous year. This financial cushion provides Waterdrop with the resilience to pursue future growth initiatives.
Insurance Business Performance
In the realm of insurance, Waterdrop’s operating profit for 2024 was RMB 477.2 million. During the fourth quarter, insurance-related revenue amounted to RMB 582.4 million. The company has optimized its customer acquisition channels, contributing to a 14.9% annual surge in acquiring new users, reiterating the brand’s effectiveness in the insurance domain.
Innovation through AI Integration
Further advancing its operational capabilities, Waterdrop introduced DeepSeek models aimed at enhancing its AI-driven insurance ecosystem. This innovation enables multi-modal interactions, enriching customer experiences through voice and text interactions, while autonomously managing consultations related to medical insurance products.
Medical Crowdfunding Milestone
Waterdrop's Medical Crowdfunding platform has also achieved remarkable success, raising RMB 67.5 billion for approximately 3.40 million patients by the end of 2024. The initiative underscores the company’s mission of providing essential medical funding support, further solidifying its reputation as a leader in the industry.
Recognition in the Crowdfunding Sector
Waterdrop Medical Crowdfunding has made significant strides by being officially recognized as a leading player in China’s standardized medical crowdfunding sector. The platform received endorsement from regulatory authorities, solidifying its role as an essential resource for patients seeking financial assistance.
Considerable Progress in Clinical Trials
In 2024, Waterdrop's Digital Clinical Trial Solution reported revenues of approximately RMB 25.5 million, a notable year-on-year increase of 22.9%. Moreover, the company has enrolled over 10,395 patients across various clinical trial programs, reflecting its dedication to using technology to improve healthcare outcomes.
Leadership Changes
Waterdrop has announced the appointment of Mr. Chen Lin as an independent director. His extensive background in finance and governance will bolster the company's leadership, which is essential for navigating the challenging landscape of the healthcare and insurance markets.
Frequently Asked Questions
What were Waterdrop's fourth-quarter revenues?
In the fourth quarter, Waterdrop reported net operating revenue of RMB 686.8 million.
How much did Waterdrop's net profit increase in 2024?
The net profit attributable to ordinary shareholders increased by 119.8% in 2024, totaling RMB 367.5 million.
What dividend did Waterdrop declare for its shareholders?
Waterdrop declared a cash dividend of US$0.02 per ADS and US$0.002 per ordinary share.
What is the current cash position of Waterdrop?
As of December 31, 2024, Waterdrop had a cash position of RMB 3,670.3 million.
Who has been appointed as the new independent director at Waterdrop?
Mr. Chen Lin has been appointed as an independent director and member of the audit committee effective March 11, 2025.
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