In This Article:
Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Waterdrop Inc (NYSE:WDH) achieved a total revenue of CNY2.77 billion for the fiscal year 2024, marking a 5.4% year-over-year increase.
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The company has remained profitable for 12 consecutive quarters, with a significant year-over-year increase in profit.
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Waterdrop Inc (NYSE:WDH) announced its third cash dividend, rewarding shareholders with $0.02 per ordinary share and ADS.
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The company has actively repurchased approximately 52.1 million ADS from the open market, costing around USD104 million.
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Waterdrop Inc (NYSE:WDH) has partnered with 115 public charities and hosted over 15,000 charitable projects, demonstrating a strong commitment to social responsibility.
Negative Points
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Insurance-related revenue decreased by 1% year-over-year and 3% quarter-over-quarter, indicating challenges in maintaining growth in this segment.
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Operating costs increased by 7.2% year-over-year in Q4, primarily due to higher referral and service fees.
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Sales and marketing expenses rose by 4.1% year-over-year, driven by increased marketing expenses for third-party traffic channels.
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Long-term insurance product FYP experienced a slight sequential decrease, impacted by product suspension and holiday seasonality.
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Despite AI investments, R&D expenses decreased by 9.3% year-over-year, which may impact future innovation and development.
Q & A Highlights
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Q: Can you provide more details on the company's financial performance in Q4 2024 and the full year? A: Xiaoying Xu, Head of Finance, reported that Q4 revenue reached CNY687 million, a 4.2% year-over-year increase. The full-year revenue totaled CNY2.77 billion. Non-insurance business contributed nearly 15% of total revenue, with Crowdfunding service fees at CNY267.7 million and digital clinical trial solutions income at CNY91.1 million. Operating costs and expenses for Q4 were stable at CNY634 million, with a 1.7% decrease for the full year.
Q: What are the company's plans regarding dividends and share repurchases? A: CEO Shen Peng announced the launch of a third cash dividend of $0.02 per ordinary share and ADS, with plans to distribute dividends semiannually. The company has repurchased approximately 52.1 million ADS in the open market, costing around USD104 million.