Waterdrop Q4 and FY2024 Financial Results: Annual Net profit rises 119.8% YoY, and declared a cash dividend

BEIJING,March 12, 2025/PRNewswire/ -- OnMarch 12, 2025, Waterdrop Inc. (NYSE: WDH), a leading technology platform dedicated to insurance and healthcare services with a positive social impact, unveiled its unaudited financial results for the fourth quarter and Fiscal Year endedDecember 31, 2024.

During the fourth quarter, Waterdrop reported net operating revenue ofRMB 686.8 million. Net profit attributable to ordinary shareholders totaledRMB 99.6 million, up 68.5% from the same quarter of previous year, sustaining profitability for the twelfth consecutive quarter. Operating expenses, including sales and marketing expenses, general and administrative expenses, research and development expenses, accounted for 45.1% of revenue.

For the year of 2024, Waterdrop reported net operating revenue increased by 5.4% year over year to RMB 2,771.8 million. Net profit attributable to ordinary shareholders totaledRMB 367.5 million, up 119.8% from the previous year. Operating expenses, including sales and marketing expenses, general and administrative expenses, research and development expenses, accounted for 46.1% of revenue, a decrease of 8.7 percentage points year-on-year.

In recognition of the invaluable support from shareholders, Waterdrop declared another cash dividend. The cash dividend ofUS$0.02per ADS orUS$0.002per ordinary share, to shareholders of record as of the close of business onApril 11, 2025. The payment date is expected to be on or aroundApril 30, 2025for holders of ordinary shares and on or aroundMay 2, 2025for holders of ADSs.

Since announcing its first share repurchase program inSeptember 2021, as ofFebruary 28, 2025, Waterdrop has repurchased approximately 52.1 million American Depositary Shares (ADSs) from the open market with cash for a total consideration of approximatelyUS$103.7 million.

As ofDecember 31, 2024, cash position of the Company wasRMB3,670.3 million(US$502.8 million), as compared withRMB3,571.6 millionas ofDecember 31, 2023.

Insurance Business Operating Profit TotaledRMB 477.2 Millionin 2024

In the fourth quarter of 2024, Waterdrop's insurance-related revenue amounted toRMB 582.4 million. The first-year premiums ("FYP") generated through the insurance business amounted toRMB1,897.9 million, representing an increase of 24.5% year over year. For the year of 2024, Waterdrop's insurance-related income amounted toRMB2,363.8 million.  Annual operating profit totaledRMB 477.2 million.

Mr.Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented,"Our insurance business capped off the year with an annual FYP ofRMB7,472.8 million, marking a 5.1% year-over-year growth. Throughout the fourth quarter, we honed our focus on optimizing customer acquisition channels and diversifying product offerings, which yielded robust outcomes. Our targeted acquisition strategies spurred a 14.9% year-over-year surge in new user acquired."

Waterdrop recently announced the strategic integration and local deployment of DeepSeek models, which marks a significant step forward in the AI-driven insurance ecosystem. Utilizing advanced AI models, Waterdrop's AI Insurance Expert now supports multi-modal interactions, including voice and text. The system excels in managing complex dialogues and assisting with sales strategies, autonomously handling voice communications and consultations for medical insurance products.

Waterdrop Medical Crowdfunding RaisedRMB 67.5 Billionfor 3.40 Million Patients

During the quarter, Waterdrop Medical Crowdfunding upheld its mission of"emergency rescue"with remarkable success. As ofDecember 31, 2024, around 470 million people cumulatively had donated an aggregate ofRMB 67.5 billionto 3.40 million patients through Waterdrop Medical Crowdfunding.

As a milestone, Waterdrop Medical Crowdfunding has been officially recognized as a pioneer inChina'sstandardized medical crowdfunding sector. Following new legislation changes, the platform secured designation from the Ministry of Civil Affairs onDecember 25, 2024, becoming one of the first batch of state-endorsed"Online Service Platforms for Individuals Seeking Financial Help".

Waterdrop's Digital Clinical Trial Solution has maintained its growth in the fourth quarter of 2024, generating revenues of approximatelyRMB 25.5 million, representing an increase of 22.9% YoY. And the income amounted toRMB91.1 millionin 2024. As ofDecember 31, 2024, the Company had cumulatively enrolled 10,395 patients into 1,212 clinical trial programs through the E-Find Platform.

Mr.Peng Shen, said,"In 2024, Waterdrop delivered solid performance across all business units, driven by its integrated scenario ecosystem and sustained AI investments. By fully upgrading products and services through these strategic advantages, the company has established new benchmarks for Al implementation in the industry. Amid accelerating technologies advance in 2025, Waterdrop remains committed to"Tech for Good", strategically leveraging resilience to capture emerging opportunities while fostering inclusive growth through accessible AI solutions."

Waterdrop Announces Appointment of New Independent Director

Waterdrop today announced the appointment of Mr.Chen Linas an independent director and a member of the audit committee of the Company's board of directors, effectiveMarch 11, 2025.

Mr.Chen Linhas served at various positions at TheUniversity of Hong Kong, including as the Chair of Finance and Stelux Professor in Finance sinceAugust 2013, and Associate Vice President sinceJanuary 2023. In addition, Mr. Lin has served as an independent non-executive director for several companies, including Artificial Intelligent Interconnection Technology Co., Ltd. sinceDecember 2024,Beijing51WORLD Digital Twin Technology Co., Ltd. sinceSeptember 2024, Shiyue Daotian Group Co., Limited (HKEX: 09676) sinceOctober 2023, Allianz Global Investors Fund Management Co., Ltd. sinceSeptember 2023, CNCB (Hong Kong) Investment Limited sinceJanuary 2022, and China Merchants Land Asset Management Co., Limited (the manager of China Merchants Commercial REIT (HKEX: 01503)) sinceDecember 2019.

Mr. Lin is a non-official member of the Task Force on Promoting Web3 Development of the Government ofHong KongsinceJuly 2023, a Fellow of the Academy of Social Sciences, UK sinceMarch 2023, a Member of the Academia Europaea sinceJune 2022, a member of the Hang Seng Index Advisory Committee sinceAugust 2021, a member of the Fintech Advisory Group of the Securities and Futures Commission sinceMarch 2021and an advisory member of the Hong Kong Institute for Monetary and Financial Research of the Hong Kong Monetary Authority sinceJune 2019. Mr. Lin also served as a member of the Currency Board Sub-Committee of the Exchange Fund Advisory Committee ofHong KongfromJanuary 2017toDecember 2022.

Mr. Lin obtained his PhD degree in economics inAugust 2006, master of arts degree in economics inAugust 2005and master of business administration degree (MBA) inMay 2004fromUniversity of Floridainthe United States. He received his bachelor's degree in engineering fromSouth ChinaUniversity of Technology inJuly 2000.

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SOURCE Waterdrop Inc.