BEIJING, June 6, 2024 /PRNewswire/ -- On June 5, 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 first quarter of 2024 ended March 31, 2024. During the quarter, Waterdrop reported net operating revenue of RMB 704.7 million, a year-over-year increase of 16.3%. Net profit attributable to ordinary shareholders totaled RMB 80.6 million, up 62.2% from the previous year, sustaining profitability for the ninth consecutive quarter. Operating expenses, including sales and marketing expenses, general and administrative expenses, and R&D expenses, accounted for 46.4% of revenue, a decrease of 11 percentage points year-on-year.
Since announcing its stock repurchase program in September 2021, as of May 31, 2024, Waterdrop has repurchased approximately 45.5 million American Depositary Shares (ADSs) from the open market.
Insurance Business Operating Profit Totaled RMB 129.2 Million, with Life Insurance Accounting for 56.4% of Long-term Insurance Product Mix
Waterdrop's insurance-related revenue increased 13.1% year-on-year to RMB 607 million. The insurance business operating profit reached RMB 129.2 million in Q1 2024. First-year premiums (FYPs) generated by Waterdrop Insurance Marketplace amounted to RMB 1.755 billion, up 3.7% year-on-year.
During the quarter, the insurance business demonstrated significant improvements in underwriting quality, especially within the long-term insurance services segment. Notably, the share of life insurance in the FYPs climbed to 56.4% of the long-term insurance product mix, marking a year-on-year increase of 9.9 percentage points. Moreover, the renewal rate exceeded 95%, underscoring the trust and recognition our insurance services garner from policyholders.
The quarter also saw significant enhancements in insurance technology, notably through the expanded capabilities of the ShuishouGPT platform. In health insurance, the AI insurance consultant can now autonomously interact with users for up to 40 minutes. Additionally, its accuracy in answering insurance-related inquiries exceeds 90%, substantially boosting sales effectiveness and quality assurance. To date, Waterdrop has secured four authorized patents and submitted over ten patent applications related to this technology.
Waterdrop Medical Crowdfunding Raised RMB 63.8 Billion for 3.17 Million Patients, Signing 88 New Medical Service Projects
During the quarter, Waterdrop Medical Crowdfunding upheld its mission of "saving lives" with remarkable success. As of March 31, 2024, the platform had brought in donations totaling RMB 63.8 billion from approximately 456 million policyholders, benefiting over 3.17 million patients since its inception. Despite recording an operating loss of approximately RMB 32.2 million, the losses have narrowed compared to previous periods.
To enhance service quality, Waterdrop Medical Crowdfunding unveiled the 'Guardian Program', a comprehensive initiative that addresses fundraising efficiency, traffic support, fund security, and audit upgrades to deliver a superior fundraising experience and empower patients and financially challenged families. Furthermore, the platform introduced an online 'Green Transfer Channel' that swiftly advances patient expenses within an hour of application approval, especially in critical situations such as ICU admissions, urgent major surgeries, or organ transplants. Additionally, the platform also offers fee waivers for disadvantaged households and provides financial subsidies to patients affected by accidental disasters and major accidents, extending its compassion and support to those in need.
Waterdrop's healthcare-related services business has witnessed significant progress in the first quarter of 2024, generating revenues of approximately RMB 25.3 million, representing a year-on-year growth of 7.3%. The company has expanded its partner network, collaborating with 179 pharmaceuticals and CROs, signing 88 new cooperation projects, and cumulatively enrolling approximately 7,800 patients.
Shen Peng, Founder and CEO of Waterdrop, said, "In the recent quarter, we adhered to our sustainable development strategy and drove a steady improvement in profitability, with technological innovation serving as our cornerstone. While acknowledging the challenges that lie ahead for our business expansion, we remain focused on pursuing sustainable growth. We will continually broaden our operational horizons, aligned with our mission and core business segments, to deliver even greater value to our users and partners."
