Waterdrop (WDH) Q1 2024 earnings summary

Executive summary

• Q1 2024 net profit attributable to shareholders was CNY 80.6 million, up 62.2% year-over-year and 36.5% quarter-over-quarter, marking the ninth consecutive profitable quarter.

• Revenue reached CNY 705 million, up 16.3% year-over-year, with all business segments showing steady growth.

• The company maintained positive operating cash flow and held CNY 3,484.4 million in cash and short-term investments as of March 31, 2024.

• First-year premiums (FYP) from insurance business increased 3.7% year-over-year and 15% sequentially.

• The medical crowdfunding platform reached 456 million cumulative donors and facilitated CNY 63.8 billion in donations to over 3.17 million patients.

Financial highlights

• Insurance-related income was CNY 610 million, up 13.1% year-over-year; healthcare-related income reached CNY 25.3 million, up 7.3% year-over-year.

• Operating profit for the insurance business was CNY 130 million, with an operating margin over 20%.

• Adjusted net profit was CNY 98.4 million, up from CNY 74.7 million in Q4 2023.

• Operating costs and expenses totaled CNY 658 million, up 10.5% year-over-year.

• Crowdfunding service fees surged 60.3% to CNY 67.4 million.

Outlook and guidance

• Full-year 2024 guidance remains unchanged: double-digit revenue growth, insurance operating margin above 8%, and sustainable healthcare revenue growth.

• Focus remains on high-quality development, operational efficiency, and technological empowerment, especially in insurance and healthcare.

• Strategies include optimizing user experience, investing in AIGC, and expanding healthcare services globally.

• Strategic execution aims to maintain stable profitability and broaden business boundaries.