Waterdrop (WDH) Q1 2025 earnings summary

Executive summary

• Achieved robust business growth and steady profitability in Q1 2025, with revenue over RMB 753.7 million, up 7% year-over-year, and net profit attributable to ordinary shareholders of RMB 108.2 million, up 34.2% year-over-year.

• Marked the 13th consecutive quarter of GAAP profitability.

• All business segments delivered solid performance, with notable progress in insurance, medical profiling, and digital clinical trial solutions.

• First-year insurance premiums grew 19.3% year-over-year to RMB 2,092.4 million.

• Adjusted net profit (non-GAAP) reached RMB 130 million, up from RMB 98.4 million a year ago.

Financial highlights

• Total revenue reached RMB 754 million, a 7% year-over-year increase.

• Insurance-related income rose 8.4% year-over-year to RMB 658 million, driven by higher brokerage income.

• Digital clinical trial solution business generated RMB 23 million, up 11.5% year-over-year.

• Operating costs and expenses increased 3% year-over-year to RMB 678 million, lower than revenue growth.

• Cash position at March 31, 2025 was RMB 3,543.3 million.

Outlook and guidance

• Revenue growth rate expected to further increase in subsequent quarters.

• Annual revenue anticipated to grow by over 20% year-over-year.

• Increased investment in business growth in the second half may negatively impact annual profits.

• Management expects to leverage business know-how and AI investment to accelerate operational growth and create greater value for users and shareholders.