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

Core Insights - Waterdrop Inc. reported strong financial results for Q4 and FY 2024, with significant increases in net profit and operating revenue, highlighting sustained profitability and growth in its insurance business [2][3][12] Financial Performance - In Q4 2024, Waterdrop achieved net operating revenue of RMB 686.8 million and a net profit of RMB 99.6 million, marking a 68.5% increase year-over-year [2] - For the full year 2024, net operating revenue rose by 5.4% to RMB 2,771.8 million, while net profit surged by 119.8% to RMB 367.5 million [3] - Operating expenses accounted for 45.1% of revenue in Q4 and 46.1% for the year, showing a decrease of 8.7 percentage points year-on-year [2][3] Shareholder Returns - Waterdrop declared a cash dividend of US$0.02 per ADS, with a payment date expected around April 30, 2025 [4] - The company has repurchased approximately 52.1 million ADSs for a total of US$103.7 million since initiating its share repurchase program in September 2021 [5] Insurance Business Highlights - Waterdrop's insurance-related revenue in Q4 2024 was RMB 582.4 million, with first-year premiums (FYP) reaching RMB 1,897.9 million, a 24.5% increase year-over-year [6] - The annual FYP for 2024 was RMB 7,472.8 million, reflecting a 5.1% growth [7] - The insurance business generated an annual operating profit of RMB 477.2 million [6] Medical Crowdfunding and Digital Solutions - Waterdrop Medical Crowdfunding raised RMB 67.5 billion for 3.40 million patients, demonstrating its impact in the healthcare sector [8] - The platform was recognized as a pioneer in China's standardized medical crowdfunding sector [9] - Waterdrop's Digital Clinical Trial Solution generated revenues of approximately RMB 25.5 million in Q4 2024, a 22.9% increase year-over-year [10] Strategic Initiatives - The company is focusing on optimizing customer acquisition channels and diversifying product offerings, resulting in a 14.9% increase in new users acquired [7] - Waterdrop is integrating AI-driven solutions to enhance its insurance ecosystem, improving customer interactions and sales strategies [7][12] Leadership Changes - Waterdrop appointed Mr. Chen Lin as an independent director and member of the audit committee, effective March 11, 2025 [13]