Waterdrop(US:WDH)2022-09-09 18:24Financial Data and Key Metrics Changes - The company achieved a net profit of RMB207 million in Q2 2022, nearly doubling sequentially, and has reported non-GAAP net profit for three consecutive quarters [6][21][48] - Revenue increased by 8.1% quarter-over-quarter, although it decreased by 25.3% year-over-year to RMB701 million due to a decline in insurance-related income [6][45] - Operating costs and expenses decreased by 68.9% year-over-year to RMB546 million, with a marginal increase of 2.5% quarter-over-quarter [46][48] Business Line Data and Key Metrics Changes - The insurance business remains the only profit contributor, with net profit reaching RMB207 million, up 97% sequentially [21][45] - The take rate increased from 34% in Q1 to 38% in Q2, driven by improvements in the insurance business [45] - The number of active app users reached 3.4 million, up by 47%, and short-term insurance premiums from marketing channels increased by 60% [26] Market Data and Key Metrics Changes - The life and health insurance premium growth in China was sluggish in the first half of 2022, underperforming the P&C insurance industry [20] - The cumulative number of donors on the Waterdrop Medical Crowdfunding platform reached 412 million, raising approximately RMB53.3 billion for patients [12][33] Company Strategy and Development Direction - The company is shifting its strategy from rapid growth to sustainable development, focusing on enhancing product value and user needs [7][8] - Plans to increase investments in new business opportunities in the second half of 2022 while maintaining a commitment to high-quality and sustainable development [6][7] - The company aims to leverage technology and innovation to enhance operational efficiency and user experience [9][31] Management Comments on Operating Environment and Future Outlook - Management remains optimistic about the Chinese economy and healthcare industry despite external challenges [7] - The company is committed to achieving a healthy and sustainable operating profit for 2022, with a focus on continuous improvement and user value [19][48] Other Important Information - The company has launched a new share repurchase program, with plans to repurchase up to USD 80 million worth of ADS [18] - The Waterdrop Medical Crowdfunding platform has implemented a service fee of 3% to cover operational costs, which has not adversely affected user engagement [33][64] Q&A Session Summary Question: What is the growth strategy for the insurance business? - The company plans to explore opportunities in various business models, including Directly 2C, 2A2C, and 2B2C, with a focus on the WeChat ecosystem for user acquisition and education [50][51][56] Question: Can you explain the service and revenue model of the crowdfunding platform? - The crowdfunding platform charges a service fee of 3% of the withdrawal amount for campaigns, which supports operational costs while maintaining a commitment to high-quality services [62][64]