Waterdrop Inc. Announces Third Quarter 2023 Unaudited Financial Results

E-Find Platform sustained a rapid development with a 60.7% year-over-year increase in its income. In the third quarter, we collaborated with 135 pharmaceutical companies and CROs and successfully enrolled more than 800 patients. Given our solid performance, we established partnerships with more world-renowned pharmaceuticals and deepened cooperation with existing customers. In total, we onboarded 90 new clinical trial programs during the quarter. We also launched a patient management project in the field of chronic disease.

Looking forward, we will continue to leverage our advantages in big data and technologies and further integrate our resources in domestic insurance and healthcare industries to create more value for our users."

Financial Results for the Third Quarter of 2023

Operating revenue, net

Net operating revenue for the third quarter of 2023 decreased by 11.1% year over year to RMB686.5 million (US$94.1 million) from RMB772.2 million for the same period of 2022. On a quarter-over-quarter basis, net operating revenue increased by 1.1%. Net operating revenue generated by Shenlanbao for the third quarter of 2023 was RMB46.2 million (US$6.3 million).

• Insurance-related income includes insurance brokerage income and technical service income. Insurance brokerage income represents brokerage commissions earned from insurance companies. Technical service income is derived from providing technical services including customer relationship maintenance, customer complaint management, claim review, and user referral services, among other things, to insurance companies, insurance brokers, and agency companies. Our insurance-related income amounted to RMB619.3 million (US$84.9 million) in the third quarter of 2023, representing a decrease of 10.7% year over year from RMB693.5 million for the third quarter of 2022, which was mainly due to the decrease in insurance brokerage income. On a quarter-over-quarter basis, insurance-related income increased by 3.7%.
• Crowdfunding service fees represent the service income earned when patients successfully withdraw the proceeds from their crowdfunding campaigns. Our role is to operate the Waterdrop Medical Crowdfunding platform to provide crowdfunding related services through the internet, enabling patients with significant medical bills to seek help from caring hearts through technology (the "medical crowdfunding services"). Our medical crowdfunding services generally consist of providing technical and internet support, managing, reviewing and supervising the crowdfunding campaigns, providing comprehensive risk management and anti-fraud measures, and facilitating the collection and transfer of the funds. For the third quarter of 2023, we generated RMB36.0 million (US$4.9 million) in service fees, representing a decrease of 39.0% year over year from RMB59.0 million for the third quarter of 2022.
• Digital clinical trial solution income represents the service income earned from our customers mainly including biopharmaceutical companies and leading biotechnology companies. We match qualified and suitable patients for enrollment in clinical trials for our customers and generate digital clinical trial solution revenue for successful matches and we typically charge our customers a fixed unit price per successful match. For the third quarter of 2023, our clinical trial solution income amounted to RMB27.6 million (US$3.8 million), representing an increase of 60.7% from RMB17.2 million in the same period of 2022.

Operating costs and expenses

Total Operating costs and expenses increased by 7.6% year over year to RMB688.5 million (US$94.4 million) for the third quarter of 2023. On a quarter-over-quarter basis, operating costs and expenses decreased by 4.4%. Operating costs and expenses from Shenlanbao was RMB63.7 million (US$8.7 million).

• Operating costs decreased by 8.5% year over year to RMB312.3 million (US$42.8 million) for the third quarter of 2023, as compared with RMB341.3 million for the third quarter of 2022, which was primarily driven by (i) a RMB9.4 million decrease in costs of referral and service fees, and (ii) a RMB19.5 million decrease in the cost of one-year health insurance coverage related to the termination of mutual aid plan based on the final settlement information which occurred in the third quarter of 2022. On a quarter-over-quarter basis, operating costs decreased by 6.3% in the third quarter of 2023, primarily due to the RMB21.4 million decrease in costs of referral and service fees.
• Sales and marketing expenses increased by 36.1% year over year to RMB187.7 million (US$25.7 million) for the third quarter of 2023, as compared with RMB137.9 million for the same quarter of 2022. The increase was primarily due to (i) the consolidation of Shenlanbao which generated sales and marketing expenses of RMB28.1 million, as we started to consolidate the financial statements of Shenlanbao into our consolidated financial statements in the third quarter of 2023, (ii) a RMB14.4 million increase in marketing expenses to third-party traffic channels, and (iii) a RMB9.1 million increase in sales and marketing personnel costs and share-based compensation expenses. On a quarter-over-quarter basis, sales and marketing expenses decreased by 8.2% in the third quarter of 2023, primarily due to a RMB41.3 million decrease in marketing expenses to third-party traffic channels, partially offset by the consolidation of the financial statements of Shenlanbao.
• General and administrative expenses increased by 39.7% year over year to RMB114.6 million (US$15.7 million) for the third quarter of 2023, compared with RMB82.0 million for the same quarter of 2022. The year-over-year variance was due to the consolidation of the financial statements of Shenlanbao, which generated general and administrative expenses of RMB11.2 million, and an increase of RMB19.1 million in professional service fees. On a quarter-over-quarter basis, general and administrative expenses increased by 19.4% in the third quarter of 2023, due to the consolidation of the financial statements of Shenlanbao, and an increase of RMB8.7 million professional service fees.
• Research and development expenses decreased by 5.7% year over year to RMB73.9 million (US$10.1 million) for the third quarter of 2023, compared with RMB78.4 million for the same period of 2022. The decrease was primarily due to a total of RMB5.7 million decreases in research and development personnel costs and share-based compensation expenses. On a quarter-over-quarter basis, research and development expenses decreased by 14.7% from RMB86.7 million, which was mainly due to a total of RMB13.0 million decrease in research and development personnel costs and share-based compensation expenses.

Operating loss for the third quarter of 2023 was RMB2.1 million (US$0.3 million), as compared with an operating profit of RMB132.6 million for the third quarter of 2022 and an operating loss of RMB41.6 million for the second quarter of 2023.

Interest income for the third quarter of 2023 was RMB32.9 million (US$4.5 million), as compared with RMB24.3 million for the same period of 2022. The increase was primarily due to the increase in our short-term investments.

Income tax benefit for the third quarter of 2023 was RMB1.5 million (US$0.2 million), as compared with RMB9.1 million for the same period of 2022.

Net profit for the third quarter of 2023 was RMB36.3 million (US$5.0 million), as compared with RMB169.6 million for the same period of 2022, and RMB21.7 million for the second quarter of 2023.

Adjusted net profit for the third quarter of 2023 was RMB74.8 million (US$10.3 million), as compared with RMB215.7 million for the same period of 2022, and RMB50.3 million for the second quarter of 2023. 

Cash and cash equivalents and short-term investments

As of September 30, 2023, the Company had combined cash and cash equivalents and short-term investments of RMB3,139.0 million (US$430.2 million), as compared with RMB3,704.5 million as of December 31, 2022.

Share Repurchase Plans

Pursuant to the share repurchase programs launched in September 2021 and September 2022, respectively, and the new share repurchase program adopted in September 2023, as of November 30, 2023, we had cumulatively repurchased approximately 38.5 million ADSs from the open market with cash for a total consideration of approximately US$87.4 million.

Supplemental Information

Starting from the second quarter of 2023, our chief operating decision makers start to manage the business by three operating segments and assess the performance and allocate resources under the new operating segment structure.

Therefore, we organize and report our business in three operating segments:

• Insurance, which mainly includes Waterdrop Insurance Marketplace, Shenlanbao Insurance Marketplace and technical support service;
• Crowdfunding, which mainly includes Waterdrop Medical Crowdfunding; and
• Others, which mainly include Digital Clinical Trial Solution and other new initiatives.

As a result, we have updated our segments reporting information to reflect the new operating and reporting structure.

Comparative figures were retrospectively adjusted to conform to this presentation.

		For the Three Months Ended								For the Nine Months Ended
		September 30, 2022		June 30, 2023		September 30, 2023				September 30, 2022		September 30, 2023
		RMB		RMB		RMB		USD		RMB		RMB		USD
		(All amounts in thousands)
Operating revenue, net
Insurance*		693,522		597,437		619,269		84,878		1,947,684		1,753,049		240,275
Crowdfunding		59,001		44,677		35,971		4,930		115,062		122,670		16,813
Others		19,669		36,586		31,238		4,282		59,552		95,624		13,107
Total consolidated operating revenue, net		772,192		678,700		686,478		94,090		2,122,298		1,971,343		270,195
Operating profit/(loss)
Insurance*		271,142		99,759		145,200		19,901		822,829		399,914		54,813
Crowdfunding		(44,998)		(64,131)		(68,793)		(9,429)		(195,334)		(194,058)		(26,598)
Others		(68,029)		(47,877)		(43,713) Werbung Mehr Nachrichten zur Waterdrop ADS A Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 02:00 - PR Newswire BlackRock Income and Growth Investment Trust Plc - Total Voting Rights 02:00 - PR Newswire Carnival PLC - Carnival Announces Closing of €500 Million 5.75% Senior Unsecured Notes Offering; Repricing of Senior Secured First Lien Term Loan B Facilities as Part of Ongoing Debt and Interest Expense Reduction 25.04.24 - PR Newswire Finsbury Growth & Income Trust Plc - Transaction in Own Shares Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59