Waterdrop Inc. Announces Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results and a Special Cash Dividend
- Consecutive profitability and positive operating cash flow with net profit growth of 60.7% in Q4 2023.
- Resilient business performance with a decrease in first-year premiums and net operating revenue in Q4 2023.
- Expansion of product offerings on Waterdrop Insurance Marketplace with a focus on critical illness insurance products.
- Significant growth in user base and fundraising activities on Waterdrop Medical Crowdfunding platform.
- Enrollment of over 6,900 patients into clinical trial programs through E-Find Platform.
- Declaration of a special cash dividend amounting to approximately US$15 million as a token of appreciation to shareholders.
- Decrease in first-year premiums and net operating revenue in Q4 2023.
- Decrease in overall insurance-related income and digital clinical trial solution income in Q4 2023.
- Increase in operating costs and expenses for both Q4 2023 and FY 2023.
- Operating loss reported for FY 2023 compared to an operating profit in FY 2022.
- Net profit and adjusted net profit attributable to ordinary shareholders decreased for both Q4 2023 and FY 2023.
Insights
The announcement by Waterdrop Inc. of their unaudited financial results for the full year and Q4 of 2023, along with a special cash dividend, is of high interest to shareholders and potential investors. The company's reported quarter-over-quarter net profit growth of 60.7% is a strong indicator of its financial health and operational efficiency. However, there is a notable year-over-year decrease in first-year premiums and net operating revenue, which could be a concern for long-term growth prospects.
From an investment perspective, the declaration of a special cash dividend suggests confidence in the company's liquidity and profitability. Additionally, the share repurchase programs indicate a potential undervaluation of shares or a strategic move to consolidate ownership, both of which can impact the stock price positively. Investors will be closely monitoring the performance of the new operating segments, as it can provide insights into the company's future strategic direction and operational focus.
Waterdrop's expansion in product offerings and the growth in the user base for its insurance marketplace indicate a strategic push to capture more market share in China's insurance and healthcare sector. Despite a slight decrease in first-year premiums, the company's ability to maintain a policy renewal rate above 95% demonstrates strong customer loyalty and recurring revenue potential. The investment in AI technology, such as the proprietary 'Waterdrop Guardian' large language model, shows a commitment to improving operational efficiency, which could enhance competitive advantage and reduce long-term costs.
However, the decrease in digital clinical trial solution income and increased operating costs and expenses due to the consolidation of Shenlanbao's financial results present challenges. The company will need to balance its growth initiatives with cost control measures to ensure sustainable profitability. Stakeholders will be interested in how these investments translate into revenue growth and margin improvements in the coming fiscal year.
The performance of Waterdrop's Medical Crowdfunding platform is particularly relevant, as it highlights the company's role in addressing the financial challenges of medical care in China. The platform's ability to attract a large user base and facilitate significant funds for patients underscores the social impact and potential for continued user engagement. The enrollment of patients in clinical trial programs through the E-Find Platform is another key area, as it positions Waterdrop at the intersection of healthcare and technology, potentially driving future growth through partnerships with pharmaceutical companies and CROs.
However, the year-over-year decrease in service fees from crowdfunding and clinical trial solutions raises questions about the scalability and long-term viability of these segments. Investors will be keen to understand the strategies Waterdrop will employ to address these segments' performance and how they will contribute to the overall growth trajectory of the company.
Financial and Operational Highlights for the Fourth Quarter and Fiscal Year 2023
- Consecutive profitability and positive operating cash flow: In the fourth quarter of 2023, net profit attributable to our ordinary shareholders reached
RMB59.1 million , representing a quarter-over-quarter growth of60.7% . As of December 31, 2023, our cash and cash equivalents and short-term investments balance amounted toRMB3,393.4 million (US ). We continued to generate positive operating cash flow during the fourth quarter of 2023.$478.0 million - Resilient business performance: For the fourth quarter of 2023, the first-year premiums ("FYP") generated through our insurance business amounted to
RMB1,525.0 million (US ), representing a decrease of$215.0 million 4.2% year over year. Our net operating revenue wasRMB659.4 million (US ), representing a decrease of$92.9 million 3.0% year over year. - Further expanded product offerings: As of December 31, 2023, we offered 1,357 insurance products cumulatively on Waterdrop Insurance Marketplace, as compared with 1,253 as of September 30, 2023. In the fourth quarter of 2023, the FYP generated from critical illness insurance products accounted for
26.2% of overall FYP, up by 1.8 percentage points quarter over quarter. - Broadening user base: As of December 31, 2023, around 450 million people cumulatively had donated an aggregate of approximately
RMB62.6 billion to over 3.10 million patients through Waterdrop Medical Crowdfunding. - Solidifying market position in patient recruitment: As of December 31, 2023, we cumulatively enrolled more than 6,900 patients into over 890 clinical trial programs through E-Find Platform.
Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, "Waterdrop delivered solid financial results for the fourth quarter and the full year of 2023. Despite encountering various challenges, we remain steadfast in our commitment to pursue steady and high-quality business development. We are pleased to report eight consecutive quarters of profitability. The quarterly net profit attributable to our ordinary shareholders reached
During the quarter, Waterdrop Insurance Marketplace experienced continued growth in our user base, driven by enriched product offerings and improved services. In the meantime, we implemented strategies to sustain the policy renewal rate at above
Our progress on the AI front was also noteworthy. To improve overall operational efficiency, we implemented our proprietary insurance-focused large language model, known as "Waterdrop Guardian" (or "Shuishou" in Chinese, reflecting our heartfelt wish to safeguard users' health) in our daily operations. This initiative yielded promising results.
In regard to Waterdrop Medical Crowdfunding, we maintained rigorous oversight of the transparency of fundraising activities on our platform and enhanced our risk management measures.
E-Find Platform achieved a new milestone by onboarding two new international pharmaceutical companies, bringing the number of collaborating pharmaceutical companies and Contract Research Organizations (collectively, "CROs") to 167 in the fourth quarter. In addition, we enrolled nearly 800 patients and started to provide services to 82 new clinical trial programs in the fourth quarter of 2023. We continued to expand our service coverage of disease categories, as many of these new programs focus on treatments of chronic diseases.
We are pleased to conclude 2023 on a resilient note. In recognition of the invaluable support from our shareholders, we are here to declare a special cash dividend, the aggregate payment of which amounted to approximately
Financial Results for the Fourth Quarter of 2023
Operating revenue, net
Net operating revenue for the fourth quarter of 2023 decreased by
- 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
RMB587.9 million (US ) in the fourth quarter of 2023, representing a decrease of$82.8 million 3.9% year over year fromRMB611.5 million for the fourth quarter of 2022, which was mainly due to the decrease in insurance brokerage income. On a quarter-over-quarter basis, insurance-related income decreased by5.1% . - 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 fourth quarter of 2023, we generated
RMB40.0 million (US ) in service fees, representing a decrease of$5.6 million 1.8% year over year fromRMB40.7 million for the fourth quarter of 2022. On a quarter-over-quarter basis, crowdfunding service fees increased by11.2% . - 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 fourth quarter of 2023, our clinical trial solution income amounted to
RMB20.8 million (US ), representing a decrease of$2.9 million 8.5% fromRMB22.7 million in the same period of 2022. On a quarter-over-quarter basis, digital clinical trial solution income decreased by24.7% .
Operating costs and expenses
Operating costs and expenses increased by
- Operating costs increased by
8.5% year over year toRMB302.1 million (US ) for the fourth quarter of 2023, as compared with$42.6 million RMB278.6 million for the fourth quarter of 2022, which was primarily driven by (i) an increase ofRMB12.8 million in personnel costs mainly due to the consolidation of the financial results of Shenlanbao which generated personnel costs ofRMB19.3 million , and (ii) an increase ofRMB7.0 million in costs of referral and service fees. On a quarter-over-quarter basis, operating costs decreased by3.2% fromRMB312.3 million , primarily due to (i) a decrease ofRMB5.8 million in costs of referral and service fees, and (ii) a decrease ofRMB2.3 million in the costs for patient recruitment consultants team. - Sales and marketing expenses increased by
26.9% year over year toRMB174.8 million (US ) for the fourth quarter of 2023, as compared with$24.6 million RMB137.8 million for the same quarter of 2022. The increase was primarily due to (i) the consolidation of the financial results of Shenlanbao which generated sales and marketing expenses ofRMB39.0 million , and (ii) an increase ofRMB15.8 million in marketing expenses to third-party traffic channels, partially offset by (iii) a decrease ofRMB21.1 million in personnel costs and share-based compensation expenses. On a quarter-over-quarter basis, sales and marketing expenses decreased by6.9% fromRMB187.7 million , primarily due to a decrease ofRMB11.3 million in sales and marketing personnel costs and share-based compensation expenses. - General and administrative expenses decreased by
19.1% year over year toRMB96.0 million (US ) for the fourth quarter of 2023, compared with$13.5 million RMB118.6 million for the same quarter of 2022. The year-over-year variance was due to (i) a decrease ofRMB12.7 million in personnel costs and share-based compensation expenses, and (ii) a decrease ofRMB9.2 million in professional service fees. On a quarter-over-quarter basis, general and administrative expenses decreased by16.3% fromRMB114.6 million , due to (i) a decrease ofRMB20.7 million in professional service fees, (ii) a decrease ofRMB16.9 million in personnel costs and share-based compensation expenses, partially offset by (iii) an increase ofRMB17.5 million allowance for doubtful accounts. - Research and development expenses decreased by
16.6% year over year toRMB59.8 million (US ) for the fourth quarter of 2023, compared with$8.4 million RMB71.7 million for the same period of 2022. The decrease was primarily due to a decrease ofRMB17.3 million in personnel costs and share-based compensation expenses, partially offset by the consolidation of the financial results of Shenlanbao. On a quarter-over-quarter basis, research and development expenses decreased by19.1% fromRMB73.9 million , which was mainly due to a decrease ofRMB12.4 million in research and development personnel costs and share-based compensation expenses.
Operating profit for the fourth quarter of 2023 was
Interest income for the fourth quarter of 2023 was
Income tax expense for the fourth quarter of 2023 was
Net profit attributable to the Company's ordinary shareholders for the fourth quarter of 2023 was
Adjusted net profit attributable to the Company's ordinary shareholders for the fourth quarter of 2023 was
Financial Results for the Fiscal Year of 2023
Net operating revenue for the year of 2023 decreased by
- Our insurance-related income amounted to
RMB2,340.9 million (US ) in 2023, representing a decrease of$329.7 million 8.5% year over year fromRMB2,559.2 million for the year of 2022, which was mainly due to the decrease in insurance brokerage income. - Our crowdfunding service fees amounted to
RMB162.7 million (US ) in 2023, representing an increase of$22.9 million 4.4% year over year fromRMB155.8 million for the year of 2022. - Our digital clinical trial solution income amounted to
RMB100.5 million (US ) in 2023, representing an increase of$14.2 million 69.0% year over year fromRMB59.5 million for the year of 2022.
Operating costs and expenses
Operating costs and expenses increased by
- Operating costs increased by
17.3% year over year toRMB1,195.5 million (US ) for the year of 2023, compared with$168.4 million RMB1,019.4 million for the year of 2022, which was primarily driven by (i) the consolidation of the financial results of Shenlanbao which generated operating costs ofRMB38.7 million , (ii) an increase ofRMB109.3 million in costs of referral and service fees, (iii) an increase ofRMB62.0 million in the crowdfunding consultants team costs, as we started to generate crowdfunding service fees since April 2022, and partially offset by (i) a decrease ofRMB19.5 million 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, and (ii) a decrease ofRMB15.1 million in personnel costs. - Sales and marketing expenses increased by
18.6% year over year toRMB740.5 million (US ) for the year of 2023, compared with$104.3 million RMB624.5 million for the year of 2022. The increase was primarily due to (i) the consolidation of the financial results of Shenlanbao which generated sales and marketing expenses ofRMB67.1 million , (ii) an increase ofRMB100.8 million in marketing expenses to third-party traffic channels, (iii) an increase ofRMB29.8 million in personnel costs and share based compensation costs, partially offset by (iv) a decrease ofRMB86.3 million in outsourced sales and marketing service fees to third parties. - General and administrative expenses increased by
3.5% year over year toRMB402.4 million (US ) for the year of 2023, compared with$56.7 million RMB388.7 million for the year of 2022. The year-over-year variance was due to the consolidation of the financial results of Shenlanbao which generated sales and marketing expenses ofRMB12.9 million . - Research and development expenses increased by
2.7% year over year toRMB299.1 million (US ) for the year of 2023, compared with$42.1 million RMB291.3 million for the year of 2022. The increase was primarily due to the consolidation of the financial results of Shenlanbao which generated research and development expenses ofRMB12.0 million , partially offset by a decrease ofRMB3.4 million in research and development personnel costs and share-based compensation expenses.
Operating loss for the year of 2023 was
Interest income for the year of 2023 was
Income tax expense for the year of 2023 was
Net profit attributable to the Company's ordinary shareholders for the year of 2023 was
Adjusted net profit attributable to the Company's ordinary shareholders for the year 2023 was
Cash and cash equivalents and short-term investments
As of December 31, 2023, the Company had combined cash and cash equivalents and short-term investments of
Share Repurchase Programs
Pursuant to the share repurchase programs launched in September 2021, September 2022 and September 2023, respectively, we had cumulatively repurchased approximately 39.7 million ADSs from the open market with cash for a total consideration of approximately
Special Cash Dividend
The board of directors has approved a special cash dividend of
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 Twelve Months Ended | |||||||||||||
December 31, 2022 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||||
RMB | RMB | RMB | USD | RMB | RMB | USD | ||||||||
(All amounts in thousands) | ||||||||||||||
Operating revenue, net | ||||||||||||||
Insurance* | 611,476 | 619,269 | 587,866 | 82,799 | 2,559,160 | 2,340,915 | 329,711 | |||||||
Crowdfunding | 40,741 | 35,971 | 40,013 | 5,636 | 155,803 | 162,683 | 22,913 | |||||||
Others | 27,253 | 31,238 | 31,485 | 4,434 | 86,805 | 127,109 | 17,903 | |||||||
Total consolidated operating revenue, net | 679,470 | 686,478 | 659,364 | 92,869 | 2,801,768 | 2,630,707 | 370,527 | |||||||
Operating profit/(loss) | ||||||||||||||
Insurance* | 212,259 | 145,200 | 128,223 | 18,060 | 1,035,088 | 528,137 | 74,387 | |||||||
Crowdfunding | (58,841) | (68,793) | (51,718) | (7,284) | (254,175) | (245,776) | (34,617) | |||||||
Others | (42,840) | (43,713) | (27,078) | (3,815) | (190,900) | (155,235) | (21,865) | |||||||
Total segment operating profit/(loss) | 110,578 | 32,694 | 49,427 | 6,961 | 590,013 | 127,126 | 17,905 | |||||||
Unallocated item** | (37,722) | (34,762) | (22,788) | (3,209) | (112,026) | (133,869) | (18,855) | |||||||
Total consolidated operating profit/(loss) | 72,856 | (2,068) | 26,639 | 3,752 | 477,987 | (6,743) | (950) | |||||||
Total other income | 53,891 | 36,914 | 44,463 | 6,263 | 152,706 | 170,983 | 24,083 | |||||||
Profit before income tax | 126,747 | 34,846 | 71,102 | 10,015 | 630,693 | 164,240 | 23,133 | |||||||
Income tax (expense)/benefit | (545) | 1,479 | (15,164) | (2,136) | (22,976) | (555) | (78) | |||||||
Net profit | 126,202 | 36,325 | 55,938 | 7,879 | 607,717 | 163,685 | 23,055 | |||||||
* The Company started to consolidate the financial results of Shenlanbao since July 4, 2023 and reported the results of Shenlanbao under the Insurance segment. | ||||||||||||||
** The share-based compensation represents an unallocated item in the segment information because our management does not consider this as part of the segment operating performance measure. |
Recent Development
Status Update of Acquisition of Cunzhen Qiushi
Since the previously announced acquisition plan of Cunzhen Qiushi on June 9, 2023, the Company completed the acquisition of
Exchange Rate
This announcement contains translations of certain RMB amounts into
Non-GAAP Financial Measure
The Company uses non-GAAP financial measure, adjusted net profit attributable to our ordinary shareholders, in evaluating the Company's operating results and for financial and operational decision-making purposes. Adjusted net profit attributable to our ordinary shareholders represents net profit attributable to our ordinary shareholders excluding share-based compensation expense attributable to our ordinary shareholders, the impact of terminating the mutual aid plan and foreign currency exchange gain or losses. Such adjustments have no impact on income tax.
The non-GAAP financial measure is not presented in accordance with
The Company mitigates these limitations by reconciling the non-GAAP financial measure to the most comparable
For more information on the non-GAAP financial measure, please see the table captioned "Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the
Conference Call Information
Waterdrop's management team will hold a conference call on March 26, 2024 at 8:00 AM
International: | 1-412-317-6061 |
United States Toll Free: | 1-888-317-6003 |
Hong Kong Toll Free: | 800-963976 |
852-58081995 | |
Mainland | 4001-206115 |
Chinese Line (Mandarin) Entry Number: | 8760193 |
English Interpretation Line (Listen-only Mode) Entry Number: | 8792590 |
Participants can choose between the Chinese and the English interpretation lines. Please note that the English interpretation option will be in listen-only mode. Please dial in 15 minutes before the call is scheduled to begin and provide the Elite Entry Number to join the call.
Telephone replays will be accessible two hours after the conclusion of the conference call through April 2, 2024 by dialing the following numbers:
United States Toll Free: | 1-877-344-7529 |
International: | 1-412-317-0088 |
Chinese Line Access Code: | 5345526 |
English Interpretation Line Access Code: | 7228195 |
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.waterdrop-inc.com/.
About Waterdrop Inc.
Waterdrop Inc. (NYSE: WDH) is a leading technology platform dedicated to insurance and healthcare service with a positive social impact. Founded in 2016, with the comprehensive coverage of Waterdrop Insurance Marketplace and Waterdrop Medical Crowdfunding, Waterdrop aims to bring insurance and healthcare service to billions through technology. For more information, please visit www.waterdrop-inc.com.
WATERDROP INC. | |||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(All amounts in thousands, unless otherwise noted) | |||||
As of | |||||
December 31,2022 | December 31,2023 | ||||
RMB | RMB | USD | |||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 1,574,171 | 396,905 | 55,903 | ||
Restricted cash | 517,364 | 577,121 | 81,286 | ||
Short-term investments | 2,130,377 | 2,996,527 | 422,052 | ||
Accounts receivable, net | 675,796 | 693,110 | 97,623 | ||
Current contract assets | 450,085 | 572,871 | 80,687 | ||
Amount due from related parties | 358 | 65 | 9 | ||
Prepaid expense and other assets | 342,468 | 189,846 | 26,738 | ||
Total current assets | 5,690,619 | 5,426,445 | 764,298 | ||
Non-current assets | |||||
Non-current contract assets | 103,591 | 134,383 | 18,927 | ||
Property, equipment and software, net | 31,397 | 33,878 | 4,772 | ||
Intangible assets, net | 56,614 | 177,407 | 24,987 | ||
Long-term investments | 11,969 | 211,758 | 29,825 | ||
Right of use assets, net | 18,447 | 59,851 | 8,430 | ||
Deferred tax assets | 6,166 | 24,190 | 3,407 | ||
Goodwill | 3,420 | 80,751 | 11,374 | ||
Total non-current assets | 231,604 | 722,218 | 101,722 | ||
Total assets | 5,922,223 | 6,148,663 | 866,020 | ||
Liabilities, Mezzanine Equity and Shareholders' Equity | |||||
Current liabilities | |||||
Amount due to related parties | 11,553 | 9,509 | 1,339 | ||
Insurance premium payables | 516,661 | 591,953 | 83,375 | ||
Accrued expenses and other current liabilities | 584,123 | 597,684 | 84,182 | ||
Short-term loans | - | 137,557 | 19,374 | ||
Current lease liabilities | 9,354 | 32,908 | 4,635 | ||
Total current liabilities | 1,121,691 | 1,369,611 | 192,905 | ||
Non-current liabilities | |||||
Non-current lease liabilities | 4,701 | 27,293 | 3,844 | ||
Deferred tax liabilities | 29,703 | 73,305 | 10,325 | ||
Total non-current liabilities | 34,404 | 100,598 | 14,169 | ||
Total liabilities | 1,156,095 | 1,470,209 | 207,074 | ||
Mezzanine Equity | |||||
Redeemable non-controlling interests | - | 92,760 | 13,065 | ||
Shareholders' equity | |||||
Class A ordinary shares | 108 | 112 | 16 | ||
Class B ordinary shares | 27 | 27 | 4 | ||
Treasury stock | (3) | (12) | (2) | ||
Additional paid-in capital | 7,384,670 | 7,003,423 | 986,411 | ||
Accumulated other comprehensive income | 108,245 | 144,107 | 20,297 | ||
Accumulated deficit | (2,726,919) | (2,561,963) | (360,845) | ||
Total shareholders' equity | 4,766,128 | 4,585,694 | 645,881 | ||
Total liabilities, mezzanine equity and shareholders' equity | 5,922,223 | 6,148,663 | 866,020 |
WATERDROP INC. | ||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||
(All amounts in thousands, except for share and per share data, or otherwise noted) | ||||||||||||||
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||
December 31, 2022 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||||
RMB | RMB | RMB | USD | RMB | RMB | USD | ||||||||
Operating revenue, net | 679,470 | 686,478 | 659,364 | 92,869 | 2,801,768 | 2,630,707 | 370,527 | |||||||
Operating costs and expenses(i) | ||||||||||||||
Operating costs | (278,573) | (312,278) | (302,143) | (42,556) | (1,019,362) | (1,195,544) | (168,389) | |||||||
Sales and marketing expenses | (137,793) | (187,685) | (174,817) | (24,622) | (624,478) | (740,451) | (104,290) | |||||||
General and administrative expenses | (118,563) | (114,641) | (95,959) | (13,516) | (388,651) | (402,395) | (56,676) | |||||||
Research and development expenses | (71,685) | (73,942) | (59,806) | (8,423) | (291,290) | (299,060) | (42,122) | |||||||
Total operating costs and expenses | (606,614) | (688,546) | (632,725) | (89,117) | (2,323,781) | (2,637,450) | (371,477) | |||||||
Operating profit/(loss) | 72,856 | (2,068) | 26,639 | 3,752 | 477,987 | (6,743) | (950) | |||||||
Other income | ||||||||||||||
Interest income | 27,677 | 32,890 | 34,659 | 4,882 | 81,713 | 136,043 | 19,161 | |||||||
Foreign currency exchange gain/(loss) | 4,260 | (3,734) | 6,956 | 980 | 4,064 | 4,342 | 612 | |||||||
Others, net | 21,954 | 7,758 | 2,848 | 401 | 66,929 | 30,598 | 4,310 | |||||||
Profit before income tax | 126,747 | 34,846 | 71,102 | 10,015 | 630,693 | 164,240 | 23,133 | |||||||
Income tax (expense)/benefit | (545) | 1,479 | (15,164) | (2,136) | (22,976) | (555) | (78) | |||||||
Net profit | 126,202 | 36,325 | 55,938 | 7,879 | 607,717 | 163,685 | 23,055 | |||||||
Net loss attributable to non-controlling interests shareholders | - | (417) | (3,119) | (439) | - | (3,536) | (498) | |||||||
Net profit attributable to ordinary shareholders | 126,202 | 36,742 | 59,057 | 8,318 | 607,717 | 167,221 | 23,553 | |||||||
Other comprehensive income: | ||||||||||||||
Foreign currency translation adjustment, net of tax | (40,297) | 8,983 | (39,390) | (5,548) | 129,563 | 37,413 | 5,270 | |||||||
Unrealized (loss)/gain on available for sale investments, net of tax | (4,339) | - | - | - | 174 | (1,551) | (218) | |||||||
Total Comprehensive income | 81,566 | 45,308 | 16,548 | 2,331 | 737,454 | 199,547 | 28,107 | |||||||
Weighted average number of ordinary shares used in computing net | ||||||||||||||
Basic | 3,903,634,639 | 3,719,628,339 | 3,698,466,876 | 3,698,466,876 | 3,921,388,720 | 3,769,679,736 | 3,769,679,736 | |||||||
Diluted | 4,067,145,456 | 3,808,529,672 | 3,762,270,456 | 3,762,270,456 | 4,022,467,160 | 3,880,861,496 | 3,880,861,496 | |||||||
Net profit per share attributable to ordinary shareholders | ||||||||||||||
Basic | 0.03 | 0.01 | 0.02 | 0.00 | 0.15 | 0.04 | 0.01 | |||||||
Diluted | 0.03 | 0.01 | 0.02 | 0.00 | 0.15 | 0.04 | 0.01 | |||||||
(i) Share-based compensation expenses are included in the operating costs and expenses as follows. | ||||||||||||||
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||
December 31, 2022 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||||
RMB | RMB | RMB | USD | RMB | RMB | USD | ||||||||
Sales and marketing expenses | (9,635) | (8,944) | (1,991) | (280) | (16,120) | (35,352) | (4,979) | |||||||
General and administrative expenses | (23,886) | (22,060) | (18,693) | (2,633) | (80,448) | (85,335) | (12,019) | |||||||
Research and development expenses | (4,201) | (3,758) | (2,104) | (296) | (15,458) | (13,182) | (1,857) | |||||||
Total | (37,722) | (34,762) | (22,788) | (3,209) | (112,026) | (133,869) | (18,855) |
WATERDROP INC. | ||||||||||||||
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | ||||||||||||||
(All amounts in thousands, unless otherwise noted) | ||||||||||||||
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||
December 31, 2022 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||||
RMB | RMB | RMB | USD | RMB | RMB | USD | ||||||||
Net profit attributable to the Company's ordinary | 126,202 | 36,742 | 59,057 | 8,318 | 607,717 | 167,221 | 23,553 | |||||||
Add: | ||||||||||||||
Share-based compensation expense attributable | 37,722 | 33,810 | 22,556 | 3,177 | 112,026 | 132,686 | 18,688 | |||||||
Foreign currency exchange (gain)/loss | (4,260) | 3,734 | (6,956) | (980) | (4,064) | (4,342) | (612) | |||||||
Impact of terminating the mutual aid plan (ii) | - | - | - | - | 19,549 | - | - | |||||||
Adjusted net profit attributable to the Company's | 159,664 | 74,286 | 74,657 | 10,515 | 735,228 | 295,565 | 41,629 | |||||||
(ii) This represents the cost of one-year health insurance coverage. | ||||||||||||||
(iii) The Company started to present Non-GAAP financial information based on net profit attributable to the Company's ordinary shareholders in this quarter as compared to net profit in the prior period. Therefore, the |
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SOURCE Waterdrop Inc.
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