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

Rhea-AI Summary

Waterdrop (NYSE: WDH) reported strong financial results for Q4 and FY2024. The company's annual net profit surged 119.8% year-over-year to RMB 367.5 million, while net operating revenue increased 5.4% to RMB 2,771.8 million.

Q4 highlights include net operating revenue of RMB 686.8 million and net profit of RMB 99.6 million, up 68.5% YoY. The insurance business generated RMB1,897.9 million in first-year premiums (FYP), a 24.5% YoY increase. Annual insurance operating profit reached RMB 477.2 million.

The company declared a cash dividend of US$0.02 per ADS, payable in May 2025. As of February 2025, Waterdrop has repurchased approximately 52.1 million ADSs for US$103.7 million. The company's cash position stood at RMB3,670.3 million (US$502.8 million) at year-end.

Notable achievements include the integration of DeepSeek AI models for insurance services and official recognition as a pioneer in China's standardized medical crowdfunding sector.

Positive

• Net profit surged 119.8% YoY to RMB 367.5 million in FY2024
• Q4 net profit increased 68.5% YoY to RMB 99.6 million
• Insurance FYP grew 24.5% YoY in Q4 2024
• Operating expenses decreased by 8.7 percentage points YoY
• Strong cash position of RMB3,670.3 million
• Declared cash dividend of US$0.02 per ADS

Negative

• Modest revenue growth of only 5.4% YoY in FY2024
• Operating expenses still high at 45.1% of revenue in Q4

Insights

Financial Analyst

Waterdrop's Q4 and FY2024 results demonstrate exceptional profitability growth despite modest revenue expansion, suggesting successful optimization of its business model. The 119.8% YoY increase in annual net profit to RMB 367.5 million significantly outpaced the 5.4% revenue growth to RMB 2,771.8 million, indicating substantial margin expansion.

The company's operational efficiency has markedly improved, with operating expenses declining by 8.7 percentage points year-on-year to 46.1% of revenue. This cost discipline, maintained across twelve consecutive profitable quarters, has strengthened Waterdrop's financial position, evidenced by its robust cash reserves of RMB 3,670.3 million (US$502.8 million).

The declaration of a US$0.02 per ADS dividend signals management's confidence in sustainable cash generation and commitment to shareholder returns. This, combined with the ongoing share repurchase program (totaling US$103.7 million to date), represents a balanced capital allocation approach that supports share value while maintaining financial flexibility.

Waterdrop's core insurance business demonstrated healthy momentum with Q4 first-year premiums increasing 24.5% YoY and full-year growth of 5.1%. The 14.9% increase in new users suggests effective customer acquisition strategies. Meanwhile, the Digital Clinical Trial Solution's 22.9% YoY revenue growth in Q4 represents a promising diversification avenue.

The company's strategic AI integration positions it favorably in the competitive insurtech landscape, potentially driving further operational efficiencies and enhanced customer experiences that could support continued margin expansion in 2025.

BEIJING, March 12, 2025 /PRNewswire/ -- On March 12, 2025, Waterdrop Inc. (NYSE: WDH), a leading technology platform dedicated to insurance and healthcare services with a positive social impact, unveiled its unaudited financial results for the fourth quarter and Fiscal Year ended December 31, 2024.

During the fourth quarter, Waterdrop reported net operating revenue of RMB 686.8 million. Net profit attributable to ordinary shareholders totaled RMB 99.6 million, up 68.5% from the same quarter of previous year, sustaining profitability for the twelfth consecutive quarter. Operating expenses, including sales and marketing expenses, general and administrative expenses, research and development expenses, accounted for 45.1% of revenue.

For the year of 2024, Waterdrop reported net operating revenue increased by 5.4% year over year to RMB 2,771.8 million. Net profit attributable to ordinary shareholders totaled RMB 367.5 million, up 119.8% from the previous year. Operating expenses, including sales and marketing expenses, general and administrative expenses, research and development expenses, accounted for 46.1% of revenue, a decrease of 8.7 percentage points year-on-year.

In recognition of the invaluable support from shareholders, Waterdrop declared another cash dividend. The cash dividend of US$0.02 per ADS or US$0.002 per ordinary share, to shareholders of record as of the close of business on April 11, 2025. The payment date is expected to be on or around April 30, 2025 for holders of ordinary shares and on or around May 2, 2025 for holders of ADSs.

Since announcing its first share repurchase program in September 2021, as of February 28, 2025, Waterdrop has repurchased approximately 52.1 million American Depositary Shares (ADSs) from the open market with cash for a total consideration of approximately US$103.7 million.

As of December 31, 2024, cash position of the Company was RMB3,670.3 million (US$502.8 million), as compared with RMB3,571.6 million as of December 31, 2023.

Insurance Business Operating Profit Totaled RMB 477.2 Million in 2024

In the fourth quarter of 2024, Waterdrop's insurance-related revenue amounted to RMB 582.4 million. The first-year premiums ("FYP") generated through the insurance business amounted to RMB1,897.9 million, representing an increase of 24.5% year over year. For the year of 2024, Waterdrop's insurance-related income amounted to RMB2,363.8 million.  Annual operating profit totaled RMB 477.2 million.

Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, "Our insurance business capped off the year with an annual FYP of RMB7,472.8 million, marking a 5.1% year-over-year growth. Throughout the fourth quarter, we honed our focus on optimizing customer acquisition channels and diversifying product offerings, which yielded robust outcomes. Our targeted acquisition strategies spurred a 14.9% year-over-year surge in new user acquired."

Waterdrop recently announced the strategic integration and local deployment of DeepSeek models, which marks a significant step forward in the AI-driven insurance ecosystem. Utilizing advanced AI models, Waterdrop's AI Insurance Expert now supports multi-modal interactions, including voice and text. The system excels in managing complex dialogues and assisting with sales strategies, autonomously handling voice communications and consultations for medical insurance products.

Waterdrop Medical Crowdfunding Raised RMB 67.5 Billion for 3.40 Million Patients

During the quarter, Waterdrop Medical Crowdfunding upheld its mission of "emergency rescue" with remarkable success. As of December 31, 2024, around 470 million people cumulatively had donated an aggregate of RMB 67.5 billion to 3.40 million patients through Waterdrop Medical Crowdfunding.

As a milestone, Waterdrop Medical Crowdfunding has been officially recognized as a pioneer in China's standardized medical crowdfunding sector. Following new legislation changes, the platform secured designation from the Ministry of Civil Affairs on December 25, 2024, becoming one of the first batch of state-endorsed "Online Service Platforms for Individuals Seeking Financial Help".

Waterdrop's Digital Clinical Trial Solution has maintained its growth in the fourth quarter of 2024, generating revenues of approximately RMB 25.5 million, representing an increase of 22.9% YoY. And the income amounted to RMB91.1 million in 2024. As of December 31, 2024, the Company had cumulatively enrolled 10,395 patients into 1,212 clinical trial programs through the E-Find Platform.

Mr. Peng Shen, said, "In 2024, Waterdrop delivered solid performance across all business units, driven by its integrated scenario ecosystem and sustained AI investments. By fully upgrading products and services through these strategic advantages, the company has established new benchmarks for Al implementation in the industry. Amid accelerating technologies advance in 2025, Waterdrop remains committed to "Tech for Good", strategically leveraging resilience to capture emerging opportunities while fostering inclusive growth through accessible AI solutions."

Waterdrop Announces Appointment of New Independent Director

Waterdrop today announced the appointment of Mr. Chen Lin as an independent director and a member of the audit committee of the Company's board of directors, effective March 11, 2025.

Mr. Chen Lin has served at various positions at The University of Hong Kong, including as the Chair of Finance and Stelux Professor in Finance since August 2013, and Associate Vice President since January 2023. In addition, Mr. Lin has served as an independent non-executive director for several companies, including Artificial Intelligent Interconnection Technology Co., Ltd. since December 2024, Beijing 51WORLD Digital Twin Technology Co., Ltd. since September 2024, Shiyue Daotian Group Co., Limited (HKEX: 09676) since October 2023, Allianz Global Investors Fund Management Co., Ltd. since September 2023, CNCB (Hong Kong) Investment Limited since January 2022, and China Merchants Land Asset Management Co., Limited (the manager of China Merchants Commercial REIT (HKEX: 01503)) since December 2019.

Mr. Lin is a non-official member of the Task Force on Promoting Web3 Development of the Government of Hong Kong since July 2023, a Fellow of the Academy of Social Sciences, UK since March 2023, a Member of the Academia Europaea since June 2022, a member of the Hang Seng Index Advisory Committee since August 2021, a member of the Fintech Advisory Group of the Securities and Futures Commission since March 2021 and an advisory member of the Hong Kong Institute for Monetary and Financial Research of the Hong Kong Monetary Authority since June 2019. Mr. Lin also served as a member of the Currency Board Sub-Committee of the Exchange Fund Advisory Committee of Hong Kong from January 2017 to December 2022.

Mr. Lin obtained his PhD degree in economics in August 2006, master of arts degree in economics in August 2005 and master of business administration degree (MBA) in May 2004 from University of Florida in the United States. He received his bachelor's degree in engineering from South China University of Technology in July 2000.

 

View original content:https://www.prnewswire.com/news-releases/waterdrop-q4-and-fy2024-financial-results-annual-net-profit-rises-119-8-yoy-and-declared-a-cash-dividend-302399747.html

SOURCE Waterdrop Inc.

FAQ

What was Waterdrop's (WDH) net profit growth in FY2024?

Waterdrop's net profit grew 119.8% year-over-year to RMB 367.5 million in FY2024.

How much cash dividend did WDH declare for shareholders in 2025?

Waterdrop declared a cash dividend of US$0.02 per ADS or US$0.002 per ordinary share, payable in May 2025.

What is the total value of WDH's share repurchase program as of February 2025?

Waterdrop has repurchased approximately 52.1 million ADSs for a total consideration of US$103.7 million.

How much did Waterdrop's insurance business FYP grow in Q4 2024?

Waterdrop's insurance business FYP grew 24.5% year-over-year to RMB1,897.9 million in Q4 2024.

What is WDH's cash position as of December 31, 2024?

Waterdrop's cash position was RMB3,670.3 million (US$502.8 million) as of December 31, 2024.