Waterdrop Inc. Announces Second Quarter 2024 Unaudited Financial Results and a Special Cash Dividend, Net profit rises 306.9% year-on-year
Rhea-AI Summary
Waterdrop Inc. (NYSE: WDH) reported strong Q2 2024 results, with net profit rising 306.9% year-on-year to RMB 88.3 million. The company's net operating revenue reached RMB 676 million, marking its tenth consecutive profitable quarter. Operating expenses decreased by 12 percentage points to 45.1% of revenue. Waterdrop announced a second special cash dividend of $7.5 million and approved a new $50 million share repurchase program.
The insurance business generated RMB 573.8 million in revenue and RMB 123 million in operating profit. The Medical Crowdfunding platform has raised RMB 65.1 billion for 3.25 million patients. The company is also investing in AI technology, piloting its 'Waterdrop Guardian' large language model in various insurance scenarios.
Positive
- Net profit increased by 306.9% year-on-year to RMB 88.3 million
- Tenth consecutive profitable quarter
- Operating expenses decreased by 12 percentage points to 45.1% of revenue
- Announced a second special cash dividend of $7.5 million
- Approved a new $50 million share repurchase program
- Insurance business generated RMB 123 million in operating profit
- Medical Crowdfunding platform raised RMB 65.1 billion for 3.25 million patients
- Investing in AI technology with 'Waterdrop Guardian' large language model
Negative
- Medical Crowdfunding segment recorded an operating loss of RMB 22.9 million
News Market Reaction – WDH
In the trading session that priced this news, WDH gained 5.66%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
In addition, Waterdrop also completed the first special cash dividend in the past quarter. Waterdrop declared that, with the board approval, the company will soon start the second special cash dividend of approximately
Since announcing its share repurchase program in September 2021, as of August 31, 2024, Waterdrop has repurchased approximately 49.3 million American Depositary Shares (ADSs) from the open market. The board of the directors of the Company has approved a new share repurchase program whereby the Company is authorized to repurchase its own ordinary shares in the form of American depository shares with an aggregate value of up to
Insurance Business Operating Profit Totaled
Waterdrop's insurance-related revenue amounted to
Waterdrop Insurance Marketplace continually improved online traffic conversion capabilities and efficiency, driving the number of new users to grow at
Committed to investment in technology, Waterdrop further piloted Shuishou large language model ("LLM"), known as "Waterdrop Guardian", in multiple service scenarios covering medical, critical illness, and auto insurance categories. During the quarter, the Company landed a strategic cooperation with a property & casualty insurer. This is the first time Waterdrop exports a customized solution for non-life insurance and the company looks forward to empowering more industry partners with AI solutions.
Waterdrop Medical Crowdfunding Raised
During the quarter, Waterdrop Medical Crowdfunding upheld its mission of "saving lives" with remarkable success. As of June 30, 2024, around 461 million people cumulatively donated an aggregate of
Waterdrop's healthcare-related business has maintained its growth in the second quarter of 2024, generating revenues of approximately
Shen Peng, Founder and CEO of Waterdrop, said, "In this quarter, we firmly implemented our high-quality development strategy, enhancing user experience through technological innovation and driving sustainable growth across all our businesses. Looking ahead, we will further strengthen our core operations, actively explore opportunities to apply large language model within the industry amid the new wave of AI,and strive to create greater commercial and social value.Meanwhile,we are grateful for the ongoing support from our users,partners,shareholders and investors. We're committed to repaying this trust with top-notch service and solid profitability."
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SOURCE Waterdrop Inc.