Waterdrop Inc. Releases 2024 Annual Report: AI-Enabled Efficiencies Drive Business Growth

Rhea-AI Summary

Waterdrop reported strong financial results for 2024, with net revenue of RMB 2.772 billion and net profit of RMB 368 million, marking a 119.8% year-over-year increase. The company maintained profitability for 12 consecutive quarters and completed a share buyback of 52.1 million ADS for US$100 million.

Key highlights include:

• Insurance Business: RMB 7.473 billion in first-year premiums, RMB 2.36 billion revenue
• Medical Crowdfunding: 3.4 million patients helped, RMB 67.5 billion raised from 470 million donors
• Digital Clinical Trials: RMB 91.1 million revenue, 10,395 patients enrolled

The company's AI investments of RMB 300 million annually have yielded significant results, with AI-powered solutions reducing query resolution time by 50%. Major financial institutions including Goldman Sachs maintain Buy ratings, projecting 20% revenue growth for 2025.

Positive

• Net profit surged 119.8% YoY to RMB 368M in 2024
• 12 consecutive quarters of profitability achieved
• Insurance business generated RMB 2.36B revenue with RMB 477M operating profit
• Partnerships with 102 insurers and 1,967 insurance products
• Large user base of 117.3M on insurance platform
• Digital clinical trials segment generated RMB 91.1M revenue
• Major investment in AI with RMB 300M annual R&D spend
• Buy ratings from Goldman Sachs, UOB Kay Hian, and Guotai Junan
• Active share buyback program with US$100M in ADS repurchases
• Government approval received for medical crowdfunding platform

Negative

• Heavy reliance on Chinese market exposure
• Significant R&D costs (RMB 300M annually) impacting margins
• Digital clinical trials revenue relatively small compared to core insurance business

Insights

Financial Analyst

Waterdrop's 119.8% profit surge, 12 consecutive profitable quarters, and strong insurance segment performance indicate excellent financial health and momentum.

Waterdrop's 2024 annual report showcases exceptional financial performance with net revenue of RMB 2.772 billion and net profit of RMB 368 million, representing a 119.8% year-on-year increase. Most impressively, this marks 12 consecutive quarters of profitability – a significant achievement in the competitive insurtech space.

Breaking down the revenue streams, the insurance business remains the primary driver, generating RMB 2.36 billion in annual revenue (approximately 85% of total revenue) with an operating profit of RMB 477 million. The insurance marketplace has expanded its reach with 102 insurer partnerships, 1,967 insurance products, and 117.3 million users – creating substantial network effects and cross-selling opportunities.

The company's capital allocation strategy demonstrates shareholder focus through its substantial buyback program, having repurchased approximately 52.1 million ADS for US$100 million. This signals management confidence in the business fundamentals.

The strong external validation from leading financial institutions (Goldman Sachs, UOB Kay Hian, and Guotai Junan International) projecting 20% revenue growth in 2025 further corroborates the positive trajectory. Their emphasis on improved operational leverage aligns with the demonstrable margin expansion reflected in the profit growth outpacing revenue growth.

Technology Strategist

Waterdrop's AI investments are generating measurable efficiency gains, directly contributing to their 120% profit surge and positioning them as insurtech innovators.

Waterdrop's strategic RMB 300 million annual R&D investment (roughly 10.8% of total revenue) demonstrates a substantial commitment to technology as a competitive differentiator. This investment has yielded concrete results: over 100 technology patents and the successful integration of large language models across critical workflows.

The company has implemented AI throughout the insurance value chain – from underwriting and renewals to claims management and customer service. Their AI Insurance Assistant serves as a productivity multiplier for licensed agents, while the AI Insurance Expert powers their customer-facing chatbot, Bao Xiao Hui.

What sets Waterdrop's AI implementation apart is the measurable operational impact: their AI-driven quality assurance system has reduced average query resolution time by 50%. This translates directly to cost savings, improved customer experience, and higher agent productivity – critical metrics in the insurance industry where service efficiency drives retention.

The CEO's 'All in AI' strategy for 2025 positions Waterdrop at the forefront of AI adoption in China's insurtech sector. By explicitly attributing their 120% net profit surge partly to AI implementation, management establishes a clear connection between technology investment and financial performance – supported by concrete efficiency metrics rather than merely aspirational AI claims.

BEIJING, April 30, 2025 /PRNewswire/ -- Waterdrop Inc. ("Waterdrop", the "Company" or "we") (NYSE: WDH), a leading technology platform dedicated to insurance and healthcare service with a positive social impact, today announced the filing of its annual report for the fiscal year ended December 31, 2024 with the U.S. Securities and Exchange Commission (SEC). For the year, the Company reported net revenue of RMB 2.772 billion and net profit attributable to shareholders of RMB 368 million, representing a 119.8% year-on-year increase. This achievement extends the company's streak of profitability to 12 consecutive quarters. As of the end of February 2025, Waterdrop had repurchased approximately 52.1 million American Depositary Shares (ADS) for an aggregate consideration of US$100 million under its share buyback program.

Leading financial institutions, including Goldman Sachs, UOB Kay Hian, and Guotai Junan International, have reaffirmed their Buy ratings for Waterdrop, citing improved operational leverage and margin expansion supported by the Company's proprietary technology infrastructure. Analysts project 2025 revenue growth of 20% and have revised their 12-month price targets upward, reflecting strong market confidence in the Company's strategic execution..

Key Business Highlights from the 2024 Annual Report:

• Insurance Business: Waterdrop's insurance business reported first-year premiums of RMB 7.473 billion, generating annual revenue of RMB 2.36 billion and an operating profit of RMB 477 million. Licensed nationwide as an insurance broker, Waterdrop Insurance Marketplace established partnerships with 102 insurers and offers a portfolio of 1,967 insurance products online designed to address a broad range of consumer needs. The online platform serves a user base of 117.3 million, leveraging data analytics and actuarial modeling to deliver insurance solutions with most of them are customized ones.
• Medical Crowdfunding Platform: As of December 31,2024, Waterdrop's Medical Crowdfunding platform had facilitated donations for over 3.4 million patients across China's multi-tiered healthcare system, with 470 million donors contributing RMB 67.5 billion. In a milestone achievement, the platform was named among the first government-approved online personal fundraising platforms by China's Ministry of Civil Affairs in December 2024.
• Digital Clinical Trial Solutions: Waterdrop's digital clinical trial solutions segment reported RMB 91.1 million in 2024 net revenue. As of December 31, the Company enrolled 10,395 patients and completed 1,212 clinical trial projects, reinforcing its position in tech-enabled healthcare innovation.

Waterdrop has emerged as an industry leader in AI adoption, investing nearly RMB 300 million annually in R&D and securing over 100 technology patents. The Company has integrated large language models into critical workflows including underwriting, renewals, claims management, and customer service. Key initiatives include:

• AI Insurance Assistant: A productivity tool supporting sales enablement and compliance oversight for licensed agents.
• AI Insurance Expert: An intelligent customer engagement solution powering Bao Xiao Hui, the Company's chatbot, which delivers 24/7 policyholder support and has reduced average query resolution time by 50%. The AI-driven quality assurance system now provides full coverage across all service channels, including voice, WeChat, and social platforms.

Mr. Peng Shen, Founder, Chairman, and CEO of Waterdrop, announced the Company's ambitious 'All in AI' strategy for 2025, highlighting AI's role in driving efficiency and fostering collaborative growth with partners. "AI has been instrumental in our 120% net profit surge this year," Shen noted. "We will continue refining our AI capabilities to deliver sustainable value for all stakeholders."

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.  

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SOURCE Waterdrop Inc.

FAQ

How much did Waterdrop (WDH) profit increase in 2024?

Waterdrop's net profit increased by 119.8% year-on-year to RMB 368 million in 2024, marking 12 consecutive quarters of profitability.

What is Waterdrop's (WDH) share buyback program status in 2025?

As of February 2025, Waterdrop repurchased 52.1 million American Depositary Shares (ADS) for US$100 million under its share buyback program.

How much revenue did Waterdrop's (WDH) insurance business generate in 2024?

Waterdrop's insurance business generated RMB 2.36 billion in annual revenue and RMB 477 million in operating profit, with first-year premiums of RMB 7.473 billion.

What are Waterdrop's (WDH) AI investments and results in 2024?

Waterdrop invested RMB 300 million annually in R&D, secured over 100 tech patents, and implemented AI solutions that reduced query resolution time by 50% through their AI Insurance Expert system.

What is the scale of Waterdrop's (WDH) Medical Crowdfunding platform in 2024?

By December 31, 2024, the platform helped 3.4 million patients, with 470 million donors contributing RMB 67.5 billion, and received government approval from China's Ministry of Civil Affairs.