Waterdrop (WDH) 15 Jun 222022 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by for Waterdrop Inc.'s First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, there will be a Q&A session.

As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to your host for today's call, Ms. Cui. Xiaojiao Ms. proceed, Please Cui. Xiaojiao

the operator. of first Hello that for you, the made thank discussion U.S. of Private Securities everyone, XXXX earnings Waterdrop’s and under statements quarter forward-looking note Reform will joining Harbor conference provisions today the Act Thank Litigation contain you Safe XXXX. call. the Please

include, not limited statements subject to expectations. cause those obligation differ certain a to non-GAAP and this results undertake call company our our our are measures. any does with Also, risks current may required public not Forward-looking the reconciliation between of materially risks discussion Potential to any but for non-GAAP outlined forward-looking in as statements, uncertainties SEC. and release except includes actual law. GAAP. Please to and update uncertainties applicable are under from refer filings that The to earnings

Mr. CEO; and and our of Director on Mr. us Peng, Hu Yao, Crowdfunding Manager Founder, call and Director our Shi, Kevin Co-Founder, and Shen Guang, Co-Founder, General and are of Chairman General Marketplace; Yang Mr. Medical Joining the Healthcare; Insurance today CFO. Manager Mr.

available be Q&A session for after the remarks. a will We

to Shen would turn over I CEO call Mr. like Now, our Peng. to ahead. go Please the

you pursue adjusted development. transformed strategic pace COVID both further plunged a [Interpreted] amid the the Hello, year, quarter a Language] profound and last year, markets to conference have we markets and domestic the joining earnings in industry resurgence. capital our order call. environment healthier XXXX realignment in Since and a insurance [Foreign ways, so global have Since promoted everyone. for Thank capital first our geopolitical this beginning the of volatile

at We the emerging same opportunities have seen time. new

performance currently company quarters, we trends our the results The sustainable I over and profitability, strengths, inception. company. for for competitive establishing a years operating we full milestone have overall good since beginning. standing and two six our also a securing our at tipped its development a the Apart is new year. and consistently to Looking thereby we from have are reaching healthier past at efficiency the Nonetheless, are business more the operational believe improved

non-GAAP We after XXXX, million we are GAAP first-time RMBXXX further delivered QX on made we now a pleased report net that in profit breakthrough for turning XXXX. basis profitable in that the to a QX of

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committed million times. to challenges us. to services the a year, particular, for around have protection of at we us built in and vitality to will a continued We results. to brought fast is and Under counter will we business the and accomplish in momentum XXXX. and The and XXXX have compliance better and solidifying which this goal our in healthcare successors growth implemented within the to a especially (ph) maintain model, factor this our healthy and business meeting in In an strategy Waterdrop users, of various solutions year group synergies achieved the million ROI pursued the environment, ever-growing operations has of business, beginning insurance the resilience and base recap sustainable confidence U.S. be demand business efforts. give from strategy insurance path pandemic transformation. and new designs, approximately than online is keeping and innovation starting tech the creating the (ph) with XXXX including resurgence profit dynamic maintain range. reasonable of which China we business indispensable more In point. healthcare to positive both segments tough more rapid we capabilities, from for the a for the XXX our total our navigate customers, been insurance customers, on delivering within development growth opportunities firmly and and user the realigned set we by moat for the enabled industries Such our XXX Based revenue platforms Since that Previously, for transformation values this a providers, the product and of Waterdrop like verified the will while our QX, have entire accumulated the

and personnel, We have changing initiative business the our taken in organizational operations, structure.

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we and Looking industry of development ahead, firmly. will healthy to the the proactively promote continue

was thoughts this UNGC. a China’s insurtech move Leaders’ United efforts situation to to behalf recently, core member Earlier best and than more joined encourage sustainable a practices Summit pursuing China. as of sustainable Hence, More the XX,XXX discussion and XXX to Sustainable ESG development in stakeholders volatile year, more of our the huge the the we posed various share on social a share doing and have corporations, hands also local enterprises, challenges always corporate the Development. to governance. for containment Compact Earlier Global Agenda XXXX Charity The month, for to development. for in the Federation. adhered companies, of improving pandemic have multi-national we has XXXX we panel sustainable principle of during with the this proactively I or a responsibility, joined the Nations participant, of efforts been companies countries continually We have good became stakeholders goals, the our On and business undertaking UNGC around world the joining China the I invited to shape future. for making responsibility

alleviate the We epidemic impact various its a other our have on reallocated leading and Shanghai has their proactively as charity been areas our community. provided platform, and position Leveraging resources support Waterdrop on Charity containment. helping to

also living collaborated with with charity workers. of We people supplies organizations donations and RMBX million to in elderly provide frontline difficulties, to the over financial alone,

the appreciation received from groups Since letters have in range million. organizations, RMBXX several of senior myself, anti-pandemic outbreak charities raise pandemic. to management, help more from and we the society. inclusive and and we we including mission were and wide than fight public, took We our partnered Our an funds of example protection to leveraging lead committed organizations to the accessible could a to the but of pandemic, technologies to non-profit and remain also billions. volunteering also the When not encouraged, we more and only the more and to internet to insurance service with hopeful healthcare support inspire bring more of that make insurance the set

and proactively also goals. capabilities competitive service We our implement our leveraged strengths achieve digital to development sustainable and promote,

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back due reduce into China’s risks for fall slip to goal illness. insurance poverty to no or critical for medical with joined We poverty: multi-level help example, into For to system one, diseases those

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We innovation nine, technological and focused the goal innovation. industry, the promoting industry insurtech For on by of infrastructure: development leveraging

position, We maintained and I have and strong cash our future. united team have a the confidence about

totaled investment and XXXX, our equivalents cash of balance short-term cash As approximately and billion. March RMBX.XX

insurance We healthcare continued while same and implement the exploring time. sectors plan in at the to share investment our opportunities repurchase innovative

healthcare in future. this As use buy and creating top-tier the shares. employee these customers March, development market, player we and will insurtech repurchased need of for pioneer plan the to plan higher-quality cumulatively on and of pursue in X.XX as and million ADSs we and for environment, end total to continue to incentive shareholders. We in insist a Amid repurchased prudently China’s our back value strive online ADSs our changing

maintain a proper enhance enthusiasm manner and an technological terms for innovations, In value in user will of enduring we business our and innovations.

own confident in are China's healthcare also long-term the of insurance our business. and We market prospect

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that industry While business other year we traditional and recent our that sluggish, for is business X,XXX% execute primarily achieve insurance business efficiency RMBXXX be adjustment continued which to non-GAAP of protection this demand down weak, our on This in recover. was in sales strategy also a Against our for health slow In pioneering Meanwhile, individual will products, insurance period. growth the especially reform business is while of for following last backdrop, sales aspects. capable I a carries speculative players out updates for three through comparison operational has triggered operations. more from stabilization is recorded third to enjoying the profit top net should of in has high some Thereby now in last metrics. and year, to in walk illness increasing put to clear set the GAAP insurance the traditional XXXX, top-tier faster innovative and profit health we performance the trend the RMBXXX improvements insurers million previous helped achieved hindered. recovery. optimize net (ph) remained our challenges, out insurance there and us a facing was million, a of of that adjusted the on-site firmly in shown base we are quarter. agents partially an business model This significant quarter it was diversified Indeed, we by sales of model critical in those of insurance. industry QX by QX, quarter-over-quarter, the are of channels business and this first-time profit quarter adopting the less-efficient signals insurance

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industry. long-term highly of the insurance China's confident are fundamentals in We

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will of the our session. from Li question-and-answer go question America. now ahead. begin will come Instructions] And We Please [Operator Bank with Michael first

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business effort. protect question, this in shareholders’ usual As and our to your our answer we our operations best as and Michael. interest offer running Hope exploring Thank you. date, are are of feasible actively

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