Waterdrop (WDH) 11 Dec 242024 Q3 Earnings call transcript

Good morning, everyone. This is [ Tracy Lee ] from Waterdrop Investor Relations. It's my pleasure to welcome everyone to Waterdrop's Third Quarter 2024 Earnings Conference Call. All participants are in a listen only mode in our English line.

As a reminder, today's conference is being recorded. discussion provisions contain the of Act XXXX. this under statements Litigation that of harbor safe Private note today forward-looking will made Reform Please Securities and

forward-looking cause to current the our Potential SEC. except filings not those risks statement but does uncertainties Forward-looking outlined materially include, expectations. risks undertake uncertainties The to limited are to differ company under subject that statements update required any with may applicable not actual and in results from public any and as obligation to, our law.

of call includes between non-GAAP this to Also, refer GAAP. our and release discussion reconciliation certain a matters. for Please earnings non-GAAP

of today and Xu Xiaoying, Insurance our the on Department; Mr. are Head Founder, of us the CEO; Shen Mrs. secretary. Wei, Chairman Ran board Finance Jasmine Lee, Peng, GM Business; Joining Mr. and Mr. call and Director

some happy the conference of be the to will We in take at line the end Mandarin call. questions

company Shen for committed Hello, increase this is revenue shareholders year-over-year and everyone. RMB sustainable healthy quarter Total XXX%. XX.X operations over net remains to reached This RMB to reflecting XXX million, Peng. delivering results. was ordinary attributable and of a million, QX, growth, solid profit In around the

increase revenue XXX% months compared the X RMB to to attributable of year-on-year, last For the and profit million, X.XX company the of reported XXXX, billion, total RMB net X.X% of up ordinary XXX year. shareholders

senior, consecutive and with several for In our focus Since growth. key insurers products. In launched of we showing on with QX individuals value pre-existing network XX each innovative business, quarters. user metrics of insurance and expanding we profitability achieved of business of targeted enhancing have QX, conditions, our segments XXXX, mothers steady

billion, totaled with premiums significant margin above First over year-on-year, X XX%. year increase RMB operating profit a

to while segment amounts for members further responded to loss law help, narrowed, rise reinforcing administration online for of seeking of we the charity the our individuals continue user and service In Medical crowdfunding platform the and sustainability merits actively finance new Crowdfunding, both was operations.

sector, our capabilities our both care to enrolled pharmaceuticals In We're expand patients strong in the with us to quarter-over-quarter. progress allow notable and AI. with delighted execution also year-on-year health report a number growing of network

tech in is Waterdrop a on health company industry. forefront language our and integrating insurance large into As rooted models care, of the

Following across X years and that we platform AI of helping agents enhance sales X.X, customized for and industry AI our capable interaction, launched and voice-based of businesses, calling AI various sales focused AI BXC advanced quality Sales Top supporting development, features, of a customer ecosystem service conversational partners outbound conversational and efficiency. abilities Platform service

in with e-commerce reached companies for collaboration a large-scale Top customer in sectors, expanded with our in and our commercialization partnership have AI there quarter. team. high insurers and initiated platform QX, service X.X pilots Following Sales education, where this the We more milestone new insurers with including is P&C noninsurance demand

intentions As XX already testing of X established with across industries various we phase. have now, the clients collaborations in with

agent market vast highlights This for the sales solution. potential our

recently November AI million. around to continue ADSs in market $X.X shareholder from core prioritize investors advantage our XXX approximately 'XX, second million open totaled has of XX.X completed cumulatively dividend around Moreover, the approximately cash the from million. company USD special we repurchased the our our the and will we By forward, R&D of We applications. next Going competitive investing end value build trust return.

the end charity XXX Waterdrop corporate with has responsibility, over projects. XX,XXX of covered and charitable organizations as of For charity September, platform social the public launched

and the report we our XXXX During co-authored online white for published so paper ESG industry. this the insurance ESG quarter,

this ESG practice. the Excellence and reflecting the several China QX. commitment Recently, in Connected offering strategic concludes our ESG With in area. the our the award, performance into CUAC including received Green update awards, progress on and Pioneer This business Finance insight valuable ESG to ESG China Institute Award our company strong industry

Waterdrop ahead, long-term, user needs. centers sustainable high-quality and on around focusing growth leveraging to continue Looking technology will

AI model, position transform for As continue capabilities growth us the opportunities greater and in and in language to large more future. AI first-mover the advantages industries, our

now I Ran to to business QX. insurance our in pass will Wei discuss

Thanks, million. profit Mr.Peng X.XX a million, Y-o-Y in XX.X% maintained Shen. about generated billion above Insurance-related was Operating X.X% and RMB FRP the and In profit at of QX, quarter-on-quarter. business XX%. at margin of RMB about insurance was X% increase The XXX Y-o-Y was operating quarter-over-quarter. around an XX.X% XXX representing RMB income decrease

Red X.X% drive our on to During TikTok short-term multiple increase on Book, users premiums growth. quarter-on-quarter. and customers based creating hit product policies this number new with IP quarter, company equity stable in insurance and methods The out through primarily optimizing channels efficiency customer XX.X% WeCom RTA Little the new quarter-on-quarter The Y-o-Y model, platforms billion, our further a and videos, influencers the X.XX RMB new reach on in remains collaborating and like on QX basis. of acquisition

increase is committed improving experience iterating needs insurance to offering profile. an company user the users, to sequentially. premiums Leading existing Taking user in different to product the according and of

several regarding require thereby disclosure, not our example, pre-existing a products, tax that insurance the For have inclusive lowering X a deductible addition, products company has launched user barriers. and do

of checkup was FYP QX, medical In million. nearly Some products have the RMB user to added XXX pre-existing a service tax insurance enhancing special position protection.

user insurance, insurance combined for this the premium to continue in insurance and the effect, maternity QX. successfully XX.X% sequentially recognition has Due X.X critical been version has In gain to medical short-term of average parent-child [indiscernible] the launched. increased of illness terms

enhance insurers, FYP for group ensure practically agent partnered user September, In several alliance, the service increase The a XXX -- this RMB stepping in million, boosting in premium reached stepping aiming quarter their insurance has and increase The their experience. service the teams been efficiency Waterdrop insurance sales long-term held sequentially. of we triple a up driving quarter-on-quarter and where to entire a must in increased year-on-year to establish conference, online capita X.X% of ecosystem we we XX.X%. games, per with games

driven content especially is which spurt, player annual in model, been major payment growth a the the final has product. with trend of rising last The

senior to insurance side, people On loss we supply edition out of have which insurance, disability rolled ties new income XXXX companies protection XX. covers to and coverage of the and -- strengthened of We scope and we been disability with our the needs offering. from the up our insurance broaden the extended catering

plus Lucky This common comprehensive covers in health insurance conditions, have exclusive protection that around FYP, critical brought brain in we policy brain XX quarter, disability RMB XX million giving insurance built with illness partners, against our Star risks. together

health long-term medical the express our products. or up management, assistant On educational children service high-end users, the such continue access increase medical premium Waterdrop club as insurance XX renewal long-term planning members, covering system to management, customized short-term service express and for offering side, of rate and build over leading to membership emergency an benefits both we in wealth and for

in has XXX in RMB sector Insurance significant growth million showed and FYP a QX year-on-year also increase contributing Shenlanbao in both strong with quarter-on-quarter.

During its Waterdrop content and for risk planner this a service and insurance and premium lifetime in QX, Shenlanbao leading collaboration rise leveraging further LLM quarter and scenarios continued Waterdrop In per team, strengthen in marketplace customer generation to Shenlanbao. the its capita. development, further enhance to deepen product research Shenlanbao to and

care new expanding all -- announced In -- a in billing concession. offerings terms and including Anything service system planning. encompass Waterdrop brokers service, ] to rating brand a in in brokerage, compromise their upgrade. initiative Shinchin mid-platform has of legacy update offline insurance, of the system range service that services, comprehensive [ and empower Its product health designed integrates in

language to company the in continued technology, model. large invest for insurance As

parents of end the September, with X of As has related the patents for applied over granted. XX to LLM company

Firstly, based to base on of intelligence date, the our this. of knowledge products. over Waterdrop has year, developed company insurance the beginning products X,XXX Guardian has the covered mainstream several Since this

AI human inspection method, review, Secondly, replaced preliminary previous efficiency, boosted AI our processed the achieving with has our method, increasing full process has than quality quality in implying which inspection the coverage agents by check operational And followed by service certain effectiveness. orders conversional pace X.Xx tangibly sampling scenarios. it revolutionized we a significantly the menu factor that at have been efficiently the

in developed skills use scenario, how you interaction product. in Waterdrop of insurance the Guardian Thirdly, a human service the conversational do

the enhanced daily and issue. improving conversations and our integrating During this model quarter, capabilities, technology long-tail AI low-quality in its response agent a addressing handling further long-term

summary This quarter's this a is performance. insurance of

the introduce our company's will developments Jasmine of and Next, crowdfunding health-related inQX. business

around Thanks, XXXX, Mr. QX donated the people billion to RMB end million crowdfunding. through XXX XX.X Ran. million X.XX our Waterdrop patients of RMB cumulatively At about medical

whole. This our significant marks in industry crowdfunding for a as business quarter the medical milestone

of operational issuance of of enhancing the and on activities, the Ministry for financial deployments X, framework on XXXX. illegal industry. fee and These the legal for the government management seeking and other PRC Civil outline individuals structures, merits the crowdfunding Affairs administration September establishing regulations specific online against service of and help merit transparency by released Following in a fight fund guidance platform

credibility our of We platform. is understand lifeblood the that

This been control quarter, refining risk have we to strategy enhance our continually transparency.

instance and public mechanism, and same iterating properly company, exploring communicated in on are platform. environment with transparent report ensure technology as oversight of we time, and how technology the efficient Waterdrop is that page, by the verification clearly the the the continually handling For supervision our rate cooperation inherit cases public. the can bolstering At

taking Even by measures, to our of real core The regular of content platform For high-risk cases equipped any to crowdfunding emergency cases. one the outsiders, for cases. hour risky delivers employs X system is platform example, such in immediately popping of response algorithms to payments, the pillar X the crowdfunding a.m. and working high-risk time. to the ensuring recognize swift spending as situation

business patients a and quality. of At growth our total act excellent platform improve protect Waterdrop, In leading clinical positive since solutions through X,XXX health-related we business, trial on XXX our fulfillment and power steady this will of launch, both to efficiency our new business, -- maintained in platform domestically internationally. believe adding continue deepen showing expand growth risk future, Building of in and to innovation to technology the pharmaceuticals, control healthcare-related trajectory. mechanism. in quarter, we E-Find digital technology. In the QX, enrolled over firmly with the for continue cumulative every and partnerships consistent

collaborated of XXX In a CRO. QX, pharmaceuticals total and we with

During key a partner roles and primary quarter, recruitment several this projects. platform the as played exclusive partner in even

records and for partner enrollment MNC, to existing medical recruitment in as the a we matching target. targets instance, an help of oncology their exclusive trial rare for pharmaceutical analysts clinical For patient leverage precise intelligence top

As new development. new are big E-Find has expertise ongoing spurred the its growth areas. moves the domestic pharmaceuticals with has leading broad cooperation in with insights and sharing top pharmaceutical, This digital embracing earnings AI been platform data and recognition. industry therapeutic towards high-quality drug in international

marketing various patient into alone, technology integrated In new signed In AI projects. business, QX service digital we the multichannel XX has stages. further platform

and advice in efficiency. example, service For medical patient careers, the assessments AI quickly delivering our questions, and education address professional

deployment, professionalism, For attack quality plus service structured enhancing holding models, their we medical using patients follow-up management data control AI and standards systematic language and checks many awareness disease compliance. in guide large are and

continue collaborate AI to transformation. Looking the applications ahead with to industry's technology of the industry will of platform scenario in digital pharmaceutical possibilities explore and supporting partners further

I to now listening. our to financial hand for will over Thanks Xiaoying performance. Xu discuss

Hello, quarter. will through I highlights our third you walk the now everyone, for financial

go be into refer will here you please performance on for our on I details, Before remind that earnings basis, please RMB, respectively. year-on-year the quoted numbers both to and detailed release quarter-on-quarter information our and financial all

In QX, growth optimize with to profitability. financial notable performance the company continued in

approximately generate increase segment. revenue The of XX.X%. RMB performing RMB XX.X quarter-on-quarter about trial of of business quarter-on-quarter XX.X around moderate down a growth services segment XXX XXX insurance clinical X.X%, increase bringing it will of for million, revenue, generated contributed of total of solution quarter-on-quarter a quarter this million, was million in RMB digital business decrease a X.X%. by showing revenue RMB million The X%. quarter-on-quarter Our

to due -- operating previous amounted up RMB expenses of personnel increase partially on quarter-on-quarter million by efforts to a the and referral were leading costs RMB higher in and a RMB X.X% million, our channels. efficient accurate traffic strategic XX.X driven based costs. the Sales and Regarding increase, advertising by operating mainly XX% rise compared marketing a XXX the a expenses of offsetted million, fees to to marketing operations reduction XXX expenses service third-party to costs and quarter, operations,

the X.X%. company's growth with -- over of year, related were ordinary third profitability profit will In increase an quarter, and margin improved million net million remaining strong million, XX.X the loss the million, intangible the compared the of from business at quarter-over-quarter assets healthy reaching internal attributable due shareholders to to profit profitability the quarter. of RMB expenses to significantly and previous R&D XX a Shenlanbao. for General The administrative acquisition insurance RMB XX expenses operating X.Xx to previous stable RMB RMB were XXX quarter primarily year-on-year consistently the last of QX, remained XX%.

net XXXX, cash sustainable strategy cash we With flexibility had of and totaled balance inflow, as profit, the in company's a operating positive reserve stability and billion, company a X,XX maintain about to RMB continue cash ensuring position supporting deployment. September XX, shareholder returns the

In the strong performance Waterdrop's in summary, highlights resilience facing the QX change. navigating market with

continue uphold we strategic growth. to choice, will driving company ahead, the business and Looking philosophy our healthy

with And time. ladies that, conference you We joining. Have a and gentlemen, will do today's we conclude thank good call. for

attending has may conference now presentation, today's The you for disconnect. concluded. now Thank and you