Q3 2022 Waterdrop Inc Earnings Call
Speaker 2: with SEC. The company does not undertake any obligation to update any forward-looking statement except as required under applicable law. Also this call includes discussion of certain of that measure.
Speaker 3: This refers to our early release for a reconciliation between Nongat and the GAP.
Speaker 4: Joining us today on the call are Mr. Shen Pong, our founder, chairman, and CEO . Mr. Yang Huang, co-founder, director, and VP. Mr. Hu Yao, co-founder, director, and VP. Mr. Yang Huang, partner, and the general manager of the insurance market space.
Speaker 5: Mr. Guza, partner and the general manager of medical crowdfunding and patient services.
Speaker 6: Mr. Richard Chen, Board Secretary MVP.
Speaker 7: They will be available for Q&A session after the remarks.
Speaker 8: Now I would like to turn the call over to our CEO , Mr. Sheng Wang. Please go ahead.
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Speaker 14: Hello everyone. Thank you for joining our third quarter 2022 earnings conference call. During the third quarter, we have seen increasing downside risks in the global economy, as well as uncertainty regarding the domestic economic recovery. Not gonna lie.
Speaker 15: The recovery in domestic demand has recently gained momentum, and we believe that the fine-tuning of COVID control measures will unleash a rebound in private consumption, providing solid support to revive the domestic economy. This trend will enable the insurance industry to return to a value growth cycle.
Speaker 16: and improve the business outlook for the medical and pharmaceutical industry.
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Speaker 20: Against this backdrop, Waterdrop continues to exhibit strong resilience and adaptability and maintain good business momentum in the third quarter, with revenues increasing by 10.1% on quarter over quarter basis.
Speaker 21: Following our turn around in the final quarter of last year, we have managed to achieve a healthy level of profitability in every quarter of this year. In the third quarter, our gap in net profit reached 170 million RMBs, confirming that our business has entered into a phase of steady profitability.
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Speaker 23: At the end of September , our cash and cash equivalents and short-term investments increased to 3.6 billion RMBs.
Speaker 24: Even taking into account our share repurchases, we were able to generate a positive cash inflow of 300 million RMBs in the third quarter. Our embedded cash reserves and our ability to generate positive cash flow-ups put us in a strong position to withstand the crisis.
Speaker 25: the changing external environment.
Speaker 26: will continue to promote brand social change in Christchurch. As weenes Mole Era should be EU resilience initiatives
Speaker 27: business growth, establishing a solid foundation for future business development. Our operating efficiency and business quality have also improved steadily. As such, we have delivered on our commitment to achieve healthy and sustainable profitability ahead of schedule.
Speaker 28: Based on the timeline we set at the beginning of this year, this reflects management's strategic planning and efficient execution.
Speaker 29: Thank you to our coaughs, friend and friends for your time today.
Speaker 30: Looking into the fourth quarter and beyond, we will continue to pursue steady progress in our business development efforts, deepen reform of our business, and make appropriate investments in new businesses, while proactively exploring new business models to achieve healthy growth.
Speaker 31: Through these efforts, we aim to achieve top-notch and sustainable long-term business growth.
Speaker 32: because it does work annually. So we want to be able to get the exact results of our mission and the car full of updates, Thank you.
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As a leader in the medical crowdfunding industry, our subsidiary, Watersop Medical crowdfunding, is committed to maintaining disciplined operations and driving the healthy development of the ecosystem. In this quarter, we continue to collaborate with the judiciary.
hospitals, and industry partners to crack down on unauthorized fundraising activities. At the end of August , Woodjob once again worked closely with the police in Shandong province to crack down on a case of fundraising fraud perpetrated by malicious intermediaries.
Through our stringent review process, together with the big data algorithms and AI technologies developed by our risk management team, we have developed a system that can identify unauthorized fundraising activities instantly and effectively.
After several months of investigations and on-site visits, we collected a large volume of evidence, which successfully helped the police to solve the case and take legal action following virus-effective crackdown measures.
There has been no malicious unauthorized fundraising activities detected on our platform for several consecutive months.
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In the third quarter, we deepen our efforts to reform the business strategy for our water drop insurance marketplace. As a result, we improve our business quality and continue to upgrade our products and service offerings while further accelerating our pace of technological innovation.
This strategy adjustment enabled us to achieve higher quality operating results.
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We are also proactively pursuing broader innovation opportunities in the medical and healthcare industry. We continue to expand our outreach by leveraging the strength of existing businesses, including our high-performing patient recruitment business and our nascent CRO business.
which we continue to explore and develop.
Through these efforts, we aim to provide our users with lifetime product and service coverage to enrich our ecosystem.
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In the third quarter, we carried out our share repurchase program firmly. We repurchased approximately 1.09 million ADS in total and we are continuing to execute the program presently. At the end of September 2022, we had...
We had cumulatively repurchased approximately 5.8 million ADA's from the open market for total consideration of approximately 8.5 million US dollars.
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We will continue to focus on the interests of our shareholders. In this September , we announced the one-year extension of our repurchase program, with the maximum repurchase amount increased to US$80 million. This demonstrates our strong confidence in our corporate value and our long-term sustainable development.
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To conclude, we will continue to maintain AMBO task liquidity regardless of the industry environment. We continue to have a confident and patient outlook on the industry and our own development. We will remain committed to our mission. Stay focused on user value.
solidify our business fundamentals, and pursue continuous advancement, thereby building up our strength to enter a new phase of development.
I would have to run that way to discuss the development of the water job insurance business for Q3. I would have to run that way to discuss the development of the water job insurance business
Thank you, Chen Heng. Hello everyone. Let me give you an update on our insurance business development. In the third quarter, the market for life and insurance...
health insurance in China remain stylish.
With no significant improvement in premium growth, the continued resurgence of COVID-19 has helped work-placement, fashion, and policy reforms in the life and health industry. At the same time, the demand for COVID-19 is increasing.
Protection type products remain a source, which implies that both the demand and supply side of the market are somewhat subdued. Meanwhile, future volatility in equity markets and interest rates and the average growing of ratings.
pressures. The overall earnings of the interest industry declined in the first three quarters of 2022. Against this backdrop, we continue to improve our operational efficiency, both the quality of our business and the quality of our business.
and optimize the recent offering. We have proactively explored new customer acquisition channels and have consistently engaged in product innovation to achieve long-term sustainable business growth. In spite of the industry's dumb tone.
We achieved an industry-high gas net profit of 170 milliliters in quarter three. And our key operating metrics continue to reflect the high quality of our business relative to industry. Now, I will walk you through...
The performance of our in-source business on forefront. The first daily progress on our business model upgrade.
In category, the quality and profitability of our interest will continue to improve thanks to our persistent optimization of products and users' experiences.
Our first-year premiums increased by 8.4% from quarter to two. We revamped transaction processes and update analysis without improving either perception of our service quality. The number of long-term insurance policyholders has increased by 8.4%.
Review their policies and the LTV contributions of our products can both increase daily, in terms of existing user management. We further refined our multiple platform operational model and call.
For the latest, the sales converters chase across all channels. To satisfy the last time the taxi lead appeared, we have to come to the overall.
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As such, the user will remain about
60% and further increasing quality rate at the same time. To identify either leads more accurately and efficiently, we continue to optimize the quality of the data.
algorithm model based on hundreds of millions of user profiles. The number of user conversions from short-term users' products to long-term products increased by 14% from Code2. Thanks to the sales person.
productivity for in-house LPs on internet and TV. Marketing was 2.5 times the industry average.
Our detailed acquisition model has achieved an invisible zero in part three. The number of followers of our video count increased by 100 and...
10% of the quarter. And the total interest premiums are related from this account to quick buy, 290% sequentially.
leveraging our video confers and the self-conversion capabilities across the flight team, we have the webcastx so thank you so much for joining us today.
And to reduce our reliance on traffic from data channels, this helps increase our hours on AWS.
By 180% of culture in addition, with improvements of our capabilities to invoke the long-term issues clearly and our long-established self-experience, we have cooperated with more external technical providers to acquire greater number of high quality leads.
Second.
accelerate EU custom requisition channels to drive sustainable business growth.
In Core 2, we set up a dedicated second level business unit which adopts the Azure Slammer model to promote the online mortgage business. In Core 3, we mainly focus on building up the standards and their capability with a repeat.
How do you think the characteristics of cost of relief of the...
the insurance climate model. We developed operational standards for our private domain user management system. We also have our labor...
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video concert to facilitate the custom acquisitions and explore a one-on-one custom facilities bongo. This effort has helped to diversify our set of two accounts both user-rich and user-experienced. Compared to the last quarter.
The preview and the revenue generated from it will even be increased by 42% and the big news for that to speculate. Going forward, we will continue to save our online marketing team and strengthen our content creation.
We will greatly thank the commercial footprint on the larger scale based on the proven model.
Since the beginning of this year, we have stepped up our efforts to develop an offline public viewADD
In quarter three, we launched the W-Find, or Water Job Family Insurance Lead Diagnostic, which is a sophisticated system that can help brokers start doing custom leads and provide appropriate mutual clients.
The customer-centric W5 system empowers workers to identify the protection of each family based on family size, household income, and the expenditure and a future change. Then, guide them to offer a small professional service and a full double delivery!
and objective customized insurance solution that can satisfy each family's protection needs. At the end of September , our offline working team stands seated to monitor and record the
line of the steps. The rating total interest rating of more than 100 million IMBs, all up by 62% culture over culture. We have expanded our offline growth rate between the two, likely to cross sign and include the Beijing and Shanghai.
Going forward, we will optimize the elite economies of our established networks and finally expand our offline mortgage business to other freezing, cross-sector countries. The third, productive innovation.
To meet the protection needs of customers with pre-existing conditions, in part two we launched Water Job Blue Ocean, a series of critical illness products with a labor of health declaration.
Further, the user group of our CI issues products by removing the leisure of a stank hole for the elderly and the patients with chronic diseases. The product series has run wild.
in a market and generated sizable sales. Similarly, in the third quarter, we launched a series of mini IMB coverage medical insurance products with on-house blood declaration.
These UVC products showcase our commitment to expanding our offerings to customers with existing service options.
while setting our unlikely risks for the control. To satisfy the protection needs of different age groups in the third quarter, we worked with our...
Be sure others to call develop.
a customizer, critic in an insurance product called Sojo, which offers additional
medical services
leukemia. We also rolled out various low premium critical illness issues products.
designed to meet the protections of the younger generation. In the third quarter, the issued credit originated from customer under the age of 14 increased 20% of coverage. Meanwhile, wonderings were born and used by long-term customers that call skip orders to Don't Just Live for Terrorism.
in a low interest rate environment. We continue to enrich our saving product metrics and improve the professional capability of our CFP E-Cotter series, total savings and saving products.
are reducing from our self-operated channels increased by 23% of the content.
the export of the issue technology.
In addition to that, we also upgraded the...
whole process of inter-clay system services to optimize user experience. Based on our analysis of a large number of clay pieces, we have integrated the best practices into the whole process of...
our online plate system services. Powered by our digital capabilities, we upgraded eight plate system services and launched four new plate wearable tools within our Microsoft solution, which helps either handle various issues.
through the claimed settlement process. For the local, our intelligence documents value the oftentimes Millennium.....
leverages our OCR-based extraction technologies to effectively improve the accuracy of the workloads.
Our product customization assistance uses our late settlement insights to generate heavily issued products.
recommendations for users demanding more customer-side protection. In the future, we will continue to invest our claim service system and try to deliver a better place of security for our users.
This concludes my briefing on our issues business. Now let me hand over to the talk for an update for our medical performance and patient recruitment business.
Thank you, Albert.
I would like to share some updates from our medical crowdfunding business. At the end of Q3, a cumulative total of $420 million is held, exceeding 2.69 million patients, great over IMD, a risk Folks finding that obviously analyzes the impact on the aging andlife situation consistently.
55.3 billion from our platform.
Our user number and fundraising amount have remained stable even after we implemented the update.
In the third quarter, the operational transparency committee continues to enhance our operational control related to the safety and transparency on our medical carbon impact fund and launch new initiatives to increase the transparency of fund goals for each donation.
For example, we have enhanced fund flow disclosure by adding bank statements and more refined visual details on the platform fundraising pages.
When a patient resolves money, the bank will issue payment for both platform and patient. The fund rate impact will also include other information such as how much cash has been resolved by the patient, the service being charged.
the third party payment is channel fee and the demand of funds are very available for withdrawal. Thank you so much everybody youriled up to meet us call in from.]
The fund calls related to each donation are thus easily chaseable. Meanwhile, after several months of efforts, we worked closely with the project police in Shandong to crack down on a case of fundraising for first trade by malicious intermediaries.
resulting in the arrest of 17 suspects.
Let me see various expressive measures that affect on real-life, zero-malicious fundraising activities for several consecutive times.
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From a global perspective, most average families are viewed as high-risk of financial crisis caused by fiscal unionism, especially the people in remote areas who lack social security.
When they unfortunately encounter crisis units or accidental injuries, they often have to choose to keep up the necessary medical treatment on or even their lives because of the heavy financial burden.
Well, what is so medical about is utilized internet to bring the next of mutual health to social media networks which was facilitating the efficiency of parking on campus.
One of the challenges that we would advise protection networks for millions of people in thousands of countries and regions and thereby getting a wide range of recognition.
For the patient recruitment business in the third quarter, our e-find patient spectrum extends its high growth momentum, recruiting more than 900 patients for critical child growth rates, when the wasn't nearly the same three months ago. Why should oururi have the higher rate deploy in Reich FitNotion to help CHIC sum and improve the wellness of a diet in a scenario where we could already produce old women with strong femaleointment.
and bringing our total number of clinical trials program to more than 400.
We have collaborated with more than 100 innovative pharmaceutical companies and EROs in China and worldwide and the number of patients and the number of partners continue to increase this quarter. scanning in full Fort Worth area.
collaboration with a number of global EROs, this has allowed us to work on several international pharmaceutical companies.
In a long-term program called Child Project initiated by a region-nomadic pharmaceutical company, our implementation platform demonstrates its unique strengths in digital patient recruitment and the best part of the course.
42 patients for the critical child in 9 months. Despite the growing COVID lockdown in China, the pharmaceutical companies subsequently offered us with the best recruitment in the world and we are set to become...
could this patient recruitment partner in the project to launch next year. Our new digital patient recruitment capability has helped us to build up an excellent reputation and so precision in the industry.
And this concludes my talk and then we turn over to the call to Wu Yao to discuss our between AB responsibilities and their supporters rather than how to view the policy to correspond in a regular way.
Thank you, Zhe Tao. Hi, everyone. I'm going to talk about our third-quarter technology innovation update across five important platforms. So here is Zhe Huazi Tien Teng, Zhe Huazi Tien Teng's presentation and how we Flynn's team and withhr But undergoing ind DI scal
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the ears and voice of our virtual employees, but also features as a human-like mindset evolved for the insurance marketing scenario. First, regarding the years of the In the third quarter, we launched a set of optimization called algorithms.
that enhance the accuracy of our ASR, automatic speech recognition technology, to improve our chatbot's ability to accurately recognize users' intentions, we deployed two algorithms, one which provides a
background noise identification and filtration, and another which is especially adept for analyzing multi-sentence user responses, therefore enabling our chatbots to understand users just like humans.
Second, as for the voice of our chatbot, we have equipped it with a voice-closing technology that enables it to speak to our users while implementing the tones of our best sales staff.
thereby enhancing the smoothness of the dialog and improving the overall user experience significantly.
proprietary intelligent risk control model. We have also developed additional Chappell functionality, which enables the activation of our cells conversion rates.
The selection of optimal outbound calling times and the generation of complaint alerts.
This model helps the chatbot communicate with users at the most appropriate time with advanced dialogue skills and with a more human-like mindset.
thereby maximizing our sales conversion rates and minimizing the potential disturbance to our users.
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Second, I will address our efforts to refine our intelligent marketing operations through AI technologies.
Our AI-powered matching system performs a number of constants, including the first-time allocation of leads.
scheduling follow-up course, and reassignment of leads.
The system is one of the most important components of our intelligent marketing operation.
In the third quarter, we upgraded the module which performs first-time allocation of leads to version 4.0, which enables more flexibility in AI-based decision-making, including lead sorting and matching. As a result, Thank you in our following Welcome and see you in the next video with 100k Before it displays Welcome Welcome Welcome Welcome Welcome Welcome Welcome Welcome
Our API our ACL efficiency includes by 12% compared with version 3.0. We use AI to select the most appropriate call back time.
significantly improved our user experience and sales conversion rates.
Finally, we have also applied AI to determine the reassignment of leaks.
which helped enhance our ATL with efficiency by around 16%. In summary, version 4.0 of our AI-powered matching system is highly stable and efficient in lead matching and has reached our industry leading position.
The system continues to play an important role in enhancing our sales conversion rates for long-term insurance products.
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Next, I will discuss our medical algorithm platform. Our proprietary extraction algorithm for medical records makes filing out medical records more efficient and speeds up our extraction recruitment process.
The classification algorithm implemented in our medical data center has significantly improved our data governance efficiency with an accuracy rate of about 95%. In addition, our intelligent verification algorithm which is capable of answering more than 20 types of questions automatically has improved ourio Patri Ži?
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In this quarter, we officially rolled out the AI video production function in our Waterdrop broker app. That means our brokers can now access customized AI-powered video production services within minutes, helping them view their personal friends.
Through these exclusive video generation tools, we have enhanced our workers' customer acquisition capabilities by empowering them to easily create original marketing content.
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and the development of the new technology platform. Finally, I will give an update on our intelligent risk control platform. We upgraded all of our risk control products and integrated them into a unified algorithmic risk control platform. The platform's integrated algorithmic capabilities not only provide strong risk control support to all of our businesses, but also
but also greatly mitigate potential TR risks. I will give you two examples of each application. But in compliance with users' right to know requirements, we have developed models which can recognize unauthorized phone raising activities and identify the malicious intermediaries with a high degree of accuracy.
This helps us better safeguard the interest of fund readers, maintain the reputation of water drop medical crowdfunding platform, and stamp out malicious fundraising activity from the very beginning. Second, in order to protect user privacy, we have gone above and beyond the conventional methods to provide additional protections for public-facing information uploaded by our fundraising users.
We use the sensitive information masking model to automatically identify and mask personal information contained in uploaded image to avoid exposure of sensitive information and fulfill our duty to protect users' privacy. Thank you. I will now hand over to Yangguang to discuss our third quarter financial performance. Thank you.
Thank you. Hello everyone. I will now walk you through our financial highlights for the third quarter of 2022. Before I go into details on the financial performance, please be reminded that our members quoted here will be RMB and please refer to our earnings release for detailed information on our comparative financial performance on both the year-over-year and quarter-over of 2022.
Despite the challenging external environment, throughout the pandemic and the economic growth, we have spread forward in the profit making phase with four consecutive orders of profitability. Sooners is pending the momentum as we have practically pursued a high quality operational strategy since the third quarter of 2021. The net operating revenue increased by a 10% quarter over quarter. platelets posited by F HDTV.
decreased by 0.9% year-over-year to R&D 772, meaning, which was primarily due to the decrease in influence related income.
For Q3, operating costs and expenses decreased by 50% year over year to RMB 639 million due to the effective cost control measures taken since the third quarter of 2021.
on quarter over quarter basis, operating costs and the expenses increased by 17%.
To break it down, operating costs were RMB 341 million up by 15% year-over-year, mainly due to the decrease in professional and outsourced customer service fees, or RMB 22 million. The recording of certain calls performed in the latest RHC direct calls to the RHC.
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related to the termination of mutual aid plan last year based on the final settlement information. Partially outsized by the RMB, 85 million increase in personnel costs. On quarter-by-quarter business, operating costs increased by 40%.
due to professional and also customer service fee increased by RMB 64 million at the very first second quarter of 2022.
The market is not as different materially by 82% year over year to RMB, 130% meaning for the first quarter of 2022. The difference was primarily due to RMB.
I have a meeting to create marketing expenses to serve private country China.
and around the 122 million people in all sorts of fields and multi-country services to third parties.
Also, on a quarter-over-quarter basis, those are marketing incentives that remain stable compared with RMB 144 million for the second quarter of 1992.
GNA context increased by 26% in Q3 to RMB 82 million year over year due to the combined impact of RMB 8.7 million share rate compensation expenses.
a decrease in RMB, $9.9 million in personnel costs, and a decrease in RMB, $5.4 million in rental costs. Expensive.
How important is it that the GMDA is meant to remain stable compared with our meeting?
86.1 for the second quarter of 2022.
R&D expenses decreased by 23% to R&D.
78 million year over year. The key quiz was primarily due to R&D.
19 million decrease in research and development personnel cost and share list compensation is $20,000 as of November 2nd 2020
They increased by 11% quarter by quarter, which is primarily due to RMB 7.7 million increase in research and development personnel costs and share based compensation expenses.
In Q3 we reported a non-gap profit of RMB 215 units and a US gap net profit of RMB 169 units. In Q4 we reported a non-gap profit of RMB 179 units and a US gap net profit of RMB 149
compare with adjusted backlogs or RMEs.
433 million for the same period of 2021. The profits we have generated over the last four fiscal quarter illustrate the achievements of cost-
and those Bowls September
30 2022. Our cash and cash equivalents can resolve permanent investment by the end of 2021.
to our cash and cash equivalents and the short term investment balance increased to our needs.
3,588 meetings, an increase of RMB in 300 meetings, or 9% from the end of the collaborative quarter.
as we continue to generate positive profit in cash flow, also be outside by the investing and financing cash flow.
So far we have once again reinforced our financial guidelines on achieving a non-dense profit in the year of 2022. And going forward we will continue our efforts in calculating our business, enhancing our revenue quality and in scaling cost optimization.
Thank you, that's all. Let's now turn to our journey.
We will now begin the question and answer session to ask...
to ask a question.
You may press star then one on your touch tone phone. If you're using the speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two.
Please limit to two questions at a time so others can get their questions in as well. In addition, for those who speak Chinese, would you please ask your questions in Chinese first, followed by the English translation by yourself?
Thank you.
At this time, we will pause momentarily to assemble our roster.
The first question today comes from Mei Quimping with CICC. Please go ahead.
Thank you for creating it. This is Jingqing from SICC. First of all, congrats on the results. We noticed that you have a sufficient cash reserve. My question is, what's your plan for utilizing it? That's how fun it is.
So this is Yawong speaking. I'm going to answer the question. Thank you for that question, Xingjie. I think I mentioned earlier as it will be aimed at the temper of power of cash and cash will grow and shall come and last name.
and total RMB 3.6 billion. Even taking into account our sales repartee, we were able to generate a positive cash inflow of RMB 300 billion in the third quarter. Our AMCO cash reserve and our RMB 3.6 billion were able to generate a positive RMB 300 billion in the third quarter.
sufficient cash reserve. Meanwhile, we provided that we have ample working capital needed for our daily operations. We will use a properly amount of funds to build our medium and long-term cutting edge to achieve healthy and sustainable development.
I think, firstly, we will use our fonts to implement our share with machines program.
Since our IPO, we have used our own funds and cumulatively bought back 5.8 million ADF from the open market for total consideration of approximately US$8.5 million. Based on our strong confidence in our corporate environment, our long-term sustainable development...
which we will align via interest our employees with the global company.
This is definitely a little bit of a strategic investment at the right time.
We will use a portion of the funds to pursue super strategic investment and acquisition opportunities.
The progress will be centering around the solid framework for five hours.
product innovation capabilities, technological innovation, and synergies created among various unique system segments.
to penetrate deeper into the industry and strengthen our ecosystem of insurance, healthcare technology and thereby further expanding our private industry.
Certainly we will need to access the healthcare sector.
relying on our established advantage in doctor-patient relationship and how to do big data analyzing.
We will come in.
in the medical innovation space.
As mentioned by the talk earlier, our patient recruitment business is gradually becoming an industry leader and our CRO business has also made a remarkable progress. So going forward, we will continue to allocate an appropriate amount of funds to pursue innovation and opportunities in medical and health care.
from growth over company.
I think that's all for the questions.
The next question comes from Edwin Liu with CLSA. Please go ahead.
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regarding the crowdfunding platform. Since we just finished the first full quarter of this crowdfunding, where it started to charge the service fee, can you provide a breakdown of the revenue and profit for this segment and any color on the trend? And my second question is...
The first question, what is our medical crowdfunding platform has been to a fully subsidized service fee and it started with charter service fee of 3% in April of this year. Our total maximum amount of RMB is $5,000 for a single campaign.
This is to cover part of the operational cost and help more patients with critical units to raise capital. The user number and fundraising among our platform has remained stable after the charter of the service fee. We also regularly are preparing media.
We close our service fee revenue in our financial report and through our other communication channels. Since April , when we started to chart the crowdfunding service fee, we have generated around 120 million in service fees, relatively, at the end of September .
For Q3, our revenues from service fees were currently 59 million, accounting for around 2.8% of the fund rate during Q3. The rate is below 3% because we are still $50,000.
or questionably you see a patient in some cases.
So this is direct operating console. Our platform in platform was RME64 meeting.
In addition, there are also indirect costs formed by our company including IT, middle office, risk control, and other functions. So the service fee was fairly sufficient to cover most of the direct operating costs. Overall, our four job medical crowdfunding platform remains.
our filter values and our track are changed. And that is to make the filter cover the operational cost.
So we will keep our core funding platform healthy and steady development path. And continuously upgrade the service and explore more money adaptation scenarios in an elderly and healthy manner.
We would strive to provide premium spot rate.
fundraising service for more patients in need and help establish a strong health and hygiene system for the public.
And to talk about the guidance of the O-year prospect.
At the beginning of this year, we set the goals to achieve non-gap profit for our established business for the whole year of 2022.
So far we have achieved good progress with our strategic transformation and we have continued to see improvements in our operating and financial performance. Since earlier this year, our revenue has gradually stabilized and returned to be a growth track quarter over quarter.
Since we first achieved an adjusted net profit in Q4 last year, we have maintained healthy level of profitability in each quarter of 2022.
In 2-3, I'm net profit on gas basis, which I'll be 117 million.
Despite the internal opportunities, we have established the foundation for more healthy, more solid and more resilient growth patterns against the various external factors.
We have entered into a phase of healthier and more sustainable growth systems with a SM
Before our 2022 four-year profit, we expect to maintain the profitable standard in two schools and achieve net profit around RMB 500 million for the four years of 2022, all performing with a goal set at the beginning of the year.
I hope that answers the question.
Yes, thank you very much.
The next question comes from Thomas Lane with Goldman Sachs. Please go ahead.
Thank you. Thank you for the opportunity. A quick question on the increasing operating costs in the third quarter. Just want to try to understand what's driving that increase.
The increase in the operating costs is due to the recording of certain crowdfunding related service direct costs of R&D 63 million switched from a filter marketing incentive to an operating cost as we started the chart call on the subsidy in April this year.
And then we'll be looking at
Because we only started the chart starting from April this year. It didn't cover the whole quarter.
And also we increase cost on the professional and also customer service fee. We increase cost on the professional and also customer service fee.
That memory is related to the power point you're building.
Do we have the last question? Yes, we do. If you'd like to ask a question, please press star then 1. The next question comes from Susie Lou with Bank of America. Go ahead.
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competitive advantage in tier three cities or below. But which is the area you've been focused on? Going forward, are there any strategy to expand business in tier one and tier two cities? And could you share more details on your strategy, please?
Thanks. OK, thanks. This is
talk something about interest in it, about the ending of the video.
So first and second here.
Right now, more than 80% of our current users are from here.
three energy velocities, which is consistent with Euler's optimization distribution. So from the perspective...
The absolute number of users in Taiwan and in the city. We have an advantage in the industry.
So to expand the users to the first tier, the second tier, we have four strategies.
But our online also package is
We provide virtualized business models such as the organization-based model, the independent-based model, and the relative model according to the local conditions.
The first case is a system that has broken, diagnosed, custom needs and provides appropriate interest to the user. We can set the middle class ceremony in the first and second test cases with a more professional vendor.
objective entry solutions. Second, we will leverage our custom insights to continuously enrich our product offerings and develop product lines to better list the diversified list of users in tier 1 and tier 3 cities.
We are done, thank you.
It shows climate models, which feature deep content and community marketing to facilitate customer acquisition. It helps our user experience and expands our reach among users in the future.
Here are the two cities who already have a deeper awareness of interest. Yes, go on.
And we are going to work with PitShow which are talking about emerging white-collar workers and investing in a promotion campaign with a higher recognition to deepen our brand awareness about customers in tail-long-term theater series. That's all.
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