Q4 2022 Waterdrop Inc Earnings Call
Speaker 2: Good morning, this is Mona, the investor relations from Water Job and I'm happy to welcome everybody to the Water Job's fourth quarter and for your 2022 variant call. Please note that you are in a reasonable mood as to this event is being recorded.
Speaker 2: Please also note that the discussion today will contain four looking statements made under the State Harbor Provotions of the U.S. Private Securities and the Detigation Reform Act of 1995. Four looking statements are subject to risks and impurities that may cause actual results to be materialized from our current experience.
Speaker 2: under ethics for role. Also, this concludes discussion of Vincent Nongat Niner, his reference from early today for a precondition between Nongat and GAP. Joining us today on the measuring of our Mr. Xing Heng, our founder, chairman, and CEO , Mr. Yang Wang, co-founder, director, finance lady, and chief executive
Speaker 2: in the measuring line at the end of the conference call.
Speaker 2: Hello everyone, thank you for joining our fourth quarter 2022 earnings conference call. Looking back on 2022, the double-fied rates of global economy as the resurgence of the pandemic put tons of pressure on the domestic economy. However, as China made efforts to deepen the stable growth and loosen the provision of global economy,
Speaker 2: the insurance industry still has great potential since the demand for insurance continues to grow. Meanwhile, the pharmaceutical industry is entering a new age that is from the acceleration of the Greenville Trail to Disney's model innovation.
Speaker 2: Facing the headwinds, we insisted on pursuing sustainable development by creating valuable users, which saw mass trade business revealing. In the fourth quarter, our revenue continued to drop by 3.5% year-over-year.
Speaker 2: Our DATnet profit reached RMB 126.2 million in the full quarter and 6,008 million for the whole year. We have delivered our commitment on overall profitability for our established business in the year 2022.
Speaker 2: As of the end of December , our cash-on-cash equivalence and short-term investment amounted to RMB 3.7 million, increasing 3.2% quarter-to-quarter. Even taking into account our repurchase program, we were able to generate a posted cash inflow of RMB 1.16 million in the fourth quarter.
Speaker 2: Our annual cash reserves and ability to generate positive cash flow put us in a strong position to make sure that there are changing arguments and make future orientations arrangements.
Speaker 2: Our businesses are showing positive traits. Specifically, under the pressure of industry adjustments, our wardrobe insurance marketplace continues to contribute net profit and cash flow by enriching our products and improving service capabilities.
Speaker 2: As a test buyer and leader of the crowdfunding industry, Waterdrops Medco component platform has expanded its market share by transparent operations.
Speaker 2: It has taken only just one year for e-find patient platform to transform from a medicine business to an industry leader. In the fourth quarter, the revenue generated from e-find expanded RMB 22 million, increasing 40 times year over year.
Speaker 2: The annual learn new reached to nearly RMB of 50 million. eFAN has become our group's driver. Learning the patient recruitment capability, we are also actively exploring the opportunities in CRO and CRO.
Speaker 2: As an internet company, we will continue to invest in R&D to build a long-term note. In the fourth quarter, we will be organizing the intelligent dialogue platform to empower our businesses.
Speaker 2: We also achieved good results in AI plus human projects and we continue to use the underlying technical capabilities to further reduce expenses and increase efficiency.
Speaker 2: In the fourth quarter, we actively carried out our shared repurchase program. We will put chance of approximately 2.7 million ADIs in total. We are continuing to excuse presenting for the reminder extension program.
Speaker 2: At the end of 2022, we had reached almost 8.4 million ADIs from the open market for a total consideration of USD 12.4 million. These donors trace our strong commitment to our corporate values.
Speaker 2: Meanwhile, we plan to reserve this share-for-share incentive plan, which will allow the interest of our employees with our company.
Speaker 2: Our goal is a review of our business in the fourth quarter. We have confidence in both the industry and ourselves. Down the road, we will continue to pursue high quality growth on the promise of proper quality. To achieve our goals, our strategies include
Speaker 2: First, for the insurance business, we will adhere to the digital transformation to expand user coverage and improve sales capabilities to achieve sustainable profitability.
Speaker 2: Second, we will increase the investment in pharmaceutical areas to build long-term good drivers.
Speaker 2: And third, leveraging abundant cash reserves, we will see MMA and other opportunities around the insurance and pharmaceutical sectors and continue to invest in R&D to empower the whole industry.
Speaker 2: In the end, I'd like to emphasize that we will continue to calculate our business and existing user-centric development to further enhance our industry rating position. With economic recovery, a supportive policy and abundant cash flow, we will continue to
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Thank you <unk> Hello, everyone I don't know I'll walk you through our financial highlights for the fourth quarter and full year of 2022 before I go into details on the financial government. Please be reminded that all numbers quoted here will be RMB as well.
Also our earnings release for detailed information.
Our comparative financial performance on both a year over year and quarter over quarter basis, respectively.
Despite the challenging external environment, we did take on the high quality development. Our net operating revenue increased by 12, 5% year over year to $679, five anemic, which primarily due to the increase of insurance matches.
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There are operational costs and expenses decreased by 10, 5% year over year and a five point.
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Quarter of 2021.
To break it down operating costs were 278 6 million.
Our fine roughly 41% year over year, mainly due to the increase in professional and also customer service based on $51 2 million and the recording of consulting related services of roughly 67 million from sales and marketing expenses.
And they started to generating compounding services.
For 2022.
And partially offset by around $41 million decrease in personnel costs flower.
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On a quarter over quarter basis operating income decreased by <unk>, 4% as a result of the professional and of course customer service basically increase by around 25 million.
Sales and marketing expenses increased by only two 8% year over year to $137 8 million, which was primarily due to a $36 million increase in marketing expenses and third party traffic channels and exactly a $18 million.
Decreases in sales and marketing services.
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On a quarter over quarter basis, our sales and marketing expenses almost remains unchanged.
Our G&A expenses decreased by 27% year over year to $118 6 million due to the combined impact of a decrease of 39 million impairment loss and partially offset by an increase around fixing fixing any allowance for doubtful accounts.
And a $7 7 million decrease in personnel costs.
Our quarter over quarter basis is increased by 44, 5% primarily due to the increase in allowance for doubtful accounts professional services as well as the share based compensation expenses.
In this quarter, the RMB expenses decreased by 21, 2% year over year, and eight 5% quarter over quarter to $71 seven minutes.
This was primarily due to the decrease in R&D personnel.
In Q4, we reported a non-GAAP profit of 159 was dine in EM and API companies $126 2 million compared with adjusted net profit of $5 9 million for the interior of 2021.
We have generated over the past five quarters.
Tracy determination and achievements of cost discipline and profit enhancement.
And so at December 31st 2022, our cash and cash equivalents and short term investments increased.
32% quarter over quarter to three 7 billion as they continue to generate positive operating cash flow.
In conclusion, we have committed our financial guidance of achieving a non-GAAP profit of Chinese wanted to.
Going forward, we will continue our efforts in calculating our business housing our revenue.
Policy and adapting cost reduction.
On the continent is underscored by the resilient business ongoing momentum and most importantly, our teams are wavering commitment to deliver a best in class service to our customers.
And ladies and gentlemen, with that we'll conclude today's conference call. We do thank you for joining.
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The conference has now concluded we thank you for attending today's presentation and you may now disconnect your lines.