Q2 2023 Waterdrop Inc Earnings Call
Speaker 1: Good morning, everyone. This is me, Tom King from Water Drop Investor Relationship. It's my pleasure to welcome everyone to Water Drop Second Quarter 23rd-Earned Conference Call. I'll talk about this with you in the live and only mode in our English line. As a reminder, today's conference call is being corded.
Speaker 1: Please note that discussion today will compromise for what statements made under the solid boundaries
Speaker 1: But when looking for statements, I factor to risk it, and then as they do, then the cost actually results with the deferment early from a recurring expectation.
Speaker 1: Pre-numerous can and certain is includes the not limited to those outlined in our public filing with FEP. The company does not undertake any implications to affect any global looking statement except as required and applicable law. Also, this call includes discussions of certain MENCAC members. This relates to our early release or consideration to MENCAC and MENCAC.
Speaker 1: Joining us today on the call, ask Mr. Chen Peng, our founder, Chairman and CEO , Mr. Yang Dong, co-founder, director, finance CT and GM of international business. Mr. Chen Peng, the co-founder and founder of co-founder and founder of tech business, Mr. Chen Reaching, both tech theory, and it would be happy to see some of the questions in the memory line as the end of the conference call.
Speaker 1: has today on the call. Mr. Shenpeng, our founder, Chairman and CEO , Mr. Yangtong, co-founder, director, finance VP and GM of International Business. Mr. Shenpeng is the founder of GM of Profonding and Pharmacetic Business, Mr. Chairwoman of the Tech Theory. And it would be happy to see some of the questions in the memory line as the end of the conference call.
Speaker 1: Hello everyone, this is Sharon Pum. Thank you for joining our second call to our 23rd conference call. With the second call, you'll be sure and find still the industry with the gradual involvement of graduation, transparency and instantization have significantly improved. Effectively, you can see your experience and satisfaction.
Speaker 1: This has also led to once and other users companies to embrace new close opportunities. In this setting, the company's for activity contest, where the literature trains, response activities to market demand, continually innovate products, and optimize their risk of fully-resulting by a leading age in niche factors. Regardless, the challenges and actions in the urban, the members and firms become their adhering to long-term value and maintaining a user-centric approach to secure, driven market space.
Speaker 1: In the second quarter of 2023, the government continues to focus on creating a valid wallet either and take the three housing developments. The financial performance rate is above with our revenue reached six hundred and seventy nine million. Carrying over an actual train for the last five quarters, the cash profit reached 21.7 million, demonstrating the sustainable and high-quality development of the company's assimilation.
Speaker 1: With the students close to net profit, the common interest and both tax reserves as of end of June , the common and how those little 3.4 trillion in tax cash equivalent and children investment, the common and tax reserves help the company to face and third and third environments with more confidence and support one from 10 at the end of the year for growth.
Speaker 1: All of our business models are chiefs' firm performance in future and have already been our leading position and influence in industry. First of all, what is our insurance market for each business in paradise? And...
Speaker 1: use it, use the theme trick and enhance business vitality. While exploring diversified customer acquisition channels, we also see different product innovations thanks to the efforts of a colleague. Those IIP and revenues make the printer flow, and we continue to contribute single mass profits to the company. In terms of digital clinical trial solution business, due to our excellent performance, the e-find platform gains recognition from both domestic and international partners. We continue to expand release times and accelerate drug development for some citizens, and we will also make significant progress in CROs. In Q2, digital clinical trial solution income was 29.4 million and achieved a significant year-on-year growth of 167%. In addition, by iterating outcome capabilities and risk management mechanisms, our water drop medical core funding platform firmly adhered to transparent operations and give up to every ounce of compassion. Meanwhile, we enhance their net quality, propel a service-oriented consulting model, and embody the principle of users first, service from home.
Speaker 1: Along with business development, the company continued to invest in research and development. In Q2, the company continued to upgrade technologies like intelligent channels, deploying AI in various sectors including operations, cells, and planes, which strongly accelerated operational efficiency. And the company persisted in transporting technology to empower the industry. In the complex and average changing macro environment, the company was founded in China while actively fulfilling CSR. As of June 30, 2023, the Women's Authority program had collaborated with about 110 public charitable organizations to carry out projects in serious union assistance, emergency disaster relief, and educational support. The program has raised about $1.3 billion and raised the contribution from more than 65 million donors.
Speaker 1: We also continue to find ESD images and try to achieve mutual sustainable development between the confidence and the society. We've been to marks domestic and the Internet and ESD standards to establish a top-down governance framework and publish the 2020 ESD report. The report summarizes our company's management and performance in areas like compact governance, participation in mobile level medical support systems, technology innovation, green and low-carbon initiatives and public welfare.
Speaker 1: We stand between the company's commitment to high quality and sustainable development. In terms of share repurchase, at the end of August 2023, the company has cumulatively repurchased 37.5 million shares in the open market. We've touched for a total consideration of approximately 86.1 million USD. We also want to announce the extension of the repurchase plan. We have received approval from all of the directors.
Speaker 1: Within the next 12 months, the company will repurchase shares in the open market for a month now exceeding $15 million. This decision is based on the company's strong confidence in our own values and long-term sustainable development. Meanwhile, this share repurchase will be used for info which will further cultivate our employees.
Speaker 1: The above is a great review of our system performance in YouTube. Although this is a challenging echo in Verran, it's basically competent in our self-meds in the future. Looking forward to the later half of the year. Our strategies include, first, service by a long and digital confirmation, ensuring that the more competitive is interactive, trying to achieve long-term housing in status development. Meanwhile, it will continue to enhance the education week, consolidate the finance and business foundation, and provide users with professional and self-help service. Second, the core funding assistance will continue to adhere to the first and in the latest service model.
Speaker 1: leading the industry towards high quality development. We will also adhere to transparent operations and implement strict risk management while actively fulfilling CSR. Thirdly, leveraging big data, the pharmaceutical business will continue to increase industry penetration globally and actively explore new models in order to construct a new long-term growth engine.
Speaker 1: Firstly, the companies will make use of assembled cash reserves and state cooperation and investment opportunities around insurance and healthcare factors. Last but not least, the company will accelerate technology empowerment and enhance AI ability to build core technology competitiveness, whereby supporting the implementation of long-term strategies and empower the industry. The company will make use of assembled cash reserves and state cooperation and investment opportunities around insurance and healthcare factors. In conclusion, the company will continue to develop long-term advice to calibrate user value, strengthening their sustainability and organic growth, and constantly expanding business boundaries. We continue to bring insurance and healthcare-backed surveys to building their technology.
Speaker 1: And now let me give you an update on our insurance business. In the second quarter, in order to enhance service experience and business healthness, the company committed to user-centric and high-quality development and continued to explore new service models. During Q2, we achieved 219.7 million yuan in first year premium.
Speaker 1: and update our insurance business. In the second quarter, in order to enhance service experience and business health, the company committed to user-centric and high-quality development and continued to explore new service models. During Q2, we achieved 219.7 million yuan in good year premiums and margins
Speaker 1: of 30% sequential growth. Insurance-related revenue reached 597 million, reflecting 11% QoQ growth. Shout-out insurance achieved a 5P of 1.6 billion, marking a 30% sequential growth. On one hand, the company further developed our content-based user acquisition capability. In Q2, we increased our grant exposure through supply innovation and spreading high quality content across multiple platforms, leading to a sequential growth in the number of new users. On the other hand, with capital elevating our existing customer base, leveraging AI ability, the company continues to improve the quality of the user service, leading to over 90% short-term insurance annually.
Speaker 1: During this quarter, the scale and productivity of one-time insurance means growth crucially. Strategy, their insurance. The company's company-activated service model focuses on common domain scenarios and intensified user adaptation, which leads to 33% of IP from private domain operations. The company also spends the next quarter to control over policy issuance, leading to a sustained improvement in the first-year retention rate for marketing products. In Q2, what if I continue to explore new growth channels to facilitate a sustainable business growth? For our online growth channel, SIP experience of 113% percent crunch of growth is a declining interest rate. The company is about a new brand, new insurance, which focuses on single insurance and live insurance to younger users in the first and second tier cities. The number of users for stating insurance grows by 206% thanks to high quality content and segment marketing. The customer lead decreased by 25%. Moreover, the team improves their service process and can control user first-time response within 20 minutes.
Speaker 1: This led to a Q2 increase of 49% in productivity per lead and 30% in productivity per capita. In terms of offline engines and some marketing rebounds and continued tours, we achieved a remarkable 206% while white-roasted in R5P. We continued to enhance product offering and operational capability to further upgrade our CVP systems, providing functional models and optimizing experience for both agents and clients. We elevated recruitment standards and talent development and actively explored agent IP. The average productivity per active agent increased by 201% YOY. The average number of long-term insurance policy per active agent increased by 48% YOY. During the special quarter, the insurance marketplace continued to enrich its product offering and cater to products targeting the business user growth. For individuals interested in long-term production and innovation, Medico 2 and Subodh will launch the Blue Ocean Lifetime Health Insurance. This policy allows users to take upscale overseas medical service at an affordable price and quickly provide an option for users to transfer from shelter medical insurance directly to a 20-year long-term medical insurance, thereby maximizing ongoing user coverage. Targeting elderly, introduce the self-involved burden II.
Speaker 1: This product is the first in China to cover 10 of common serious units among the elderly, including measurement tumors. It was listed and the only product innovation list by the 2020 three China Assurance Industry in both renting. For that housing interview, we continue to iterating our build ocean theorist, which is the first domestic health insurance rating healthy with the coloration. In Q2, this product theorists achieved our 5P over 100 million. This is the activate for mobility channels south of maternity and insurance and insurance covering medication in all patients and emergency. We saw a sequential increase in FYP. In terms of users with previous infallations, we continue to eliminate and protect the font innovation. For example, we designed a Woodward Drop Care Free Series which can cover cancer colors, recalents, and the IVT of the existing series of the role of cancer and a recruitment engineer, works for us in the industry, receiving high-work and vaccination front patients. In terms of surgical accidents and insurance, we also also have a solution that costs 1,000 departments in 32 hospitals, which will help patients against post-operative risk. As technology companies, we continue to develop our insurance technology. In the second quarter, we increased AI investment enhancing the team and upgraded our AI and power to dialogue tributes into the basic shall come insurance service scenario. The trivose can now communicate with users. Already ikkeantic.