Q3 2024 Waterdrop Inc Earnings Call
Good morning, everyone. This is Tracy Lee from what he helped me Investor Relations. It's my pleasure to welcome everyone to mortgage apps third quarter 2024.
This conference call all participants are in a listen only mode in our English line as a reminder, today's program is being.
And recorded.
Please note that the discussion today will contain forward looking statements made and copper probation, whilst private Securities Litigation Reform Act of 1995 forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectation, but angel risk and in essence.
If you include but not limited to those outlined in our public body that SEC. The company does not undertake any obligation to update any forward looking statement, except as required under applicable law. Also this call include discussion of certain non-GAAP Merit. Please refer to our earnings release for a reconciliation between non-GAAP and GAAP.
Speaker Change: Joining us today on the call are Mr. Shang, our founder Chairman and CEO, Mr. Yung Wei director and G. M L B insurance.
Speaker Change: Mr Qi Hello.
Speaker Change: My name is department and Miss it definitely.
Speaker Change: Will the secretary, we will be happy to take some multiple questions in a memory lie at the end of the conference call.
Speaker Change: Hello, everyone. This is Sean Paul in Q3, the company remains committed to healthy operations and sustainable well delivering solid results total revenue for the quarter reached 740, <unk> and net profit attributable to ordinary shareholders around $92 eight.
Speaker Change: Yes.
Speaker Change: Walking a year over year increase of over 150%, but in my mouth. That's one one for the company reported total revenue of 2.08, giving 158% a year on year end and our net profit actually beautiful to ordinary shareholders.
Speaker Change: 261.
Speaker Change: 142% increase compared to last year is still wind up tying to pardon me too we have achieved profitability for 11 consecutive quarters.
In Q3, each of our business segments focused on enhancing user value and key metrics showing steady growth in insurance business, we targeted seniors bothered any videos with preexisting conditions, extending our network health insurers and the loss of several you know maybe where that first year premiums totaled.
Speaker Change: The over 2 billion yen.
Speaker Change: The increase year on year with operating profit margin above 20%.
Speaker Change: In medical with Bombay.
Speaker Change: We actively responded to new charity law, and Maritz Wolff administrative shouldnt online service swap them for individuals sticking but it helps both user numbers and profiles.
Speaker Change: Mt continued right while the segment loss further narrowed reading bolting does that stay nobility Oh arbitration.
Speaker Change: And the health care REIT sector, our strong execution capabilities allow us to expand our network with pharmaceutical we've been member of enrolled patients wearing both year on year and quarter over quarter.
We are also delighted to report notable progress in AI.
Speaker Change: As a tech company rooted in insurance and health care, what is on the forefront of integrating locked language models into our industry.
Speaker Change: Following two years of focused development, we lost AIG pop Valspar, three Oh, a converged AI.
Speaker Change: They should know AI platform that helps them I E I stop aging isn't it.
Speaker Change: Featured.
Speaker Change: The ability.
Speaker Change: Outbound, calling and accomplish no interaction.
Speaker Change: Oh supporting a voice based sell and the customer service across virus between the industry and helping out our ecosystem partners in his service quality and efficiency.
Speaker Change: Holding our cooperation with P&C insurers in Q2, but I talked about 2.0 platform reached a new milestone in our commercialization. If this quarter, we expanded our partnership with more insurers and have initiated pilot with companies in non insurance sector.
Speaker Change: E Commerce and education with here is a high demand for large scale customer service team as of now we have established collaborations intention with 10 clients.
Speaker Change: Across virus industry with eight already in the testing phase.
Speaker Change: These highlights of Boston market potential for our south aiding solution.
Speaker Change: Where does he will continue in backing in R&D to build our next core competitive.
Speaker Change: Advances alone.
Speaker Change: Application, well Bollywood trucks from our investors and to prioritize shareholder return.
Speaker Change: On November one before but how many you have cumulatively repurchased approximately 59 million in ETF from the open market totaled around $102 million, well, where we recently.
Speaker Change: <unk>, our second, especially pests dividend of a property we seven.
Speaker Change: Seven $3 million.
Well corporate social responsibility.
Speaker Change: In September so what is your charity swap on would have other.
Speaker Change: With a 150 in public to charitable organizations.
Speaker Change: Launched over 15000 charity project during the quarter, we published our one way Street E. S. You report and so.
Speaker Change: So older but yes, your white paper for the online insurance industry.
Speaker Change: With the C U E Green finance.
Speaker Change: Institute of brain valuable IND filing to the industry.
Speaker Change: Yes, your pocket recently the company.
Speaker Change: We see several a could you give a word including the China easy task with Pioneer Award and I S. T E Excellence award with Black never committed commitment to ESG and our strong pullback in these area.
Speaker Change: Scott who are weird I see Oh I didn't perform as you can see looking ahead. What are your job, we'll continue to do leveraging technology bookings being on long term high quality and sustainable growth center and his surrounding either knee IDE.
Speaker Change: I continue to transform more industry, our active use and its first mover advantage in the work that were modest position to have a greater opportunity and growth in that in the future I will now talk to choose you've got core insurance isn't it interesting.
Speaker Change: Thanks.
Mr. Shannon: Mr. Shannon in Q.
Speaker Change: Q3, the insurance business generated about two point, therefore, giving them a P. F 'twenty forms and Y O Y and 14, 8% quarter over quarter insurance related income was about 600, New England are presenting a decrease of 3% Y O Y and an increase of four 7%.
Speaker Change: Operating profit was around was there was around a 120 meeting than the operating profit margin was maintained at about 20%. During this call or our short term insurance D. C 137 getting them.
Speaker Change: 33% Y O Y and 19, 9% quarter over quarter increase in premiums on policies currently drives that well.
Speaker Change: The comedy reach out to new customers through multiple channels and have that crane product I T.
Quite close like the little Red book take Park, and we call them with you.
Speaker Change: Collaborating with Influencers and optimizing reactivation efficiency on our R. T. A model the number of new users into Sweden are stable on quarter on quarter basis.
So I think it was me either the company is committed to improving user experience and metering it insurance product offering. According to me as a different user profile leading to an increase in.
Speaker Change: Premium sequentially.
Speaker Change: For example regarding inclusive insurance products that the company has launched several products that do not require tough disclosure have a zero.
Speaker Change: Basketball and affected our preexisting inhibition, thereby lowering our you've been barriers.
Speaker Change: Some products have added a special medical checkup services to enhance their connection.
Speaker Change: In Q3, the F I P O Crazy volition insurance with nearly 200, new England in terms of Retrenching Sharon.
Speaker Change: Three point over hang up.
Speaker Change: Have you noticed any user echinate reclamation and the parent child and critical illness insurance has been successfully launched.
Speaker Change: Due to this combined make back the average premiums the Shelton medical insurance has increased 14, 9% sequentially, we should see it.
Speaker Change: September we held our one job insurance service ecosystem conference, where we start to believe partner. It was several ensures we must ensure suites ablation of triple therapy.
Speaker Change: Third alien align it aiming to has the entire experience.
Speaker Change: That's why people locked in insurance in this quarter. It reached 670 million year on year increase of 14, 3% in a quarter on quarter increase of 26, 4% the online stuff being have been dumping their game.
Speaker Change: Off their game, a booking efficiency and are driving me crazy.
Speaker Change: Premiums with habitat was sequentially.
Speaker Change: Finally, our mall, which is a content driven.
Speaker Change: As we know.
Speaker Change: You were clear in the the growth spurt, especially with the writing train of annual opinion correct.
Speaker Change: On the supply side, and we have been catering to the needs of senior.
Speaker Change: And your.
Strengthened ties with our insurance companies and broaden the scope and the protection that word disability insurance offering.
Speaker Change: We are a new entrant in the vision of our disability income insurance.
Speaker Change: Covers people from $19 70 earnings coverage up to a 90 mighty.
Speaker Change: Oh this quarter disability insurance right in around seven seven to 8 million got any anti P plus.
Speaker Change: Together with our insurance partners Yeah skewed.
Speaker Change: And it was quoted lucky.
Speaker Change: Lucky sorry, a critical illness policy that covers 10 common brain contusion getting comprehensive protection that you bring and health risks.
Speaker Change: On the service side and continue to build up what are you all heard premiums a club memberships itself hovering over 13 benefits for our members offering how management medical right Medicals breakfast that and the high end cuts nice to third it such as wealth management.
Children agitation of plenty and emerging has just been horrible longtime Ashok humming.
Speaker Change: Shelton, ensuring you bet leading to an increase.
Speaker Change: Renewal rates in the long term product shall not about insurance sector has also showed strong growth interest rate cuts.
Speaker Change: 260 million gain weight.
Speaker Change: So maybe I'm crazy both year on year and quarter one cutter.
Speaker Change: These colors and I'll spell that strengthen it left planning planner team.
Speaker Change: Leading to a further rise in premiums how did that include Sweden, what is on the insurance marketplace and she menthol I think it just.
Speaker Change: Keeping the collaboration in product and was that right.
Speaker Change: And research development, leveraging the one job gardening, a O N E S counting.
Speaker Change: Content generation and customer service.
Speaker Change: For Shlomo.
Speaker Change: In terms of Weinberg page what are your options and have announced a brand update.
Oh, great and would you use a comprehensive service that integrates insurance health care and they can see plenty.
Speaker Change: Oh, it's initially come in compromised.
Speaker Change: In encompass a range of services, including expanding product offerings innovating.
Speaker Change: And digging me Qualcomm.
Speaker Change: All designed to empower brokers in near completion.
Speaker Change: As that.
As war technologies or companies that you need to do in life insurance large languid motto at the end of September the company had to apply for over 40, new patents relating to L. O N I didnt bring it quickly to date.
Speaker Change: There's a knowledge base of our one is our priority and have covered over 7000 and screening insurance product at the beginning of the year. The company has developed several intelligence they found us.
Speaker Change: Secondly, the quality infection a puzzle.
Speaker Change: With the move.
Speaker Change: Tonight, We debuted our eight icebreakers Colby agent.
Speaker Change: Which has efficient we replaced the previous menu method I employee.
Speaker Change: The AI preliminary check followed by human reveal we have significantly boosted infection efficiency are reaching full coverage instead is narrow.
Speaker Change: And eight.
Speaker Change: Cobalt that older at a pace, that's 3.7 times sponsored it and it's a.
Speaker Change: Conventional methods.
Speaker Change: Candidly crazy, how where I personally walking it.
Speaker Change: Certainly in the third scenario.
Speaker Change: Well, what does that Guardian has developed the conversational skills how to use the mute a.
Human interaction in our insurance book during this quarter, our AIE against further enhance its technology capability integrating our long term memory module and improving handling the low quality would fall invading homeless fishing.
Speaker Change: Attracting.
Speaker Change: I won't tell you shoot.
Speaker Change: This is a former has set up this quarter's insurance block.
Speaker Change: Almost next Jeremy will introduce the soundness of our company's core founding and housewares.
Speaker Change: Right.
Speaker Change: Thank you Mr Young.
F Q3, and 24 around 466 million people can realize if you don't make mistakes at this point 3 billion to about three point 30 junior named patients through our one golf medical compounding. This call me remarks are a significant milestone for our medical business and the industry.
Speaker Change: As a whole well following the issuance of the marrow.
Speaker Change: Marriage for administration, if all watch every smartphone for interviews that can.
Speaker Change: How really buy it makes it a ministry.
Speaker Change: People with Baird appears wheat and other government departments on September.
Speaker Change: September five somewhere like for this maris offline.
Speaker Change: We're relation E structured bond magazine and.
Speaker Change: The five is an illegal activity.
Establishing a legal framework and enhancing operational guidance and transparency in the court a court farming industry.
Speaker Change: We understand that.
Speaker Change: The credibility is lifeblood, if I want to talk on this.
Speaker Change: This quarter, we have been continually refining our risk control strategies, we have comparing what is then by either reading our public or revise this information mchaney them, we ensure that the verification and handling at the reported cases.
Speaker Change: Are clearly in a properly communicated on the Q teach.
Bolstering our confidence.
Speaker Change: Comparing any fishing oversight environment in cooperation.
Speaker Change: With the public.
Speaker Change: At the same time as the technology company, we got its convenient flooring, how technology can empower they perform for example, our core funding.
Speaker Change: Our couponing system employees every time, you do learn one of the clock alerts for a high risk. He said the only real quick to recognize the the response you hiring.
Speaker Change: Suasion he real time.
Speaker Change: He didn't outsiders, a regular working hours like forum or 126 am I, taking any business and your JC meera, such as popping up cross selling cases, and the banning payments insurance with a companion of any risky our cases.
Speaker Change: And it would drop we firmly believe in the Pas positive power technology in future. We will continue that to protect every act up county, that's real technology innovations and improve the risk control mechanical.
Speaker Change: And for health care related business this quarter, our health related business maintained.
Speaker Change: Steady growth for digital Glen Nickle twice devotion to our problem in rose 909, new patients into three adding to the accumulative total of over 9500 it seems.
Speaker Change: Our launch showing a call cockpits and of course.
Speaker Change: Trajectory.
Excellent for human and efficiency and quality you find cellphone continue tree and depend and partnerships with leading pumps beautiful domestics.
Speaker Change: Domestically and internationally in Q3 with cooperated with a total of 184 beautiful and Bureau during this call. There's a platform play key roles.
Speaker Change: Hmm.
Speaker Change: Primary partner and even on our exclusive recruit recruitment partner in several protect infants.
Speaker Change: Infant in Cleveland, Ohio for beer in college, he targets as it.
Speaker Change: Exclusive a requirement recruitment coronary for the top I mean, each really leveraging.
Speaker Change: Precise analyst and the intelligent matching up patients medical Richert records to help pharmaceuticals existing their enrollment target.
Speaker Change: As the industry moves towards high quality growth top companies beautiful are embracing AI and big data in news App development, if unpark home with it as well.
Speaker Change: Expertise has been sharing insights and with a leading domestic and international were some suitable.
Speaker Change: Ernie brought it works nation.
Speaker Change: They've had for the ongoing operation in a therapeutic area in Q3, along with finding a new project.
Speaker Change: In digital multichannel marketing business. The problem have further integrated acknowledging to virus patients are sort of stages. For example in patient education and career with our AI assistant we have dropped the question isn't wearing a professional medical device and service efficiency or quality control.
Speaker Change: It is now is market attack deployment. Many shacks are holding very standard and the collection of that plus even struck to medical data and are watching Remodels, We guide patients in follow up.
He hasn't been there mhm managing awareness and it combined.
Speaker Change: Looking ahead. The is the problem will continue to collaborate with industry partners to explore with the applications and the possibility of AI technology in homes beautiful scenario.
Speaker Change: Supporting the industry's digital transformation.
Speaker Change: Oh boy, assuming I will now hand over to Trish I'll need to discuss our financial performance.
Speaker Change: I think you do.
Trish: Oh, Hello, everyone I will now walk you through our financial highlights for the third quarter before I go into details. Please be reminded that all members who's here will be RMB and please refer to our earnings release for a detailed information on kind of a bolus on both the year on year and quarter on quarter basis, respectively.
Trish: In Q3, the company continues to optimize further.
Trish: Angel colon with notable growth in profitability, our total revenue for the polymer with some hydro on coordinating one showing a moderate color on Commonwealth of four 1% briefing.
Trish: Breaking it down by business segment to ensure it didn't contribute approximately 600, and we ran the revenue quarter on quarter increase.
Trish: Hum.
Trish: One 7% the corresponding segment, who are generating service fees of around 60.
Trish: 65, 8 million a quite a long quarter decreased about 5%. He didn't feel claims with high single, even generally pay revenue of $24 3 million a quarter on quarter increase from 17.4% regarding operation operating costs any sense at all.
Trish: Any costs amounted to 341 million up six 7% compared to the previous quarter, mainly due to our lives.
Trish: $2 6 million referral service fee, partially offset by the reduction of personnel costs.
Selling and marketing expenses were 173, million% to 10% a quarter on quarter. You raised you didn't buy a strategy in place in advertising effort is on the the accurate any fishing operation leading to a higher marketing expenses to a third party channels.
Trish: Yeah.
Speaker Change: J D.
Speaker Change: $190 I'm getting an increase of 17 million from the previous call. It partly due to being turned on a lot of them.
Speaker Change: Intangible assets relating to the acquisition auction I'm all R&D centers.
Speaker Change: It could be a 53, new England remaining stable compared to the previous caller.
Speaker Change: In Q3, the company profitability will go.
Profitability improved significantly year on year with net profit attributable to ordinary shares shareholders, reaching 92 point Amy when plant two five times, the third quarter last year, and a healthy quarter over quarter growth.
Speaker Change: Five 1% the operating appropriate margin for the insurance business remains consistently strong at over 20%.
Speaker Change: Sustainable net profit we can continue to maintain positive positive operating cash inflow.
Speaker Change: Ensuring a buying cash reserves as I say the.
Speaker Change: September 30th.
Speaker Change: <unk> 30 to 104, the company had a cash position totaled about $3 44, beating them supporting the company's flexibility and speed up with the ability in shareholder returns and distressed deployment in summary, the strong performer in Q3 highlights what are you all have really risen in.
Speaker Change: At let's say things are navigating market change looking ahead, we will continue to uphold our business, but also be in a strategic Detroit driving the company healthy growth and ladies and gentlemen, with that we'll conclude today's conference call. We do thank you for joining have a good time.
Speaker Change: Oh Francis now concluded thank you for attending today's presentation and.
Speaker Change: And you may now disconnect.
Speaker Change: Yeah.
Speaker Change: Yeah.
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Speaker Change: Yeah.
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