Waterdrop Inc. Q4 FY2024 earnings call

• Financial Performance: In Q4, net profit attributable to ordinary shareholders was over $99.6 million. Annual net profit attributable to ordinary shareholders doubled. Total revenue Q4 $687M, annual $2.77B (+5.4% Y/Y).
• Dividends and Repurchases: Company will launch third cash dividend ($0.20 per ordinary share and $0.02 per ADS). Cumulatively repurchased about 52.1 million ADS in open market costing ~$104M as of Feb 2025.
• Social Responsibility: Partnered with 115 public charities, over 15,000 charitable projects. Waterdrop Medical Crowdfunding recognized as pioneer in China's medical profiling sector.
• AI Initiatives: Launched AI tools in 2024, accelerating AITC development. Plan to increase AI investments in 2025.
• Insurance Business: Short-term insurance FIP growth, inclusive products, long-term insurance FYP, team optimization, online planner model contribution ($90M FYP in Q4).
• Digital Clinical Trial: Income growth, collaboration with 177 pharma and CROs, 880 patients enrolled in 79 new programs.

In Q4, total revenue was about $687 million. Annual revenue reached $2.77 billion, up by 5.4% year-over-year. For the insurance business, in Q4, FYP was about RMB1.9 billion (24.5% year-over-year growth, 7% quarter-on-quarter decrease). Insurance-related revenue was RMB $580 million, down 1% year-over-year and 3% quarter-on-quarter. Short-term insurance FIP surged 44.2% year-over-year to $1.43 billion. Long-term insurance FYP reached $460 million. For the medical crowdfunding business, as of the end of 2024, around 417 million people accumulated donations of $67.5 billion to about 3,400,000 patients. The digital clinical trial division income realized a year-on-year increase of 22.9% in Q4.

• Target 20% annual revenue growth in 2025 with quarterly increments. - Expect Q1 2025 to maintain stable growth and sustain profitability. - Plan to distribute dividends semiannually if business remains healthy.

• Forward-looking statements subject to risks and uncertainties outlined in SEC filings. - Potential impact of AI investment unwinding and market changes on operations.