Waterdrop Inc. Q1 FY2025 earnings call

• Business growth: Revenue over RMB 750M, +7% y-o-y; net profit +34.2% y-o-y, 13th consecutive GAAP profitability.
• Insurance business: FYP up 19% y-o-y, insurance revenue up 8% y-o-y. Short-term insurance FYP +30.1% y-o-y, long-term insurance FYP -1.6% y-o-y but growth in disability and critical illness.
• Digital platforms: E-Find Platform has 11,000 patients enrolled; Waterdrop Guardian AI insurance expanded scenarios.
• R&D: RMB 56M spent, +3.6% y-o-y.
• Share repurchase: ~54.2M ADS repurchased, $1.07M; third cash dividend of $7.3M in May.
• Charity: Charity platform partnered with 117 organizations, over 15.5 projects.
• AI efforts: 51 patents related to LLM; AI service quality Copilot improved efficiency by 83%; AI insurance expert scaling.

Waterdrop's total revenue in the first quarter reached over RMB 750 million, up by 7% year-over-year. Net profit attributable to the company's ordinary shareholders was about RMB 110 million, a significant 34.2% year-over-year growth, marking the 13th consecutive quarters of GAAP profitability. The insurance business segment saw first year premiums up by 19% year-over-year, contributing to an 8% year-over-year increase in insurance revenue. Short-term insurance FYP reached RMB 1.5 billion with 30.1% year-over-year growth. Long-term insurance FYP was RMB 590 million, a 1.6% year-over-year decline but with growth in disability and critical illness insurance. Digital clinical trial solution business generated about RMB 23 million in revenue, growing by 11.5% year-over-year. Insurance-related revenue contributed approximately RMB 658 million, up by 8.4% year-over-year.

• Anticipate revenue growth rate in subsequent quarters to further increase, annual revenue +20% y-o-y.
• Intend to increase investment in H2, which may negatively impact annual profit.

• Potential risks outlined in SEC filings, including those affecting forward-looking statements.