Waterdrop Inc. Q4 FY2025 earnings call

• Executed on AI-plus insurances strategy, with financial performance showing top-line and bottom-line expansion.
• Insurance business in fourth quarter had strong momentum, with insurance-related income up 125% y-o-y and operating profits up 42% y-o-y.
• AI embedded in every node of service chain, with AI Pro insurance agent on mini program showing 33% sequential increase in premiums.
• Medical profiling platform maintained governance and user experience, strengthened risk control in user privacy and content authenticity.
• Healthcare business e-funding platform in high growth, with clinical trial revenue related to chronic disease surging 30% this quarter.

For the fiscal year 2025, revenue reached $3.98 billion. The insurance segment (SML) had revenue surging 51.3% with an operating margin of roughly 18%. Insurance-related income in the fourth quarter surged 125% year-over-year to $1.31 billion, while operating profits rose 42% year-over-year to $160 million. The medical profiling platform had cumulatively raised funds for 3.68 million patients, and clinical trial solutions enrolled over 4,000 patients this year. The e-funding platform partnered with 224 pharmaceutical companies and NCOs, enrolled 14,555 cumulative patients, and the proprietary drug patient matching technology was granted a national invention patent.

• Expect to sustain momentum this year with moderately higher investment in marketing and AI.
• Target double-digit growth in both revenue and profits.

• Potential risks and incentives outlined in public findings to the SEC, where actual results may differ materially from current expectations.