- Waterdrop Inc (NYSE: WDH) stock price rose 26.87% today. That is why.
The stock price of Waterdrop Inc (NYSE: WDH) – a leading technology platform dedicated to positive social impact health and insurance services – rose 26.87% today. Investors are reacting positively to Waterdrop’s unaudited financial results for the fourth quarter and year ended December 31, 2021.
Financial and Operational Highlights for the Fourth Quarter and Fiscal Year 2021
— First Year Premiums (FYP) generated by our Waterdrop Insurance Marketplace for 2021 reached RMB 16,363 million (US$2,568 million), a 13.4% year-over-year increase.
— For the fourth quarter of 2021, our sales and marketing expenses decreased by 69.2% and total operating costs and expenses decreased by 47.5%, resulting in a decrease in net loss 85.1% quarter over quarter. And the company generated approximately 5.9 million RMB ($0.9 million) of adjusted net profit compared to adjusted net losses in previous quarters, our net loss margin narrowed from minus 61.2% to minus 11.8% and the adjusted net profit (/loss) margin improved. from minus 58.2% to over 1% quarter over quarter. The results demonstrated our effective cost control and our commitment to achieving profitability.
– As of December 31, 2021, the Company’s cash and cash equivalents and short-term investment balance increased to RMB 2,787.1 million (US$437.4 million) or RMB 176.0 million. RMB over the end of the third quarter of 2021, as the company started to generate positive operating cash flow, partially offset by investing and financing cash outflows.
— As of December 31, 2021, the company offered 364 insurance products on our platform. Over 90% of FYP was contributed by our proprietary custom insurance products. In 2021, Critical Illness Insurance FYP increased 52.3% year-over-year, keeping pace with our product line optimizations since the start of 2021.
As of December 31, 2021, approximately 394 million people have donated a total of over RMB 48.4 billion to nearly 2.4 million patients through Waterdrop Medical’s crowdfunding.
“Since the start of the third quarter, the capital market has remained volatile and growth in the insurance industry has slowed. Despite all the challenges, we remain committed to growing our business in a customer-centric way and creating lasting value for our shareholders. We proactively adjusted our strategy and business model to pursue higher quality development and continued to deliver encouraging results. For 2022, we will strive to achieve non-GAAP operating profit for established businesses. During this time, we will continue to innovate through our careful exploration and incubation initiatives in selected promising areas, while remaining focused on challenging but valuable areas for our customers. In an unfavorable market environment, the members of senior management also intend to use their personal funds to purchase the Company’s ADSs in a timely manner, in accordance with and subject to applicable laws and securities trading policy. of the society.
— Peng Shen, Founder, Chairman and CEO of Waterdrop
“For our insurance business, the fourth quarter of 2021 was the first full quarter of upgrading our business model, and we made solid progress. Through the transformation of our growth model, the effective management of existing users and the improvement of long-term technological and innovation capabilities, the quality of our users and various efficiency indicators have improved significantly, laying a solid foundation for us to further realize the profitability of our businesses During this time, we have focused on strengthening investment in AI-based businesses. For example, our self-developed AI robot has made significant progress in recognizing intentions and simulating behavior. human voice.By continuously refining the process of “outgoing call robot + customer service + online operation” service combination, our ta Short-term insurance renewal ow exceeded 78% in the fourth quarter. »
— Guang Yang, co-founder, director and general manager of Insurance Marketplace
“We assisted in the establishment of the poverty alleviation mechanism to prevent the economically vulnerable group from falling back into poverty due to serious illnesses. By the end of 2021, through our medical crowdfunding platform, a total of 394 million people helped 2.4 million patients get out of a critical situation with a large medical payment. We also actively explored various commercial healthcare initiatives and made progress in recruiting patients for clinical trials. “
— Yao Hu, co-founder, director and general manager of Medical Crowdfunding and Healthcare
“As at the end of 2021, we have experienced two consecutive quarters of effective cost control and improved profitability. In the fourth quarter, our sales and marketing expenses were further reduced by 69.2% compared to the previous quarter, and we achieved an adjusted net profit of RMB 5.9 million in the fourth quarter, compared to an adjusted net loss of 453.6 million RMB in the third quarter. We are delighted to see our initiatives and efforts in cost control and refined operational management yielding results, and we are moving faster than expected in a healthier and more sustainable direction. We believe we are on track to deliver non-GAAP earnings for our established businesses for the full year of 2022.”
— Kangping Shi, CFO of Waterdrop
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