WDH - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and thank you for standing by for Waterdrop Inc.'s Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session.

As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to your host for today's call, Ms. Cui. Xiaojiao Ms. ahead, go Please Cui.

Xiaojiao Cui

statements you, Litigation operator. fourth call. for Waterdrop’s Private contain thank note provisions Safe of the Act Hello and fiscal of everyone, US forward-looking will quarter today conference and the you under year the that Harbor the joining Securities discussion Thank made Reform XXXX Please earnings XXXX.

but Company risks from are cause actual and differ materially release our Forward-looking does law. outlined statement, expectations. Also, obligation public a and non-GAAP may for refer certain update uncertainties limited in applicable except includes statements call results filings SEC. any not that include, are Please discussion of to those reconciliation with between not and forward-looking undertake uncertainties any subject this non-GAAP The risks current GAAP. under earnings to as our required Potential our measures. to to the to

call Chairman General Yang Shen and today Mr. Peng, Mr. Medical on us General of Manager Insurance Founder, CFO. Manager Co-founder, the Guang, Yao, Marketplace; our Healthcare, Mr. of our Co-founder, Joining Kevin and and Hu Mr. Director are Director CEO; Crowdfunding and Shi, and

the We a for be session Q&A will after available remarks.

over would ahead. to Now the Please CEO turn like Peng. I Mr. Shen to our call go

Shen Peng

in of technology joining we [Foreign market confident changed, efficiency shareholders. we capital present. value has conference insurance for creating Hello to developing insurance beginning Language] [Foreign business sustainable the no our market patient to our long-term the everyone, XXXX operational and in and commitment has Language] third thank and fundamentals, matter in in industry solidifying down. quarter, the But experienced growth business manner, our our Firstly, be future earnings be of keeping leveraging the and quarter customer-centric fourth the the will been healthcare for you have business, improve somewhat call. how volatility the Since slowed the further

fast half we insurtech matter company. last true commitments To strive strengthen advantages strengthen more proactively those management as in development. we has the and a pursued generate various market, we in fourth stayed strategy results Language] environment, business and profits Waterdrop businesses, in and half more challenges keeping growth the steam and XXXX, revenues in to a in our invest and our and have of move to quarter. and us non-GAAP industry profit and healthcare in business operating Language] Our achieve had other strive insurance base company we strategies and sustainable second months, the good our of environment. this on we in to the China’s No relentlessly. Language] we opportunities and reasonable the challenges ahead. our healthy our the while given have execution quarter online In of in make have utmost devotedly meanwhile total more achieved top-tier a and our continued the some determination ability [Foreign and growth, user businesses. efforts pursued changing While to team, fundamentals affirmed [Foreign to have player for see seriously As higher a pragmatically Starting Previously, revenue within XXXX, responsive ROI the the [Foreign range. implemented quality response to full adjusted QX

development on creating opportunity organizational also customers. commitment to existing to their in reinforced in created our for hard, Our on We areas in better staff, of focusing to urge also focusing value incubation selected innovate operation our while pursuit We will our and sustainable remain customers our XXXX. are ongoing through established our profits daily for operating business strive huge, continue are new and careful in in us pace still team The initiatives realize have stronger business, capabilities steadfast our develop working we businesses. to as continue work, our in non-GAAP [Foreign as areas, the breakthroughs terms as to objectives of one to we staying further new our delivering competencies. of achieve improve but to in innovation. performance. challenges Language] well will but difficult an It our helps core valuable Meanwhile,

is have We market the strengthen and From in back since we the X.X new and high million to total plan XXXX, XX, enhance second organizational China’s of next Waterdrop. for for leadership to these of XXXX, today. in objectives firmly [Foreign launch repurchase one shares. One a year and the we future optimize buy then, prosperous and we implement a the with bought lay believe the use ADS framework. carefully compliance will continue cultivating the of are repurchased standards, management long-term Language] employee future. excellent levels repurchase remain relevant quarter We ability, the we in have our ADSs announced plan will share managers under more release three the we the year capabilities, potential to In plan plan at plan December the foundation this back the around to incentive begun future my and pipeline earnings more for our to all to confident in patient growth of We about insurance health for years.

with will on industry were company's aiming In and and addition, the to new personal applicable also purchase use guidelines and XXXX the in pursuant Language] full the In management the our run, regulatory to long embrace ADSs operate trading continue we based consolidation the in our Waterdrop’s company’s to industry contribute [Foreign long company XXXX, to to passion. of subject development and healthy will policies few released, the of in a in in compliance which term. course, Secondly, to dedication the promote policy. industry securities funds to plan our laws in confidence development due invest and future

guidance continued new with communication As to regulators. good maintain Waterdrop proactively a has listed company, to and regulatory the the respond

took a the regulatory adjusted model. provided the the clearer initiative we to new Waterdrop our development QX, also for of pivot acquisition product the We business have the portfolio - business upgrade, rules. that and customer industry. conducted portfolio model rules direction with ensure to model comply In The future

government. promote common inclusive will the the development we firmly. of continue industry ahead, Waterdrop advocated the share With same we prosperity Looking the by positioning of to unique promote also Language] healthy proactively in and helping path the [Foreign insurance,

helped We experiences and have synergies among stability as established through adjustment. our demonstrate innovations, development product These technological period infrastructure unique of our business business segments. capabilities, solid a us resilience initiatives industry a the and our

profitability, recurrences, channels, recent future that rise insurance to demand believe online and present the Despite growth opportunities the cost for many track insurance in for be us. will optimizing control to strengthening and short term online Language] to our continue the we challenges will pandemic ahead. we committed are [Foreign that are faced to platforms that and right on like turn are more which with, the inclined the With we consumers more years ensuring protection we quality in sustainable the to

Yang Guang

quarters. growth downside in year-over-year year and only in health statistics industry both for China’s from year of the the in premium, the in by XXXX, you. was the year. XX profit annual XXXX. the saw And lower the underwent points XXXX, gross fourth the with X% decrease of insurance XX insurance than for companies adjustment XX% a of Thank past In the and decreased GWP period the year-over-year, health GWP, According the written or pressure. the third sector a lowest X% insurance to XXXX, the CBIRC, total life In percentage and growth

So of aimed that of development insurance guiding new the issued policies that transformation summarize at best the short, industry. in series orderly be the authorities the the would Regulatory to a have keyword of current industry. represents state

are many currently, business undergoing pace life the of transformations. So accelerating insurance companies restructuring and proactively high-quality

providing companies instead insurance policies. are for profit users mission scale. Besides, more the focusing to on these returning contribution on of pursuing new market the simply they of are So protection

new the third transformed byXX.X% billion the the regulatory FYP month backdrop first products So in to user quarter. of environment, since of Waterdrop's have month and we products directions, the original XXXX. price year-over-year from Against our the model price to RMBXX.X such industry the discount end increased acquisition in slowdown first year

and So in net profit businesses us operating to helped QX, an areas. that showed we into turn in the results million million on preliminary upgrading quarter. our the efficiency substantial with The has profit, many adjusted in focused our operating in third adjusting compared loss RMBXXX loss in improvement QX RMBX

we to going major I'm QX from next, summarize progress [ph] perspectives. made have three the So in

the in QX. but price first-month the original the efficiency our in preliminary QX our and short-term and resulted Firstly, success first key for business full efficiency. our was our our insurance slowdown we discount growth, improved first model. have operating online by improvement significantly have model in is revenue as in of quarter transformation terminated, when month indicators replaced products compared with price This operating significant achieved

increased take business the the time, of our Score the Our X-year XX% new has significantly, LTV increased retention are user driving same we month-end of users Promoter short-term Since declined. has increased QX. insurance our Net the business QX, in and rate changed materially. At rate to rate our model the complaint users in

This mini-programs, channels, allowed a the accounts, various users. we including Apps from in that of approach marketing So and marketing management different established user to in existing QX, achieved to us Enterprise official platform adopt unified WeChat standardized engaging lifecycles of and profiles, We different results WeChat accounts. users remarkable management integrates channels. a WeChat

services, modified on health focus inquiry services, have our content to service insurance member We services, and platform services. policies

Wechat And allows and and And in made and short-term in our QX. simulation. the XX.X% up we percentage three-year up million, rates, policy policyholders the provide to significant compared total XX increased We chatbot stood an online more We increase to service through robot Enterprice In contact customer number especially executives. services by a renewal, – amount Wechat RMBXX.X made of progress QX. recognition XX%, compared with users’ of at repurchase significant Enterprise also of the policies us contact user X.XX purchase three have AI real-time QX. renewal QX, frequently contribute reached QX, in for to those to rate short-term sales rates by This intention compared users in of and self-developed users users. for progress times engagement our voice our points interact of conversion products also our human of million with

which the leading short-term in industry. in renewal rate insurance XX% Our reached the exceeded QX position

consultants our users. We compared RMBXX,XXX short-term QX. of to insurance the increase to rate also insurance long-term improved average long-term productivity XX% reached per insurance of the conversion our of users an month, And

users. existing to the increase to QX, maximizing reached in aligned effectiveness health compared the and experience new settlement XX also only fourth points highest faster reliable we requirements long-term market full-range XX long-term LTV and our insurance XX of settlement in claim value was of an for optimized contribution the QX. our XX%, amount users. in insurance reflecting our seconds, percentage in our The conditions, key changes claim And So Meanwhile, business in over insurance and a products was protection by users. up added in with regulatory RMBX.X our million we and shortest providing products we settlement single new more brought quarter, period a claim to the case the

And have our and our and and and in So core products, of the matured efficiency the business will industry. users our to the our our Through management, enhancement of upgraded competencies. believe is lay various digitalization upgrade customer the solid commitment we existing quality achieve user of operating long-term of value our operating metrics. this technological significant our transformation businesses of secondly, improvements we continued enhancement profitability We also our for capabilities run. our the insurance empowered and foundation made one of model, the innovations of long is in a the

premiums increase helped most conducted In we million. rounds addition iterations XX staff our of long-term potential business sales QX, helps our buyers, insurance our more more model, AI-powered of algorithm transformation match system In we AI-powered than own investment the appropriate matching RMBXX by three strengthened architectural upgrades. the for long-term and our technologies. our which insurance in to These for than system

scenarios million. RMBXX the productivity increased technology roughly XX%, in applied have by patents staffs driving hours daily The around telemarketing more In at monthly the The system the increase on this system an an monthly now per standard, our sales industry-leading is by and used of level with X,XXX we technology. in for covers self-developed interaction premiums on staff, use QX. sales these addition, screen for five sharing currently of applied staff. The X.X of system then sales widely

was Our average best confidence achieved in industry our that our of productivity more investment improve even staff given RMBXX,XXX, technology average. improvement our helped productivity has think efficiency times performing significantly. investment. per sales salesforce in technology I And while efficiency QX, the has the in operating our In of us X.X operating

to So we exporting our also the QX. in made insurance industry technology remarkable progress in

our companies. have user customer For leveraged capabilities example, insurance to online SAAS-based and CRM we provide to operation services management system

QX, in with three into insurance them to of our So millions and premium utilize we companies of RMB in entered helped cooperation successfully income. achieve technology tens

solid to plan our business next business processes, utilization. pursue to with In brokerage leaders, robot joined newly continued thereby progress. calling industry led intelligent the with to business showed is we Our stronger integrate experienced and our our also empowering online And new technology QX, team existing offline by system innovations. thirdly,

XX, has generated and approximately sales and XXX people. branches a team in nearly RMBX up December of million XXXX, team of total set premium in Beijing, This team brokerage established Guangdong, QX. three of As income our Shenzhen a

actively groups. also model to we have launch our XXXX, training enable brokerage we - model, digital the more So the different marketing This serve a establish operating offline and brokerage business system, to On powerful a and year development can model. brokerage our diversify agent including us customer system, target multi-layered In with a technology-driven independent we system. plan for tools set an business systems, top that of system, for customers. optimized also end four the brokerage through team of product are model we high existing will empowered this exploring

In addition, new serve to customer we special products have innovated insurance groups.

For way insurance cooperate patients, enjoy DTP service their we with special that accordance medical to such plus protection as protection we against and a the and model, enables insurance those convenient example at medicine very groups for tumor safety. have customers launched in which get conditions medicine with, pharmacies in a medical

products we medical critical against insurance [ph] insurance accidental insurance launched carriers. covering those the products And illness also surgical as well patients. and as million risk have We insurance are for developing recurrence asymptomatic of tailored

So in by users, model QX start made good our improving capabilities. first full as and our quality we efficiency, on for the upgrade, the in optimizing strengthening have focusing a quarter XXXX, business the long-term conclusion, technology operating of

the our We will adjustment have say transformation to period still and that continue. and is the industry in transformation insurance

model the will quarter process business For to the or operating the the new insurance next two, and our of transformation still be model. growth new in

the and As competitive we to will after about still fundamentals we consolidation. continue optimistic in face the the are believe of further industry ups improve downs the industry. And short term, long-term that we insurance the landscape

one business and on So operating our user creation including two, with technological together this, capability results our reaching in focus long-term solid improve profitability after value help through management financial of or and our adjustment matured quarter should lines.

I that's part. my for think all

it hand crowdfunding medical going over on to to I'm for Yao Next, the the platform. update Hu

Hu Yao

update progress an our our business. Medical on me healthcare businesses, Waterdrop Language] of the as the Crowdfunding innovations. and and give well I latest will [Foreign Next, let technological update medical Firstly, you our as Crowdfunding Language] on of R&D [Foreign development

Medical in Crowdfunding an orderly further Waterdrop market-leading grew manner, reinforcing Our its position. business

prosperity of initiative, the X.XX patients As in-depth XXX support we RMBXX.X funds Language] local over pushing To of cumulative billion. QX, the cooperation of number donors million, to the the with raised end common and [Foreign helping cumulative reached began governments. million

estimates, in and App, of people and County in Digital reduced on active insurance Best year-over-year. of RMBXX the of Language] more project in helped list million In management such Jinyun XX% poverty by caused Jinyun Commission. Applications in a government by No. in Zhejiang Development in reduce than ranked or by Reform the the the assisted XXXX, of diseases the X decline been QX, selected Cross Provincial working XX,XXX the [Foreign establishment County well. people need with According poverty Society was The in needy Project medical Assistance our program. XXXX, Red and medical General about year-on-year aid we China has cooperation Daily explore relief Jinyun aid. process over has Social Our Waterdrop In a supplementary out-of-pocket platform medical charity the Federation, Chinese expenses In [indiscernible], XXXX by XX%. expenses of to the of medical Health to Henan number of Foundation, in Foundation, organizations with People's a and addition, cooperated the media including Charity identification

launched with funds under the provide also in supplementary to illness Aid assistance. We self-aid of Critical need Charity Waterdrop to aid operates Illness plus charity-aid and patients Project, critical model, which medical financial the

reduce progress patient has In Language] Language] of on update been helped hospitals As burden in month [ph] than drug [Foreign approached recruitment undertaken on day, continued by terms fourth key grow QX, trial Platform It XXX XXXX, for financial have clinical are China. XXX the there you more I XXX one recruitment has end Nearly every single for projects participating enrolled healthcare which and the of business in the going trials clinical in diseases trial in more and diseases of of and of clinical will than to The XX,XXX scale, oncology the project the December forward. Yifan platforms help programs Next, our our [Foreign the chronic clinical quarter. expenses. in a has largest registration. Waterdrop turn number for for patient rapidly. for third-party of become to candidates high-business common patients potentially they trials patients new

than including companies, XX established we Zai more Innovent, and CSPC, Development. Tianqing, Drug manufacturers CROs pharmaceutical with worldwide, Chia innovative and Lab, Tai partnerships Labcorp have cooperation and pharmaceutical of terms with China In in

important enrollment clinical of of an role the have University Symposium, Patient development. recognized Hospital clinical to Director XX% to the of to Institutional XX% affects Trial to the at [Foreign and due fields partners. in trial Office oncology, Peking process the qualified delays improving highly Cancer as the shortening been especially in patients planned, R&D of success According the plays the cetera. We et Clinical by efficiency patient XXXX trials. in of Language] failure are infection, recruitment directly About recruit our cardiovascular,

can quickly and accurately that Platform Yifan suitable trial patients Our projects. are recruit the for

competitive industry in key is built several edge on Our the factors.

in with Waterdrop the the community Crowdfunding channels. reach massive largest through patients and a has database and patient the China, illnesses to online ability largest patients as medical platform, critical First, offline of various and

Powered a and good run digitalization, have projects. our on technology and patients. Second, earning patient we database, high-quality of trials, accurate with diseases. Language] large rare efficient services us clinical number on patients can large provide Based matching our we and among by trust reputation AI a efficiently we target can [Foreign

we drug QX, company leading diseases. patients for for this qualified phase number a on limited. clinical collaborated The in pharmaceutical with trial was trial example, For multinational of of global multi-center a a III rare

of However, no we trial in willingness from a of managed candidates for these we effective particularly to identify to as is them candidates this for China. our showed in patient treatment Most such this clinical trial hundreds out pool. high to participate after disease there potential reached

multiple medical continue databases. and treatment patient medical efficiency targeted [Foreign texts, our and by carcinoma improving medical deep to innovations, medical knowledge recruitment technological have as techniques. this for Next OCR information have AI patients heterogeneous [Foreign including patient These optimize different clinical and patient As first enabled trial, our screened various extensive technology was developed hepatocellular cholangiocarcinoma, integrate our extraction for knowledge driven we intelligent learning, platform. unstructured recommended appropriate leveraging platform Language] the and recruitment record on thereby We electronic chemotherapy, therapy, that technologies, we the by upgrade disease automated By immunotherapy, helped names a thus solutions sources leading well enroll of and project China of in and indexing key and mapping and from like innovation. significantly. Language] medical knowledge as medical like system, including

technology algorithms we We our productivity and optimized pre platform speech In thus our have applying the accuracy salesforce patents. have X customers post-processing of have improved the automatic reducing invention investment to improve and for surrounding to and we chatbot business our applied and consistently user in noises. experience operations serve our QX, increased technology, for recognition needs. By better

also improving data have model adapted We scenarios, industry performance. pre-training thereby to conduct on specific applied so incremental the to our they are models that

which We dialogue have establish strengthens capabilities. further plus approach applied language to the and the larger scale database a tactics manual analysis semantic machine learning

proprietary more chatbots and our search, to engine date, manual TTS customize the We of output approach synchronize [Foreign platform renewal insurance have sound make to human-like. reminder. To and chatbots including various adopted supports customer service, Language] the plus voice lines, also built business chatbot’s the the tone a chatbot to the policies machine voice experience voice To on productivity. users. coupling requests scenarios, to Among service solve more improve build a system, customer basis manual we XX% them, thereby real-time plus to manual transfer enables from productivity, our questions and under customer of mode to improving started by can than salesforce a which raised chatbot various user us mode machine

and promote businesses. overall to our Our partners, In core become [Foreign of to enhance capabilities customer promoting capability transformation has of insurance refining the the the technologies. utilization will addition, industry, leads. AI of service operations driver them Language] Technology through AI export the our sales in helping we their progress insurance

online of matching appropriate strengths. provide basis. match [Foreign to serving. and and service teams reach traditional group to a for and and services more to on proprietary AI-powered transformation, competitive We contrary, the users digital each Our essentially have telemarketing, most user, progress digitalization made and are on service tool establish LPs’ in marketing Language] positive user In historical at the the under insurance good data staff sales based staff working our users terms random intelligent can are out between they

improves X, Hence, technological products in matching smart insurance APL its core they has types matching the launch, efficient service an to can helped our also we telemarketing of was it the system system. RMBXX system number insurance process is basic and achieve found user. calling on purchase X on limitation the by to in and introduced XXXX, module XX%. a to only the in will each with our could information the In on sales long-term other extensive version this attention user’s and by We out a a system allocation day, will match traditional allocation the timing formed of making version most historical Due attributes have the dial staff preset LPs [Foreign users calls a thus X. which and types smart user day. module closer allocation sales that sales partial a to Compared the This system of enhances solution. comprehensive each the Waterdrop’s has Since three RMBXXX,XXX our optimal has service than other of data Language] and records to insurance LPs’ architecture leads appropriate our when stable, XX created outbound smart the whether In our the seven our RMB increases for features system mechanisms have technologies [Foreign embedded smart value allocation based equivalent Language] highly upgraded Through the based million, and the per system. data substantially have increase advantage smart matching version premiums From industry-leading, interested we to is our to solution. in X, adjustments increase more pay rounds leads, product. of our model more leads user further allocation we of optimizations, predict some LPs, thousands in matching system our particular model, optimal research, daily of patented purchasing, profile. product The satisfaction, for entire leading of system. algorithms we than to improved efficiency

protection a own call the that will X%. pain addressed points Kevin, needs This recommendations provide on financial only then performance. over their our satisfy our of insurance concludes attempt platform This the but and CFO products insurance me our to increase will additional in turn my insurance We user’s then discuss our choice. products premiums to let choosing by not fourth quarter will in also the part, help [Foreign Language] user’s for portfolio

Kevin Shi

will everyone. walk Hello quarter Okay. results now Thank our you, I for through Hu you of the financial Yao. XXXX. key fourth

the for go be reminded numbers be financial release a on detailed I please information performance year-over-year will and quoted comparative all basis. earnings to refer details on please Before into performance, RMB, financial in here our on that our

quarter of the the expenses of it market to and organization began the up of XX.X% seen our the a the fourth were we quality. from ROI four operating costs RMBXXX our consultants Our in structure, series RMBXXX cost quarter-over-quarter year-over-year by income measures a business down, the and decrease on to to customer taking million into mainly million which offset means, spending revenue by and had RMBXX by million to fees, quarter the significant year-over-year, the recent of partially the basis, and expenses professional due for On comparable the The to operating to including our related operating for Operating In months, million, team to operating by in which as of RMBXX and offset personnel the management expenses quarter, first XX.X% expenses Sales and Mutual functions. service year-over-year. costs decrease fourth take outweighing from reducing of basis, sales RMBXXX for and control due acquisition, an a ceased a costs RMBXXX rate took insurance and to rate million, the a of significantly channels by increase due stabilized revenue party decreased by Aid optimizing in partially mainly already the million was account effectiveness outsourced by employee our XXXX. involved XX.X% year-over-year net quarter pick and from in was our resulting RMBXXX improvement in operating in have decline million decreased measures of on by in decrease XX.X% improving third In in employees, decreased effect. payroll year-over-year decrease last increase million. break reducing of take improvement our XXXX. to traffic without and fee to marketing agents compared we we expenses, significantly efficiency. expansion costs and FYP to To and reduce and the business last redundant quarter, have traffic decreased year. of showing compared headcount RMBXXX cost marketing The decrease XX.X% expenses improving decreased XX.X%

announced - reduced decreased have we such to and basis, upgrades, last or and a On in last expenses third those sales by we the earnings from quarter-over-quarter expenses sales party we reveal quarter. last marketing modal would traffic. XX.X% reliance sales deliver and we marketing results this call, with maturity, As quarter. on managed Along

with improve million R&D adjusted of of loss continuously a a XXXX, disciplined Heading incurred loss In our So and of loss RMBXXX by prepayments fourth net while XX.X% offset GAAP compared efficiency control last for four million compensation a control. last we net decreased RMBXXX basis, costs RMBXX expenses into share-based the due same expenses million provided quarter of quarter of more net and RMBXXX to by We RMBXX million, RMBX.X uphold RMBX.X an operating generating by mainly on XX.X% management and cost adjusted loss decrease to in refined continue G&A XX.X% and million year. million strict of R&D by to plan expenses. operational a to in compared XX.X% we and and quarter-by-quarter, in quarter, an the increased in our and year-over-year net quarter-by-quarter. manner. and invest with to million a impairment expense by quarter. the of technology-driven innovation profit in RMBXX a increased year-over-year million an

of Such conditions established current our changes. We the expect market business, all the and and based preliminary is are year on profit existing business which means, reflects for non-GAAP our to date, estimates, achieve XXXX. which subject view as of to outlook for IPO

December to and XX, of as As cash equivalents short-term or of flow positive to increasing XXXX, increased and RMBXXX investment of quarter. the we our the generate cash balance million, from fourth cash started in the million operating quarter end X.X% third XXXX, RMBX,XXX

Operator, we I are you. open refer release now This it please for to call For IR detailed our press the now. Thank operator our to financial over remarks. our concludes ready questions Q&A. website. take prepared the data, to to will on hand

Operator

Mao our We Thank question Qingqing take Instructions] Please ahead. go you. first CICC. today [Operator from of will

line open. Your is

Unidentified Analyst

Congrats Okay, CICC. results. This questions. is I Jensen have two from thanks. the on

of And further continue your The trend? the we Can do That's what's did me. in you first to all The strategy Thanks. XXXX? is, question what these the existing customers. expect rate, Could more about customers? profitability. operation for to talk the margin improvement to is second the renewal operating what's existing in serve about the significant drive you

Yang Guang

is speaking, the for thank Okay. This Guang you Yang question.

XX% from XXXX renewal, of in the terms XXXX, - in [ph] by December renewal September In XX%. up XX% to rate improved XXXX our premium

achieved have great we in improvement So our rate. renewal

that, our improved think improve products. on to I renewal strategy our areas. renewal rates rate focus is is three why we upgrading And main renewal by our

customized and for premium we coverage the increased providing options. renewal we provided more example, For users users policyholders. discounts coverage secondly, for And product with

such diverse or products as that renewal manual add-on reach our by rates users made differentiated and through calls. and users annually renewal, auto we phone terms payments, a And payment premium of thirdly, So with renewal message payment strategy support monthly up X%.

LTV we increase WeChat to and of users mainly our continue and Enterprise per So user, convert through in per user model. OXO terms the LTV

LTV regarding up Hope your answers CFO, operating to of our hand to compared Kevin. the by the margin, it that question I'm your QX. XX% And QX over next So question. for going to was

Kevin Shi

Jensen. Guang. question. for you, you you, Thank Thank Thank your Yang

mainly quarter, of in XX.X% declined this marketing in decrease our decrease operating quarter-over-quarter costs rollout expenses three, As in total due XX.X% and effective significantly control operating first, costs the profitability the quarter-over-quarter. enhancement. control XX.X% plan, a of expense, a consecutive cost and and was two saving second we to we actually - is further Compared expenses quarter costs quarters, successful reduced cost and and have with total

cost. marketing In terms explain exceeded [ph] quarter acquisition expenses of in that, which marketing our RMBX.X around RMBXXX look In quarter expenses earnings if marketing around traffic release XX% was we sales our expense, three, traffic let and me in billion, XX% our cost. quarters, million sales and our which was was about acquisition of of two previous at

we we for the Sales marketing acquisition. than have less refined produced and incurred one more our continuous of remarkable traffic see efforts, in marketing various measures expenses three. can first expenses only in our significantly But the So and to million, quarter. quarter were certain of results third and have that with achieved reduced operation RMBXXX results sales

in organizational limited and intelligence of company and more leveraging Regarding more over with and terms areas reduction measures our costs, how third, to measures expenditure the platform AI traffic And and firstly, the And key targeted terms are back measuring also in to control include, of come moving reviewing marketing of reasonable with where rents. officers procedures marketing. our identify our second, [indiscernible] powered expenses, and certain synergies. to optimize. further control to fourth, And expenses, integrating acquisition in And select to to sales the first second, functions marketing we're who suppliers. to to task strengthening stricter criteria higher business platforms. operating And selection specific

expenses And company we're significantly item control Marketing moving terms and which our to on results and now originally quarter be largest fourth And to objective have for also we the track increased in particular right efforts procure third good breakeven. terms we towards control to to in expenses, consecutive been this to in achieve are quarters. faster So XXXX, in already have profits four. and of we have over plan costs two We made in expense we non-GAAP our managed year the delivered - quarter. used the reduced costs and already wide.

in So going we continue XXXX. year this expect trend to forward,

you. will established our year for make the of on business is goal a basis. non-GAAP So profits that XXXX Thank our full

Operator

of Bank go of question Michael America. ahead. Our Li next Please from

Michael Li

Michael quality my This Li the you. the about America. Thank from is earnings And of is management. calling your Bank volume you, question and also Thank growth. of

your fourth last the quarter of growth. first This your year-on-year very see growth I that income first quarter kind cost how profitable know are next quarter a of as know improvement year, I that year. non-GAAP led know last also the see decline we also quarter quality there's the and and You But decline, year, quarter year, of and commission quarter-on-quarter basis. of strong in fourth and decline last to to control sector seasonality to premium premium question. is target going weaker year we and And first growth first to volume second achieve last was you to target? my want the still growth what is that quarter kind year fourth of than this

Waterdrop The that policies? that, this charge second kind we Thank know is you of going the you. of is are purpose of what [indiscernible] So change question to

Hu Yao

the question. for you Thank

earlier, cyclical industry mentioned entire as undergoing think I adjustment. is the

the gross on expansion [indiscernible] policies the stricter launch adjustment. focusing So conditions. the And I scale old model the market of regulatory current to industry adapt think cannot the intensified has

made and to regulations tightening have environment adjustment our more the so of online the favorable cyclical And services insurance competitive company.

[indiscernible] number and the for acquisition external example, have improved. peers So customer has actually our of market the

environment, us. this over in one us to which innovation lower raise capabilities under industry tier will benefit cities fuel growth, just from patient to new human and like future growth for insurance stronger entire companies So the insurtech [indiscernible] our enable accumulated resource welcome will model exploring G&A,

on new growth services meantime, we'll to drivers open offer more by to looking create our So the the in industry. empower platform

insurtech in five after strong the capabilities we have accumulated I years technology exploration, think area. of and

offer are market. all we building partners to the platform service the open technology in to the our Now

user ability ability. to with larger So and to their value customer we'll industry the and companies be able the demonstrate group be cycle tap unfavorable resilience adapt - only navigate to into business

upgrade as costs and ones that respond to making long business directions run. strategic necessary can and will be member every the possible, and the in regulatory So adjustments as early actually transform

across pursuit is growth a current simply in optimal not the So solution. all

to revenue So when stabilize the our this minimal our SIP improvements control to cost regarding do. will unchanged. profitability think fact, in I answer the year, target, we our expect growth question remains And continue will

due and in the an the the most reached and answers will adjustment Hope basically has inflection for a that and industry your bit growth that smaller healthier follow those to point future, slowdown the means development. this model question. sustainable So near transformation company future

Operator

now you conference participation approaching conference. today's end call. are your the the for Thank of We in

now You Have good may disconnect. day. a

Waterdrop (WDH) 23 Mar 222021 Q4 Earnings call transcript