WDH - Earnings call transcript Q4 2023

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Unknown Executive

Good morning, everyone. This is Tracy [indiscernible] Investor Relations. It is our pleasure to welcome everyone to Waterdrop's Fourth Quarter and Fiscal Year 2023 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded. Please note that the discussion today will contain forward-looking statements made under safe harbor provisions of the U.S. Private Securities and the Litigation Reform Act of 1985.

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

Guang, and Co-Founder, call in of are SVP Insurance Mr. Peng, the CEO; end mandarin today Mr. International the Pharmatech we'll and us Secretary. line conference Chairman Technology Yang Crowdfunding and Crowdfunding of And of Zetao, on the call. GM GM Pharmatech business; Joining Zhu questions Business Mr. GM Director, be happy Medical GM some our the and Shen of [indiscernible], take Board Mr. Director, Zetao Founder, at business; to Business; of Zhu the of

Peng Shen

everyone. This Shen Peng. Hello, is

about Let's talk first. our industry development

XXXX, insurance economy recovery trend. to in it development. and the of regulation towards Looking [indiscernible] that, evolve remains stable the personnel cautious, to the stimulus Chinese shows is as gradually Despite back high-quality thanks industry economy a continued target,

the confident as technologies the clear industry about build really such, with brand future. and challenges in will Market participates of out, in we we our as and models, and with technological business with and leading opportunities, sustainability transformation the capabilities working to upgrading. We we stand more advantages So saw new regulation to innovative quality are policies this. relate up its likely feel will productivities industry guidance further improved improve firmly implementation gradual help and and new to and the

further adapted entrepreneurial in XXX fourth the reached XX% stable Since representing financial to stable line quarter, by about company QX about revenue for development, of million, was CNY and spirit net profit attributable which terms the to company growth. quarter. In continues QX uphold the recorded every financial performance the a XXXX, improved of XXXX, Q-o-Q Total resilient healthy with pursue business we results. and its front reaching profitability XX.X have GAAP performance, million. In CNY of continuously

the For GAAP CNY we the building inflow balance. In from about attributable million. XXX saw to fiscal XXXX, up meantime, is our the consistent net company profit the cash year operations, cash

investments end the CNY of X.XX the As from XXXX, an quarter. cash totaled X% billion, short-term cash, and equivalents of last increase about

embrace business carrying plan Our leading segments industry. for long-term QX, out healthy solidifying growth [indiscernible] in and industry competitiveness. and changes From in position technology a strengthened to development, development continuously confidence [indiscernible] cash reserves our initiatives stable our our all foundation business with enabling maintained business us steady in the and perspective,

Waterdrop and and with Marketplace, continuously steady Insurance [indiscernible] situation, profit. despite we generate products our new For models the actively difficult developed industry then

Medical to while quarter. Waterdrop compared medical remain consistently development of committed we efficiency the in reduced Crowdfunding, operational For improved of multi-level our to support transparency we and principle its was particularly last [indiscernible]. segment Continuously, in system,

cooperation number in of domestic service Platform, clients significantly, business pharmaceutical upgrade. growth aspiring enhance good we capability QX, the For E-Find with through foreign increased its companies. our continuously making In and both

nearly this of year-over-year For growth recorded full [indiscernible]. segment the revenue year,

and first intermodal to patents. In applied we development LLM fourth a model, [indiscernible] in services. AI application For its R&D, cases, as than efficiency which throughout brought our the completed substantial maintained entire [indiscernible] technology-driven in investment XX language LLM company, R&D more insurance large the improvements for quarter,

sector. Tightly with initiative. actively our and charity environmental upon our score values integrate ESG rating [indiscernible] ESG incorporate upgraded ratings the A, protection our into have recently I the ESG operations, ESG corporate ESG results leading insurance will touch The [indiscernible] We to [indiscernible] been of players aspects that principles latest investment. various Now institution leading do DNA. shows our community in among ESG

a applied which [indiscernible]. In These with the security assistance medical XXXX, remain update system, it in perform, support By [indiscernible]. medical [indiscernible] service. the has XXXX And for to establishing I year-end, information patients We provincial would we like government response [indiscernible] medical Market. So platform. also August in launch in a CSR. everyone assisted and nearly on honored been Capital [indiscernible] taken actions our the support Upon charity level XXXX, its have our with have [indiscernible] [indiscernible] earthquake [indiscernible] projects in the charity to platform. December in finance [indiscernible]

used repurchased XX.X million, Regarding total the which company the open our about the on market ADSs XXXX, share buyback, at as end affirms of million has a $XX.X February of cumulatively confidence [indiscernible]. nearly our be business the repurchased uphold will Waterdrop challenging our motivate to to for our shares effect. Furthermore, our value shareholders. in and Moreover, commitment continues ESOP long-term to its

dividend Directors $XX of Board approved $X.XX Our million ADS. about totaled plan have special a cash per with

shareholder healthy company future. is and first business and industry. [indiscernible] initiate return dividend its our will of value, is the to the performance the the pleased continue recap company a in development outlook we try our [indiscernible] to shareholders to On QX This financial to its commitment program, to of value in

is to into [indiscernible]. our are technological to [indiscernible]. innovation that useful better would [indiscernible] providing product we the develop the target core here Marketplace Looking is customized, as through money XXXX, we principle strategies that Insurance Meanwhile, back-end for -- insurance And to are money. more committing service various

capabilities ensure and we Crowdfunding, while advantage development CSR our technological fulfilling to continue Medical needs. sustainable For taking user scaling of

engine opportunities a abundant around cash will cooperation and insurance to categories, we innovative investment and sectors. [indiscernible]increase new advantage, company multiple seek For Platform, [indiscernible] care growth E-Find our health actually service the will established continue growth. With reserve, to [indiscernible] long-term penetration, diverse network in for continue increase capabilities

with our and a will efficiency core support [indiscernible] business for improved LLM As will of technology, accelerate X environment years [indiscernible]. which with and on further the accumulation, by development our enhancing significantly we technological technological mode, long-term based AI nearly has self-developed internal capability

discuss will Marketplace [indiscernible] I pass to Now to business. our Insurance

Unknown Executive

existing and experienced explored growth focused [indiscernible] we we insurance operations optimize users. Meanwhile, the product and fourth slowdown. acquisition customer personnel new [indiscernible] reached long-term million reached FYP being of channels X.XX XXX and quarter, continuously backdrop, this and advanced on profit Against In reached actively Insurance-related [indiscernible]. [ the for offering CNY fourth CNY operating the development the efforts value XXX creation ], user the income business expanding In billion. for quarter, high-quality million. CNY models,

FYP CNY CNY a million. XXX In reached the of insurance billion the short-term reached X.XX full billion. over income fourth reached year CNY Insurance-related the XXX For products reached FYP operating X.XX and profit of quarter, XXXX, CNY million.

renewal policy product short-term engagement, media resulting for XX%. insurance rate X certification policies in remain users choice optimizing management user for with and We increased level enhancing acquiring of -- number channels. from users service and quality satisfaction. The number During of this customer row quarters quarter, a user the company of strengthened [indiscernible] steadily per users, the at on [indiscernible] the in the [indiscernible], were of and enhancing rose

premium. XX.X% XX.X% As increase Q-o-Q, [indiscernible] in to leading a result, by sequential increased

As [indiscernible] Y-o-Y. our FYP million in insurance of product the the offerings, increase increased reached quarter, premiums XX.X% diverse we long-term Y-o-Y. Among XXX.X% the of an insurance further policy fourth CNY XXX

removal companies for this with challenges users, products During to opportunities and the in of quality partnerships third insurance products. high we [indiscernible] Showing we in long-term improved our launch interest saw the insurance industry. quarter, quarter, more customized the both strengthen

portfolio, industry a to team partners program resources a time, emphasize [indiscernible] book initiative brokerage the Offline user high the At cooperate to online insurance, bookers. we worth as planning on better quarter. worker the capability platform and ensuring to integrated grow this our channels, stock talented of aim wealth response, of succession we better terms [indiscernible] net high-quality build with base. experience. This media customers. in we cooperation a online serve high-quality In in high-quality user of in one-stop as channels product with same encompassing those well pension is On

agents performance quarter, enhanced fourth Marketplace by agents the long-term we of synergy product insurance the Y-o-Y by The In rose Shenlanbao. number active During Waterdrop X% XXX% increased fourth Y-o-Y. our of quarter, from [indiscernible]. Insurance [indiscernible] with [indiscernible] and products top

content quarter. as on industry-leading [indiscernible], with XX%. and contributed offerings. including policy remaining operations, XXX R&D, the remains deepen continue a Shenlanbao The the teams X the above to of maintain product level the in While rate independent marketing renewal first million quality cooperation CNY Shenlanbao

and In we deepen innovative across insurance our health capabilities to insurance. the [indiscernible] continued fourth quarter,

each broader Regarding we conditions health maternal with insurance, plans, we health of base. plan has preexisting a to Among essentially also is disease, top E-Find address recognized a a buy users. critical the Through the first launched also reliable. can develop On insurance user [indiscernible], we various and with this, the and product insurance covers Shenlanbao demographic [indiscernible] designed regular service industry entire preexisting launched of health Platform. [indiscernible] covers first insurance product We of widely online illnesses that groups. [indiscernible]. need capability, called insurance our infant Moreover, innovative by with users products been pregnancy the to conditions. users chronic of launched entire long-term underwriting [indiscernible] the online and insurance cover the groups product all This

for insurance In an plan to launched more different marketing important a This monthly monthly practice products across lower users diversified products, insurance from Different terms payment products. us segments. the flexible the [indiscernible] we of saving is market, serving is in [indiscernible] [indiscernible] traditional with for [indiscernible].

to customers tailored time. model. can policy, equipped insurance AI agent technology. as offering insurance based act AI. specific customer's to the to real average [indiscernible] amount that [indiscernible] needs, believe We dialogue In multiple safeguard also user XX% me support consultant insurance [indiscernible] medical brief and human of more and knowledge it on insurance-focused fundamental we that the recommend answering policy development with let are of AI service smart insurance patents can taking major consultants is applications, underwriting insurance it understand, covered rightly [indiscernible]. broker. more, context, Next, XX and a the commitment professional service [indiscernible]. up with customer to Currently a minutes communicate We [indiscernible] product AI Both with [indiscernible] [indiscernible] in questions, for and technology. utilize for insurance [indiscernible] already of our can the as been The [indiscernible] consulting of [indiscernible] claim coinsurance health has you including are service. can [indiscernible] lots the and them X -- about this It AI an apply work tariffs, on our our consultants such insurance better for

the [indiscernible] human agents. The second application, aiding for superefficient

questions, improve we future, will competition understand medical has customer accumulating and insurance satisfaction been [indiscernible] it for users, to and it user service the to For users real [indiscernible]. Thank [indiscernible] more development the best [indiscernible] a products technology product for insurance [indiscernible]. [indiscernible] real-time the based on each the explained displayed -- in adhere example, easy based In a increasing the [indiscernible]. is high-quality launched to and on Currently while for [indiscernible] recommend continue [indiscernible] of in suitable [indiscernible] more In suitable update between efficiency way [indiscernible] that [indiscernible] opportunities you, talent have industry, than on the our path bringing we insurance models. AI [indiscernible], more

review. from cumulative and XX.X people offering of XXXX, million any total patients randomly hospitalized our patients. and cost entire quarter, platform Waterdrop which Moreover, the XXX of over check to QX, As a [indiscernible] [indiscernible] [indiscernible] poor offline the QX, fund Crowdfunding [indiscernible] advisers process. provides million extremely can X.X In [indiscernible] to than supervise [indiscernible] billion more underwriting [indiscernible]. [indiscernible] fourth and of communicate [indiscernible] the Medical for public service to additional people. we In CNY [indiscernible] recruitment donated saw our established [indiscernible] through

continue efficient. While [indiscernible] service the accurate optimizing exchange critical make more value and keep the [indiscernible], better and we we to

by the medical Revenue healthy people about business clinical medical [indiscernible] fourth of quarter, the digital to participated development. support XX, our In maintained have system, [indiscernible] in China. law actively [indiscernible] QX support [indiscernible] We system our [indiscernible], our into provision. Furthermore, hosted CNY in steady amendment responding on the and amended was version In its multilevel establishment awarded trial continuously online. solution is project million. of saving December XX.X of

Y-o-Y. XX% full was CNY with of For million XXX the an year, revenue increase

In pharmaceutical more MNCs. with companies on We progress E-Find collaborate with XXX collaborating made great Platform and QX, the CROs. leading

and During more lease of this we the the officially are quarter X top in we X expected XXXX. of successfully, to global and [indiscernible] joined projects launch supply MNCs

signed E-Find initiated platform new and the the of recruitment. global QX, [indiscernible] patient with [indiscernible] the X projects. Additionally, one top In X officially with Platform

the projects. Through number With drug E-Find and the we AI-driven a of accordingly. of in continue efficient improve our chronic record rapid patients China, and to for view operation innovative capabilities R&D development disease and enrolled of ability Platform in matching,

[indiscernible]. respiratory, Our including cover cardiovascular, project dermatology, categories, immunology

the more leveraging management, -- so diseases, [indiscernible] medical insight, comprehensive [indiscernible], digital recruitment on. rare data of we clinical disease as such [indiscernible], terms successfully cell [indiscernible] project providing In engineer [indiscernible] the the service secured and and [indiscernible] in therapy, simulation, a [indiscernible] product

the the [indiscernible] Regarding in patient model, of leading platform the such as service disease. service, chronic patient the continues patient MNC and from global health cooperation it high experience technologies to By efficiency, enhanced gaining significantly customers. deepen management with recognition integrating

domestic our with technology service education But We leading to the to such AI data operations, [indiscernible] conversation quality medical for by to multiple identifying we to with MNCs service [indiscernible] discuss will having education, users, empowerment continuously with Yang financial into to performance. also of our cooperation operations signed expanding patient of from from And contracts and traditional insight, number me. quick medical patients allowing for the we technological [indiscernible] continue That's -- judgment. and scope and clients. strive methods compared where for generate hand platform, patient intelligently I keywords Guang intention improve now over reliable as all interaction assistant and integrating the and

Guang Yang

Hello, now fourth the for you, [indiscernible]. our financial quarter. everyone, highlights and [indiscernible] Thank on we

information I all and please And reminded detailed basis, be RMB. go [indiscernible] be on Before refer earnings respectively. release to year-on-year will details, [indiscernible] please our quarter-on-quarter our that financial into for

to environment X.XX insurance-related the consolidated increase of XXX X.X% Y-o-Y. X% CNY last results CNY clinical net to billion nearly of XX% Y-o-Y. about development. pursue Y-o-Y, Digital an Y-o-Y an Net and The year Crowdfunding amounts fees that, to financial complicated income the decreased with revenue For million. full CNY of healthy XXX X.XX amounts X.X% Y-o-Y. solution income quarter, operating service representing operating increase CNY operating to we [indiscernible] million, commitment about amount I Among million, Shenlanbao. basis, and since of or about fourth decrease CNY mean, reached About expenses, billion. trial revenues quarter, XXX costs by on the representing steady

For the X.XX full increased by Y-o-Y CNY billion. operating and costs to expenses year, XX.X%

by pay QX, basis, For the Y-o-Y costs decreased -- just increased and it adapt full XXX year, operating to [indiscernible]. On as a change by expenses CNY we million. to quarter-on-quarter X.X% the X.X% expenses costs adjusted outstanding and to increased operating by the to our

by is fees. For X.X% in of And due decrease and of CNY to XXX patient Q-o-Q. referral costs CNY about QX, [indiscernible] operating increased million, of X.X The crucial year-over-year decrease secondly, decrease million consultants were costs by X.X% service of a primarily team. decreased million a costs and X.X CNY in the recruitment

and to it XX.X third-party channel service personnel and million due expenses. was the share-based XX.X a a traffic of on a of primarily of and has CNY XXX The secondly, decrease in expenses Shenlanbao, compensation mainly and S&M XX.X% and by due personnel respectively. compensation to of QX, share-based CNY costs Q-o-Q. XX.X% increase of share-based compensation S&M decrease a Y-o-Y was share-based were For increase CNY marketing which and XX.X% XX million; decrease was generated and firstly, expenses CNY costs million, primarily Q-o-Q, Y-o-Y professional decrease million fees, an personnel expenses about to: of XX.X consolidation The offset expenses. costs XX.X costs CNY and increased million, Q-o-Q of million Y-o-Y and expenses. G&A in XX partially million. and personnel compensation expenses CNY On basis, expenses This about XX.X% decrease XX.X% sales CNY primarily fee. R&D by by decrease was X.X%, decreased

from XX.X X XXXX, QX net Adjusted GAAP shareholders has the was to attributable company’s million, XX.X attributable has company’s company [indiscernible]. The profit the was million. company QX net quarters. for ordinary achieved achieved the profit profit net CNY consecutive CNY to for QX, -- ordinary shareholder For

quarter. as special confidence, cash, for to closing shareholders ordinary date the to with boost reserves short-term to billion, cash to long-term priorities. April USDXX entitled of As and of abundant and year-end CNY ordinary has better effect. XXXX [indiscernible] $X.XX well XXXX, approximately million To and on the the of an equivalents ADS totaled X.XX last focus reward XX, X% Directors and investments $X.XXX time amounted are shares cash per approved a Board positioned shareholders shares from ADS of dividend investors' increase per as cash our development The

to financial in we profitability XXXX, will the to summary, achieve the In create each market met of growth our we guidance shareholder XXXX. with profit. By will value continue as quarter and healthy we

for do will We joining. you a gentlemen, today's ladies conclude that, And time. we Have good thank call. and with conference

Operator

The conference your today's disconnect you now We and has now for thank attending lines. may concluded. presentation, you

Waterdrop (WDH) 26 Mar 242023 Q4 Earnings call transcript