Waterdrop Inc. (NYSE:WDH) Q3 2022 Earnings Conference Call December 6, 2022 7:00 AM ET

Company Participants

Xiaojiao Cui - IR

Shen Peng - Founder, Chairman & Chief Executive Officer

Ran Wei - Partner and the General Manager of the Insurance Marketplace

Hu Yao - Co-Founder, Director & Vice President

Guang Yang - Co-Founder, Director & Vice President

Conference Call Participants

Edwin Liu - CLSA

Thomas Wang - Goldman Sachs

Operator

Good morning, ladies and gentlemen and thank you for standing by for Waterdrop Inc.'s Third Quarter 2022 Earnings Conference Call. [Operator Instructions]. As a reminder, today's conference call is being recorded.

I would now like to turn the meeting over to Ms. Xiaojiao Cui. Please proceed.

Xiaojiao Cui

Thank you for joining Waterdrop's third quarter 2022 earnings conference call.

Please note that the discussion today will contain forward-looking statements made under the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties may include, but are not limited to, those outlined in our public filings with the SEC. The company does not undertake any obligation to update any forward-looking statements, except as required under applicable law. Also, this call includes discussion of certain non-GAAP measures. Please refer to our earnings release for a reconciliation between non-GAAP and GAAP.

Joining us today on the call are Mr. Shen Peng, our Founder, Chairman and CEO; Mr. Yang Guang, Co-Founder, Director and VP; Mr. Hu Yao, Co-Founder, Director and VP; Mr. Ran Wei, Partner and the General Manager of the Insurance Marketplace; Mr. Cui Xiaojiao, Partner and General Manager of Medical Crowdfunding and Patient Services; Mr. Richard Chen, Board Secretary and VP. They will be available for a Q&A section after the remarks.

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

Shen Peng

[Foreign Language]

[Interpreted] Hello, everyone. Thank you for joining our third quarter 2022 earnings conference call.

During the third quarter, we have seen increasing downside risks in the global economy as well as uncertainty regarding the domestic economic recovery. Nonetheless, the recovery in domestic demand has recently gained momentum and we believe that the fine tuning of COVID control measures will unleash a rebound in private consumption, providing solid support to revive the domestic economy. This trend will enable the insurance industry to return to our value growth cycle and improve the business outlook for the medical and pharmaceutical industry. Against this backdrop, Waterdrop continued to exhibit strong resilience and adaptability and maintain good business momentum in the third quarter, with revenues increasing by 10.1% on a quarter-over-quarter basis. Following our turnover -- following our turnaround in the final quarter of last year, we have managed to achieve a healthy level of profitability in every quarter of this year.