Waterdrop Inc. (NYSE:WDH) Q1 2024 Earnings Conference Call June 5, 2024 8:00 AM ET

Company Participants

Guang Yang - Director, VP of Finance and GM of International Business
Wei Ran - Director and GM of Insurance Technology Business
Jasmine Li - Board Secretary, Head of IR and Corporate Strategy
Xiaoying Xu - Head of Finance

Unidentified Company Representative

Good morning, everyone. This is Tracy Li from Waterdrop Investor Relations. It's my pleasure to welcome everyone to Waterdrop’s First Quarter 2004 Earnings Conference Call. All participants are in listen-only mode in our English line. As a reminder, today's conference call is being recorded.

Please note that discussion today will consist forward-looking statements made under the Safe Harbor provision of US Private Securities and the 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 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 statement except as required by any 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. Yang Guang, Co-Founder, Director, Finance VP, and GM of International Business; Mr. Ran Wei, Director and GM of Insurance Business; Mr. Xiaoying Xu, Head of Finance and Mrs. Jasmine Li, Board Secretary.

And we will be happy to take some of the questions in the Mandarin line at the end of the conference call.

Guang Yang

Hello, everyone. Thank you for joining us -- our First Quarter 2024 Earnings Conference Call. Since the beginning of 2024, the domestic economy remains on track for recovery, leading to a steady growth in the personal insurance industry.

For Waterdrop, the company continues to pursue high quality development while improving our quality and efficiency. In terms of our financial performance, total revenue of Q1 reached RMB705 million, up 16.3% year-over-year. GAAP net profit attributes for the company reached RMB80.6 million, a significant increase of [62.2%] (ph) year-over-year. Since Q1 of [2022] (ph), we have continuously recorded profitability for nine consecutive quarters.

In Q1, all our business segments maintain robust. For our insurance business, we actively optimize the product offerings for new service models and continue to support AIGC empowerment. Insurance premiums significantly increased sequentially, representing an operating margins of over 20%. For Waterdrop medical Medical Crowdfunding, we are actively participating in multi-level medical assistance systems to continue improving service quality.