Waterdrop (WDH) Q4 2023 earnings summary

Executive summary

• Eight consecutive profitable quarters; Q4 2023 net profit attributable to ordinary shareholders was RMB59.1 million, up 60.7% QoQ.

• FY 2023 net operating revenue fell 6.1% YoY to RMB2,630.7 million; adjusted net profit attributable to ordinary shareholders was RMB295.6 million.

Financial highlights

• Q4 net operating revenue declined 3.0% YoY and 3.9% QoQ to RMB659.4 million; operating costs and expenses rose 4.3% YoY to RMB632.7 million.

• Q4 operating profit was RMB26.6 million versus RMB72.9 million YoY and a RMB2.1 million operating loss in Q3; attributable net profit was RMB59.1 million versus RMB126.2 million YoY.

• FY operating loss was RMB6.7 million versus operating profit of RMB478.0 million in 2022; attributable net profit was RMB167.2 million versus RMB607.7 million.

• FY adjusted attributable net profit, excluding share-based compensation, foreign exchange effects and mutual-aid plan termination impact, was RMB295.6 million versus RMB735.2 million.

Outlook and guidance

• 2024 strategy: pursue stable, high-quality growth while maintaining profitability and seek opportunities in China’s insurance and healthcare markets.

• Insurance policy renewal rate was kept above 95%; FY 2023 insurance FYP rose 3.2% YoY to RMB7,109 million.