BEIJING, March 17,
2023 /PRNewswire/ -- Waterdrop Inc. ("Waterdrop", the
"Company" or "we") (NYSE: WDH), a leading technology platform
dedicated to insurance and healthcare service with a positive
social impact, today announced its unaudited financial results for
the fourth quarter and fiscal year ended December 31, 2022.
Financial and Operational Highlights for the
Fourth Quarter of and Fiscal
Year 2022
- Resilient business development and healthy revenue growth: For
the fourth quarter of 2022, the first-year premiums ("FYP")
generated through our Waterdrop Insurance Marketplace amounted to
RMB1,591.9 million (US$230.8 million), a decrease of 16.2% year over
year. Our net operating revenue was RMB679.5
million (US$98.5 million),
which represents an increase of 12.5% year over year, and extends
our growth momentum as we made further progress on reforming our
business strategy.
- Effective financial discipline and sustained profitability: For
the fourth quarter of 2022, our sales and marketing expenses
decreased by 42.8%, and total operating costs and expenses
decreased by 10.5% year over year. Our net profit reached
RMB126.2 million (US$18.3 million), continuing the trend in
profitability since the beginning of 2022. Our solid financial
performance highlights our achievements in cost control and profit
enhancement.
- Positive cash flow: As of December 31,
2022, our cash and cash equivalents and short-term
investments balance increased by RMB116.0
million from the end of the third quarter of 2022 to
RMB3,704.5 million (US$537.1 million), as we continued to generate
positive operating cash flow, partially offset by the investing and
financing cash outflow.
- Further expanded product offerings: As of December 31, 2022, we offered 775 insurance
products on our platform, as compared with 536 as of September 30, 2022. In the fourth quarter of
2022, the FYP generated from critical illness insurance products
increased by 25.7% year over year and accounted for 29.0% of
overall FYP generated through our Waterdrop Insurance
Marketplace.
- As of December 31, 2022,
approximately 426 million people cumulatively had donated an
aggregate of approximately RMB56.9
billion to over 2.77 million patients through Waterdrop
Medical Crowdfunding.
Mr. Peng Shen, Founder, Chairman,
and Chief Executive Officer of Waterdrop, commented, "We
demonstrated resilience and delivered net operating revenue of
RMB 2.8 billion and net profit of
RMB 607.7 million in the year of
2022. We are pleased to have achieved the profitability target we
set for the full year of 2022, enabled by our substantial business
scale, efficient operations, and strong financial discipline.
Despite the challenging operating environment in the fourth
quarter, we were pleased to have generated positive operating cash
flow for the whole year.
In terms of the insurance business, despite the temporary
external headwinds such as the pandemic and industry adjustments,
we have been proactively optimizing our business operations and
consistently exploring new customer acquisition channels. By
streamlining our transaction processes to be more user-centric and
enriching insurance product offerings, we consistently strengthened
our user lifecycle management and our take rates and the repurchase
and renewal rates remained at high levels. In addition, we adhered
to promoting insurance product diversification and business
innovation. For instance, regarding products for customers with
illness, we cooperated with a world top insurer to launch a
customized product against leukemia recurrence for the patients to
meet their evolving protection needs and fill the market gaps.
As for the medical crowdfunding business, in the fourth quarter,
our Operational Transparency Committee made further improvements,
which enabled the transparency from a single campaign to the whole
medical fundraising platform. To be more specific, we began to make
available the monthly billings, including the fund overview and
breakdown of the funds raised on our crowdfunding platform, as well
as the campaign review status for public oversight and monitoring.
We strive to ensure the fund safety and continue to implement
various measures to detect and reduce the occurrence of fraudulent
activities on our platform.
Although operation and development of clinical trials were
greatly impacted by the pandemic in many provinces and cities
across the country in the fourth quarter, our E-find Patient
Platform still enrolled approximately 700 patients in the fourth
quarter, with approximately 80 new clinical trial programs
successfully launched. For the full year of 2022, E-find Patient
Platform enrolled more than 2800 patients. Leveraging our digital
and technology capabilities and the track records of sustainable
business growth, we aspire to create an industry paradigm for
identifying and recruiting eligible patients through E-find Patient
Platform, and accelerate the go-to-market process of clinical
trials. With our excellent reputation and influential position in
the pharmaceutical industry, we will actively explore and develop
more high-value Contract Research Organization (the "CRO") services
along the value chain.
To summarize, we remain confident in the value of our businesses
and services for users and our ability to achieve our financial and
business goals. Looking ahead, we will continue to execute our
user-centric strategy and generate positive values for our users
and shareholders in 2023."
Financial Results for the Fourth Quarter
of 2022
Operating revenue, net
Net operating revenue for the fourth quarter of 2022
increased by 12.5% year over year to RMB679.5 million (US$98.5million) from RMB603.9 million for the same period of
2021, which was primarily due to the collection of
insurance-related income, crowdfunding service fees and digital
clinical trial solution income.
- Insurance-related income includes insurance brokerage income
and technical service income. Insurance brokerage income represents
brokerage commissions earned from insurance companies. Technical
service income is derived from providing technical services
including customer relationship maintenance, customer complaint
management, claim review, and user referral services, among other
things, to insurance companies, insurance brokers, and agency
companies. Our insurance-related income amounted to RMB611.5 million (US$88.7
million) in the fourth quarter of 2022, representing an
increase of 5.0% year over year from RMB582.2 million for the fourth quarter of 2021,
which was mainly due to the increase in insurance brokerage
income.
- Crowdfunding service fees represent the service income earned
when patients successfully withdraw the proceeds from their
crowdfunding campaigns. Our role is to operate the Waterdrop
Medical Crowdfunding platform to provide crowdfunding related
services through the internet, enabling patients with significant
medical bills to seek help from caring hearts through technology
(the "medical crowdfunding services"). Our medical crowdfunding
services generally consist of providing technical and internet
support, managing, reviewing and supervising the crowdfunding
campaigns, providing comprehensive risk management and anti-fraud
measures, and facilitating the collection and transfer of the
funds. Since April 7, 2022, our
crowdfunding platform has ceased to fully subsidize the related
cost and started to charge a service fee of 3% of the funds raised,
up to a maximum amount of RMB5,000
for a single campaign. Considering the specific situation of each
case, we may selectively subsidize the service fee for certain
extremely needy patients. For the fourth quarter of 2022, we
generated RMB40.7 million in
crowdfunding service fees, compared to nil in the same period of
2021.
- Digital clinical trial solution income represents the service
income earned when we match qualified patients with optimal
suitability for enrollment in clinical trials for our customers
mainly including biopharmaceutical companies and leading
biotechnology companies. For the fourth quarter of 2022, we
generated RMB22.7 million in service
fees, compared to RMB0.6 million in
the same period of 2021.
Operating costs and expenses
Operating costs and expenses decreased by 10.5% year over year
to RMB606.6 million (US$87.9 million) for the fourth quarter of
2022, due to the effective cost control measures taken since the
third quarter of 2021. On a quarter-over-quarter basis, operating
costs and expenses decreased by 5.2%.
- Operating costs increased by 41.3% year over year to
RMB278.6 million (US$40.4 million) for the fourth quarter of 2022,
compared with RMB197.1 million for
the fourth quarter of 2021, which was primarily driven by (i) a
RMB51.2 million increase in
professional and outsourced customer service fees, and (ii) an
increase of RMB56.6 million mainly
due to recording the crowdfunding consultants team costs as
operating costs rather than as sales and marketing expense, as we
started to generate crowdfunding service fees since April, 2022,
partially offset by a RMB41.4 million
decrease in personnel cost for our consultants and insurance agents
team. On a quarter-over-quarter basis, operating costs decreased by
18.4% in the fourth quarter of 2022, primarily due to the fact that
professional and outsourced customer service fees decreased by
RMB24.9 million, as compared to the
third quarter of 2022.
- Sales and marketing expenses decreased by 42.8% year over year
to RMB137.8 million (US$20.0 million) for the fourth quarter of 2022,
compared with RMB241.0 million for
the same quarter of 2021. The decrease was primarily due to (i) a
RMB36.1 million decrease in marketing
expenses to third-party traffic channels and (ii) a RMB79.6 million decrease in outsourced sales and
marketing service fees to third parties. On a quarter-over-quarter
basis, sales and marketing expenses remained stable compared with
RMB137.9 million for the third
quarter of 2022.
- General and administrative expenses decreased by 20.3% year
over year to RMB118.6 million
(US$17.2 million) for the fourth
quarter of 2022, compared with RMB148.7
million for the same quarter of 2021. The year-over-year
variance was due to the combined impact of (i) a decrease of
RMB39.0 million impairment loss over
prepayment in the fourth quarter of 2021, and partially offset by
an increase of RMB 14.9 million
allowance for doubtful accounts in the fourth quarter of 2022, and
(ii) a RMB7.7 million decrease in
personnel cost. On a quarter-over-quarter basis, general and
administrative expenses increased by 44.5% in the fourth quarter of
2022, primarily due to (i) RMB18.4
million increase in allowance for doubtful accounts, (ii)
RMB8.5 million increase in
professional service fees, and (iii) RMB4.2
million increase in share-based compensation expenses, as
compared to the third quarter of 2022.
- Research and development expenses decreased by 21.2% year over
year to RMB71.7 million (US$10.4 million) for the fourth quarter of 2022,
compared with RMB91.0 million for the
same period of 2021. The decrease was primarily due to RMB16.1 million decreases in research and
development personnel costs. On a quarter-over-quarter basis,
research and development expenses decreased by 8.5% from
RMB78.4 million, which was mainly due
to RMB6.4 million decrease in
research and development personnel costs.
Operating profit for the fourth quarter of
2022 was RMB72.9 million (US$10.6 million), compared with an
operating loss of RMB73.9 million for the fourth quarter
of 2021 and an operating profit of RMB132.6 million for the third quarter of
2022.
Interest income for the fourth quarter of
2022 was RMB27.7 million (US$4.0 million), compared
with RMB12.2 million for the same period of 2021.
The increase was primarily due to the increase in our bank balance
and short-term investments as a result of the positive operating
cash flow generated from the business.
Income tax expense for the
fourth quarter of 2022 was RMB0.5 million (US$0.1 million), compared with RMB5.0 million for the same period of
2021.
Net profit attributable to Waterdrop for the
fourth quarter of 2022 was RMB126.2
million (US$18.3million),
compared with a net loss of RMB71.2
million for the same period of 2021, and a net profit of
RMB169.6 million for the third
quarter of 2022.
Adjusted net profit attributable to
Waterdrop for the fourth quarter of 2022 was
RMB159.7 million (US$23.2 million), compared with an adjusted net
profit of RMB5.9 million for the same
period of 2021, and an adjusted net profit of RMB215.7 million for the third quarter of
2022.
Cash and cash equivalents and short-term
investments
As of December 31, 2022, the
Company had combined cash and cash equivalents and short-term
investments of RMB3,704.5 million
(US$537.1 million), as compared with
RMB2,787.1 million as of
December 31, 2021.
Financial Results for the Fiscal Year of 2022
Net operating revenue for the year of 2022 decreased by 12.6%
year over year to RMB2,801.8 million (US$406.2 million) from RMB
3,205.9 million for the year of 2021, which was
primarily due to the decrease of insurance related income.
- Insurance-related income includes insurance brokerage income
and technical service income. Insurance brokerage income represents
brokerage commissions earned from insurance companies. Technical
service income is derived from providing technical services
including customer relationship maintenance, customer complaint
management, claim review, and user referral services, among other
things, to insurance companies, insurance brokers, and agency
companies. Our insurance-related income amounted to RMB2,559.2 million (US$371.0 million) in 2022, representing a
decrease of 16.7% year over year from RMB3,071.0 million for the year of 2021, which
was mainly due to the decrease in insurance brokerage income.
- Crowdfunding service fees represent the service income earned
when patients successfully withdraw the proceeds from their
crowdfunding campaigns. Our medical crowdfunding services generally
consist of providing technical and internet support, managing,
reviewing and supervising the crowdfunding campaigns, providing
comprehensive risk management and anti-fraud measures, and
facilitating the collection and transfer of the funds. Since
April 7, 2022, our crowdfunding
platform has ceased to fully subsidize the related cost and started
to charge a service fee of 3% of the funds raised, up to a maximum
amount of RMB5,000 for a single
campaign. Considering the specific situation of each case, we may
selectively subsidize the service fees for certain extremely needy
patients. For the year of 2022, we generated RMB155.8 million in crowdfunding service fees,
compared to nil in the year of 2021.
- Digital clinical trial solution income represents the service
income earned when we match qualified patients with optimal
suitability for enrollment in clinical trials for our life sciences
customers. For the year of 2022, we generated RMB59.5 million in service fees, compared to
RMB0.6 million in the year of
2021.
Operating costs and expenses
Operating costs and expenses decreased by 54.2% year over year
to RMB2,323.8 million (US$336.9 million) for the year of 2022, due to
the effective cost control measures taken since the third quarter
of 2021.
- Operating costs decreased by 3.3% year over year to
RMB1,019.4 million (US$147.8 million) for the year of 2022, compared
with RMB1,054.5 million for the year
of 2021, which was primarily driven by a RMB219.9 million decrease in personnel cost for
our consultants and insurance agents team, partially offset by an
increase of RMB181.8 million mainly
due to recording the crowdfunding consultants team costs as
operating costs rather than as sales and marketing expense, as we
started to generate crowdfunding service fees since April 2022.
- Sales and marketing expenses decreased by 79.9% year over year
to RMB624.5 million (US$90.5 million) for the year of 2022, compared
with RMB3,104.8 million for the year
of 2021. The decrease was primarily due to (i) a RMB2,112.5 million decrease in marketing expenses
to third-party traffic channels, and (ii) a RMB358.2 million decrease in outsourced sales and
marketing service fees to third parties.
- General and administrative expenses decreased by 26.7% year
over year to RMB388.7 million
(US$56.4 million) for the year of
2022, compared with RMB530.5 million
for the year of 2021. The year-over-year variance was due to the
combined impact of (i) a decrease of RMB109.8 million in share-based compensation
expenses, (ii) a RMB21.2 million
decrease in personnel cost, and (iii) a decrease of RMB39.0 million impairment loss over prepayment
for the year of 2021, and partially offset by an increase of
RMB 23.5 million allowance for
doubtful accounts for the year of 2022,.
- Research and development expenses decreased by 23.1% year over
year to RMB291.3 million
(US$42.2 million) for year of 2022,
compared with RMB379.0 million for
the year of 2021. The decrease was primarily due to RMB66.0 million decreases in research and
development personnel costs.
Operating profit for the year of
2022 was RMB478.0 million (US$69.3 million), compared with an operating
loss of RMB1,862.8 million
for the year of 2021.
Interest income for the year of 2022 was
RMB81.7 million (US$11.8 million), compared with RMB48.7 million for the year of 2021. The
increase was primarily due to the increase in our bank balance and
short-term investments as a result of the positive operating cash
flow generated from the business.
Income tax expense for the year of 2022 was
RMB23.0 million (US$3.3 million), compared with an income tax
benefit of RMB221.0 million
for the year of 2021.
Net profit attributable to Waterdrop for the
year of 2022 was RMB607.7
million (US$88.1million),
compared with a net loss of RMB1,574.1
million for the year of 2021.
Adjusted net profit attributable to
Waterdrop for the year 2022 was RMB735.2 million (US$106.6
million), compared with an adjusted net loss of RMB1,220.9 million for the year of
2021.
Share Repurchase Plan
Pursuant to the share repurchase program launched in
September 2021 and amended in
September 2022, as of the end of the
fourth quarter of 2022, we had cumulatively repurchased
approximately 8.4 million ADSs from the open market with cash for a
total consideration of approximately US$12.4
million.
Exchange Rate
This announcement contains translations of certain RMB amounts
into U.S. dollars ("USD" or "US$") at specified rates solely for
the convenience of the reader. Unless otherwise stated, all
translations from RMB to USD were made at the rate of
RMB6.8972 to US$1.00, the noon buying rate in effect on
December 30, 2022 in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or USD amounts referred could be
converted into USD or RMB, as the case may be, at any particular
rate or at all. For analytical presentation, all percentages are
calculated using the numbers presented in the financial statements
contained in this earnings release.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, such as
adjusted net operating revenue and adjusted net profit/loss, in
evaluating the Company's operating results and for financial and
operational decision-making purposes. Adjusted net operating
revenue represents net operating revenue excluding management fee
income from mutual aid business. Adjusted net profit/loss
represents net profit/loss excluding share-based compensation
expense, the impact of terminating the mutual aid plan and
foreign currency exchange gain or losses. Such adjustments have no
impact on income tax.
The non-GAAP financial measures are not presented in accordance
with U.S. GAAP and may be different from non-GAAP methods of
accounting and reporting used by other companies. The non-GAAP
financial measures have limitations as analytical tools and when
assessing the Company's operating performance, investors should not
consider them in isolation, or as a substitute for net loss or
other consolidated statements of comprehensive loss data prepared
in accordance with U.S. GAAP. The Company encourages investors and
others to review its financial information in its entirety and not
rely on a single financial measure. Investors are encouraged to
review the Company's historical non-GAAP financial measures to the
most directly comparable GAAP measures. Adjusted net operating
revenue and adjusted net profit/loss presented here may not be
comparable to similarly titled measures presented by other
companies. Other companies may calculate similarly titled measures
differently, limiting their usefulness as comparative measures to
our data. The Company encourages investors and others to review its
financial information in its entirety and not rely on a single
financial measure.
The Company mitigates these limitations by reconciling the
non-GAAP financial measures to the most comparable U.S. GAAP
performance measures, all of which should be considered when
evaluating the Company's performance.
For more information on the non-GAAP financial measures, please
see the table captioned "Reconciliation of GAAP and Non-GAAP
Results" set forth at the end of this press release.
Safe Harbor Statement
This press release contains statements that may constitute
"forward-looking" statements pursuant to the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "aims,"
"future," "intends," "plans," "believes," "estimates," "likely to"
and similar statements. Among other things, quotations in this
announcement, contain forward-looking statements. Waterdrop may
also make written or oral forward-looking statements in its
periodic reports to the Securities and Exchange Commission
(the "SEC"), in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about
Waterdrop's beliefs, plans and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: Waterdrop's
mission, goals and strategies; Waterdrop's future business
development, financial condition and results of operations; the
expected growth of the insurance, medical crowdfunding and
healthcare industry in China;
Waterdrop's expectations regarding demand for and market acceptance
of our products and services; Waterdrop's expectations regarding
its relationships with consumers, insurance carriers and other
partners; competition in the industry and relevant government
policies and regulations relating to insurance, medical
crowdfunding and healthcare industry. Further information regarding
these and other risks is included in Waterdrop's filings with the
SEC. All information provided in this press release is as of the
date of this press release, and Waterdrop does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law.
Conference Call Information
Waterdrop's management team will hold a conference call on
March 17, 2023 at 8:00 AM U.S.
Eastern Time (8:00 PM Beijing/Hong
Kong Time on the same day) to discuss the financial results.
Dial-in details for the earnings conference call are as
follows:
International:
|
1-412-317-6061
|
United States Toll
Free:
|
1-888-317-6003
|
Hong Kong Toll
Free:
|
800-963976
|
Hong Kong:
|
852-58081995
|
Mainland
China:
|
4001-206115
|
Chinese Line Entry
Number:
|
6859276
|
English Interpretation
Line Entry Number:
|
9375854
|
Please dial in 15 minutes before the call is scheduled to begin
and provide the Elite Entry Number to join the call.
A telephone replay will be accessible two hours after the
conclusion of the conference call through March 24, 2023 by dialing the following
numbers:
United States Toll
Free:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Chinese Line Access
Code:
|
7585967
|
English
Interpretation Line Access Code:
|
7172612
|
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
http://ir.waterdrop-inc.com/.
About Waterdrop Inc.
Waterdrop Inc. (NYSE: WDH) is a leading technology platform
dedicated to insurance and healthcare service with a positive
social impact. Founded in 2016, with the comprehensive coverage of
Waterdrop Insurance Marketplace and Waterdrop Medical Crowdfunding,
Waterdrop aims to bring insurance and healthcare service to
billions through technology. For more information, please visit
www.waterdrop-inc.com.
For investor inquiries, please contact
Waterdrop
Inc.
IR@shuidi-inc.com
WATERDROP
INC.
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(All amounts in
thousands, unless otherwise noted)
|
|
As
of
|
|
December
31,2021
|
|
December
31,2022
|
|
RMB
|
|
RMB
|
|
USD
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
817,719
|
|
1,574,171
|
|
228,233
|
Restricted
cash
|
667,664
|
|
517,364
|
|
75,011
|
Short-term
investments
|
1,969,362
|
|
2,130,377
|
|
308,876
|
Accounts
receivable, net
|
643,843
|
|
675,796
|
|
97,981
|
Current contract
assets
|
563,611
|
|
450,085
|
|
65,256
|
Amount due from
related parties
|
1,049
|
|
358
|
|
52
|
Prepaid expense
and other assets
|
369,794
|
|
342,468
|
|
49,655
|
Total current
assets
|
5,033,042
|
|
5,690,619
|
|
825,064
|
Non-current
assets
|
|
|
|
|
|
Non-current
contract assets
|
29,889
|
|
103,591
|
|
15,019
|
Property,
equipment and software, net
|
44,762
|
|
31,397
|
|
4,552
|
Intangible
assets, net
|
56,753
|
|
56,614
|
|
8,208
|
Long-term
investments
|
11,812
|
|
11,969
|
|
1,735
|
Right of use
assets, net
|
59,081
|
|
18,447
|
|
2,675
|
Deferred tax
assets
|
11,840
|
|
6,166
|
|
894
|
Goodwill
|
3,420
|
|
3,420
|
|
496
|
Total non-current
assets
|
217,557
|
|
231,604
|
|
33,579
|
Total
assets
|
5,250,599
|
|
5,922,223
|
|
858,643
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Amount due to
related parties
|
20,449
|
|
11,553
|
|
1,675
|
Insurance
premium payables
|
685,028
|
|
516,661
|
|
74,909
|
Deferred
revenue
|
803
|
|
-
|
|
-
|
Accrued expenses
and other current liabilities
|
498,752
|
|
584,123
|
|
84,689
|
Current lease
liabilities
|
44,113
|
|
9,354
|
|
1,356
|
Total current
liabilities
|
1,249,145
|
|
1,121,691
|
|
162,629
|
Non-current
liabilities
|
|
|
|
|
|
Non-current
lease liabilities
|
14,477
|
|
4,701
|
|
682
|
Deferred tax
liabilities
|
13,551
|
|
29,703
|
|
4,307
|
Total non-current
liabilities
|
28,028
|
|
34,404
|
|
4,989
|
Total
liabilities
|
1,277,173
|
|
1,156,095
|
|
167,618
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Class A ordinary
shares
|
107
|
|
108
|
|
16
|
Class B ordinary
shares
|
27
|
|
27
|
|
4
|
Treasury
stock
|
-
|
|
(3)
|
|
-
|
Additional
paid-in capital
|
7,329,420
|
|
7,384,670
|
|
1,070,677
|
Accumulated
other comprehensive (loss)/income
|
(21,492)
|
|
108,245
|
|
15,694
|
Accumulated
deficit
|
(3,334,636)
|
|
(2,726,919)
|
|
(395,366)
|
Total shareholders'
equity
|
3,973,426
|
|
4,766,128
|
|
691,025
|
Total liabilities
and shareholders' equity
|
5,250,599
|
|
5,922,223
|
|
858,643
|
WATERDROP
INC.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
(LOSS)/INCOME
|
(All amounts in
thousands, except for share and per share data, or otherwise
noted)
|
|
|
For the Three Months
Ended
|
|
For the Twelve
Months Ended December 31,
|
|
|
December 31,
2021
|
|
September 30,
2022
|
|
December 31,
2022
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenue,
net
|
|
603,888
|
|
772,192
|
|
679,470
|
|
98,514
|
|
3,205,914
|
|
2,801,768
|
|
406,218
|
Operating costs and expenses(i)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
(197,133)
|
|
(341,293)
|
|
(278,573)
|
|
(40,389)
|
|
(1,054,475)
|
|
(1,019,362)
|
|
(147,794)
|
Sales and
marketing expenses
|
|
(241,010)
|
|
(137,919)
|
|
(137,793)
|
|
(19,978)
|
|
(3,104,769)
|
|
(624,478)
|
|
(90,541)
|
General and
administrative expenses
|
|
(148,715)
|
|
(82,039)
|
|
(118,563)
|
|
(17,190)
|
|
(530,522)
|
|
(388,651)
|
|
(56,349)
|
Research and
development expenses
|
|
(90,967)
|
|
(78,378)
|
|
(71,685)
|
|
(10,393)
|
|
(378,990)
|
|
(291,290)
|
|
(42,233)
|
Total operating
costs and expenses
|
|
(677,825)
|
|
(639,629)
|
|
(606,614)
|
|
(87,950)
|
|
(5,068,756)
|
|
(2,323,781)
|
|
(336,917)
|
Operating
(loss)/profit
|
|
(73,937)
|
|
132,563
|
|
72,856
|
|
10,564
|
|
(1,862,842)
|
|
477,987
|
|
69,301
|
Other
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
12,192
|
|
24,331
|
|
27,677
|
|
4,013
|
|
48,662
|
|
81,713
|
|
11,847
|
Foreign currency
exchange (loss)/gain
|
|
(5,616)
|
|
(1,012)
|
|
4,260
|
|
618
|
|
9,349
|
|
4,064
|
|
589
|
Others,
net
|
|
1,198
|
|
4,598
|
|
21,954
|
|
3,182
|
|
9,764
|
|
66,929
|
|
9,704
|
(Loss)/profit before
income tax
|
|
(66,163)
|
|
160,480
|
|
126,747
|
|
18,377
|
|
(1,795,067)
|
|
630,693
|
|
91,441
|
Income tax
(expense)/benefit
|
|
(5,034)
|
|
9,134
|
|
(545)
|
|
(79)
|
|
220,987
|
|
(22,976)
|
|
(3,331)
|
Net (loss)/profit
attributable to Waterdrop Inc.
|
|
(71,197)
|
|
169,614
|
|
126,202
|
|
18,298
|
|
(1,574,080)
|
|
607,717
|
|
88,110
|
Preferred shares
redemption value accretion
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(152,287)
|
|
-
|
|
-
|
Net (loss)/profit
attributable to ordinary shareholders
|
|
(71,197)
|
|
169,614
|
|
126,202
|
|
18,298
|
|
(1,726,367)
|
|
607,717
|
|
88,110
|
Net
(loss)/profit
|
|
(71,197)
|
|
169,614
|
|
126,202
|
|
18,298
|
|
(1,574,080)
|
|
607,717
|
|
88,110
|
Other comprehensive
(loss)/income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of tax
|
|
(10,465)
|
|
93,742
|
|
(40,297)
|
|
(5,843)
|
|
(36,640)
|
|
129,563
|
|
18,785
|
Unrealized
gains/(loss) on available for sale investments, net
of tax
|
|
154
|
|
341
|
|
(4,339)
|
|
(629)
|
|
192
|
|
174
|
|
25
|
Comprehensive
(loss)/income
|
|
(81,508)
|
|
263,697
|
|
81,566
|
|
11,826
|
|
(1,610,528)
|
|
737,454
|
|
106,920
|
Weighted average
number of ordinary shares used in computing
net (loss)/profit per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,935,102,446
|
|
3,916,993,146
|
|
3,903,634,639
|
|
3,903,634,639
|
|
2,990,507,749
|
|
3,921,388,720
|
|
3,921,388,720
|
Diluted
|
|
3,935,102,446
|
|
3,999,147,416
|
|
4,067,145,456
|
|
4,067,145,456
|
|
2,990,507,749
|
|
4,022,467,160
|
|
4,022,467,160
|
Net (loss)/profit
per share attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
(0.02)
|
|
0.04
|
|
0.03
|
|
0.00
|
|
(0.58)
|
|
0.15
|
|
0.02
|
Diluted
|
|
(0.02)
|
|
0.04
|
|
0.03
|
|
0.00
|
|
(0.58)
|
|
0.15
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) Share-based compensation expenses are
included in the operating costs and expenses as
follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Twelve
Months Ended December 31,
|
|
|
December 31,
2021
|
|
September 30,
2022
|
|
December 31,
2022
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
(1,876)
|
|
(1,912)
|
|
(9,635)
|
|
(1,397)
|
|
(10,853)
|
|
(16,120)
|
|
(2,337)
|
General and
administrative expenses
|
|
(25,880)
|
|
(19,665)
|
|
(23,886)
|
|
(3,463)
|
|
(190,252)
|
|
(80,448)
|
|
(11,664)
|
Research and
development expenses
|
|
(4,018)
|
|
(3,975)
|
|
(4,201)
|
|
(609)
|
|
(25,056)
|
|
(15,458)
|
|
(2,241)
|
Total
|
|
(31,774)
|
|
(25,552)
|
|
(37,722)
|
|
(5,469)
|
|
(226,161)
|
|
(112,026)
|
|
(16,242)
|
WATERDROP
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(All amounts in
thousands, unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Twelve
Months Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2021
|
|
September 30,
2022
|
|
December 31,
2022
|
|
2021
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
revenue
|
|
603,888
|
|
772,192
|
|
679,470
|
|
98,514
|
|
3,205,914
|
|
2,801,768
|
|
406,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fee
income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,745
(ii)
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
operating revenue
|
|
603,888
|
|
772,192
|
|
679,470
|
|
98,514
|
|
3,203,169
|
|
2,801,768
|
|
406,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Twelve
Months Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2021
|
|
September 30,
2022
|
|
December 31,
2022
|
|
2021
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss)/profit
|
|
(71,197)
|
|
169,614
|
|
126,202
|
|
18,298
|
|
(1,574,080)
|
|
607,717
|
|
88,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense
|
|
31,774
|
|
25,552
|
|
37,722
|
|
5,469
|
|
226,161
|
|
112,026
|
|
16,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
exchange loss/(gain)
|
|
5,616
|
|
1,012
|
|
(4,260)
|
|
(618)
|
|
(9,349)
|
|
(4,064)
|
|
(589)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
loss
|
|
39,717
|
|
-
|
|
-
|
|
|
|
39,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of
terminating the mutual aid plan (iii)
|
|
-
|
|
19,549
|
|
-
|
|
-
|
|
96,697
|
|
19,549
|
|
2,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
profit/(loss)
|
|
5,910
|
|
215,727
|
|
159,664
|
|
23,149
|
|
(1,220,854)
|
|
735,228
|
|
106,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(ii) This
represents the net management fee revenue related to the mutual aid
business for the three months ended March 31, 2021 after recording
the RMB19.9 million
reduction of management fee revenue previously recognized for each
participant to the extent of the cumulative amount earned until
March 26, 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(iii) This represents
the estimated cost of medical expenses and cost of one-year health
insurance coverage. RMB19.9 million (US$2.9 million) was
accounted for as a reduction of
management fee revenue previously recognized for each participant
to the extent of the cumulative amount earned until March 26, 2021.
RMB96.4 million (US$14.0 million)
was recorded as operating costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/waterdrop-inc-announces-fourth-quarter-and-fiscal-year-2022-unaudited-financial-results-301774955.html
SOURCE Waterdrop Inc.