On November 30, Waterdrop disclosed unaudited financial data for the third quarter of 2021. During the reporting period, the net revenue of Waterdrop Company was 779.3 million yuan, compared with 863 million yuan in the same period last year, down 9.7% year-on-year; the net loss was 477 million yuan, and the net loss in the same period last year was 139.3 million yuan, an increase of 242% year-on-year, a decrease of 27.3% month-on-month; the adjusted net loss was 453.6 million yuan, and the adjusted net loss in the same period last year was 75.9 million yuan, an increase of nearly 500% year-on-year, and a loss of 20.4% month-on-month.
In terms of revenue, Waterdrop's net revenue for the third quarter of 2021 was 779.3 million yuan, compared with 863 million yuan in the same period of 2020, down 9.7% year-on-year, mainly due to the decrease in insurance-related revenue. Among them, insurance-related revenue was 758.6 million yuan, down 9.4% from 837.3 million yuan in the third quarter of 2020, mainly due to the decline in insurance brokerage revenue. Net revenue from management fees was zero, compared to $22.3 million in the third quarter of 2020, primarily due to the cessation of the mutual aid business at the end of March 2021. Excluding management fee income, adjusted net operating income for the third quarter of 2021 decreased by 7.3% compared to the same period in 2020.
In terms of costs and expenses, the total operating costs and expenses of Waterdrop in the third quarter increased from 982.6 million yuan in the same period of 2020 to 1.2923 million yuan in the third quarter of 2021, an increase of 309.7 million yuan, an increase of 31.5% year-on-year. Among them, operating costs increased by 49.2% year-on-year to 296.3 million yuan, compared with operating costs of 198.7 million yuan in the third quarter of 2020; sales and marketing expenses increased by 24.3% year-on-year to 781.7 million yuan, compared with 628.7 million yuan in the third quarter of 2020; general and administrative expenses increased by 9.4% year-on-year to 111.4 million yuan, compared with 101.9 million yuan in the third quarter of 2020; research and development expenses were 102.9 million yuan, an increase of 92.9% year-on-year. For the third quarter of 2020, it was 53.3 million yuan.
In terms of profit, in the third quarter of 2021, the operating loss of Waterdrop Company was 513 million yuan, compared with a loss of 119.6 million yuan in the same period of 2020. Operating losses for the third quarter of 2021 decreased by 37.1% compared to the second quarter of 2021. Net loss attributable to Waterdrop was $477 million, compared to a net loss of $139.3 million for the same period in 2020, an increase of 242% year-on-year and a loss of 27.3% compared to a net loss of $655.8 million in the second quarter of 2021. Adjusted net loss was $453.6 million, compared to $75.9 million for the same period in 2020, an increase of nearly 500% year-on-year and a quarter-on-quarter loss of 20.4%.
In terms of cash flow, as of September 30, 2021, Waterdrop's cash and cash equivalents and short-term investments totaled $2,611.1 million ($405.2 million), compared to $2,255.1 million as of December 31, 2020.
In terms of operating data, in the nine months ended September 30, 2021, the first-year premium (FYP) generated through the droplet insurance market reached 14.464 billion yuan, surpassing the FYP for the whole year of 2020 and increasing by 37.5% year-on-year. The cumulative number of insurance customers reached 108.7 million, and the cumulative number of paid insurance customers reached 27.2 million. In the third quarter, the FYP per customer increased to 1292 yuan, an increase of 17.1% year-on-year. There are 323 insurance products available on the platform, and more than 90% of YP comes from exclusive customized insurance products. In terms of product type, in the third quarter of 2021, the FYP of critical illness insurance increased by 71% year-on-year. About 383 million people donated more than $45.7 billion to more than 2.2 million patients through crowdfunding platforms.
Pursuant to the 12-month share repurchase program announced on September 8, 2021, from the announcement of the program to the end of the third quarter, Waterdrop repurchased approximately 492,000 American depositary shares in cash from the open market for a total consideration of approximately $1.4 million.
Shen Peng, founder, chairman and CEO of Waterdrop, said: "Based on the firm confidence in the company's prospects and support for the company's long-term sustainable development, as well as the firm choice to safeguard the interests of the general public investors, a total of more than 30 core management personnel, including myself, have promised not to sell or dispose of the shares or options held by waterdrop company for at least 18 months after the end of the lock-up period this month before the listing, and continue to strengthen strategic stability and focus on the development of the company." ”
Looking ahead, Waterdrop expects significant reductions in sales and marketing expenses and total operating costs and expenses for the fourth quarter of 2021.
On May 7 this year, Waterdrop officially landed on the capital market and was listed on the New York Stock Exchange under the stock code of "WDH" at an issue price of $12 per share. As of the close of the US stock market in the early morning of December 1, Shui Di's stock price closed at $1.50 per share, and in less than 7 months, the stock price has fallen by 87.5% from the issue price, with a total market value of about $591.2 million.
This article originated from China Net Finance
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