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Waterdrop Inc. Announces Third Quarter 2024 Unaudited Financial Results

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BEIJING, Dec. 11, 2024 /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 three and nine months ended September 30, 2024.

Financial and Operational Highlights for the Third Quarter of 2024

Marked improvement in profitability and healthy liquidity: In the third quarter of 2024, net profit attributable to our ordinary shareholders reached RMB92.8 million, representing a year-over-year growth of 152.6%. As of September 30, 2024, we continued to generate positive operating cash flow during the third quarter of 2024.Strong business performance: For the third quarter of 2024, the first-year premiums (“FYP”) generated through our insurance business amounted to RMB2,041.8 million (US$290.9 million), representing an increase of 20.4% year over year. Net operating revenue was RMB704.1 million (US$100.3 million), representing an increase of 2.6% year over year.Expanded crowdfunding coverage: As of September 30, 2024, around 466 million people cumulatively had donated an aggregate of RMB66.3 billion to 3.32 million patients through Waterdrop Medical Crowdfunding.Dependable performance in patient recruitment: As of September 30, 2024, the Company had cumulatively enrolled over 9,500 patients into 1,137 clinical trial programs through the E-Find Platform.

Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, “We are delighted to announce another quarter of robust profitability, with net profit attributable to ordinary shareholders reaching 2.5 times that of the third quarter last year.

Our insurance business has achieved a 14.8% quarter-over-quarter growth in FYP and maintained an operating profit margin above 20%. We delivered solid FYP growth in both short-term and long-term insurance, driven by user acquisition, innovative tailor-made products, and the contribution of Shenlanbao. I believe with our data-driven user insights, unique product offerings, and diversified distribution channels, we are well-positioned to maintain a strong competitive advantage.

This quarter marks a significant milestone for our medical crowdfunding business and the industry as a whole, following the issuance of the ‘Measures for Administration of Online Service Platforms for Individuals Seeking Financial Help’ released by Ministry of Civil Affairs of PRC and other government departments on September 5, 2024. The Measures for Administration officially announce the legal framework of fundraising sector, and offer guidance on management and information transparency.

During this quarter, our digital clinical trial solution income continued its growth, realizing a quarter-over-quarter increase of 17.4%. We collaborated with a total of 184 pharmaceutical companies and contract research organizations (“CROs”). Moreover, we enrolled 909 patients and initiated services for 88 new programs during the third quarter of 2024.

We are also delighted to report notable progress in AI. Internally, ‘AI Consultant’, a conversational AI agent powered by our ‘Waterdrop Guardian’ large language model, has reached the capacity to generate million yuan in monthly premiums by serving user inquires. Meanwhile, a new application, ‘AI Service Quality Agent’, was deployed to streamline the service quality inspection process by replacing manual work. Externally, we launched ‘AI Top Sales Platform 3.0’, a conversational AI platform that customizes AI sales agents for businesses, and have initiated pilots with insurance carriers and companies in non-insurance sectors.

We value the trust from our investors and prioritize shareholder returns. By the end of November 2024, the Company had cumulatively repurchased approximately 50.9 million ADSs from the open market. Moreover, we recently completed our second special cash dividend of approximately US$7.3 million.

With our strong execution capability, ample cash reserves and continuous profitability, we will continue to focus on fostering sustainable growth, and strive to deliver substantial returns to our shareholders and investors.”

Financial Results for the Third Quarter of 2024

Operating revenue, net

Net operating revenue for the third quarter of 2024 increased by 2.6% year over year to RMB704.1 million (US$100.3 million) from RMB686.5 million for the same period of 2023. On a quarter-over-quarter basis, net operating revenue increased by 4.1%.

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 RMB600.7 million (US$85.6 million) in the third quarter of 2024, representing a decrease of 3.0% year over year from RMB619.3 million for the third quarter of 2023, which was mainly due to the decrease in technical service income. On a quarter-over-quarter basis, insurance-related income increased by 4.7%.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. For the third quarter of 2024, we generated RMB65.8 million (US$9.4 million) in service fees, representing an increase of 83.0% year over year from RMB36.0 million for the third quarter of 2023. On a quarter-over-quarter basis, crowdfunding service fees decreased by 5.0%.Digital clinical trial solution income represents the service income earned from our customers mainly including biopharmaceutical companies and leading biotechnology companies. We match qualified and suitable patients for enrollment in clinical trials for our customers and generate digital clinical trial solution revenue for successful matches and we typically charge our customers a fixed unit price per successful match. For the third quarter of 2024, our digital clinical trial solution income amounted to RMB24.3 million (US$3.5 million), representing a decrease of 12.1% from RMB27.6 million in the same period of 2023. On a quarter-over-quarter basis, digital clinical trial solution income increased by 17.4%.

Operating costs and expenses

Operating costs and expenses decreased by 1.6% year over year to RMB677.7 million (US$96.6 million) for the third quarter of 2024. On a quarter-over-quarter basis, operating costs and expenses increased by 8.6%.

Operating costs increased by 9.1% year over year to RMB340.6 million (US$48.5 million) for the third quarter of 2024, as compared with RMB312.3 million for the third quarter of 2023, which was primarily driven by (i) an increase of RMB46.5 million in costs of referral and service fees, partially offset by (ii) a decrease of RMB10.0 million in personnel costs, and (iii) a decrease of RMB7.0 million in the costs for crowdfunding consultants team. On a quarter-over-quarter basis, operating costs increased by 6.7% from RMB319.1 million, primarily due to (i) an increase of RMB32.6 million in costs of referral and service fees, partially offset by (ii) a decrease of RMB8.9 million in personnel costs, and (iii) a decrease of RMB5.1 million in the costs for crowdfunding consultants team.Sales and marketing expenses decreased by 7.7% year over year to RMB173.2 million (US$24.7 million) for the third quarter of 2024, as compared with RMB187.7 million for the same quarter of 2023. The decrease was primarily due to (i) a decrease of RMB36.5 million in personnel costs and share-based compensation expenses, partially offset by (ii) an increase of RMB21.1 million in marketing expenses to third-party traffic channels. On a quarter-over-quarter basis, sales and marketing expenses increased by 10.0% from RMB157.4 million, primarily due to (i) an increase of RMB14.4 million in marketing expenses to third-party traffic channels, (ii) an increase of RMB4.5 million in outsourced sales and marketing service fees to third parties, and partially offset by (iii) a decrease of RMB3.1 million in sales and marketing personnel costs and share-based compensation expensesGeneral and administrative expenses decreased by 3.2% year over year to RMB111.0 million (US$15.8 million) for the third quarter of 2024, compared with RMB114.6 million for the same quarter of 2023. The year-over-year variance was due to (i) a decrease of RMB24.8 million in professional service fees, (ii) a decrease of RMB5.8 million in personnel costs and share-based compensation expenses, partially offset by (iii) an increase of RMB10.6 million in allowance for doubtful accounts, and (iv) an increase of RMB20.6 million impairment loss for intangible assets related to the acquisition of Shenzhen Cunzhen Qiushi Technology Co., Ltd. and its subsidiaries (“Shenlanbao”). On a quarter-over-quarter basis, general and administrative expenses increased by 18.1% from RMB94.0 million, due to (i) an increase of RMB20.6 million impairment loss for intangible assets related to the acquisition of Shenlanbao, (ii) an increase of RMB6.9 million in personnel costs and share-based compensation expenses, partially offset by (iii) a decrease of RMB6.8 million in professional service fees, and (iv) a decrease of RMB3.1 million allowance for doubtful accounts.Research and development expenses decreased by 28.4% year over year to RMB53.0 million (US$7.5 million) for the third quarter of 2024, compared with RMB73.9 million for the same period of 2023. The decrease was primarily due to a decrease of RMB18.9 million in personnel costs and share-based compensation expenses. On a quarter-over-quarter basis, research and development expenses remained stable.

Operating profit for the third quarter of 2024 was RMB26.5 million (US$3.8 million), as compared with an operating loss of RMB2.1 million for the third quarter of 2023 and an operating profit of RMB52.4 million for the second quarter of 2024.

Interest income for the third quarter of 2024 was RMB36.0 million (US$5.1 million), as compared with RMB32.9 million for the third quarter of 2023 and RMB37.5 million for the second quarter of 2024.

Income tax benefit for the third quarter of 2024 was RMB7.8 million (US$1.1 million), as compared with RMB1.5 million for the third quarter of 2023 and an income tax expense of RMB7.0 million for the second quarter of 2024.

Net profit attributable to the Company’s ordinary shareholders for the third quarter of 2024 was RMB92.8 million (US$13.2 million), as compared with RMB36.7 million for the same period of 2023, and RMB88.3 million for the second quarter of 2024.

Adjusted net profit attributable to the Company’s ordinary shareholders (non-GAAP(1)) for the third quarter of 2024 was RMB126.0 million (US$18.0 million), as compared with RMB74.3 million for the same period of 2023, and RMB108.7 million for the second quarter of 2024. 

Cash position(2)

As of September 30, 2024, cash position of the Company was RMB3,440.1 million (US$490.2 million), as compared with RMB3,571.6 million as of December 31, 2023.

(1) See the sections entitled “Non-GAAP Financial Measure” and “Reconciliations of GAAP and Non-GAAP Results” for more information about the non-GAAP
     measures referred to in this announcement.
(2) Cash position includes cash and cash equivalents, short-term investments, and long-term debt investments included in long-term investments.

Share Repurchase Programs 

Pursuant to the share repurchase programs launched in September 2021, September 2022, September 2023 and September 2024, respectively, we had cumulatively repurchased approximately 50.9 million ADSs from the open market with cash for a total consideration of approximately US$102.3 million as of November 30, 2024.

Supplemental Information 

We organize and report our business in three operating segments:

Insurance, which mainly includes Waterdrop Insurance Marketplace, Shenlanbao Insurance Marketplace and technical support service;Crowdfunding, which mainly includes Waterdrop Medical Crowdfunding; andOthers, which mainly include Digital Clinical Trial Solution and other new initiatives.

The table below sets forth the segment operating results, with the nine-month comparative figures retrospectively adjusted to conform to this presentation.

For the Three Months Ended 

For the Nine Months Ended 

September 30,
2023

June 30,
2024

September 30,
2024

September
30, 2023*

September 30,
2024

RMB

RMB

RMB

USD

RMB

RMB

USD

(All amounts in thousands)

Operating revenue, net

 Insurance 

619,269

573,832

600,726

85,603

1,753,049

1,781,335

253,838

 Crowdfunding 

35,971

69,323

65,839

9,382

122,670

202,512

28,858

 Others 

31,238

33,001

37,576

5,354

95,624

101,150

14,414

Total consolidated operating
   revenue, net

686,478

676,156

704,141

100,339

1,971,343

2,084,997

297,110

Operating profit/(loss)

 Insurance 

145,200

122,955

122,501

17,457

399,914

374,619

53,383

 Crowdfunding 

(68,793)

(22,936)

(17,902)

(2,551)

(194,058)

(73,075)

(10,413)

 Others 

(43,713)

(27,450)

(31,716)

(4,520)

(128,157)

(90,598)

(12,911)

Total segment operating
   profit

32,694

72,569

72,883

10,386

77,699

210,946

30,059

 Unallocated item** 

(34,762)

(20,205)

(46,413)

(6,614)

(111,081)

(85,748)

(12,219)

Total consolidated operating
   (loss)/profit

(2,068)

52,364

26,470

3,772

(33,382)

125,198

17,840

 Total other income 

36,914

38,366

60,842

8,670

126,520

141,989

20,233

Profit before income tax

34,846

90,730

87,312

12,442

93,138

267,187

38,073

 Income tax benefit/(expense) 

1,479

(7,026)

7,843

1,118

14,609

(7,771)

(1,107)

Net profit

36,325

83,704

95,155

13,560

107,747

259,416

36,966

*       Starting from the second quarter of 2023, our chief operating decision maker began managing the business through three
        operating segments and assessing performance and allocating resources under this new operating segment structure. The
        nine-month comparative figures were retrospectively adjusted to conform to this presentation.

**     The share-based compensation and impairment of intangible assets acquired from business combination represent
        unallocated items in the segment information because our management does not consider these as part of the segment
        operating performance measure.

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 RMB7.0176 to US$1.00, the noon buying rate in effect on September 30, 2024 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 Measure

The Company uses non-GAAP financial measure, adjusted net profit attributable to our ordinary shareholders, in evaluating the Company’s operating results and for financial and operational decision-making purposes. Adjusted net profit attributable to our ordinary shareholders represents net profit attributable to our ordinary shareholders excluding share-based compensation expense attributable to our ordinary shareholders, foreign currency exchange gain or losses, impairment of intangible assets acquired from business combination and related tax effects on non-GAAP adjustments

The non-GAAP financial measure is 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 measure has limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider it 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 measure to the most directly comparable GAAP measure. Adjusted net profit attributable to our ordinary shareholders presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measure differently, limiting its usefulness as a comparative measure to our data.

The Company mitigates these limitations by reconciling the non-GAAP financial measure to the most comparable U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measure, 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 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 December 11, 2024 at 7:00 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 (Mandarin) Entry Number:

4533234

English Interpretation Line (Listen-only Mode) Entry Number:

2061532

Participants can choose between the Chinese and the English interpretation lines. Please note that the English interpretation option will be in listen-only mode. Please dial in 15 minutes before the call is scheduled to begin and provide the Elite Entry Number to join the call.

Telephone replays will be accessible two hours after the conclusion of the conference call until December 18, 2024 by dialing the following numbers:

United States Toll Free:

1-877-344-7529

International:

1-412-317-0088

Chinese Line Access Code:

6305770

English Interpretation Line Access Code:

9765426

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, 2023

September 30, 2024

RMB

RMB

USD

Assets

Current assets

       Cash and cash equivalents

396,905

442,145

63,005

       Restricted cash 

577,121

474,683

67,642

       Short-term investments

2,996,527

1,912,873

272,582

       Accounts receivable, net 

693,110

755,427

107,647

       Current contract assets 

572,871

631,507

89,989

       Amount due from related parties

65

250

36

       Prepaid expense and other assets

189,846

192,153

27,381

Total current assets

5,426,445

4,409,038

628,282

Non-current assets

       Non-current contract assets

134,383

141,262

20,130

       Property, equipment and software, net

33,878

237,616

33,860

       Intangible assets, net

177,407

153,043

21,808

       Long-term investments

211,758

1,122,407

159,942

       Right of use assets, net

59,851

55,149

7,859

       Deferred tax assets

24,190

29,297

4,175

       Goodwill

80,751

80,751

11,507

Total non-current assets

722,218

1,819,525

259,281

Total assets

6,148,663

6,228,563

887,563

Liabilities, Mezzanine Equity and Shareholders’ Equity 

Current liabilities

       Amount due to related parties

9,509

10,043

1,431

       Insurance premium payables 

591,953

493,596

70,337

       Accrued expenses and other current liabilities

597,684

724,610

103,256

       Short-term loans

137,557

148,544

21,167

       Current lease liabilities

32,908

35,946

5,122

Total current liabilities 

1,369,611

1,412,739

201,313

Non-current liabilities

       Non-current lease liabilities

27,293

18,464

2,631

       Deferred tax liabilities

73,305

85,713

12,214

Total non-current liabilities

100,598

104,177

14,845

Total liabilities

1,470,209

1,516,916

216,158

Mezzanine Equity

       Redeemable non-controlling interests

92,760

90,449

12,889

Shareholders’ equity

       Class A ordinary shares

112

113

16

       Class B ordinary shares

27

27

4

       Treasury stock

(12)

(15)

(2)

       Additional paid-in capital

7,003,423

6,821,616

972,073

       Accumulated other comprehensive income

144,107

99,693

14,206

       Accumulated deficit

(2,561,963)

(2,300,236)

(327,781)

Total shareholders’ equity

4,585,694

4,621,198

658,516

Total liabilities, mezzanine equity and shareholders’ equity

6,148,663

6,228,563

887,563

 

 

 

WATERDROP INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(All amounts in thousands, except for share and per share data, or otherwise noted)

For the Three Months Ended 

For the Nine Months Ended 

September 30, 2023

June 30, 2024

September 30, 2024

September 30, 2023

September 30, 2024

RMB

RMB

RMB

USD

RMB

RMB

USD

Operating revenue, net

686,478

676,156

704,141

100,339

1,971,343

2,084,997

297,110

Operating costs and expenses(i)

 Operating costs 

(312,278)

(319,101)

(340,560)

(48,529)

(893,401)

(990,904)

(141,203)

 Sales and marketing expenses 

(187,685)

(157,413)

(173,172)

(24,677)

(565,634)

(512,731)

(73,064)

 General and administrative expenses 

(114,641)

(93,978)

(110,988)

(15,816)

(306,436)

(293,927)

(41,884)

 Research and development expenses 

(73,942)

(53,300)

(52,951)

(7,545)

(239,254)

(162,237)

(23,119)

Total operating costs and expenses

(688,546)

(623,792)

(677,671)

(96,567)

(2,004,725)

(1,959,799)

(279,270)

Operating (loss)/profit

(2,068)

52,364

26,470

3,772

(33,382)

125,198

17,840

Other income

 Interest income 

32,890

37,510

36,005

5,131

101,384

113,319

16,148

 Foreign currency exchange (loss)/gain 

(3,734)

(444)

7,909

1,127

(2,614)

8,979

1,279

 Others, net 

7,758

1,300

16,928

2,412

27,750

19,691

2,806

Profit before income tax

34,846

90,730

87,312

12,442

93,138

267,187

38,073

 Income tax benefit/(expense) 

1,479

(7,026)

7,843

1,118

14,609

(7,771)

(1,107)

Net profit 

36,325

83,704

95,155

13,560

107,747

259,416

36,966

 Net (loss)/profit attributable to mezzanine
   equity classified as non-controlling interests
   shareholders 

(417)

(4,586)

2,350

335

(417)

(2,311)

(329)

Net profit attributable to ordinary shareholders

36,742

88,290

92,805

13,225

108,164

261,727

37,295

Other comprehensive income:

 Foreign currency translation adjustment, net of
   tax 

8,983

13,497

(83,054)

(11,835)

76,803

(44,414)

(6,329)

 Unrealized loss on available for sale
   investments, net of tax 

(1,551)

Total comprehensive income

45,308

97,201

12,101

1,725

182,999

215,002

30,637

 Total comprehensive (loss)/profit attributable
   to mezzanine equity classified as non-
   controlling interests shareholders 

(417)

(4,586)

2,350

335

7,074

(2,311)

(329)

Total comprehensive income attributable to
   ordinary shareholders

45,725

101,787

9,751

1,390

175,925

217,313

30,966

Weighted average number of ordinary shares
   used in computing net profit per share

 Basic 

3,719,628,339

3,660,589,600

3,624,431,887

3,624,431,887

3,793,678,209

3,660,415,080

3,660,415,080

 Diluted 

3,808,529,672

3,734,346,444

3,689,357,838

3,689,357,838

3,921,118,226

3,726,590,324

3,726,590,324

Net profit per share attributable to ordinary shareholders

 Basic 

0.01

0.02

0.03

0.00

0.03

0.07

0.01

 Diluted 

0.01

0.02

0.03

0.00

0.03

0.07

0.01

(i)  Share-based compensation expenses are included in the operating costs and expenses as follows. 

For the Three Months Ended 

For the Nine Months Ended 

September 30, 2023

June 30, 2024

September 30, 2024

September 30, 2023

September 30, 2024

RMB

RMB

RMB

USD

RMB

RMB

USD

Sales and marketing expenses

(8,944)

(1,320)

(1,993)

(284)

(33,361)

(5,133)

(731)

General and administrative expenses

(22,060)

(16,285)

(21,297)

(3,035)

(66,642)

(51,909)

(7,397)

Research and development expenses

(3,758)

(2,600)

(2,563)

(365)

(11,078)

(8,146)

(1,161)

Total 

(34,762)

(20,205)

(25,853)

(3,684)

(111,081)

(65,188)

(9,289)

 

WATERDROP INC.

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, unless otherwise noted)

For the Three Months Ended 

For the Nine Months Ended 

September 30, 2023

June 30, 2024

September 30, 2024

September 30, 2023

September 30, 2024

RMB

RMB

RMB

USD

RMB

RMB

USD

Net profit attributable to the Company’s ordinary
  shareholders

36,742

88,290

92,805

13,225

108,164

261,727

37,295

Add:

 Share-based compensation expense attributable to
the Company’s ordinary shareholders 

33,810

20,015

25,673

3,658

110,130

64,948

9,255

 Foreign currency exchange loss/(gain) 

3,734

444

(7,909)

(1,127)

2,614

(8,979)

(1,279)

 Impairment of intangible assets acquired from
business combination 

20,560

2,930

20,560

2,930

 Tax effects on non-GAAP adjustments 

(5,140)

(732)

(5,140)

(732)

Adjusted net profit attributable to the Company’s
ordinary shareholders

74,286

108,749

125,989

17,954

220,908

333,116

47,469

 

 

 

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/U P D A T E — TrendAI/

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This release has been updated to include new information provided by TrendAI. The complete, corrected release follows, with additional details at the end:

TrendAI™ Adopts Claude Opus 5 to Advance Vulnerability Prioritization and Virtual Patching

As a participant in Anthropic’s Cyber Verification Program, TrendAI applies frontier reasoning to convert vulnerability intelligence into faster protection across hybrid environments

DALLAS, July 24, 2026 /PRNewswire/ — TrendAI™, the enterprise AI security leader from Trend Micro Incorporated (TYO: 4704; TSE: 4704), today announced it is adopting Claude Opus 5, Anthropic’s latest and most capable Opus model, to help security teams convert vulnerability intelligence into immediate protection, from prioritization to virtual patching. The move builds on TrendAI’s collaboration with Anthropic on Claude Opus 4.8, extending the same defensive focus to a model that delivers step-change gains in advanced reasoning, agentic workflows, and long-horizon analysis. As AI makes finding vulnerabilities easier than ever, the harder problem becomes protecting organizations faster than software can be permanently patched, and that is where TrendAI is putting Opus 5 to work.

As a participant in Anthropic’s Cyber Verification Program, which credentials organizations for the defensive use of frontier AI models, TrendAI is positioned to apply Claude Opus 5 to defensive security as access becomes available. The model is Zero Data Retention compatible, supporting TrendAI’s governance and data-protection requirements as it scales AI across security operations.

The work extends to TrendAI Threat Research, where frontier AI models are combined with our proprietary frontier intelligence engine and human expertise to generate pre-disclosure intelligence. Those insights power TrendAI Vision One™, delivering stronger detection, deeper forensic insights, and proactive protection through virtual patching.

Rachel Jin, Chief Platform and Business Officer, Head of TrendAI™:
“With Claude Opus 5, TrendAI can move from vulnerability intelligence to action faster than ever, prioritizing what matters most by exploitability and business impact. Finding the vulnerability was always the hard part. Now the challenge is protecting organizations faster than software can be permanently patched, and frontier reasoning is what changes that equation, extending all the way to virtual patching that protects customers before a vendor fix ships. This is what it means to secure the AI age, fearlessly.”

These capabilities support TrendAI Vision One™ in helping security analysts, AppSec teams, and SOC teams prioritize exposure, map attack paths, and accelerate mitigation, including virtual patching, across hybrid environments, moving vulnerability management from a static scanning process into a faster, context-aware risk mitigation workflow.

About TrendAI™
TrendAI™, the global AI security leader and enterprise business unit of Trend Micro, empowers organizations with full AI visibility and consolidated security that inspires confidence, drives innovation, and eliminates risk. Trusted by the largest enterprises and governments across 185 countries, TrendAI™ secures the entire organization, from identities, to infrastructure, to data. Global Fortune 500 companies rely on TrendAI™ to cut risk and stop threats up to three months earlier, powered by world-leading threat and attack intelligence. Through deep ecosystem partnerships with market leaders like NVIDIA, Anthropic, AWS, Google, and Microsoft, TrendAI™ empowers your organization to securely drive forward at the speed of AI. AI Fearlessly. Learn more: trendaisecurity.com

About Anthropic
Anthropic is an AI safety and research company dedicated to building reliable, interpretable, and steerable AI systems. Its Claude family of models, including Claude Opus 5, enables advanced capabilities across a wide range of applications, including code understanding and security analysis.

Update: The latest version of this release includes additional statements from TrendAI related to the original announcement.

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Ralph Ye on 10 Years of Entrepreneurship at CASEKOO: Less Identity Shift, More Habits That Endure

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NEW YORK, July 24, 2026 /PRNewswire/ — As CASEKOO approaches its 10th anniversary, founder Ralph Ye says the company’s biggest achievement isn’t measured by units sold, but by how its philosophy has evolved.

Ten years ago, Ye found himself frustrated by a simple problem: his phone wouldn’t stand upright on a fast-food table. Instead of accepting the inconvenience, he saw an opportunity to rethink what a phone case could do.

Today, CASEKOO has sold more than 20 million phone cases across 32 countries. Over the past decade, the company has evolved from creating protective accessories into designing products that fit naturally into everyday life.

“Innovation isn’t about changing identities,” Ye said. “It’s about making meaningful habits easier to keep.”

From Q Line to LinKOO

The evolution of CASEKOO’s product portfolio reflects a broader shift in the company’s design philosophy.

The journey began with the Q Line (Quality Line), a collection of crystal-clear phone cases engineered to deliver premium protection without compromising aesthetics. In 2021, CASEKOO introduced the E Line (Innovation Line), the world’s first phone case with an integrated ring stand. The product earned an iF Design Award and became an Amazon bestseller, demonstrating the market’s appetite for accessories that combined protection with everyday functionality. The X Line (Expression Line) followed, expanding the brand’s focus on personalization and expressive design.

Each product generation introduced new capabilities, but each also reinforced an important insight.

“We moved from Q Line to E Line to X Line, and every generation taught us something about what people actually need,” said Ye. “By the time we introduced The KOO series, we weren’t designing features anymore. We were designing around everyday behaviors.”

Today, the portfolio gives each rhythm a clear name: LinKOO — Link Your Way for hands-free carry, StandKOO — Elevate Your Day for hands-free viewing and grip, and X-LINE — Fit Your Vibe for expressive personalization.

It represents CASEKOO’s transition from designing accessories with added functions to creating products that support everyday habits. For the company, the future of consumer technology lies not in how many features a product offers, but in how seamlessly it integrates into the way people live.

A Philosophy Born from Everyday Life

The inspiration behind LinKOO came from one of Ye’s longest-standing habits.

For nearly two decades, he has left home every day holding his wife’s hand. One evening, while carrying his phone, keys, and wallet in his other hand, he realized how often everyday essentials compete with life’s simplest moments.

That observation inspired ClipSafe™, a foldable clasp integrated into the LinKOO series. Hidden when not in use and deployable with a single press, it allows users to carry everyday essentials without sacrificing comfort or aesthetics.

For CASEKOO, LinKOO is more than a product launch. It represents the company’s belief that technology should adapt to people—not the other way around.

“Ten years ago, we asked how to better protect a phone,” Ye said. “Today, we’re asking how to protect a moment.”

That is what designed to fit you means. That is Less Effort, More Living. And after a decade of iteration, failure, and quiet persistence, CASEKOO has finally arrived—not at an answer, but at a better question.

About CASEKOO

CASEKOO is a design-led lifestyle accessories brand built around a simple idea: freeing your hands in everyday life. Through thoughtful hands-free solutions, we help people move seamlessly between different moments of the day—from active, on-the-go moments to times of focus and connection.

What makes CASEKOO different from a regular phone case? We believe technology should support life, not interrupt it. By designing products that adapt naturally to how people live, work, and move, CASEKOO reduces everyday friction and creates a more effortless experience—making room for freedom, connection, and the moments that truly matter.

For more information, visit: casekoo.com.

Contact:
Charlotte Yu
brandteam@casekoo.com 

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Paramount Skydance Corporation Announces Extension of Expiration Dates of Previously Announced Exchange Offers and Tender Offers

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LOS ANGELES and NEW YORK, July 24, 2026 /PRNewswire/ — Paramount Skydance Corporation (NASDAQ: PSKY) (“Paramount”) today announced the extension of the Expiration Dates in connection with the previously announced (i) offers to purchase (the “Tender Offers” and each, a “Tender Offer”) for cash, upon the terms and subject to the conditions set forth in the related offer to purchase (the “Offer to Purchase”), any and all of the identified notes in each series of the Existing Tender Offer Notes (defined by reference to the table set forth below) issued by Discovery Global Holdings, Inc. (formerly WarnerMedia Holdings, Inc.) (the “DGH Issuer”) and Discovery Communications, LLC (the “DCL Issuer” and together with the DGH Issuer, each a “WBD Issuer” and collectively the “WBD Issuers”), as applicable, and (ii) offers to exchange (the “Exchange Offers” and each, an “Exchange Offer” and, together with the Tender Offers, the “Offers” and each, an “Offer”), upon the terms and subject to the conditions set forth in the related exchange offer memorandum (the “Offering Memorandum”), any and all of the identified notes in each series of the Existing Exchange Offer Notes (defined by reference to the table set forth below) (together with the Existing Tender Offer Notes, the “Offer Notes”) issued by the applicable WBD Issuer for notes to be newly issued by Paramount.

The Expiration Dates for the Tender Offers and Exchange Offers (as defined in each of the Offer to Purchase and Offering Memorandum, respectively) have been extended to 5:00 p.m., New York City time, on August 7, 2026, unless further extended. The Settlement Dates for the Tender Offers and Exchange Offers (as defined in each of the Offer to Purchase and Offering Memorandum, respectively) will occur promptly after the Expiration Date and are currently anticipated to occur in the third quarter of 2026. Paramount anticipates extending the Expiration Date for such Tender Offers and Exchange Offers until such time that would result in the Settlement Dates occurring on or promptly following the closing date of the proposed acquisition (the “Acquisition”) by Paramount of Warner Bros. Discovery, Inc. (“WBD”). Tenders of the Offer Notes in the Offers may be withdrawn at any time prior to the Expiration Date. The aforementioned extensions further extend the Expiration Dates previously extended by Paramount on June 12, 2026, June 26, 2026, July 13, 2026, and July 17, 2026.

As of 5:00 p.m., New York City time, on July 23, 2026, approximately 66.17% and 76.38% of the aggregate principal amount of the Existing Tender Offer Notes and Existing Exchange Offer Notes, respectively, have been validly tendered in the applicable Offers. As Paramount previously announced that it anticipates extending the Offers to align with the closing date of the Acquisition, Paramount does not view these figures to be representative of the final results of the applicable Offers.

Information about each series of Offer Notes eligible to participate in the Offers is summarized below.

Type of Offer

Offer Notes to be Tendered
or Exchanged, as
Applicable

Issuer of Offer Notes

CUSIP No. / Common Code 
/ ISIN Eligible to
Participate in the Offers (1)

Aggregate Principal
Amount of Offer Notes
Eligible to Participate in the
Offers (2)

Tender Offer

3.950% Senior Notes due 2028

DCL Issuer

25470D CP2

US25470DCP24

$1,234,458,000

Exchange Offer

4.125% Senior Notes due 2029

DCL Issuer

25470D CQ0

US25470DCQ07

$655,825,000

Exchange Offer

3.625% Senior Notes due 2030

DCL Issuer

25470D CR8

US25470DCR89

$914,183,000

Exchange Offer

5.000% Senior Notes due 2037

DCL Issuer

25470D CS6

US25470DCS62

$453,281,000

Exchange Offer

6.350% Senior Notes due 2040

DCL Issuer

25470D CT4

US25470DCT46

$438,102,000

Exchange Offer

4.950% Senior Notes due 2042

DCL Issuer

25470D CU1

US25470DCU19

$130,366,000

Exchange Offer

4.875% Senior Notes due 2043

DCL Issuer

25470D V91 CV9US25470DC

$141,584,000

Exchange Offer

5.200% Senior Notes due 2047

DCL Issuer

25470D W74 CW7US25470DC

$3,161,000

Exchange Offer

5.300% Senior Notes due 2049

DCL Issuer

25470D X57 CX5US25470DC

$247,860,000

Tender Offer

3.755% Senior Notes due 2027

DGH Issuer

254948 AH5

US254948AH58

254948 AN2

US254948AN27

U25483 AA3

USU25483AA38

$1,189,336,000

Exchange Offer

4.054% Senior Notes due 2029

DGH Issuer

254948 AJ1

US254948AJ15

254948 AP7

US254948AP74

U25483 AB1

USU25483AB11

$1,353,828,000

Exchange Offer

4.279% Senior Notes due 2032

DGH Issuer

254948 AK8

US254948AK87

254948 AQ5

US254948AQ57

$2,691,764,000

Exchange Offer

5.050% Senior Notes due 2042

DGH Issuer

254948 AL6

US254948AL60

254948 AR3

US254948AR31

U25483 AD7

USU25483AD76

$4,104,687,000

Exchange Offer

5.141% Senior Notes due 2052

DGH Issuer

254948 AM4

US254948AM44

254948 AS1

US254948AS14

$949,883,000

Exchange Offer

4.302% Senior Notes due 2030

DGH Issuer

XS3393993285

339399328

€234,382,000

Exchange Offer

4.693% Senior Notes due 2033

DGH Issuer

XS3393994507

339399450

€316,641,000

1

No representation is made as to the correctness or accuracy of the identifiers listed in this press release or printed on the Offer Notes. Such identifiers are provided solely for the convenience of the holders.

2

Represents the aggregate principal amount of Offer Notes outstanding that are eligible to participate in the Offers.

The Exchange Offers are being made pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended (the “Securities Act”), and the rules and regulations of the Securities and Exchange Commission (the “SEC”) promulgated thereunder, and are also not being registered under any state or foreign securities laws. Any securities offered pursuant to the Exchange Offers may not be offered or sold in the United States or to any U.S. persons (as defined below) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offers will only be made, and the securities offered pursuant to the Exchange Offers are only being offered and issued, to holders of applicable Existing Exchange Offer Notes who are (a) reasonably believed to be “qualified institutional buyers” as defined in Rule 144A under the Securities Act or (b) not “U.S. persons,” as defined in Rule 902 of Regulation S under the Securities Act (such holders, “Eligible Holders”), and only Eligible Holders who have completed and returned the eligibility certification are authorized to receive or review the Offering Memorandum or to participate in the Exchange Offers. The eligibility certification is available electronically at: https://gbsc-usa.com/eligibility/paramount.

General

Each Offer is a separate offer, and each may be individually consummated, amended, extended, terminated, or withdrawn, subject to certain conditions and applicable law, at any time in Paramount’s sole discretion, and without also consummating, amending, extending, terminating, or withdrawing any other Offer with respect to any other series of Offer Notes. Paramount may terminate an Offer if any of the conditions of such Offer described in the Offer to Purchase or Offering Memorandum, as applicable, are not satisfied or waived by the applicable Expiration Date, subject to applicable law. In addition, Paramount may waive the conditions to an Offer without extending such Offer in accordance with applicable law.

The Offers are being made solely by Paramount and are not being made by WBD or the WBD Issuers. None of Paramount, WBD, the WBD Issuers, the Dealer Managers, the Exchange Agent (as defined below), the Information Agent (as defined below), the trustees under each of the indentures governing the Offer Notes, the trustee or collateral agent under the indenture that will govern the notes to be issued in the Exchange Offers, or any affiliate of any of them makes any recommendation as to whether any holder of Offer Notes should tender or refrain from tendering all or any portion of the principal amount of such holder’s Offer Notes for cash or notes to be issued in the Exchange Offers. No one has been authorized by any of them to make such a recommendation. Holders must make their own decision whether to tender Offer Notes in any Offer and, if so, the amount of Offer Notes to tender.

Only Eligible Holders may receive a copy of the Offering Memorandum and participate in the Exchange Offers. Paramount has engaged Global Bondholder Services Corporation to act as the exchange agent (in such capacity, the “Exchange Agent”) and information agent (in such capacity, the “Information Agent”) for the Offers. Questions concerning the Offers, or requests for additional copies of the Offer to Purchase or Offering Memorandum or other related documents, may be directed to Corporate Actions by telephone at (855) 654-2014 (U.S. toll-free) or (212) 430-3774 (banks and brokers) or by email at contact@gbsc-usa.com. Holders should also consult their broker, dealer, commercial bank, trust company or other institution for assistance concerning the Offers. The Exchange Offer documents and the Tender Offer documents can be accessed at the following link: https://gbsc-usa.com/paramount.

Paramount has engaged BofA Securities and Citigroup as dealer managers (in such capacity, the “Dealer Managers”) for the Offers. Holders with questions regarding the Offers should contact BofA Securities, Inc. at +1 (888) 292-0070 (toll-free) or +1 (980) 388-3646 (collect) or debt_advisory@bofa.com or Citigroup Global Markets Inc. at +1 (800) 558-3745 (toll-free) or +1 (212) 723-6106 or ny.liabilitymanagement@citi.com. Latham & Watkins LLP is serving as legal counsel to Paramount and Cahill Gordon & Reindel LLP is serving as legal counsel to the Dealer Managers.

This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security, and does not constitute an offer, solicitation, or sale of any security in any jurisdiction in which such offer, solicitation, or sale would be unlawful.

About Paramount, a Skydance Corporation

Paramount, a Skydance Corporation is a next-generation global media and entertainment company, comprised of three business segments: Studios, Direct-to-Consumer, and TV Media. PSKY’s portfolio unites legendary brands, including Paramount Pictures, Paramount Television, CBS, CBS News, CBS Sports, Nickelodeon, MTV, BET, Comedy Central, Showtime, Paramount+, Pluto TV, and Skydance Animation, Film, Television, Interactive/Games, and Paramount Sports Entertainment.

PSKY-IR

Cautionary Note Concerning Forward-Looking Statements

This communication contains “forward-looking statements” regarding the Acquisition and the other transactions referred to herein. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Paramount. Risks and uncertainties include, but are not limited to: the risk that the closing conditions for the Acquisition will not be satisfied, including the risk that clearances under applicable antitrust or regulatory laws will not be obtained or will be obtained subject to conditions that are not anticipated; the possibility that the transactions described herein will not be completed in the expected timeframe or at all; the occurrence of any event, change or other circumstances that could give rise to the termination of the Acquisition; potential adverse effects to the businesses of Paramount or WBD during the pendency of the Acquisition, such as employee departures or distraction of management from business operations; negative effects of the announcement or the consummation of the Acquisition on the market price of WBD or Paramount stock; the risk of stockholder litigation relating to the Acquisition, including resulting expense or delay; the potential that the expected benefits and opportunities of the Acquisition, if completed, may not be realized or may take longer to realize than expected; risks related to the streaming business of the post-Acquisition combined business (the “Combined Company”); the adverse impact on the Combined Company’s advertising revenues as a result of changes in consumer behavior, advertising market conditions, and deficiencies in audience measurement; risks related to operating in highly competitive and dynamic industries; the unpredictable nature of consumer behavior, as well as evolving technologies and distribution models; risks related to the Combined Company’s decision to invest in new businesses, products, services, and technologies, and the evolution of the Combined Company’s business strategy; the potential for loss of carriage or other reduction in, or the impact of negotiations for, the distribution of the Combined Company’s content; damage to the Combined Company’s reputation or brands; losses due to asset impairment charges for goodwill, content and long-lived assets, including finite-lived intangible assets; liabilities related to discontinued operations and former businesses; increasing scrutiny of, and evolving expectations for, sustainability initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; challenges in protecting and maintaining the Combined Company’s intellectual property rights; domestic and global political, economic and regulatory factors affecting the Combined Company’s business generally or the Acquisition; the inability to hire or retain key employees or secure creative talent; disruptions to the Combined Company’s operations as a result of labor disputes; risks and costs associated with the integration of, and Paramount’s ability to integrate, the businesses of Paramount Global, Skydance Media, LLC, and WBD successfully and to achieve anticipated synergies, including in the amounts or on the timelines anticipated to realize such synergies; litigation related to the Acquisition and other matters or transactions; risks associated with the Combined Company’s holding company structure, including its dependence on distributions from its subsidiaries to meet tax obligations and other cash requirements; risks related to our indebtedness, including our substantial outstanding debt obligations, our ability to incur substantially more debt and our ability to meet the financial and other covenants contained in the agreements governing the indebtedness of Paramount, WBD, or the Combined Company. A further list and description of these risks, uncertainties and other factors and the general risks associated with the respective businesses of Paramount and WBD can be found in Paramount’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 25, 2026, including in the sections captioned “Cautionary Note Concerning Forward-Looking Statements” and “Item 1A. Risk Factors,” Paramount’s most recently filed Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 4, 2026, including in the sections captioned “Cautionary Note Concerning Forward-Looking Statements” and “Item 1A. Risk Factors,” and Paramount’s subsequent filings with the SEC, and in WBD’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 27, 2026, including in the section captioned “Item 1A. Risk Factors,” WBD’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 6, 2026, and WBD’s subsequent filings with the SEC. Neither Paramount nor WBD undertakes to update any forward-looking statement as a result of new information or future events or developments, except as required by law.

 

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