By BT Finance and Economics, author | Dream Xiao
Waterdrop Inc., which is questioned that it is difficult to make a profit, has made a profit. Has it really ushered in the dawn of victory?
As Liu Bo said, Waterdrop Inc. 's share price rose 190.3% from a low of $1.03 in May 2022 to $2.99 on January 30, 2023. The decline in growth under the dawn of victory
If you look at the single quarter, Waterdrop Inc. 's single-quarter income has been negative for four consecutive quarters, with the largest decline in Q4 by 27.27% in 2021 and the smallest decline in Q3 in 2022 by 0.91%.
After adjusting the business strategy, the problem of "significant decline" in growth rate has not been effectively solved. On the contrary, the overall growth rate has declined in freefall. Among them, the growth rate exceeded 500% in 2019, more than 100% in 2020, and the compound annual growth rate was nearly 300%, but the year-on-year growth rate dropped to 13.4% in 2021. On the one hand, it is related to the low base in the early stage, on the other hand, it is also caused by the general environment of the industry affected by the epidemic, of course, it also has something to do with the adjustment of its own business policy.Will medical technology be the future?
The financial report data of Q2 and Q3 in 2022 show that Q2 Waterdrop Inc. charged 56.1 million yuan in service fees, but did not include other indirect operating expenses such as equipment depreciation, while the direct operating cost was as high as 61.5 million yuan, with a net loss of 5.4 million yuan, and Q3 also lost nearly 5 million yuan. This also means that its own "diversion" platform will continue to face an awkward situation.
At present, Waterdrop Inc. has related business in hospitals and pharmaceutical companies that he is good at, as well as related consulting and claims settlement business, which has laid a good foundation for further breaking through the barriers of business digitization. It also covers C-side entrances related to hospitals and pharmacies, and makes an initial attempt to cooperate with many insurance companies to promote technology landing.
Harvard Business Review once believed that a successful modern technology company basically has the following five characteristics: low variable cost, low capital investment, massive customer data and customer relationships, network effects and an ecosystem supported by extremely low cost expansion. Waterdrop Inc. has become a real modern technology company.