Produced by Radar Finance and EconomicsMoenmeng, edDeep sea
During the year, the stock price ** was nearly seventy percent, and the market value evaporated 6.2 billion yuan (as of December 27, Eastern time**).
Looking back on the history of the water drop company along the way, since the launch of water drop mutual aid and water drop chips, the company has often been surrounded by various controversies. In May 2021, on the first day of the New York Stock Exchange's listing bell, the stock price of Waterdrop Company broke. Today, the stock price of Water Drop is hovering at the $1 delisting warning line.
In addition to the various controversies in which the company has been involved, the company's weak performance may not be able to escape the involvement. Not long ago, the financial report released by the water drop company showed that the company's revenue in the third quarter of this year fell by 111%。Compared with the previous highlight moment when the single-quarter revenue exceeded 800 million yuan, this is the fourth consecutive quarter that the revenue of the water drop company has failed to exceed 700 million yuan.
At the same time that the revenue is not very strong, the net profit indicator of the water drop company has also sounded the alarm. Whether it is in the third quarter of this year or in the first three quarters, the net profit of the water drop company has decreased by more than 70% year-on-year. In the third quarter of this year, the operating profit of Shuidi Chip was about -68.79 million yuan.
In addition, the number of employees at the company has been declining since its peak in 2019, from 5,010 at the end of 2019 to 2,719 at the end of last year.
During the year, the stock price was nearly 70%, and the market value evaporated by 6.2 billion yuan
Since the beginning of this year, the performance of many Chinese concept stocks in the capital market has been difficult to satisfy investors. Water Drop Company, which has entered its eighth year of development, is one of them.
As of December 27**, the stock price of Water Drop Company closed at 1$04 shares, the latest market capitalization is 3$9.7 billion. Radar Finance learned through Flush iFind that year-to-date, the stock price of Water Drop Company has fallen by 6877%, market capitalization evaporated 87.5 billion US dollars (equivalent to about 6.2 billion yuan).
In April 2016, Shen Peng, the No. 10 employee of Meituan's entrepreneurial team, left Meituan to establish Shuidi Company, and launched Shuidi Mutual Aid and Shuidi Chip in May and July of the same year, respectively. Since then, the water drop company has frequently won the favor of capital.
Tianyancha shows that in just a few years, Shuidi Company has completed 7 rounds of financing, and has received strong support from many well-known investment institutions, including Tencent Investment, Lanchi Venture Capital, Innovation Works, Gaorong Capital, IDG Capital, Meituan Strategic Investment Department, CICC Capital, Zhen**, etc.
On May 7, 2021, Shuidi Company officially landed on the New York ** Stock Exchange. Although Shuidi Company has successfully landed on the U.S. stock market, its test in the capital market has only just begun. On the first day that Shuidi won the title of "No. 1 Insurtech Stock" on the New York Stock Exchange, its stock price fell below the issue price, falling nearly 20% on the first day.
At that time, Yang Guang, co-founder of Water Drop Company and general manager of the insurance protection business group, said in an interview with ** that the company pays more attention to long-term development, and the performance of the first day does not represent the subsequent performance, and short-term fluctuations will not have much impact on the company.
In Yang Guang's view, the company's financing channels are more diversified and the cost is lower after listing. At the same time, listing can also show the company more transparently in front of the public and accept social scrutiny. In addition, whether it is at the level of business compliance, or in terms of capital market and financial compliance, we can use the standards of listed companies to meet our own requirements, so that the company's future development will be healthier.
According to the NYSE listing rules, if the average ** price of a listed company for 30 consecutive trading days is less than $1, the company must restore the ** price of the latest trading day and the average ** price of the last 30 trading days to more than $1 within 6 months, otherwise it will trigger the mandatory delisting and suspension of trading on the New York Stock Exchange.
And the water drop company is currently 1The stock price of $04 is close to the $1 delisting warning line. In the face of the recent similarly sluggish stock price performance, some investors even joked in the stock bar, "This company is sorry for the public if it is not delisted."
According to the data released by Shuidi Company, as of September 30, 2023, Shuidi has accumulated about 44.5 billion users donated 61.3 billion yuan to more than 3.03 million patients. However, the mission of "using Internet technology to promote the broad masses of people to have medical care and protect hundreds of millions of families" has been accompanied by various controversies since the day it became a commercial company.
While the water drop company is showing its strength in the capital market, there are more and more doubts such as "public welfare into business" and "charity as business". In May 2019, Deyun Club cross talk actor Wu Hechen was hospitalized with a sudden cerebral hemorrhage.
In November of the same year, there was another report that Shuidi Chip employees carried out "sweeping sales" in the hospital, and the employees arbitrarily applied the template to make up stories, fill in the fundraising amount at will, and encouraged patients to actively ** without verifying the patient's condition, property status and other information.
In April 2020, a section titled "Water Drop Chip Employees Poisoned Their Hands and Feet to Easily Raise Employees" rushed to the hot search on Weibo. In 2022, the topic of "water drop fundraising intermediary commission up to 70%" has once again pushed water drop fundraising to the ...... of the most popular trend
Regarding various controversies from the outside world, Shen Peng, the founder of Shuidi Company, once said that Shuidi is not all of Shuidi, but only a small part of the company's business, "The public regards us as a public welfare organization, which is a big misunderstanding of us." Shuidi also emphasized that the platform has never authorized any third-party organization or individual to provide so-called promotion services to fundraisers. The so-called fundraising intermediaries are operated by some third-party commercial organizations that maliciously promote and provide services to fundraisers in an unfair way of fundraising.
The year-on-year decline in revenue was mainly due to insurance-related income
The "cold eye" suffered by the water drop company in the capital market may also be related to the company's weak performance to a certain extent. On December 7, Water Drop Company just released its unaudited third quarter 2023 results report for the year ended September 30, 2023.
According to the financial report, in the third quarter of this year, the water drop company recorded a revenue of 68.6 billion yuan. Although a single season of 6The revenue scale of 8.6 billion yuan was 6Revenue of 7.9 billion yuan increased by 1% compared to the third quarter of last yearThe revenue of 7.2 billion yuan fell by 111%。
At the same time, this quarter is also the fourth consecutive quarter of Shuidi Company's single-quarter revenue of less than 700 million yuan since the third quarter of last year. In the previous 2020q Q2, the single-quarter revenue of the water drop company even reached 8300 million yuan, 88.3 billion yuan, 9The scale of 3.9 billion yuan.
If the time frame is further enlarged, in the first three quarters of this year, the revenue of the water drop company was 197.1 billion yuan, compared with 21 in the same period last yearThe revenue of 2.2 billion yuan also declined, with a decrease of 711%。
Specifically, the current revenue of Shuidi can be divided into three segments, which are insurance-related revenue (including insurance brokerage income and technical service income), crowdfunding service fee (service income obtained by patients after successfully withdrawing crowdfunding funds), and digital clinical trial solution revenue (service revenue obtained from customers including biopharmaceutical companies and leading biotechnology companies).
In the third quarter of this year, Waterdrop's insurance-related revenue was 61.9 billion yuan, compared with 6 in the same period last yearThe scale of 9.4 billion yuan decreased by 107%, mainly due to a decrease in brokerage commission income earned from insurance companies. However, insurance-related income still supports the vast majority of the company's revenue, accounting for about ninety percent of the company's total revenue.
It is understood that one of the main responsibilities of the company is to operate the water drop medical crowdfunding platform, provide crowdfunding related services through the Internet, and let patients with high medical costs seek help from caring people through technology. In doing so, the medical crowdfunding services provided by Waterdrop generally include providing technical and internet support, managing, reviewing and supervising crowdfunding activities, providing comprehensive risk management and anti-fraud measures, and facilitating the collection and transfer of funds.
However, compared with insurance-related income, the scale of water drop company's current crowdfunding service fees is much smaller. In the third quarter of this year, the crowdfunding service fee contributed 36 million yuan to the revenue of the water drop company, a decrease of nearly 40% compared with the revenue of 59 million yuan in the same period last year.
In addition, Waterdrop matches customers with qualified and suitable patients to participate in clinical trials and generates revenue from digital clinical trial solutions for successful matches, which typically charge customers a fixed unit price for each successful match.
In the third quarter of this year, Waterdrop's revenue from digital clinical trial solutions was 27.6 million yuan, up from 17.2 million yuan in the same period in 20227% growth, which is also the only business among the three major segments of the company to achieve revenue growth in this quarter.
It is worth mentioning that on June 9 this year, the water drop company announced that the company will be sold at a total price of 3600 million yuan in stages to acquire Shenzhen Cunzhen and Realistic Technology***, that is, "Deep Blue Insurance". Phase 1 delivery of 56% stake, completed in June 2023;The second phase of the 4% stake will be completed within six months of the first closing, with the remaining 40% to be completed within three years.
It is reported that Shenlanbao is an insurance company that holds a national insurance brokerage license and has the qualification of insurance network sales, which is deeply engaged in the field of insurance science popularization and product evaluation, and also provides one-stop services from risk assessment, program planning to assistance in claim settlement. The intention of Shuidi Company to acquire Deep Blue Bao may be to promote performance growth.
According to Shen Peng, the founder, chairman and CEO of Shuidi, Shuidi has completed the acquisition of 60% of the shares of Shenlanbao this quarter. The synergy with Deep Blue has greatly improved the overall ability of Shuidi Company to serve long-term insurance users.
During the quarter, the first-year premium of long-term policies generated by insurance businesses such as Water Drop Insurance Market and Deep Blue Insurance Market reached 64.4 billion yuan, accounting for 38% of the annual revenue, a year-on-year increase of 166%。And the water drop company this quarter 6Of the 8.6 billion yuan in revenue, Deep Blue Insurance also contributed 46.2 million yuan.
Behind seven consecutive quarters of profitability, net profit has shrunk sharply
We are pleased to have achieved profitability for seven consecutive quarters," said Shen Peng, founder, chairman and CEO of Waterdrop, about the company's earnings performance in the quarter. However, the affirmation of the company's profitability in the mouth of the "top leader" has hidden worries behind it.
In the third quarter of this year, the net profit of Shuidi Company was 36.3 million yuan, compared with the same period last yearThe net profit of 700 million yuan decreased by 7858%。Compared to the third quarter revenue of 11The decline of 1% is even more exaggerated for the net profit of Water Drop Company in the quarter. If the time frame is further enlarged, the net profit of the water drop company in the first three quarters of this year also increased from 4 in the same period last year8.2 billion yuan**7762% to 10.8 billion yuan.
Further dismantling shows that the total operating costs and expenses of Shuidi Company in the quarter increased by 76%, up to 6$8.9 billion. Among them, the operating costs and expenses of Deep Blue Insurance are 63.7 million yuan.
Specifically, in the third quarter of this year, the operating costs of the water drop company increased from 34.1 billion yuan fell to 31.2 billion yuan, a year-on-year decrease of 85%。
Due to the reduction of R&D personnel costs and equity incentive expenses, the R&D expenses of Shuidi Company decreased from 78.4 million yuan in the third quarter of last year to 73.9 million yuan in the third quarter of this year, a year-on-year decrease of 57%。
However, contrary to the year-on-year decline in operating costs and R&D expenses, the sales and marketing expenses of Shuidi Company increased significantly in the quarter. According to the financial report, in the third quarter of this year, the sales and marketing expenses of the water drop company reached 18.8 billion yuan, compared with 13.8 billion yuan, an increase of 361%。
In this regard, the water drop company explained that the main reason is that the company began to incorporate the financial statements of Deep Blue Insurance into the company's consolidated financial statements in the third quarter of this year, and the consolidation of Deep Blue Insurance generated sales and marketing expenses of 28.1 million yuan. In addition, third-party traffic channel expenses increased by 14.4 million yuan, and sales and marketing personnel costs and equity incentive expenses increased by 9.1 million yuan.
At the same time, the company's general and administrative expenses also rose sharply during the quarter. In the third quarter of last year, the general and administrative expenses of the company were 82 million yuan, but in the third quarter of this year, the expenses of the company increased to 11.5 billion yuan, an increase of 39 percent year-on-year7%。The main reason for the increase in expenses is also related to the consolidation of Deep Blue Treasure financial statements of Water Drop Company.
And the water drop chip that has repeatedly involved the water drop company in controversy has also become a "drag oil bottle" in terms of the company's profits. On December 14th, the first batch of platform supervisors of Shuidi Chip visited Shuidi and participated in the user open day with the theme of "openness, transparency, convergence and trust". The supervisor of the platform read the audit report of Dahua Certified Public Accountants on the funds raised by Shuidi on the spot. According to the report, the overall operating profit of Shuidi Chip was negative, with a loss of more than 60 million yuan in a single quarter, and the operating costs and expenses of the Shuidi Chip business segment were mainly composed of operating costs and R&D costs.
In this regard, the person in charge of the product operation of Shuidi Chip said at the scene, "Shuidi Chip has been losing money since it was launched, and it is subsidized by the insurance and other business income of Shuidi Company. We will continue to increase our investment in patients to ensure the openness and transparency of the platform's fundraising funds and ensure the sustainable development of this non-profit business. ”
Looking at the employee data in recent years, the employee size of Shuidi Company began to decline year by year after reaching a peak in 2019. According to Flush iFinD, as of the end of 2019, the number of employees in Shuidi reached 5,010, an increase of 3,723 from 1,287 at the end of the previous year.
But since then, the number of employees in Shuidi has begun to fall, from more than 5,000 at the end of 2019 to 4,291 at the end of 2020 and 2,936 in 2021. As of the end of last year, the number of employees in the company was 2,719, equivalent to 54% of the size at the end of 2019.
During this period, the per capita revenue generated by the company increased from 1850,000 yuan all the way to 109 in 2021190,000 yuan. But last year, the per capita revenue generated by the company began to decline, from 109 in the previous year190,000 yuan dropped to 103040,000 yuan.
However, thanks to the turnaround of net profit, the per capita profit index of Water Drop Company turned positive last year, reaching 22350,000 yuan. However, if the company's number of employees as of the end of last year was 2,719 and the first three quarters of this year 10.8 billion yuan of net profit, the company's per capita profit in the first three quarters of this year was 3970,000 yuan, compared with 22 in 2022The per capita profit of 350,000 yuan has shrunk significantly.
The water drop company, whose performance and stock price have suffered a double test, can it get rid of the fate of "water drop sorrow" next?Radar Finance will continue to pay attention.