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Waterdrop Inc. Announces Third Quarter 2021 Unaudited Financial Results BEIJING , November 30 , 2021 - 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 third quarter ended September 30 , 2021 . Financial and Operational Highlights for the Third Quarter of 2021 • • • Solid business growth : The first - year premiums ( " FYP " ) generated through our Waterdrop Insurance Marketplace for the nine months ended September 30 , 2021 reached RMB14,464 million ( US $ 2,245 million ) , surpassing the full - year FYP of 2020 , or representing an increase of 37.5 % year over year . Effective cost control : Sales and marketing expenses decreased by 37.2 % , and total operating costs and expenses decreased by 26.4 % quarter over quarter in the third quarter of 2021 , showcasing our effective cost control and commitment to profitability improvement in the long term . Strong growth in the number of insurance customers and FYP per customer : The number of cumulative insurance customers reached 108.7 million and cumulative paying insurance customers reached 27.2 million as of September 30 , 2021. The FYP per customer increased to RMB1,292 for the third quarter , or up by 17.1 % year over year . Further expanded product offerings : As of September 30 , 2021 , we offered 323 insurance products on our platform . Over 90 % of our FYP was contributed by our exclusive customized insurance products . In terms of product type , the FYP of critical illness insurance increased by 71 % year over year in the third quarter of 2021 , continuing the strong growth and product mix optimization since the beginning of the year . As of September 30 , 2021 , approximately 383 million people donated an aggregate of over RMB45.7 billion to over 2.2 million patients through our Waterdrop Medical Crowdfunding . Waterdrop Medical Crowdfunding charges zero service fees and we do not generate any revenues from medical crowdfunding business . Mr. Peng Shen , Founder , Chairman and Chief Executive Officer of Waterdrop , commented , " In recent months , the capital markets have seen higher volatility , and the insurance industry has experienced a period of transformation . Notwithstanding this , we continued to strive to be customer - centric and focus on solidifying our core fundamentals . We have established a solid business infrastructure through our customer base and network , product innovation capabilities , technological advantages , and unique synergies among our business segments . This enables us to stay resilient and adaptive to all the changes . Based on our confidence in the Company's prospects , we pragmatically implemented the one - year share repurchase program announced in September . Our core management team have , prior to our IPO , undertaken not to dispose their interests in Waterdrop until 18 months after the 180 - day IPO lockup expired in this November , and will remain focused on sustainable business development with stringent compliance and stability . " Mr. Guang Yang , Co - founder , Director and General Manager of Insurance Marketplace , said , " In the current industry environment , our FYP for the third quarter reached RMB4,639 million ( US $ 720 million ) , remaining stable and positive growth . We have taken the initiative to upgrade and optimize the online customer acquisition model during the third quarter , to better comply with the new regulatory guidance and evolving industry trends . We hope to promote an enhancement in the short - term insurance marketing model in the industry and further improve users ' economics , thereby achieving a healthier and sustainable development . In the third quarter , we have seen significant improvement in our efficiency indicators . Despite the slowdown in the industry , we have sustained our business resilience given our large customer base and our ability to tap the full value of existing customers . Compared to the initial rapid growth stage of our Company , we are now placing more emphasis on building quality service capabilities and providing better services to enhance user experience . " Mr. Yao Hu , Co - founder , Director and General Manager of Medical Crowdfunding and Healthcare , commented , " We uphold technological innovation and continue to invest in R & D to strengthen our capabilities and further empower insurance partners . Our medical crowdfunding business has further solidified its market - leading position , and we assisted local governments to explore a model of multi - level medical insurance and medical assistance system to contribute to common prosperity . Our healthcare business is built on our existing infrastructure leveraging our competitive edge in Waterdrop Medical Crowdfunding , our vast patient base and extensive network , and has begun to gain growth momentum since the initial exploration last year . Mr. Kangping Shi , Chief Financial Officer of Waterdrop , added , " In the third quarter , we achieved a 37.2 % reduction in our sales and marketing expenses compared to the second quarter of 2021 , as mentioned in the outlook of our last results announcement . Along with the sales model upgrade , our top - line growth has softened , with a decrease in adjusted net operating revenue by 7.3 % on a comparable basis year over year , while we managed to reduce reliance on third - party traffic through more refined operational management , and materially reduced the net loss by 27.3 % compared with the second quarter . Looking ahead , we will continue to uphold our commitment to deliver quality enhancement and profitability improvement . " 1