Technology

Waterdrop Inc. Announces First Quarter 2024 Unaudited Financial Results

Published

5 months ago

June 5, 2024

BEIJING, June 5, 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 months ended March 31, 2024.

Financial and Operational Highlights for the First Quarter of 2024

Consecutive profitability and positive operating cash flow: In the first quarter of 2024, net profit attributable to our ordinary shareholders reached RMB80.6 million, representing a quarter-over-quarter growth of 36.5%. As of March 31, 2024, our cash and cash equivalents and short-term investments balance amounted to RMB3,484.4 million (US$482.6 million). We continued to generate positive operating cash flow during the first quarter of 2024.Robust business performance: For the first quarter of 2024, the first-year premiums (“FYP”) generated through our insurance business amounted to RMB1,754.5 million (US$243.0 million), representing an increase of 3.7% year over year. Net operating revenue was RMB704.7 million (US$97.6 million), representing an increase of 16.3% year over year.Improving FYP share from life insurance products: The contribution of FYP generated from long-term insurance products to overall FYP has further increased. In addition, in the first quarter of 2024, the FYP generated from life insurance products increased 9.9 percentage points to 56.4% of overall long-term insurance products from 46.5% for the same period of 2023.Broadening crowdfunding coverage: As of March 31, 2024, around 456 million people cumulatively had donated an aggregate of approximately RMB63.8 billion to over 3.17 million patients through Waterdrop Medical Crowdfunding.Digital clinical trial services in good progress: As of March 31, 2024, the Company had cumulatively enrolled nearly 7,800 patients into over 960 clinical trial programs through E-Find Platform.

Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, “We are thrilled to kick off 2024 with solid first quarter financial results. The quarterly net profit attributable to our ordinary shareholders reached RMB80.6 million, representing a quarter-over-quarter growth of 36.5%. We are also pleased to have maintained profitability for nine consecutive quarters.

Waterdrop Insurance Marketplace has continually improved online traffic conversion capabilities and efficiency. We have been leveraging various content distribution platforms and optimizing our product offerings accordingly. Our capability in tailoring various products to meet user needs continues to improve. Targeting a market segment, we have successfully upgraded one of our star products “Jiehaoyun” to version 2.0, which gained top recognition on various platforms. The FYP generated through our insurance business increased by 15.0% sequentially. Meanwhile, we have effectively sustained the policy renewal rate at above 95%.

Regarding Waterdrop Medical Crowdfunding, we ensured stringent oversight over the transparency of fundraising activities on our platform and strengthened our risk management measures. For instance, before manual verification, we integrated algorithm recognition to identify false or fake medical documents and mitigate related risks effectively.

In this quarter, our healthcare-related business continued its momentum, bringing the number of collaborating pharmaceutical companies and contract research organizations (collectively, “CROs”) to 179. In addition, we enrolled over 800 patients and started providing services to 88 new programs in the first quarter of 2024. We accelerated the implementation of our digital capabilities in clinical trial solution and multichannel marketing to serve a broader client base.

Looking ahead, we are committed to patiently building core technology competitiveness for the Company, supporting the long-term strategic execution to maintain stable profitability. Guided by our mission and values, we will continuously explore more customized, cost-effective products and services, while expanding our business boundaries.”

Financial Results for the First Quarter of 2024

Operating revenue, net

Net operating revenue for the first quarter of 2024 increased by 16.3% year over year to RMB704.7 million (US$97.6 million) from RMB606.2 million for the same period of 2023. On a quarter-over-quarter basis, net operating revenue increased by 6.9%. We started to consolidate the financial results of Shenzhen Cunzhen Qiushi Technology Co., Ltd. and its subsidiaries (collectively, “Cunzhen Qiushi”, also known as “Shenlanbao”) in the third quarter of 2023. Net operating revenue generated by Shenlanbao for the first quarter of 2024 was RMB59.7 million (US$8.3 million).

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 RMB606.8 million (US$84.0 million) in the first quarter of 2024, representing an increase of 13.1% year over year from RMB536.3 million for the first quarter of 2023, which was mainly due to the increase in insurance brokerage income. On a quarter-over-quarter basis, insurance-related income increased by 3.2%.

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 first quarter of 2024, we generated RMB67.4 million (US$9.3 million) in service fees, representing an increase of 60.3% year over year from RMB42.0 million for the first quarter of 2023. On a quarter-over-quarter basis, crowdfunding service fees increased by 68.3%.

We are expanding the healthcare-related services, including digital clinical trial solution and digital multichannel marketing solution. 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. Digital multichannel marketing solution income is derived from life science and healthcare companies. Focusing on the needs of our customers, we provide comprehensive digital marketing solutions around the whole life cycle of products through integrated services such as patient screening, medication management, doctor-patient services, innovative payment methods, and channel marketing. For the first quarter of 2024, our healthcare-related income amounted to RMB25.3 million (US$3.5 million), representing an increase of 7.3% from RMB23.6 million in the same period of 2023. On a quarter-over-quarter basis, healthcare-related income decreased by 8.3%.

Operating costs and expenses

Operating costs and expenses increased by 10.5% year over year to RMB658.3 million (US$91.2 million) for the first quarter of 2024. On a quarter-over-quarter basis, operating costs and expenses increased by 4.0%. Operating costs and expenses from Shenlanbao was RMB63.1 million (US$8.7 million).

Operating costs increased by 33.6% year over year to RMB331.2 million (US$45.9 million) for the first quarter of 2024, as compared with RMB248.0 million for the first quarter of 2023, which was primarily driven by (i) an increase of RMB13.8 million in personnel costs mainly due to the consolidation of the financial results of Shenlanbao which incurred personnel costs of RMB17.2 million, and (ii) an increase of RMB66.0 million in costs of referral and service fees. On a quarter-over-quarter basis, operating costs increased by 9.6% from RMB302.1 million, primarily due to an increase of RMB29.7 million in costs of referral and service fees.

Sales and marketing expenses increased by 5.0% year over year to RMB182.1 million (US$25.2 million) for the first quarter of 2024, as compared with RMB173.4 million for the same quarter of 2023. The increase was primarily due to (i) the consolidation of the financial results of Shenlanbao which incurred sales and marketing expenses of RMB34.2 million, (ii) an increase of RMB6.4 million in outsourced sales and marketing service fees to third parties, (iii) an increase of RMB4.1 million in marketing expenses to third-party traffic channels, partially offset by (iv) a decrease of RMB37.0 million in personnel costs and share-based compensation expenses. On a quarter-over-quarter basis, sales and marketing expenses increased by 4.2% from RMB174.8 million, primarily due to (i) an increase of RMB18.3 million in marketing expenses to third-party traffic channels, (ii) an increase of RMB5.8 million in outsourced sales and marketing service fees to third parties, partially offset by (iii) a decrease of RMB17.3 million in sales and marketing personnel costs and share-based compensation expenses.

General and administrative expenses decreased by 7.1% year over year to RMB89.0 million (US$12.3 million) for the first quarter of 2024, compared with RMB95.8 million for the same quarter of 2023. The year-over-year variance was due to (i) a decrease of RMB12.7 million in personnel costs and share-based compensation expenses, and partially offset by (ii) an increase of RMB8.6 million allowance for doubtful accounts. On a quarter-over-quarter basis, general and administrative expenses decreased by 7.3% from RMB96.0 million, due to (i) a decrease of RMB13.5 million allowance for doubtful accounts, partially offset by (ii) an increase of RMB4.4 million in professional service fees, and (iii) an increase of RMB3.1 million in personnel costs and share-based compensation expenses.

Research and development expenses decreased by 28.8% year over year to RMB56.0 million (US$7.8 million) for the first quarter of 2024, compared with RMB78.7 million for the same period of 2023. The decrease was primarily due to a decrease of RMB26.3 million in personnel costs and share-based compensation expenses, partially offset by the consolidation of the financial results of Shenlanbao. On a quarter-over-quarter basis, research and development expenses decreased by 6.4% from RMB59.8 million, which was mainly due to a decrease of RMB3.9 million in research and development personnel costs and share-based compensation expenses.

Operating profit for the first quarter of 2024 was RMB46.4 million (US$6.4 million), as compared with RMB10.3 million for the first quarter of 2023 and RMB26.6 million for the fourth quarter of 2023.

Interest income for the first quarter of 2024 was RMB39.8 million (US$5.5 million), as compared with RMB30.9 million for the first quarter of 2023 and RMB34.7 million for the fourth quarter of 2023. The increase was primarily due to the increase in our short-term and long-term investments and interest rate.

Income tax expense for the first quarter of 2024 was RMB8.6 million (US$1.2 million), as compared with an income tax benefit of RMB2.6 million for the first quarter of 2023 and an income tax expense of RMB15.2 million for the fourth quarter of 2023.

Net profit attributable to the Company’s ordinary shareholders for the first quarter of 2024 was RMB80.6 million (US$11.2 million), as compared with RMB49.7 million for the same period of 2023, and RMB59.1 million for the fourth quarter of 2023.

Adjusted net profit attributable to the Company’s ordinary shareholders for the first quarter of 2024 was RMB98.4 million (US$13.6 million), as compared with RMB96.4 million for the same period of 2023, and RMB74.7 million for the fourth quarter of 2023.

Cash and cash equivalents and short-term investments

As of March 31, 2024, the Company had combined cash and cash equivalents and short-term investments of RMB3,484.4 million (US$482.6 million), as compared with RMB3,393.4 million as of December 31, 2023.

Share Repurchase Programs

Pursuant to the share repurchase programs launched in September 2021, September 2022 and September 2023, respectively, we had cumulatively repurchased approximately 45.5 million ADSs from the open market with cash for a total consideration of approximately US$95.9 million as of May 31, 2024.

Supplemental Information

Starting from the second quarter of 2023, our chief operating decision maker starts to manage the business by three operating segments and assess the performance and allocate resources under the new operating segment structure.

Therefore, 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.

As a result, we have updated our segments reporting information to reflect the new operating and reporting structure.

Comparative figures were retrospectively adjusted to conform to this presentation.

For the Three Months Ended

March 31, 2023

December 31,
2023

March 31, 2024

RMB

USD

(All amounts in thousands)

Operating revenue, net

Insurance*

536,343

587,866

606,777

84,038

Crowdfunding

42,022

40,013

67,350

9,328

Others

27,800

31,485

30,573

4,234

Total consolidated operating
revenue, net

606,165

659,364

704,700

97,600

Operating profit/(loss)

Insurance*

154,955

128,223

129,163

17,889

Crowdfunding

(61,134)

(51,718)

(32,237)

(4,465)

Others

(36,567)

(27,078)

(31,432)

(4,354)

Total segment operating
profit

57,254

49,427

65,494

9,070

Unallocated item**

(46,926)

(22,788)

(19,130)

(2,649)

Total consolidated operating
profit

10,328

26,639

46,364

6,421

Total other income

36,771

44,463

42,781

5,926

Profit before income tax

47,099

71,102

89,145

12,347

Income tax benefit/(expense)

2,626

(15,164)

(8,588)

(1,189)

Net profit

49,725

55,938

80,557

11,158

* The Company started to consolidate the financial results of Shenlanbao since July 4, 2023 and reported the results of
Shenlanbao under the Insurance segment.

** The share-based compensation represents an unallocated item in the segment information because our management does
not consider this 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 RMB7.2203 to US$1.00, the noon buying rate in effect on March 29, 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 and foreign currency exchange gain or losses. Such adjustments have no impact on income tax.

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 June 5, 2024 at 8:00 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:

8399398

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

0418783

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 through June 12, 2024 by dialing the following numbers:

United States Toll Free:

1-877-344-7529

International:

1-412-317-0088

Chinese Line Access Code:

2937700

English Interpretation Line Access Code:

1729095

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

March 31, 2024

RMB

USD

Assets

Current assets

Cash and cash equivalents

396,905

321,780

44,566

Restricted cash

577,121

404,201

55,981

Short–term investments

2,996,527

3,162,661

438,023

Accounts receivable, net

693,110

726,815

100,663

Current contract assets

572,871

594,282

82,307

Amount due from related parties

163

Prepaid expense and other assets

189,846

163,368

22,626

Total current assets

5,426,445

5,373,270

744,189

Non-current assets

Non-current contract assets

134,383

141,542

19,603

Property, equipment and software, net

33,878

32,950

4,564

Intangible assets, net

177,407

173,667

24,053

Long-term investments

211,758

217,397

30,109

Right of use assets, net

59,851

68,512

9,489

Deferred tax assets

24,190

25,042

3,468

Goodwill

80,751

11,184

Total non-current assets

722,218

739,861

102,470

Total assets

6,148,663

6,113,131

846,659

Liabilities, Mezzanine Equity and Shareholders’ Equity

Current liabilities

Amount due to related parties

9,509

12,794

1,772

Insurance premium payables

591,953

405,672

56,185

Accrued expenses and other current liabilities

597,684

790,723

109,514

Short-term loans

137,557

75,173

10,411

Current lease liabilities

32,908

34,320

4,753

Total current liabilities

1,369,611

1,318,682

182,635

Non-current liabilities

Non-current lease liabilities

27,293

33,465

4,635

Deferred tax liabilities

73,305

82,380

11,409

Total non-current liabilities

100,598

115,845

16,044

Total liabilities

1,470,209

1,434,527

198,679

Mezzanine Equity

Redeemable non-controlling interests

92,760

92,685

12,837

Shareholders’ equity

Class A ordinary shares

112

Class B ordinary shares

Treasury stock

(12)

(13)

(2)

Additional paid-in capital

7,003,423

6,897,876

955,345

Accumulated other comprehensive income

144,107

169,250

23,441

Accumulated deficit

(2,561,963)

(2,481,333)

(343,661)

Total shareholders’ equity

4,585,694

4,585,919

635,143

Total liabilities, mezzanine equity and shareholders’ equity

6,148,663

6,113,131

846,659

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

March 31, 2023

December 31, 2023

March 31, 2024

RMB

USD

Operating revenue, net

606,165

659,364

704,700

97,600

Operating costs and expenses(i)

Operating costs

(247,983)

(302,143)

(331,243)

(45,877)

Sales and marketing expenses

(173,401)

(174,817)

(182,146)

(25,227)

General and administrative expenses

(95,798)

(95,959)

(88,961)

(12,321)

Research and development expenses

(78,655)

(59,806)

(55,986)

(7,754)

Total operating costs and expenses

(595,837)

(632,725)

(658,336)

(91,179)

Operating profit

10,328

26,639

46,364

6,421

Other income

Interest income

30,876

34,659

39,804

5,513

Foreign currency exchange gain

282

6,956

1,514

210

Others, net

5,613

2,848

1,463

203

Profit before income tax

47,099

71,102

89,145

12,347

Income tax benefit/(expense)

2,626

(15,164)

(8,588)

(1,189)

Net profit

49,725

55,938

80,557

11,158

Net loss attributable to mezzanine equity classified as non-
controlling interests shareholders

–

(3,119)

(75)

(10)

Net profit attributable to ordinary shareholders

49,725

59,057

80,632

11,168

Other comprehensive income/(loss):

Foreign currency translation adjustment, net of tax

3,386

(39,390)

25,143

3,482

Unrealized gain on available for sale investments, net of tax

1,957

–

Total comprehensive income

55,068

16,548

105,700

14,640

Total comprehensive loss attributable to mezzanine equity classified
as non-controlling interests shareholders

–

(3,119)

(75)

(10)

Total comprehensive income attributable to ordinary shareholders

55,068

19,667

105,775

14,650

Weighted average number of ordinary shares used in computing

net profit per share

Basic

3,866,785,745

3,698,466,876

3,696,619,172

Diluted

4,027,428,601

3,762,270,456

3,756,462,107

Net profit per share attributable to ordinary shareholders

Basic

0.01

0.02

0.00

Diluted

0.01

0.02

0.00

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

For the Three Months Ended

March 31, 2023

December 31, 2023

March 31, 2024

RMB

USD

Sales and marketing expenses

(16,529)

(1,991)

(1,820)

(252)

General and administrative expenses

(26,460)

(18,693)

(14,327)

(1,984)

Research and development expenses

(3,937)

(2,104)

(2,983)

(413)

Total

(46,926)

(22,788)

(19,130)

(2,649)

WATERDROP INC.

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, unless otherwise noted)

For the Three Months Ended

March 31, 2023

December 31, 2023

March 31, 2024

RMB

USD

Net profit attributable to the Company’s ordinary shareholders

49,725

59,057

80,632

11,168

Add:

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

46,926

22,556

19,260

2,667

Foreign currency exchange gain

(282)

(6,956)

(1,514)

(210)

Adjusted net profit attributable to the Company’s ordinary
shareholders

96,369

74,657

98,378

13,625

View original content:https://www.prnewswire.com/news-releases/waterdrop-inc-announces-first-quarter-2024-unaudited-financial-results-302164606.html

SOURCE Waterdrop Inc.

Technology

Power Financial – Dividends on Preferred Shares

Published

17 mins ago

November 12, 2024

All figures are expressed in Canadian dollars.

MONTRÉAL, Nov. 12, 2024 /CNW/ – The Board of Directors of Power Financial Corporation (Power Financial or the Corporation) today declared the following quarterly dividends on the Corporation’s preferred shares.

Dividends on Preferred Shares

Dividends payable February 15, 2025 to shareholders of record January 24, 2025:

Series

Stock Symbol

Amount

Series A

PWF.PR.A

Floating rate [1]

[1]

Equal to one quarter of 70% of the average prime rate of two major Canadian chartered banks for the period October 1 to December 31, 2024.

Dividends payable January 31, 2025 to shareholders of record January 10, 2025:

Series

Stock Symbol

Amount

Series

Stock Symbol

Amount

Series D

PWF.PR.E

34.375¢

Series P

PWF.PR.P

12.4875¢

Series E

PWF.PR.F

32.8125¢

Series Q

PWF.PR.Q

35.1555¢

Series F

PWF.PR.G

36.875¢

Series R

PWF.PR.R

34.375¢

Series H

PWF.PR.H

35.9375¢

Series S

PWF.PR.S

30¢

Series K

PWF.PR.K

30.9375¢

Series T

PWF.PR.T

34.9688¢

Series L

PWF.PR.L

31.875¢

Series V

PWF.PR.Z

32.1875¢

Series O

PWF.PR.O

36.25¢

Series 23

PWF.PF.A

28.125¢

For purposes of the Income Tax Act (Canada) and any similar provincial legislation, all of the above dividends on the Corporation’s preferred shares are eligible dividends.

About Power Financial

Power Financial, a wholly owned subsidiary of Power Corporation of Canada, is an international management and holding company with interests in financial services and asset management businesses in Canada, the United States and Europe. It also has significant holdings in a portfolio of global companies based in Europe. To learn more, visit www.powerfinancial.com.

Readers are reminded that Power Financial relies on certain of the continuous disclosure documents filed by Power Corporation of Canada pursuant to an exemption from the requirements of National Instrument 51-102 – Continuous Disclosure Obligations as provided in the decision of the Autorité des marchés financiers and the Ontario Securities Commission, dated September 10, 2024, regarding Power Financial and Power Corporation of Canada, and that such continuous disclosure documents, including a press release announcing the third quarter 2024 financial results of Power Corporation of Canada, can be found for viewing in electronic format under the profile of Power Financial on SEDAR+ at www.sedarplus.ca.

SOURCE Power Financial Corporation

Technology

Ginkgo Bioworks Reports Third Quarter 2024 Financial Results

Published

17 mins ago

November 12, 2024

Ginkgo provides update on its restructuring process including an acceleration of site consolidation initiatives and continued progress on cost reductions

Ginkgo signs new and expanded deals with Novo Nordisk and achieves a major research milestone with Merck

BOSTON, Nov. 12, 2024 /PRNewswire/ — Ginkgo Bioworks Holdings, Inc. (NYSE: DNA, “Ginkgo”), which is building the leading platform for cell programming and biosecurity, today announced its results for the third quarter ended September 30, 2024. The update, including a webcast slide presentation with additional details on the third quarter and supplemental financial information will be available at investors.ginkgobioworks.com.

Third Quarter 2024 Financial Results

Third quarter 2024 Total revenue of $89 million, up from $55 million in the comparable prior year period, an increase of 61% driven by $45 million of non-cash revenue from a release of deferred revenue relating to the mutual termination of a customer agreement. Excluding this impact, Total revenue in the quarter was $44 million, a decrease of 21% over the prior year periodExcluding the $45 million non-cash deferred revenue release, third quarter 2024 Cell Engineering revenue of $30 million, down from $37 million in the comparable prior year period, a decrease of 20% driven by the continued shift from early stage customers to large/enterprise customers along with commercial changes related to the restructuringThird quarter 2024 Biosecurity revenue of $14 million with gross profit margin of 28%. Biosecurity revenue decreased from the comparable prior year period due to the expected ramp down of K-12 testingThird quarter 2024 Loss from operations of $(55) million (inclusive of stock-based compensation expense of $14 million and M&A and restructuring related costs of $2 million, net), compared to Loss from operations of $(286) million (inclusive of stock-based compensation expense of $54 million and M&A and restructuring related costs, including asset impairments, of $124 million) in the comparable prior year period. The 2024 period also benefited from the above non-cash deferred revenue releaseThird quarter 2024 Adjusted EBITDA of $(20) million, up from $(84) million in the comparable prior year period, driven by the above non-cash deferred revenue release and a decrease in operating expensesCash and cash equivalents balance as of the end of the third quarter of $616 million

“I’m extremely proud of the significant progress we made in the third quarter,” said Jason Kelly, co-founder and CEO of Ginkgo. “The team has been laser-focused on delivering for customers while driving down costs even further. We are achieving ambitious milestones, signing new deals with several new and existing customers while also launching our new Automation, Datapoints and AI offerings. Beyond customer successes, we will substantially consolidate our overall real estate footprint by exiting several facilities in Cambridge, MA and Europe by year end. We couldn’t have done this without the support of our Board and we’re very grateful to Arie for all of his service and contributions to our journey since going public, and look forward to working closely with Sri as he brings a wealth of knowledge in the automation and life science tools space as we expand increasingly into tools. It’s an incredibly important time to be pursuing the mission of making biology easier to engineer and creating sustainable biosecurity infrastructure for the future. I am excited by the momentum we are gaining to meet that mission as we close out this year on a substantially reduced cost base.”

Recent Business Highlights & Strategic Positioning

Cell Engineering closed deals with new and existing customersAdded 25 new programs and other customer contracts to the Cell Engineering platform in Q3 2024, of which 11 were comparable in size and scope to historically reported New Programs and an additional 14 contracts that represent a variety of other deal archetypes, such as Datapoints projectsSigned a new deal with Novo Nordisk focused on the discovery and development of proteins while also expanding Ginkgo’s existing collaboration on expression systems for pharmaceutical productsDelivered on a major research milestone for Ginkgo’s previously announced deal with Merck. As part of this milestone completion, Ginkgo will receive a fee of $9 million in cash, expected in Q4 2024, and will move to Stage 2 to work towards making an even more effective production processSigned three new Datapoints deals with a major TechBio company and two of the top 25 pharmaceutical companiesGinkgo Biosecurity continues to work towards creating solutions that offer persistent, pervasive monitoringGinkgo validated its approach to rapidly detect H5N1 and has updated its offerings to include DNA sequencing of raw milk, bioinformatics as a service and comprehensive analyzed data setsGinkgo made significant progress on its plan to reach Adjusted EBITDA breakeven by the end of 2026The reduction in force is estimated to achieve over $85 million in annualized savings by mid-2025Ginkgo has continued implementing significant non-people cost cutting measures, including rationalizing third-party costs and site consolidationDr. Sri Kosuri, CEO of Octant and former associate professor at UCLA in the Chemistry and Biochemistry Department, joined our Board on November 6, 2024. Dr. Arie Belldegrun, a director since September 2021 and member of our compensation committee, resigned from the Board on November 7, 2024

Full Year 2024 Outlook

Ginkgo previously issued 2024 guidance for Total revenue of $170-190 million; Cell Engineering services revenue of $120-140 million; and Biosecurity revenue of at least $50 million. Ginkgo updates its previously issued guidance solely to reflect the impact of the previously mentioned $45 million non-cash deferred revenue release in the third quarter to:Total revenue guidance of $215-235 million in 2024;Cell Engineering services revenue of $165-185 million in 2024; andBiosecurity revenue of at least $50 million in 2024.

Conference Call Details
Ginkgo will host a videoconference today, Tuesday, November 12, 2024, beginning at 5:30 p.m. ET. The presentation will include an overview of third quarter financial performance, recent business updates, a discussion on Ginkgo’s outlook, as well as a moderated question and answer session.

To ask a question ahead of the presentation, please submit your questions to @Ginkgo on X (hashtag #GinkgoResults) or by sending an e-mail to investors@ginkgobioworks.com.

A webcast link is available on Ginkgo’s Investor Relations website and a replay will be made available following the presentation.

Ginkgo Investor Website: https://investors.ginkgobioworks.com/events/

Audio-Only Dial Ins:
+1 646 876 9923 (New York)
+1 301 715 8592 (Washington DC)
+1 312 626 6799 (Chicago)
+1 669 900 6833 (San Jose)
+1 253 215 8782 (Tacoma)
+1 346 248 7799 (Houston)
+1 408 638 0968 (San Jose)

Webinar ID: 920 8859 2008

If you experience technical difficulties with any of these dial-ins or if you need international dial-in numbers, please visit our website at https://investors.ginkgobioworks.com/events/ for updated dial-in information.

About Ginkgo Bioworks
Ginkgo Bioworks is the leading horizontal platform for cell programming, providing flexible, end-to-end services that solve challenges for organizations across diverse markets, from food and agriculture to pharmaceuticals to industrial and specialty chemicals. Ginkgo Biosecurity is building and deploying the next-generation infrastructure and technologies that global leaders need to predict, detect, and respond to a wide variety of biological threats. For more information, visit ginkgobioworks.com and ginkgobiosecurity.com, read our blog, or follow us on social media channels such as X (@Ginkgo and @Ginkgo_Biosec), Instagram (@GinkgoBioworks), Threads (@GinkgoBioworks) or LinkedIn.

Forward-Looking Statements of Ginkgo Bioworks
This press release, the presentation, and the conference call and webcast contain certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our plans, strategies, including with respect to our current expectations, operations and anticipated results of operations, both business and financial, including the timing for attaining Adjusted EBITDA breakeven and profitability, our reduction in workforce and anticipated impacts thereof, the timing and structuring of our facilities consolidation and the potential financial impact thereof, potential customer success, including successful application of our offerings by our customers, expectations with regard to revenue, expenses, including our stock-based compensation expenses, our full year 2024 outlook, and the market environment, all of which are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, or industry results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “can,” “project,” “potential,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to: (i) our ability to realize near-term and long-term cost savings associated with our site consolidation plans, including the ability to terminate leases or find sub-lease tenants for unused facilities, (ii) volatility in the price of Ginkgo’s securities due to a variety of factors, including changes in the competitive and highly regulated industries in which Ginkgo operates and plans to operate, variations in performance across competitors, and changes in laws and regulations affecting Ginkgo’s business, (iii) the ability to implement business plans, forecasts, and other expectations, and to identify and realize additional business opportunities, (iv) the risk of downturns in demand for products using synthetic biology, (v) the uncertainty regarding the demand for passive monitoring programs and biosecurity services, (vi) changes to the biosecurity industry, including due to advancements in technology, emerging competition and evolution in industry demands, standards and regulations, (vii) the outcome of any pending or potential legal proceedings against Ginkgo, (viii) our ability to realize the expected benefits from and the success of our Foundry platform programs, (ix) our ability to successfully develop engineered cells, bioprocesses, data packages or other deliverables, (x) the product development or commercialization success of our customers, and (xi) the potential negative impact on our business of our planned reduction in force or the failure to realize the anticipated savings associated therewith. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Ginkgo’s annual report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 29, 2024 and other documents filed by Ginkgo from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Ginkgo assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Ginkgo does not give any assurance that it will achieve its expectations.

Use of Non-GAAP Financial Measures
Certain of the financial measures included in this release, including Adjusted EBITDA, have not been prepared in accordance with generally accepted accounting principles (“GAAP”), and constitute “non-GAAP financial measures” as defined by the SEC. Ginkgo has included these non-GAAP financial measures because it believes they provide an additional tool for investors to use in evaluating Ginkgo’s financial performance and prospects. Due to the nature and/or size of the items being excluded, such items do not reflect future gains, losses, expenses or benefits and are not indicative of our future operating performance. These non-GAAP financial measures are supplemental to, and should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. In addition, these non-GAAP financial measures may differ from non-GAAP financial measures with comparable names used by other companies. See the reconciliation below for additional information regarding certain of the non-GAAP financial measures included in this release, including a description of these non-GAAP financial measures and a reconciliation of the historic measures to Ginkgo’s most comparable GAAP financial measures.

Ginkgo Bioworks Contacts:

INVESTOR CONTACT:
investors@ginkgobioworks.com

MEDIA CONTACT:
press@ginkgobioworks.com

Ginkgo Bioworks Holdings, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share data, unaudited)

As of September 30, 2024

As of December 31, 2023

Assets

Current assets:

Cash and cash equivalents

$ 616,214

$ 944,073

Accounts receivable, net

23,411

17,157

Accounts receivable – related parties

531

742

Prepaid expenses and other current assets

22,324

39,777

Total current assets

662,480

1,001,749

Property, plant, and equipment, net

211,035

188,193

Operating lease right-of-use assets

405,911

206,801

Investments

62,103

78,565

Intangible assets, net

79,566

82,741

Goodwill

—

49,238

Other non-current assets

59,788

58,055

Total assets

$ 1,480,883

$ 1,665,342

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$ 15,700

$ 9,323

Deferred revenue

22,894

44,486

Accrued expenses and other current liabilities

75,833

110,051

Total current liabilities

114,427

163,860

Non-current liabilities:

Deferred revenue, net of current portion

105,247

158,062

Operating lease liabilities, non-current

445,592

221,835

Other non-current liabilities

17,674

24,433

Total liabilities

682,940

568,190

Commitments and contingencies

Stockholders’ equity:

Preferred stock, $0.0001 par value

—

Common stock, $0.0001 par value

Additional paid-in capital

6,527,698

6,386,191

Accumulated deficit

(5,730,023)

(5,290,528)

Accumulated other comprehensive income

263

1,484

Total stockholders’ equity

797,943

1,097,152

Total liabilities and stockholders’ equity

$ 1,480,883

$ 1,665,342

Ginkgo Bioworks Holdings, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except per share data, unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

2024

2023

Cell Engineering revenue

$ 75,089

$ 37,176

$ 139,183

$ 116,555

Biosecurity revenue:

Product

—

6,495

—

28,949

Service

13,957

11,759

44,013

71,196

Total revenue

89,046

55,430

183,196

216,700

Costs and operating expenses:

Cost of Biosecurity product revenue

—

906

—

7,481

Cost of Biosecurity service revenue

9,987

6,017

30,996

39,913

Cost of other revenue

2,016

—

3,930

—

Research and development (1)

77,006

156,662

347,684

463,583

General and administrative (1)

52,292

82,028

188,864

295,802

Impairment of lease assets

—

96,210

—

96,210

Goodwill impairment

—

47,858

—

Restructuring charges

2,949

—

20,015

—

Total operating expenses

144,250

341,823

639,347

902,989

Loss from operations

(55,204)

(286,393)

(456,151)

(686,289)

Other income (expense):

Interest income, net

9,251

15,020

31,275

43,914

Loss on equity method investments

—

(1,516)

Loss on investments

(6,912)

(36,324)

(16,282)

(44,815)

Loss on deconsolidation of subsidiary

(7,013)

—

(7,013)

—

Change in fair value of warrant liabilities

1,528

1,891

5,701

(1,387)

Other income, net

1,572

2,893

2,821

9,045

Total other income (expense)

(1,574)

(16,520)

16,502

5,241

Loss before income taxes

(56,778)

(302,913)

(439,649)

(681,048)

Income tax expense (benefit)

(375)

(22)

(154)

127

Net loss

$ (56,403)

$ (302,891)

$ (439,495)

$ (681,175)

Net loss per share, basic and diluted

$ (1.08)

$ (6.21)

$ (8.58)

$ (14.09)

Weighted average common shares outstanding:

Basic

52,240

48,770

51,244

48,330

Diluted

52,246

48,770

51,250

48,330

Comprehensive loss:

Net loss

$ (56,403)

$ (302,891)

$ (439,495)

$ (681,175)

Other comprehensive income (loss):

Foreign currency translation adjustment

494

(1,599)

(2,713)

(267)

Reclassification of foreign currency translation

adjustment realized upon sale of

foreign subsidiary

1,492

—

1,492

—

Total other comprehensive income (loss)

1,986

(1,599)

(1,221)

(267)

Comprehensive loss

$ (54,417)

$ (304,490)

$ (440,716)

$ (681,442)

(1) Total stock-based compensation expense, inclusive of employer payroll taxes, was allocated as follows (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

2024

2023

Research and development

$ 3,214

$ 33,976

$ 48,028

$ 122,086

General and administrative

10,799

19,671

46,608

69,238

Total

$ 14,013

$ 53,647

$ 94,636

$ 191,324

Ginkgo Bioworks Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

Nine Months Ended September 30,

2024

2023

Cash flows from operating activities:

Net loss

$ (439,495)

$ (681,175)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

47,368

57,670

Stock-based compensation

91,783

187,047

Goodwill impairment

47,858

—

Restructuring related impairment charges

4,823

—

Loss on investments and equity method investments

16,282

46,331

Loss on deconsolidation of subsidiary

7,013

—

Change in fair value of warrant liabilities

(5,701)

1,387

Change in fair value of contingent consideration liability

3,698

10,217

Non-cash lease expense

20,619

24,635

Non-cash in-process research and development

19,796

3,981

Impairment of long-lived assets

—

121,404

Other non-cash activity

655

3,053

Changes in operating assets and liabilities:

Accounts receivable

(6,101)

21,168

Prepaid expenses and other current assets

3,487

13,557

Operating lease right-of-use assets

19,224

9,277

Other non-current assets

(196)

(2,733)

Accounts payable, accrued expenses and other current liabilities

(31,099)

(4,822)

Deferred revenue, current and non-current

(67,779)

(29,382)

Operating lease liabilities, current and non-current

(11,383)

(18,310)

Other non-current liabilities

1,998

(974)

Net cash used in operating activities

(277,150)

(237,669)

Cash flows from investing activities:

Purchases of property and equipment

(48,831)

(37,355)

Business acquisition

(5,400)

—

Proceeds from sales of marketable securities

3,951

—

Proceeds from sale of equipment

591

3,000

Other

538

336

Net cash used in investing activities

(49,151)

(34,019)

Cash flows from financing activities:

Proceeds from exercise of stock options

Principal payments on finance leases

(694)

(977)

Contingent consideration payment

(922)

(1,082)

Other

(4)

(604)

Net cash used in financing activities

(1,536)

(2,584)

Effect of foreign exchange rates on cash and cash equivalents

(208)

(690)

Net decrease in cash, cash equivalents and restricted cash

(328,045)

(274,962)

Cash and cash equivalents, beginning of period

944,073

1,315,792

Restricted cash, beginning of period

45,511

53,789

Cash, cash equivalents and restricted cash, beginning of period

989,584

1,369,581

Cash and cash equivalents, end of period

616,214

1,049,244

Restricted cash, end of period

45,325

45,375

Cash, cash equivalents and restricted cash, end of period

$ 661,539

$ 1,094,619

Selected Non-GAAP Financial Measures

(in thousands, unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

2024

2023

Net loss (1)

$ (56,403)

$ (302,891)

$ (439,495)

$ (681,175)

Interest income, net

(9,251)

(15,020)

(31,275)

(43,914)

Income tax expense (benefit)

(375)

(22)

(154)

127

Depreciation and amortization

17,171

21,060

47,368

57,670

EBITDA

(48,858)

(296,873)

(423,556)

(667,292)

Stock-based compensation (2)

14,013

53,647

94,636

191,324

Impairment expense (3)

—

112,403

47,858

121,404

Restructuring charges (4)

2,949

—

20,015

—

Merger and acquisition related expenses (5)

(796)

12,253

6,110

43,127

Loss on equity method investments

—

1,516

Loss on investments

6,912

36,324

16,282

44,815

Loss on deconsolidation of subsidiary

7,013

—

7,013

—

Change in fair value of warrant liabilities

(1,528)

(1,891)

(5,701)

1,387

Change in fair value of convertible notes

281

317

1,127

121

Adjusted EBITDA

$ (20,014)

$ (83,820)

$ (236,216)

$ (263,598)

(1)

All periods include non-cash revenue when earned, including $45.4 million in the three and nine months ended September 30, 2024, recognized pursuant to the termination of revenue contracts with Motif.

(2)

Includes $0.2 million and $1.1 million in employer payroll taxes for the three months ended September 30, 2024 and 2023, respectively, and $2.9 and $4.3 million for the nine months ended September 30, 2024 and 2023, respectively.

(3)

For 2024, includes $47.9 million related to goodwill impairment. For the three months ended September 30, 2023, includes a $16.2 million impairment loss on lab equipment and a $96.2 million impairment loss on an operating lease right-of-use asset and related leasehold improvements associated with an exited Zymergen leased facility. For the nine months ended September 30, 2023, includes a $25.2 million impairment loss on lab equipment and a $96.2 million impairment loss on lease assets associated with the exited Zymergen leased facility.

(4)

Restructuring charges consist of employee termination costs from the reduction in force commenced in June 2024, as well as the impairment of a right-of-use asset relating to facilities consolidation.

(5)

Represents transaction and integration costs directly related to mergers and acquisitions, including: (i) due diligence, legal, consulting and accounting fees associated with acquisitions, (ii) post-acquisition employee retention bonuses and severance payments, (iii) the fair value adjustments to contingent consideration liabilities resulting from acquisitions, (iv) costs associated with the Zymergen Bankruptcy, as well as securities litigation costs, net of insurance recovery. Not included in this adjustment are non-cash charges for acquired in-process research and development expenses, which totaled $19.8 million and $4.0 million in the nine months ended September 30, 2024 and 2023, respectively.

Ginkgo Bioworks Holdings, Inc.

Segment Information

(in thousands, unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

2024

2023

Revenue:

Cell Engineering

$ 75,089

$ 37,176

$ 139,183

$ 116,555

Biosecurity

13,957

18,254

44,013

100,145

Total revenue

89,046

55,430

183,196

216,700

Segment cost of revenue:

Cell Engineering

2,016

—

3,930

—

Biosecurity

9,987

6,923

30,996

47,394

Segment research and development expense:

Cell Engineering

57,201

90,889

253,790

275,494

Biosecurity

141

313

720

1,408

Total segment research and development expense

57,342

91,202

254,510

276,902

Segment general and administrative expense:

Cell Engineering

29,319

42,617

103,167

155,216

Biosecurity

10,040

12,207

33,169

42,862

Total segment general and administrative expense

39,359

54,824

136,336

198,078

Segment operating (loss) income:

Cell Engineering

(13,447)

(96,330)

(221,704)

(314,155)

Biosecurity

(6,211)

(1,189)

(20,872)

8,481

Total segment operating loss

(19,658)

(97,519)

(242,576)

(305,674)

Operating expenses not allocated to segments:

Stock-based compensation (1)

14,013

53,647

94,636

191,324

Depreciation and amortization

17,171

21,060

47,368

57,670

Impairment expense (2)

—

112,403

47,858

121,404

Restructuring charges

2,949

—

20,015

—

Change in fair value of contingent consideration liability

1,413

1,764

3,698

10,217

Loss from operations

$ (55,204)

$ (286,393)

$ (456,151)

$ (686,289)

(1)

Includes $0.2 million and $1.1 million in employer payroll taxes for the three months ended September 30, 2024 and 2023, respectively, and $2.9 million and $4.3 million in employer payroll taxes for the nine months ended September 30, 2024 and 2023, respectively.

(2)

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SOURCE Ginkgo Bioworks

Technology

Product Information Management Market to Grow by USD 10.87 Billion (2024-2028), Driven by Rising E-Commerce Demand, AI-Powered Report Highlights Market Transformation – Technavio

Published

17 mins ago

November 12, 2024

NEW YORK, Nov. 12, 2024 /PRNewswire/ — Report with the AI impact on market trends – The global product information management market size is estimated to grow by USD 10.87 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 14.37% during the forecast period. Thriving e-commerce industry is driving up demand for PIM solutions is driving market growth, with a trend towards adaption of AI and machine learning skills to improve data management and consumer experience. However, concerns about data security and privacy threats poses a challenge.Key market players include Bluestone Norway, censhare GmbH, Contentserv Swiss GmbH, GS Topco GP LLC, Informatica Inc., International Business Machines Corp., Jasper Commerce Inc., Mobius Knowledge Services P. Ltd., Oracle Corp., Pimcore GmbH, Plytix SLU, Salsify Inc., SAP SE, Stibo Systems, Syndigo LLC, True Commerce Inc., Viamedici Software GmbH, Vinculum Solutions Pvt. Ltd., Akeneo SAS, and Inriver AB.

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View Free Sample Report PDF

Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

Deployment (On-premises and Cloud), End-user (Large enterprises and SMEs), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)

Region Covered

North America, Europe, APAC, South America, and Middle East and Africa

Key companies profiled

Bluestone Norway, censhare GmbH, Contentserv Swiss GmbH, GS Topco GP LLC, Informatica Inc., International Business Machines Corp., Jasper Commerce Inc., Mobius Knowledge Services P. Ltd., Oracle Corp., Pimcore GmbH, Plytix SLU, Salsify Inc., SAP SE, Stibo Systems, Syndigo LLC, True Commerce Inc., Viamedici Software GmbH, Vinculum Solutions Pvt. Ltd., Akeneo SAS, and Inriver AB

Key Market Trends Fueling Growth

Product Information Management (PIM) is a business solution that helps companies manage and distribute accurate and consistent product information to various channels. A key trend in PIM is data syndication, allowing retailers and wholesalers to access product info in real-time. The eCommerce industry is a major adopter, with omnichannel syndication enabling a seamless shopping experience. Cloud-based solutions offer flexibility and scalability, while automation streamlines data entry. Security frameworks ensure data privacy and protection. Industry verticals from consumer goods to electronics benefit, including retailers, wholesalers, and ecommerce sites. PIM improves customer experience and omnichannel experience, driving online shopping sales. Small companies and ecommerce startups can also benefit from digitalization and data enrichment. Augmented Reality (AR) and visualization tools provide real-scale product representation, enhancing the ecommerce system. PIM integrates with ERP and CRM systems, downstream channels, IT service teams, and marketing channels. A multi-cloud approach or hybrid cloud strategy offers deployment flexibility, while data storage solutions cater to large product catalogs. AI and machine learning enable data enrichment.

Companies in various sectors, including healthcare, retail, and finance, are enhancing their Product Information Management (PIM) systems with artificial intelligence (AI) and machine learning (ML) technologies. AI-powered PIM solutions automate product classification, detect anomalies, enrich data from reliable sources, grade products, and provide contextual suggestions. These features offer insights into data issues and create a comprehensive view of product data from multiple systems. Moreover, AI-enabled chatbots improve consumer experience, leading to increased sales and profitability. By investing in these advanced technologies, businesses can stay competitive.

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Market Challenges

Product Information Management (PIM) is essential for businesses in various industry verticals, particularly in the eCommerce sector, to manage and deliver accurate product content to retailers, wholesalers, and downstream channels. Challenges include data syndication for omnichannel sales, ensuring consistency and quality across channels, and securing data from security threats. Cloud-based PIM solutions offer automation, data enrichment, and multi-cloud or hybrid cloud strategies for small companies and eCommerce startups. Data sources include product ingredients, weights, colors, and product specs. Adoption of PIM is crucial for delivering a great customer experience and omnichannel experience, driving online shopping sales. Security frameworks, privacy, and deployment options (cloud or on-premise) are essential considerations. PIM systems integrate with Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems, eCommerce systems, and marketing channels. Augmented Reality (AR) and Artificial Intelligence (AI) enhance product visualization on ecommerce sites for laptops, mobile devices, and online buyers.Product Information Management (PIM) systems enable organizations to efficiently collect, manage, and publish product data across multiple channels. However, some businesses are hesitant to adopt new PIM solutions due to concerns over data security and regulatory compliance. The transmission of data from one platform to another and data synchronization are integral parts of PIM. Yet, some firms express apprehensions about potential data breaches due to insufficient information about security standards. Consequently, they prefer vendors who can integrate PIM functionalities into their existing systems. Smaller enterprises, too, have reconsidered their decision to use cloud-based PIM systems due to privacy concerns associated with cloud storage.

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Segment Overview

This product information management market report extensively covers market segmentation by

Deployment1.1 On-premises1.2 CloudEnd-user2.1 Large enterprises2.2 SMEsGeography3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 On-premises- An on-premises Product Information Management (PIM) system is a software solution installed and operated on a company’s own servers, purchased under a license agreement. This setup requires the hiring of specialized personnel for administration and maintenance. The installation process involves evaluating infrastructure requirements, assessing LAN/WAN bandwidth impact, determining access permissions, and obtaining internal approvals. For large-scale deployments or complex infrastructures, a Systems Integrator may be engaged. Access to product information is physical, with users typically requiring on-site presence. Security is a key advantage, as data is stored locally.

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Research Analysis

The Product Information Management (PIM) market is a dynamic and growing sector that focuses on managing and enriching product data for various industries, particularly the consumer goods sector. PIM systems enable the collection, management, and distribution of accurate and consistent product information to retailers, wholesalers, and eCommerce platforms. These solutions provide omnichannel syndication, ensuring product data is up-to-date and accurate across all sales channels. Cloud-based PIM systems offer automation and data enrichment features, utilizing Artificial Intelligence to analyze and enhance product content, including ingredients, weight, colors, and product specifications. Security frameworks are integral to these solutions, safeguarding sensitive data and ensuring compliance with industry regulations. The eCommerce industry relies on PIM to maintain product data consistency and improve overall quality, driving better customer experiences and increased sales.

Market Research Overview

The Product Information Management (PIM) market is a dynamic and growing sector that enables businesses to effectively manage and distribute accurate and consistent product information across multiple channels and industry verticals. With the eCommerce industry’s increasing dominance, the need for omnichannel syndication of product content, including ingredients, weight, colors, and product specs, has become essential. Cloud-based PIM solutions offer automation and data source adoption, ensuring retailers and wholesalers maintain product information consistency and quality. Small companies and ecommerce startups benefit from these systems, enabling them to compete with larger enterprises. Security frameworks are crucial in PIM, safeguarding data privacy and ensuring compliance. Industry verticals such as Consumer Goods and Retail sectors can leverage PIM for digitalization, improving customer experience and omnichannel experience, driving online shopping sales. PIM solutions support multi-cloud and hybrid cloud strategies, including public cloud, augmented reality (AR) integration, and ecommerce site visualization on laptops, mobile devices, and real scale. Additionally, PIM systems can integrate with Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), product catalogs, downstream channels, IT service teams, marketing channels, and data storage solutions. Data enrichment through artificial intelligence and machine learning further enhances PIM capabilities, catering to various industry sectors and ecommerce systems.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

DeploymentOn-premisesCloudEnd-userLarge EnterprisesSMEsGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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