Waterdrop's revenue surged by 38.4% in Q3, with new tech services segment contributing 23% of revenue, despite lackluster stock performance.

Waterdrop Inc., an insurance broker, saw a 38.4% increase in revenue in the third quarter, with its young technical services business experiencing a 20-fold rise. The company is expected to return to strong revenue growth this year after three years of declines. The new technical services segment went from nearly no revenue last year to contributing 23% of revenue in the third quarter. Despite impressive growth, the company's shares only slightly rose after the announcement. The insurance brokerage business, which makes up the majority of Waterdrop's revenue, is facing challenges due to new regulations in China limiting profits. In response, Waterdrop is focusing on providing services to insurance companies and utilizing its databases to assist drug companies in patient identification for clinical trials. By diversifying its services, Waterdrop aims to navigate the changing landscape and continue its growth trajectory.