What caused WDH's Q2 2024 EPS to miss forecasts?

Waterdrop's Q2 2024 EPS not meeting forecasts can be attributed to **Cost of Revenue** exceeding expectations.

1. **Cost of Revenue**: The Cost of Goods Sold (COGS) for Waterdrop in Q2 2024 was $43.91 million. This cost is a significant component of the total revenue and directly impacts the net profit and, consequently, the EPS. The higher-than-expected COGS indicates that the company incurred more costs in generating its revenue, which in turn affected its profitability and EPS.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|WDH|WDH.N|Waterdrop|2024 Q1|10.57657949280352|9.759982248E7|169|
|WDH|WDH.N|Waterdrop|2024 Q2|-0.5928075983674955|9.304216239448E7|169|

2. **Net Margin**: The net margin for Waterdrop in Q2 2024 was 11.9%. This margin is a critical indicator of the company's profitability. A lower-than-expected net margin suggests that despite revenue growth, the company's costs and expenses were higher than anticipated, leading to a lower EPS.

|code|Ticker|Name|Date|Net Profit Margin YoY|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|
|WDH|WDH.N|Waterdrop|2023 Q3|-75.90971597820914|5.4657|169|
|WDH|WDH.N|Waterdrop|2023 Q4|-71.31416979783776|6.2221|169|
|WDH|WDH.N|Waterdrop|2024 Q1|39.35293543982834|11.4314|169|
|WDH|WDH.N|Waterdrop|2024 Q2|113.99967618328026|11.8956|169|

In summary, Waterdrop's Q2 2024 EPS missed forecasts primarily due to higher-than-expected costs, which compressed the net margin and diluted the EPS.