Tuniu Announces Unaudited First Quarter 2024 Financial Results
NANJING, China, June 4, 2024 /PRNewswire/ -- Tuniu Corporation (NASDAQ: TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced its unaudited financial results for the first quarter ended March 31, 2024.
Highlights for the First Quarter of 2024
-- Net revenues in the first quarter of 2024 increased by 70.9%
year-over-year to RMB108.0 million (US$15.0 million([1])).
-- Revenues from package tours in the first quarter of 2024 increased by
106.7% year-over-year to RMB83.0 million (US$11.5 million).
-- Gross profit in the first quarter of 2024 increased by 111.0%
year-over-year to RMB82.0 million (US$11.4 million).
-- Income from operations was RMB12.3 million (US$1.7 million) in the first
quarter of 2024, compared to a loss from operations of RMB17.0 million
in the first quarter of 2023. Non-GAAP([2]) income from operations was
RMB18.1 million (US$2.5 million) in the first quarter of 2024, compared
to a Non-GAAP loss from operations of RMB15.4 million in the first
quarter of 2023.
-- Net income was RMB21.9 million (US$3.0 million) in the first quarter of
2024, compared to a net loss of RMB7.5 million in the first quarter of
2023. Non-GAAP net income was RMB27.7 million (US$3.8 million) in the
first quarter of 2024, compared to a Non-GAAP net loss of RMB5.9 million
in the first quarter of 2023.
"We are pleased to see continued strong growth momentum in the first quarter of 2024," said Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer. "Our net revenues increased by 70.9% year-over-year, while revenues from packaged tours increased by 106.7%. This is the first time since our listing that we have achieved profitability in the first quarter, which demonstrates that Tuniu's performance is gradually entering a path of healthy development. We will continue to closely monitor industry trends and the evolving customer demands, primarily focusing on product innovation, service quality enhancement, sales channel development, and operational efficiency improvement. We remain committed to strengthen our market position, enhance performance, and create greater value for both customers and shareholders."
[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.2203 on March 29, 2024 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at https://www.federalreserve.gov/releases/h10/default.htm.
[2] The section below entitled "About Non-GAAP Financial Measures" provides information about the use of Non-GAAP financial measures in this press release, and the table captioned "Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release reconciles Non-GAAP financial information with the Company's financial results under GAAP.
First Quarter 2024 Results
Net revenues were RMB108.0 million (US$15.0 million) in the first quarter of 2024, representing a year-over-year increase of 70.9% from the corresponding period in 2023. The increase was primarily due to the growth of packaged tours as the travel market recovers.
-- Revenues from packaged tours were RMB83.0 million (US$11.5 million) in
the first quarter of 2024, representing a year-over-year increase of
106.7% from the corresponding period in 2023. The increase was primarily
due to the growth of organized tours.
-- Other revenues were RMB25.0 million (US$3.5 million) in the first
quarter of 2024, representing a year-over-year increase of 8.5% from the
corresponding period in 2023. The increase was primarily due to the
increase in the commission fees received from other travel-related
products.
Cost of revenues was RMB25.9 million (US$3.6 million) in the first quarter of 2024, representing a year-over-year increase of 6.6% from the corresponding period in 2023. As a percentage of net revenues, cost of revenues was 24.0% in the first quarter of 2024, compared to 38.5% in the corresponding period in 2023.
Gross profit was RMB82.0 million (US$11.4 million) in the first quarter of 2024, representing a year-over-year increase of 111.0% from the corresponding period in 2023.
Operating expenses were RMB69.7 million (US$9.7 million) in the first quarter of 2024, representing a year-over-year increase of 24.8% from the corresponding period in 2023.
-- Research and product development expenses were RMB13.0 million (US$1.8
million) in the first quarter of 2024, representing a year-over-year
decrease of 9.1%. The decrease was primarily due to the decrease in
research and product development personnel related expenses. Research
and product development expenses as a percentage of net revenues were
12.1% in the first quarter of 2024, decreasing from 22.7% as a
percentage of net revenues in the corresponding period in 2023.
-- Sales and marketing expenses were RMB36.8 million (US$5.1 million) in
the first quarter of 2024, representing a year-over-year increase of
84.2%. The increase was primarily due to the increase in promotion
expenses and sales and marketing personnel related expenses. Sales and
marketing expenses as a percentage of net revenues were 34.1% in the
first quarter of 2024, increasing from 31.6% as a percentage of net
revenues in the corresponding period in 2023.
-- General and administrative expenses were RMB20.5 million (US$2.8
million) in the first quarter of 2024, representing a year-over-year
decrease of 8.2%. The decrease was primarily due to the reversal of
allowance for doubtful accounts. General and administrative expenses as
a percentage of net revenues were 19.0% in the first quarter of 2024,
decreasing from 35.3% as a percentage of net revenues in the
corresponding period in 2023.
Income from operations was RMB12.3 million (US$1.7 million) in the first quarter of 2024, compared to a loss from operations of RMB17.0 million in the first quarter of 2023. Non-GAAP income from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB18.1 million (US$2.5 million) in the first quarter of 2024.
Net income was RMB21.9 million (US$3.0 million) in the first quarter of 2024, compared to a net loss of RMB7.5 million in the first quarter of 2023. Non-GAAP net income, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB27.7 million (US$3.8 million) in the first quarter of 2024.
Net income attributable to ordinary shareholders of Tuniu Corporation was RMB13.9 million (US$1.9 million) in the first quarter of 2024, compared to a net loss attributable to ordinary shareholders of RMB7.0 million in the first quarter of 2023. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB19.7 million (US$2.7 million) in the first quarter of 2024.
As of March 31, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.2 billion (US$167.4 million).
Business Outlook
For the second quarter of 2024, Tuniu expects to generate RMB114.9 million to RMB119.9 million of net revenues, which represents a 15% to 20% increase year-over-year compared with net revenues in the corresponding period in 2023. This forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change.
Share Repurchase Update
In March 2024, the Company's Board of Directors authorized a share repurchase program under which the Company may repurchase up to US$10 million worth of its ordinary shares or American depositary shares representing ordinary shares. As of May 31, 2024, the Company had repurchased an aggregate of approximately 3.5 million ADSs for approximately US$2.9 million from the open market under the share repurchase program.
Conference Call Information
Tuniu's management will hold an earnings conference call at 8:00 am U.S. Eastern Time, on June 4, 2024, (8:00 pm, Beijing/Hong Kong Time, on June 4, 2024) to discuss the first quarter 2024 financial results.
To participate in the conference call, please dial the following numbers:
United States 1-888-346-8982
Hong Kong 852-301-84992
Mainland China 4001-201203
International 1-412-902-4272
Conference ID: Tuniu 1Q 2024 Earnings Conference Call
A telephone replay will be available one hour after the end of the conference call through June 11, 2024. The dial-in details are as follows:
United States 1-877-344-7529
International 1-412-317-0088
Replay Access Code: 4679991
Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.tuniu.com.
About Tuniu
Tuniu (Nasdaq: TOUR) is a leading online leisure travel company in China that offers integrated travel service with a large selection of packaged tours, including organized and self-guided tours, as well as travel-related services for leisure travelers through its website tuniu.com and mobile platform. Tuniu provides one-stop leisure travel solutions and a compelling customer experience through its online platform and offline service network, including a dedicated team of professional customer service representatives, 24/7 call centers, extensive networks of offline retail stores and self-operated local tour operators. For more information, please visit http://ir.tuniu.com.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Tuniu may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, 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. Any statements that are not historical facts, including statements about Tuniu's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but are not limited to the following: Tuniu's goals and strategies; the growth of the online leisure travel market in China; the demand for Tuniu's products and services; its relationships with customers and travel suppliers; Tuniu's ability to offer competitive travel products and services; Tuniu's future business development, results of operations and financial condition; competition in the online travel industry in China; government policies and regulations relating to Tuniu's structure, business and industry; the impact of health epidemics on Tuniu's business operations, the travel industry and the economy of China and elsewhere generally; and the general economic and business condition in China and elsewhere. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tuniu does not undertake any obligation to update such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement the Company's unaudited consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company has provided non-GAAP information related to income/(loss) from operations, net income/(loss), net income/(loss) attributable to ordinary shareholders of Tuniu Corporation, which excludes share-based compensation expenses, amortization of acquired intangible assets, impairment of goodwill and impairment of property and equipment, net. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We believe that the non-GAAP financial measures used in this press release are useful for understanding and assessing underlying business performance and operating trends, and management and investors benefit from referring to these non-GAAP financial measures in assessing our financial performance and when planning and forecasting future periods.
This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. Further, this non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. Tuniu encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP Results" set forth at the end of this press release.
(Financial Tables Follow)
Tuniu Corporation
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands, except per share information)
December 31, 2023 March 31, 2024 March 31, 2024
RMB RMB US$
ASSETS
Current assets
Cash and cash equivalents 378,989 486,989 67,447
Restricted cash 65,902 37,316 5,168
Short-term investments 777,890 684,244 94,767
Accounts receivable, net 41,633 57,184 7,920
Amounts due from related parties 9,515 1,055 146
Prepayments and other current assets 234,189 152,565 21,130
Total current assets 1,508,118 1,419,353 196,578
Non-current assets
Long-term investments 209,819 209,032 28,951
Property and equipment, net 57,479 56,390 7,810
Intangible assets, net 26,091 25,109 3,478
Land use right, net 90,529 90,013 12,467
Operating lease right-of-use assets, net 12,484 11,467 1,588
Other non-current assets 55,960 61,483 8,515
Total non-current assets 452,362 453,494 62,809
Total assets 1,960,480 1,872,847 259,387
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities
Short-term borrowings 7,277 7,520 1,042
Accounts and notes payable 317,104 347,474 48,125
Amounts due to related parties 6,405 6,783 939
Salary and welfare payable 21,401 18,028 2,497
Taxes payable 4,305 3,124 433
Advances from customers 270,197 140,825 19,504
Operating lease liabilities, current 2,709 3,165 438
Accrued expenses and other current liabilities 329,481 320,488 44,387
Total current liabilities 958,879 847,407 117,365
Non-current liabilities
Operating lease liabilities, non-current 5,348 4,475 620
Deferred tax liabilities 6,027 5,825 807
Long-term borrowings 10,395 8,390 1,162
Total non-current liabilities 21,770 18,690 2,589
Total liabilities 980,649 866,097 119,954
Redeemable noncontrolling interests 27,200 27,200 3,767
Equity
Ordinary shares 249 249 34
Less: Treasury stock (285,983) (287,782) (39,857)
Additional paid-in capital 9,138,720 9,143,505 1,266,361
Accumulated other comprehensive income 305,416 307,450 42,581
Accumulated deficit (8,127,552) (8,113,641) (1,123,726)
Total Tuniu Corporation shareholders' equity 1,030,850 1,049,781 145,393
Noncontrolling interests (78,219) (70,231) (9,727)
Total equity 952,631 979,550 135,666
Total liabilities, redeemable noncontrolling interests and equity 1,960,480 1,872,847 259,387
Tuniu Corporation
Unaudited Condensed Consolidated Statements of Comprehensive Loss/(Income)
(All amounts in thousands, except per share information)
Quarter Ended Quarter Ended Quarter Ended Quarter Ended
March 31, 2023 December 31, 2023 March 31, 2024 March 31, 2024
RMB RMB RMB US$
Revenues
Packaged tours 40,130 73,382 82,951 11,489
Others 23,051 26,564 25,007 3,463
Net revenues 63,181 99,946 107,958 14,952
Cost of revenues (24,301) (25,309) (25,913) (3,589)
Gross profit 38,880 74,637 82,045 11,363
Operating expenses
Research and product development (14,328) (10,426) (13,024) (1,804)
Sales and marketing (19,987) (33,230) (36,824) (5,100)
General and administrative (22,319) (42,072) (20,479) (2,836)
Impairment of goodwill - (114,661)
Other operating income 762 2,401 582 81
Total operating expenses (55,872) (197,988) (69,745) (9,659)
(Loss)/income from operations (16,992) (123,351) 12,300 1,704
Other income/(expenses)
Interest and investment income/(loss), net 6,321 (15,151) 10,041 1,391
Interest expense (1,149) (1,056) (613) (85)
Foreign exchange gains/(losses), net 3,514 3,172 (568) (79)
Other income, net 1,101 2,499 1,279 177
(Loss)/income before income tax expense (7,205) (133,887) 22,439 3,108
Income tax benefit 203 103 64 9
Equity in (loss)/income of affiliates (469) 866 (604) (84)
Net (loss)/income (7,471) (132,918) 21,899 3,033
Net (loss)/income attributable to noncontrolling interests (454) (583) 7,988 1,106
Net (loss)/income attributable to ordinary shareholders of Tuniu (7,017) (132,335) 13,911 1,927
Corporation
Net (loss)/income (7,471) (132,918) 21,899 3,033
Other comprehensive (loss)/income:
Foreign currency translation adjustment, net of nil tax (4,040) (5,848) 2,034 282
Comprehensive (loss)/income (11,511) (138,766) 23,933 3,315
Net (loss)/income per ordinary share attributable to ordinary (0.02) (0.36) 0.04 0.01
shareholders - basic and diluted
Net (loss)/income per ADS - basic and diluted* (0.06) (1.08) 0.12 0.03
Weighted average number of ordinary shares used in computing 371,394,686 371,526,300 371,516,251 371,516,251
basic (loss)/income per share
Weighted average number of ordinary shares used in computing 371,394,686 371,526,300 373,365,967 373,365,967
diluted (loss)/income per share
Share-based compensation expenses included are as follows
?
Cost of revenues 18 66 65 9
Research and product development 18 66 65 9
Sales and marketing (16) 32 31 4
General and administrative 758 4,912 4,830 669
Total 778 5,076 4,991 691
*Each ADS represents three of the Company's ordinary shares.
Reconciliations of GAAP and Non-GAAP Results
(All amounts in thousands, except per share information)
Quarter Ended March 31, 2024
GAAP Result Share-based Amortization of
acquired Impairment Impairment of Non-GAAP
Compensation intangible assets of goodwill property and equipment,
net Result
Income from operations 12,300 4,991 828 18,119
Net income 21,899 4,991 828 27,718
Net income attributable to ordinary shareholders 13,911 4,991 828 19,730
Quarter Ended December 31, 2023
GAAP Result Share-based Amortization of
acquired Impairment Impairment of Non-GAAP
Compensation intangible assets of goodwill property and equipment,
net Result
(Loss)/income from operations (123,351) 5,076 828 114,661 17,986 15,200
Net (loss)/income (132,918) 5,076 828 114,661 17,986 5,633
Net (loss)/income attributable to ordinary shareholders (132,335) 5,076 828 114,661 17,986 6,216
Quarter Ended March 31, 2023
GAAP Result Share-based Amortization of
acquired Impairment Impairment of Non-GAAP
Compensation intangible assets of goodwill property and equipment,
net Result
Loss from operations (16,992) 778 828 (15,386)
Net loss (7,471) 778 828 (5,865)
Net loss attributable to ordinary shareholders (7,017) 778 828 (5,411)
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SOURCE Tuniu Corporation
