Tuniu Announces Unaudited Second Quarter 2024 Financial Results
NANJING, China, Aug. 6, 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 second quarter ended June 30, 2024.
Highlights for the Second Quarter of 2024
-- Revenues from package tours in the second quarter of 2024 increased by
28.6% year-over-year to RMB89.8 million (US$12.4 million([1])).
-- Gross profit in the second quarter of 2024 increased by 29.1%
year-over-year to RMB84.4 million (US$11.6 million).
-- Income from operations was RMB34.5 million (US$4.7 million) in the
second quarter of 2024, compared to an income from operations of RMB6.8
million in the second quarter of 2023.
-- Net income was RMB43.0 million (US$5.9 million) in the second quarter of
2024, compared to a net income of RMB0.2 million in the second quarter
of 2023.
"Tuniu continued to demonstrate steady growth in the second quarter of 2024, with revenues from packaged tours, our core business, increasing by 28.6% year-over-year." said Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer. "We also saw further improvement in our profitability with net income reaching a quarterly record high since our listing. This quarter, we continued to focus on our core business and products, further enhancing product quality and offerings in order to provide better services and travel experience for our customers. We also continued to adapt to changes in user shopping habits by strengthening our new media operations, in order to attract new customers through multiple channels to drive business growth. With the arrival of the summer season, Tuniu is well prepared to meet the opportunities and challenges ahead of us as we look forward to delivering strong value for our shareholders going forward."
[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.2672 on June 28, 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.
Second Quarter 2024 Results
Net revenues were RMB116.9 million (US$16.1 million) in the second quarter of 2024, representing a year-over-year increase of 17.0% from the corresponding period in 2023.
-- Revenues from packaged tours were RMB89.8 million (US$12.4 million) in
the second quarter of 2024, representing a year-over-year increase of
28.6% from the corresponding period in 2023. The increase was primarily
due to the growth of organized tours.
-- Other revenues were RMB27.2 million (US$3.7 million) in the second
quarter of 2024, representing a year-over-year decrease of 10.0% from
the corresponding period in 2023. The decrease was primarily due to the
decrease in commission fees received from other travel-related products
and revenues generated from financial services.
Cost of revenues was RMB32.5 million (US$4.5 million) in the second quarter of 2024, representing a year-over-year decrease of 5.8% from the corresponding period in 2023. As a percentage of net revenues, cost of revenues was 27.8% in the second quarter of 2024, compared to 34.6% in the corresponding period in 2023.
Gross profit was RMB84.4 million (US$11.6 million) in the second quarter of 2024, representing a year-over-year increase of 29.1% from the corresponding period in 2023.
Operating expenses were RMB49.9 million (US$6.9 million) in the second quarter of 2024, representing a year-over-year decrease of 14.9% from the corresponding period in 2023. Net gain on disposals of subsidiaries which was allocated to operating expenses, was RMB24.6 million (US$3.4 million) in the second quarter of 2024.
-- Research and product development expenses were RMB12.7 million (US$1.7
million) in the second quarter of 2024, representing a year-over-year
decrease of 8.2%. 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
10.9% in the second quarter of 2024, decreasing from 13.8% as a
percentage of net revenues in the corresponding period in 2023.
-- Sales and marketing expenses were RMB40.2 million (US$5.5 million) in
the second quarter of 2024, representing a year-over-year increase of
61.5%. 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 34.4% in the
second quarter of 2024, increasing from 24.9% as a percentage of net
revenues in the corresponding period in 2023.
-- General and administrative expenses were RMB21.7 million (US$3.0
million) in the second quarter of 2024, which was in line with general
and administrative expenses in the second quarter of 2023. General and
administrative expenses as a percentage of net revenues were 18.6% in
the second quarter of 2024, decreasing from 21.8% as a percentage of net
revenues in the corresponding period in 2023.
Income from operations was RMB34.5 million (US$4.7 million) in the second quarter of 2024, compared to an income from operations of RMB6.8 million in the second quarter of 2023. Non-GAAP([2]) income from operations, which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries, was RMB12.3 million (US$1.7 million) in the second quarter of 2024.
Net income was RMB43.0 million (US$5.9 million) in the second quarter of 2024, compared to a net income of RMB0.2 million in the second quarter of 2023. Non-GAAP net income, which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries, was RMB20.8 million (US$2.9 million) in the second quarter of 2024.
Net income attributable to ordinary shareholders of Tuniu Corporation was RMB43.0 million (US$5.9 million) in the second quarter of 2024, compared to a net income attributable to ordinary shareholders of Tuniu Corporation of RMB0.7 million in the second quarter of 2023. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries, was RMB20.8 million (US$2.9 million) in the second quarter of 2024.
As of June 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.3 billion (US$176.0 million).
[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.
Business Outlook
For the third quarter of 2024, Tuniu expects to generate RMB183.5 million to RMB192.4 million of net revenues, which represents a 3% to 8% 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 July 31, 2024, the Company had repurchased an aggregate of approximately 4.6 million ADSs for approximately US$4.1 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 August 6, 2024, (8:00 pm, Beijing/Hong Kong Time, on August 6, 2024) to discuss the second 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 2Q 2024 Earnings Conference Call
A telephone replay will be available one hour after the end of the conference call through August 13, 2024. The dial-in details are as follows:
United States 1-877-344-7529
International 1-412-317-0088
Replay Access Code: 9667429
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 from operations, net income, net income attributable to ordinary shareholders of Tuniu Corporation, which excludes share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries. 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)
December 31, 2023 June 30, 2024 June 30, 2024
RMB RMB US$
ASSETS
Current assets
Cash and cash equivalents 378,989 652,819 89,831
Restricted cash 65,902 26,675 3,671
Short-term investments 777,890 599,682 82,519
Accounts receivable, net 41,633 54,863 7,549
Amounts due from related parties 9,515 503 69
Prepayments and other current assets 234,189 210,642 28,985
Total current assets 1,508,118 1,545,184 212,624
Non-current assets
Long-term investments 209,819 210,312 28,940
Property and equipment, net 57,479 54,567 7,509
Intangible assets, net 26,091 23,513 3,235
Land use right, net 90,529 89,498 12,315
Operating lease right-of-use assets, net 12,484 10,801 1,486
Other non-current assets 55,960 47,863 6,586
Total non-current assets 452,362 436,554 60,071
Total assets 1,960,480 1,981,738 272,695
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND
EQUITY
Current liabilities
Short-term borrowings 7,277 36 5
Accounts and notes payable 317,104 366,052 50,370
Amounts due to related parties 6,405 8,724 1,200
Salary and welfare payable 21,401 19,750 2,718
Taxes payable 4,305 2,286 315
Advances from customers 270,197 223,609 30,770
Operating lease liabilities, current 2,709 3,297 454
Accrued expenses and other current liabilities 329,481 316,711 43,580
Total current liabilities 958,879 940,465 129,412
Non-current liabilities
Operating lease liabilities, non-current 5,348 3,556 489
Deferred tax liabilities 6,027 5,524 760
Long-term borrowings 10,395
Total non-current liabilities 21,770 9,080 1,249
Total liabilities 980,649 949,545 130,661
Redeemable noncontrolling interests 27,200 27,200 3,743
Equity
Ordinary shares 249 249 34
Less: Treasury stock (285,983) (311,052) (42,802)
Additional paid-in capital 9,138,720 9,144,917 1,258,382
Accumulated other comprehensive income 305,416 311,751 42,898
Accumulated deficit (8,127,552) (8,070,619) (1,110,554)
Total Tuniu Corporation shareholders' equity 1,030,850 1,075,246 147,958
Noncontrolling interests (78,219) (70,253) (9,667)
Total equity 952,631 1,004,993 138,291
Total liabilities, redeemable noncontrolling interests and equity 1,960,480 1,981,738 272,695
Tuniu Corporation
Unaudited Condensed Consolidated Statements of Comprehensive Income
(All amounts in thousands, except per share information)
Quarter Ended Quarter Ended Quarter Ended Quarter Ended
June 30, 2023 March 31, 2024 June 30, 2024 June 30, 2024
RMB RMB RMB US$
Revenues
Packaged tours 69,793 82,951 89,782 12,354
Others 30,159 25,007 27,155 3,737
Net revenues 99,952 107,958 116,937 16,091
Cost of revenues (34,547) (25,913) (32,530) (4,476)
Gross profit 65,405 82,045 84,407 11,615
Operating expenses
Research and product development (13,820) (13,024) (12,693) (1,747)
Sales and marketing (24,906) (36,824) (40,222) (5,535)
General and administrative (21,741) (20,479) (21,737) (2,991)
Other operating income 1,841 582 24,735 3,404
Total operating expenses (58,626) (69,745) (49,917) (6,869)
Income from operations 6,779 12,300 34,490 4,746
Other income/(expenses)
Interest and investment income, net 7,122 10,041 8,221 1,131
Interest expense (218) (613) (1,230) (169)
Foreign exchange losses, net (15,152) (568) (1,282) (176)
Other income, net 1,820 1,279 1,822 251
Income before income tax expense 351 22,439 42,021 5,783
Income tax (loss)/benefit (783) 64 (459) (63)
Equity in income/(loss) of affiliates 653 (604) 1,438 198
Net income 221 21,899 43,000 5,918
Net (loss)/income attributable to noncontrolling interests (437) 7,988 (22) (3)
Net income attributable to ordinary shareholders of Tuniu 658 13,911 43,022 5,921
Corporation
Net income 221 21,899 43,000 5,918
Other comprehensive income:
Foreign currency translation adjustment, net of nil tax 17,736 2,034 4,301 592
Comprehensive income 17,957 23,933 47,301 6,510
Net income per ordinary share attributable to ordinary 0.00 0.04 0.12 0.02
shareholders - basic and diluted
Net income per ADS - basic and diluted* 0.00 0.12 0.36 0.06
Weighted average number of ordinary shares used in computing 371,418,638 371,473,623 363,061,543 363,061,543
basic income per share
Weighted average number of ordinary shares used in computing 376,427,714 373,323,330 365,317,172 365,317,172
diluted income per share
Share-based compensation expenses included are as follows
?
Cost of revenues 54 65 65 9
Research and product development 54 65 65 9
Sales and marketing 28 31 31 4
General and administrative 4,383 4,830 1,429 197
Total 4,519 4,991 1,590 219
*Each ADS represents three of the Company's ordinary shares.
Tuniu Corporation
Reconciliations of GAAP and Non-GAAP Results
(All amounts in thousands)
Quarter Ended June 30, 2024
GAAP Result Share-based Amortization of
acquired Net gain on Non-GAAP
Compensation intangible assets disposals of
subsidiaries Result
Income from operations 34,490 1,590 828 (24,618) 12,290
Net income 43,000 1,590 828 (24,618) 20,800
Net income attributable to ordinary shareholders 43,022 1,590 828 (24,618) 20,822
Quarter Ended March 31, 2024
GAAP Result Share-based Amortization of
acquired Net gain on Non-GAAP
Compensation intangible assets disposals of
subsidiaries 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 June 30, 2023
GAAP Result Share-based Amortization of
acquired Net gain on Non-GAAP
Compensation intangible assets disposals of
subsidiaries Result
Income from operations 6,779 4,519 828 12,126
Net income 221 4,519 828 5,568
Net income attributable to ordinary shareholders 658 4,519 828 6,005
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SOURCE Tuniu Corporation
