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
Corporation

(7,017)

(132,335)

13,911

1,927

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
shareholders – basic and diluted

(0.02)

(0.36)

0.04

0.01

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
basic (loss)/income per share

371,394,686

371,526,300

371,516,251

371,516,251

Weighted average number of ordinary shares used in computing
diluted (loss)/income per share

371,394,686

371,526,300

373,365,967

373,365,967

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)