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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 .

[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 .

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 .

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)













 

 


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