Tuniu Q4 2024 Earnings Report

Tuniu EPS Results

• Actual EPS: -$0.01
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Tuniu Revenue Results

• Actual Revenue: $14.07 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Tuniu Announcement Details

• Quarter: Q4 2024
• Date: 3/14/2025
• Time: Before Market Opens
• Conference Call Date: Friday, March 14, 2025
• Conference Call Time: 8:00AM ET

Tuniu (NASDAQ:TOUR) operates as an online leisure travel company in China. The company offers various packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services, as well as advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels, including tuniu.com website; mobile platform; a call center in Nanjing; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, the People's Republic of China.

Tuniu Q4 2024 Earnings Call Transcript

Presentation

[Operator]

Hello, and thank you for standing by for Tuniu's twenty twenty four Fourth Quarter and Full Year Earnings Conference Call. At this time, all participants are in a listen only mode. After management's prepared remarks, there will be a question and answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time.

[Operator]

I would now like to turn the meeting over to your host for today's conference call, Director of Investor Relations, Mary.

[Mary Chen, Investor Relations Director at Tuniu Corporation]

Thank you, and welcome to our twenty twenty four fourth quarter and full year earnings conference call. Joining me on the call today are Donald Yu, Wu, Tuniu's Founder, Chairman and Chief Executive Officer and Anxiang Cheng, Tuniu's Financial Controller. For today's agenda, management will discuss business updates, operation highlights and financial performance for the fourth quarter and the fiscal year '20 '20 '4. Before we continue, I refer you to our Safe Harbor statement in earnings press release, which applies to this call as we will make forward looking statements. Also, this call includes dozens of certain non GAAP financial measures.

[Mary Chen, Investor Relations Director at Tuniu Corporation]

Please refer to our earnings release, which contains a reconciliation of non GAAP measures to the most directly comparable GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB. I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Donald Yu.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Thank you, Mary. Good day, everyone. Welcome to our fourth quarter and full year twenty twenty four earnings conference call. Twenty twenty four has been a year filled with achievements and milestones for Tuniu. With the recovery of the tourism market, our business is making steady progress and our profitability continues to grow.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

On the financial side, in 2024, we achieved our first GAAP profit for the full year since our listing. On a non GAAP basis, net income grew by over 70% year over year, reaching a record high since our IPO. While demonstrating the company's profitability, we are also meaning to share our interim achievements with our shareholders. Therefore, the Board of Directors approved a special cash dividend in March 2025 with approximately US4.2 million dollars allocated for distribution. Additionally, in March 2024, we announced a share repurchase program and have spent over US6.2 million dollars on buyback throughout the year.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

In total, we returned approximately US10 million dollars to our shareholders in 2024. For our products, we remain committed to innovation and adopt to evolving customer needs. In addition to continuously upgrading our existing products, we launched new products and product line, such as the new Select product to better sell a wider range of customers. Our commitment to serve so remains strong as we focus on customers' needs and strive to deliver high quality experiences. We implemented initiatives to improve customer satisfaction rate, such as new tours zero shopping policy for all of its itineraries and the new funneling policy for flight tickets.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

In terms of channels, we proactively embrace new media and continue to strengthen our live streaming presence. At the same time, we collaborated with more online and offline partners to sell our customers and strengthen our capabilities in supply chain products and services. Next, I will provide a more detailed overview of the company's business achievements in 2024. For domestic tours, we saw an increase in demand for private and small growth tours, as well as more self guided tours. In response to this trend, we increased our supply of private and small group tours.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Private tours have become a standalone category on the homepage of the Tuniu app. And our in house new tour products now feature a significantly larger selection of private and small growth tour. For self guided tours, leveraging the company's accumulated strength in supply chain management, we have further increased the supply of fragmented resources in order to offer more flexible arrangement options for customers. In addition to increasing the supply of stand alone resources such as flights, hotels and attraction tickets, we have also launched a variety of day tour products to attract more self guided travelers who have already arrived at the destination. At the same time, we will continue to leverage Tuniu's advantages in dynamic packaging technology to better serve self guided travelers.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

For outbound tours, customers remain focused on destination coverage and the product variety. Many of our new tour customers are experienced travelers who are not taking their first trip abroad. To better serve this segment, we have introduced more in-depth single destination tour products. Additionally, we have expanded our offerings to include new destinations such as South Africa and the Polar Regions. For our in house products, new tools have built a large loyal customer base with a repurchase rate twice that of regular products.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

In 2024, transaction volume for new TOR products grew by over 30% year over year. Neutool has earned us customers favor and trust by delivering exceptional experience, and we are committed to provide even higher quality products to the customers. Last year, Neutool fully implemented a zero shopping policy, significantly enhancing the travel experience. This year, we will introduce more premium products, including customized travel itineraries tailored to customer preferences. In addition, with the growing popularity of travel from lower tier cities and the rise of checklist style travel among younger generations, we launched the in house new Select products in the third quarter last year.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

In 2024, transaction volume from cities outside the Tier one cities contributed more than 50% of Tuniu's total transaction volume. New selected products have gained significant popularity, especially among first time travelers to new destinations due to their highly competitive product pricing. This year, we will continue to expand the supply of new selected products, particularly outbound tour options to meet the growing demand for first time international travel from customers in lower tier cities. In terms of sales, we have been continuously expanding the diversity of our sales channels as information is increasingly consumed via video content as opposed to text and images. User habits are also changing.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Closing live streams and the short videos has become an essential part of daily life. In 2024, we made significant progress in this area. We expanded the variety of live streaming products and the destination coverage, introducing more organizing tools and outbound travel products. We also adjusted the product structure seasonally to meet the diverse needs of customers. In addition, we explore new approaches in our core organizer tour business by experimenting with live streaming directly from travel destinations, which received positive feedback.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

In 2024, our live streaming channels performed exceptionally well with both transaction and verification volume increasing by over 100% year over year, while the verification rate continued to improve. This year we will continue to leverage our experience and the capabilities in live streaming to further explore new media channels. We also made significant progress in expanding our offline and external channels in 2024. The transaction volume of our offline stores grew by over 50% year over year. These stores have attracted partners with their diverse product offerings, advanced system and promotion policies.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

At the same time, our offline stores have also helped increase the sales of our in house brand and contributed to brand promotions. This year, we will continue to open more offline stores, working closely with partners to provide customers with more personalized premium services. In our collaborations with traffic platforms, we attracted customers through a streamlined booking process and high quality service experience. By collaborating with external partners, we are able to provide our resources and high quality services to a broader customer base. For external channels, we will continue to embrace an open and collaborative approach, striving for win win customer outcomes with all partners.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Finally, regarding technology, we see great potential and opportunities in the combination of large language model agents with tourism. We'll catch the opportunity and invest in R and D to improve our internal efficiency as well as user experience, enhancing our conversion rate and repurchase rate. Our goal is to provide customer with better solutions and prepare proactively for the evolving market landscape. In summary, twenty twenty five will bring more opportunities and challenges in travel markets. This year, we will focus on product and service upgrade, channel expansion and the technological advancement.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

We will remain resilient amidst change, seizing opportunities and achieving high quality business development. In addition, we will leverage new technologies to further improve internal operational efficiency, reduce costs and achieve sustainable development and profitability goals. I will now turn the call over to Anqiang, our Financial Controller for the financial highlights.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

Thank you, Donald. Hello, everyone. Now, I will walk you through our fourth quarter and fiscal year twenty twenty four financial results in greater detail. Please note that all the monetary amounts are in RMB or as otherwise stated. You can find the U.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

S. Dollar equivalent of the numbers in our earnings release. For the fourth quarter of twenty twenty four, net revenues were $102,700,000 representing a year over year increase of 3% from the corresponding period in 2023. Revenues from Kagi Tours were up 3% year over year to $75,400,000 and accounted for 73% of our total net revenues for the quarter. The increase was primarily due to the growth of online tour.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

Other revenues were up 3% year over year to $27,300,000 and accounted for 27% of our total net revenue. The increase was primarily due to the increase in the fees for advertising services provided to Toys and Bores. Gross profit for the fourth quarter of twenty twenty four was $69,800,000 down 6% year over year. Operating expenses for the fourth quarter of twenty twenty four were $82,500,000 down 58 year over year. Research and product development expenses for the fourth quarter of twenty twenty four were $13,300,000 up 28% year over year.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

The increase was primarily due to the increase in research and product development personnel related expenses. Sales and marketing expenses for the fourth quarter of twenty twenty four were $42,700,000 up 28% year over year. The increase was primarily due to the increase in sales and marketing personnel related expenses and promotion expenses. General and administrative expenses for the fourth quarter of twenty twenty four were $26,800,000 up, down 36% year over year. The decrease was primarily due to the decrease in general and administrative personnel related expenses.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

Net loss attributable to ordinary shareholders of Tuniu Corporation was $24,200,000 in the fourth quarter of twenty twenty four. Non GAAP net loss attributable to ordinary shareholders of Tuniu Corporation, which included the share based compensation expenses, amortization of acquired intangible assets and impairment of property and equipment, net worth C6.4 million dollars in the fourth quarter of twenty twenty four. As of 12/31/2024, the company had cash and cash equivalents, restricted cash, certain investments and long term deposits of RMB1.3 billion. Capital expenditures for the fourth quarter of twenty twenty four were RMB1.2 million. Dollars Now moving to full year 2024 results.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

In 2024, net revenues were $513,600,000 dollars representing a 16% year over year increase. Revenues from packaged stores were up 22% year over year to $407,500,000 and accounted for 79% of our total net revenues in 2024. The increase was primarily due to the growth of organized stores. Other revenues were down 2% year over year to $106,200,000 and accounted for 21% of our total net revenues in 2024. The decrease was primarily due to the decrease in revenues generated from financial services.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

Gross profit were $358,000,000 in 2024, up 22% year over year. Operating expenses were $294,800,000 in 2024, down 25% year over year. Research and product development expenses were $52,700,000 in 2024, down 8% year over year. The decrease was primarily due to the decrease in research and product development personnel related expenses. Sales and marketing expenses were $180,300,000 in 2024, up 53% year over year.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

The increase was primarily due to the increase in promotion expenses. General and administrative expenses were $87,700,000 in 2024, down 23% year over year. The decrease was primarily due to the decrease in general and other administrative personnel related expenses. Net income attributable to ordinary shareholders of Tuniu Corporation was $77,200,000 in 2024. Non GAAP net income attributable to ordinary shareholders to Tuniu Corporation, which excluded the share based compensation expenses, amortization of acquired intangible assets, net gain on disposals of subsidiaries and the impairment of property and equipment.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

Net was $80,800,000 in 2024. Cash flow generated from operations for 2024 was $84,000,000 Capital expenditures were $12,000,000 in 2024. For the first quarter of twenty twenty five, the company is set to generate $116,600,000 to $122,000,000 of our net revenues, which represents 8% to 13 increase year over year. Please note that this forecast reflects new current and the preliminary view on the industry and its operations, which is subject to change. Thank you for listening.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

We are now ready for your questions. Operator?

[Operator]

Thank you. The question and answer session of this conference call will start in a moment. In order to be fair to all callers who wish to ask a question, we will take one question at a time for each caller. The first question comes from Stacy Zhao, a Private Investor. Please go ahead.

[Analyst]

Hi, management. Congratulations on a profitable year. Can you share with us your projections for the 2025 revenue and profit? What are some key drivers to support revenue growth? Are you going to maintain quarterly or yearly profitability?

[Analyst]

Thank you.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Thank you for the questions. In 2025, the total travel market will continue to grow, while the market competition is getting more intense in the form of both quality and the price. We are continuing to adopt high quality business development strategy, trying to beat the industry average growth rate. On the product side, we are investing in product upgrading and innovation for our core products. For example, we'll introduce more in-depth and single destination tour products for our new tours to better serve and retain our repeat customers.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Facing factors such as the intense competition will keep competitive pricing for certain products and the product lines to attract more new customers. Therefore, our gross profit ratio will be negatively impacted this year. On the sales side, we'll continue to expand the diversity of our sales channels. To embrace the changing user habits, we'll expand sales on new media channels. We'll leverage our experience and capabilities in live streaming, expanding to more platforms.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Last year, live streaming channel contributed about 10% of our total GMV. For offline channels, currently we have over 200 stores nationwide. This year, we are largely increased the number of offline stores, maybe double that number. On the technology side, we focus on AI agent through combining the power of AI agent with our insights of a leader travel market. We will further enhance our user experience and improve operational efficiency.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

As for your questions regarding profits, we believe our full year GAAP net income in 2024 has demonstrated Tuniu's ability to be profitable and serve as meaningful steps toward achieving long term profitability. In 2025, the market is filled with new opportunities and challenges. So we plan to make some investments as mentioned above in product innovation, sales channel expansion and R and D to further improve user experiences and internal efficiency. With these improvements, we will refine our competitive advantages and consolidate our market position, so as to drive the long term sustainable growth of Tuniu. Despite our investments, we are still aiming for a profitable year in 2025.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Quarterly performance may vary due to the seasonality and the third quarter is expected to be the season the peak season and will contribute the majority of the annual profits. Thank you.

[Operator]

We are now approaching the end of the conference call. I will now turn the call over to Tunuu's Director of Investor Relations, Mary, for closing remarks.

[Mary Chen, Investor Relations Director at Tuniu Corporation]

Once again, thank you for joining us today. Please don't hesitate to contact us if you have any further questions. Thank you for your continued support and we look forward to speaking with you in the coming months.

[Operator]

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Have a good day.

Participants

Executives

• Mary Chen, Investor Relations Director
• Donald Dunde Yu, Founder, Chairman and CEO
• Anqiang Chen, Financial Controller

Analysts

• Analyst