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NANJING, China, Nov. 21, 2023 /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 third quarter ended September 30, 2023.
Highlights for the Third Quarter of 2023
"We are pleased to report continued growth for the third quarter of 2023," said Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer. "Our net revenues increased by 128.9% year-over-year, and revenues from packaged tours increased by 262.1% year-over-year. Our GAAP net income turned positive on a year-over-year basis, reaching a new quarterly high since our listing. Notwithstanding taking advantage of China's peak travel season to achieve revenue recovery, we remained committed to our strategy of operational efficiency improvement to deliver profitable growth. In our business operations, we continue to capitalize on our competitive advantages in products, services, and technology to attract more customers seeking premium travel experiences and to drive sustainable revenue growth in the long-term. As we persist in implementing stringent cost control measures to lower expenses as a percentage of revenues, Tuniu's path to profitability will become increasingly clear."
[1] The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB 7.2960 on September 29, 2023 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. |
Third Quarter 2023 Results
Net revenues were RMB178.2 million (US$24.4 million) in the third quarter of 2023, representing a year-over-year increase of 128.9% from the corresponding period in 2022. The increase was primarily due to the growth of packaged tours as the travel market recovers.
Cost of revenues was RMB63.4 million (US$8.7 million) in the third quarter of 2023, representing a year-over-year increase of 93.2% from the corresponding period in 2022. As a percentage of net revenues, cost of revenues was 35.6% in the third quarter of 2023, compared to 42.2% in the corresponding period in 2022.
Gross profit was RMB114.8 million (US$15.7 million) in the third quarter of 2023, representing a year-over-year increase of 154.9% from the corresponding period in 2022.
Operating expenses were RMB83.1 million (US$11.4 million) in the third quarter of 2023, representing a year-over-year increase of 40.1% from the corresponding period in 2022.
Income from operations was RMB31.7 million (US$4.3 million) in the third quarter of 2023, compared to a loss from operations of RMB14.3 million in the third quarter of 2022. Non-GAAP income from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB38.1 million (US$5.2 million) in the third quarter of 2023.
Net income was RMB39.1 million (US$5.4 million) in the third quarter of 2023, compared to a net loss of RMB23.5 million in the third quarter of 2022. Non-GAAP net income, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB45.5 million (US$6.2 million) in the third quarter of 2023.
Net income attributable to ordinary shareholders of Tuniu Corporation was RMB39.4 million (US$5.4 million) in the third quarter of 2023, compared to a net loss attributable to ordinary shareholders of Tuniu Corporation of RMB22.0 million in the third quarter of 2022. Non-GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB45.8 million (US$6.3 million) in the third quarter of 2023.
As of September 30, 2023, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.2 billion (US$163.7 million).
Business Outlook
For the fourth quarter of 2023, Tuniu expects to generate RMB87.4 million to RMB92.9 million of net revenues, which represents a 220% to 240% increase year-over-year compared with net revenues in the corresponding period in 2022. This forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change.
Conference Call Information
Tuniu's management will hold an earnings conference call at 8:00 am U.S. Eastern Time, on November 21, 2023, (9:00 pm, Beijing/Hong Kong Time, on November 21, 2023) to discuss the third quarter 2023 financial results.
To participate in the conference call, please dial the following numbers:
US | 1-888-346-8982 |
Hong Kong | 852-301-84992 |
Mainland China | 4001-201203 |
International | 1-412-902-4272 |
Conference ID: Tuniu 3Q 2023 Earnings Conference Call
A telephone replay will be available one hour after the end of the conference call through November 28, 2023. The dial-in details are as follows:
US | 1-877-344-7529 |
International | 1-412-317-0088 |
Replay Access Code: 4611353
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; the Company'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; relevant government policies and regulations relating to the Company's structure, business and industry; the impact of the COVID-19 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 and amortization of acquired intangible assets. 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, 2022 | September 30, 2023 | September 30, 2023 | |||
RMB | RMB | US$ | |||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | 153,835 | 323,260 | 44,306 | ||
Restricted cash | 44,052 | 28,560 | 3,914 | ||
Short-term investments | 724,413 | 842,188 | 115,431 | ||
Accounts receivable, net | 33,644 | 63,959 | 8,766 | ||
Amounts due from related parties | 1,030 | 4,351 | 596 | ||
Prepayments and other current assets | 242,994 | 231,292 | 31,701 | ||
Total current assets | 1,199,968 | 1,493,610 | 204,714 | ||
Non-current assets | |||||
Long-term investments | 230,562 | 229,699 | 31,483 | ||
Property and equipment, net | 85,182 | 77,435 | 10,613 | ||
Intangible assets, net | 30,672 | 27,363 | 3,750 | ||
Land use right, net | 92,590 | 91,044 | 12,479 | ||
Operating lease right-of-use assets, net | 33,204 | 13,079 | 1,793 | ||
Goodwill | 114,661 | 114,661 | 15,716 | ||
Other non-current assets | 91,091 | 56,184 | 7,701 | ||
Total non-current assets | 677,962 | 609,465 | 83,535 | ||
Total assets | 1,877,930 | 2,103,075 | 288,249 | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND | |||||
Current liabilities | |||||
Short-term borrowings | 7,517 | 8,217 | 1,126 | ||
Accounts and notes payable | 261,873 | 427,802 | 58,635 | ||
Amounts due to related parties | 4,710 | 8,057 | 1,104 | ||
Salary and welfare payable | 26,507 | 25,511 | 3,497 | ||
Taxes payable | 4,047 | 3,102 | 425 | ||
Advances from customers | 98,899 | 160,774 | 22,036 | ||
Operating lease liabilities, current | 12,439 | 2,705 | 371 | ||
Accrued expenses and other current liabilities | 358,312 | 329,312 | 45,136 | ||
Total current liabilities | 774,304 | 965,480 | 132,330 | ||
Non-current liabilities | |||||
Operating lease liabilities, non-current | 26,482 | 8,749 | 1,199 | ||
Deferred tax liabilities | 6,839 | 6,230 | 854 | ||
Long-term borrowings | 11,959 | 9,094 | 1,246 | ||
Total non-current liabilities | 45,280 | 24,073 | 3,299 | ||
Total liabilities | 819,584 | 989,553 | 135,629 | ||
Redeemable noncontrolling interests | 27,200 | 27,200 | 3,728 | ||
Equity | |||||
Ordinary shares | 249 | 249 | 34 | ||
Less: Treasury stock | (288,600) | (286,177) | (39,224) | ||
Additional paid-in capital | 9,125,655 | 9,133,839 | 1,251,897 | ||
Accumulated other comprehensive income | 298,981 | 311,264 | 42,662 | ||
Accumulated deficit | (8,028,261) | (7,995,217) | (1,095,838) | ||
Total Tuniu Corporation shareholders' equity | 1,108,024 | 1,163,958 | 159,531 | ||
Noncontrolling interests | (76,878) | (77,636) | (10,641) | ||
Total equity | 1,031,146 | 1,086,322 | 148,890 | ||
Total liabilities, redeemable noncontrolling interests and equity | 1,877,930 | 2,103,075 | 288,247 |
Tuniu Corporation | |||||||
Unaudited Condensed Consolidated Statements of Comprehensive Loss | |||||||
(All amounts in thousands, except per share information) | |||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | ||||
September 30, 2022 | June 30, 2023 | September 30, 2023 | September 30, 2023 | ||||
RMB | RMB | RMB | US$ | ||||
Revenues | |||||||
Packaged tours | 41,440 | 69,793 | 150,052 | 20,566 | |||
Others | 36,418 | 30,159 | 28,139 | 3,857 | |||
Net revenues | 77,858 | 99,952 | 178,191 | 24,423 | |||
Cost of revenues | (32,835) | (34,547) | (63,424) | (8,693) | |||
Gross profit | 45,023 | 65,405 | 114,767 | 15,730 | |||
Operating expenses | |||||||
Research and product development | (9,729) | (13,820) | (18,400) | (2,522) | |||
Sales and marketing | (26,502) | (24,906) | (39,583) | (5,425) | |||
General and administrative | (24,270) | (21,741) | (27,089) | (3,713) | |||
Other operating income | 1,222 | 1,841 | 2,005 | 275 | |||
Total operating expenses | (59,279) | (58,626) | (83,067) | (11,385) | |||
(Loss)/income from operations | (14,256) | 6,779 | 31,700 | 4,345 | |||
Other income/(expenses) | |||||||
Interest and investment income, net | 5,491 | 7,122 | 7,397 | 1,014 | |||
Interest expense | (1,194) | (218) | (1,102) | (151) | |||
Foreign exchange (losses)/gains, net | (16,167) | (15,152) | 1,983 | 272 | |||
Other income, net | 2,797 | 1,820 | 1,687 | 231 | |||
(Loss)/income before income tax expense | (23,329) | 351 | 41,665 | 5,711 | |||
Income taxes benefit/(expense) | 376 | (783) | (964) | (132) | |||
Equity in (loss)/income of affiliates | (551) | 653 | (1,630) | (223) | |||
Net (loss)/income | (23,504) | 221 | 39,071 | 5,356 | |||
Net loss attributable to noncontrolling interests | (1,456) | (437) | (332) | (46) | |||
Net (loss)/income attributable to ordinary shareholders of Tuniu | (22,048) | 658 | 39,403 | 5,402 | |||
Net (loss)/income | (23,504) | 221 | 39,071 | 5,356 | |||
Other comprehensive income/(loss): | |||||||
Foreign currency translation adjustment, net of nil tax | 18,066 | 17,736 | (1,413) | (194) | |||
Comprehensive (loss)/income | (5,438) | 17,957 | 37,658 | 5,162 | |||
Net (loss)/income per ordinary share attributable to ordinary shareholders - | (0.06) | - | 0.11 | 0.02 | |||
Net (loss)/income per ADS - basic and diluted* | (0.18) | - | 0.33 | 0.06 | |||
Weighted average number of ordinary shares used in computing basic | 371,274,640 | 371,418,638 | 371,473,030 | 371,473,030 | |||
Weighted average number of ordinary shares used in computing diluted | 371,274,640 | 376,427,714 | 374,615,685 | 374,615,685 | |||
Share-based compensation expenses included are as follows: | |||||||
Cost of revenues | 24 | 54 | 79 | 11 | |||
Research and product development | 10 | 54 | 79 | 11 | |||
Sales and marketing | 31 | 28 | 43 | 6 | |||
General and administrative | 432 | 4,383 | 5,356 | 734 | |||
Total | 497 | 4,519 | 5,557 | 762 | |||
*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 September 30, 2023 | |||||||
GAAP Result | Share-based | Amortization of acquired | Non-GAAP | ||||
Compensation | intangible assets | Result | |||||
Income from operations | 31,700 | 5,557 | 828 | 38,085 | |||
Net income | 39,071 | 5,557 | 828 | 45,456 | |||
Net income attributable to ordinary shareholders | 39,403 | 5,557 | 828 | 45,788 | |||
Quarter Ended June 30, 2023 | |||||||
GAAP Result | Share-based | Amortization of acquired | Non-GAAP | ||||
Compensation | intangible assets | 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 | |||
Quarter Ended September 30, 2022 | |||||||
GAAP Result | Share-based | Amortization of acquired | Non-GAAP | ||||
Compensation | intangible assets | Result | |||||
Loss from operations | (14,256) | 497 | 1,434 | (12,325) | |||
Net loss | (23,504) | 497 | 1,434 | (21,573) | |||
Net loss attributable to ordinary shareholders | (22,048) | 497 | 1,434 | (20,117) |
No. 322 Middle of Huangpu Avenue,Tianhe District,Guangzhou,Guangdong
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