Tuniu (TOUR) 17 Aug 232023 Q2 Earnings call transcript

Good day, and welcome to the Tuniu ‘23 Q2 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded.

I would now like to turn the conference over to Mary Chen, Investor Relations Director. ahead. go Please

welcome call. and XXXX quarter second Thank to conference earnings you, our

Joining Donald Tuniu’s today Chairman call me the on are Executive and and Officer Yu, Anqiang Controller. Chen, Financial Chief Founder, Tuniu’s

performance management agenda, XXXX. updates, and quarter discuss For for today's second will the operational business highlights financial of

certain Harbor includes forward-looking applies reconciliation financial Before call to which non-GAAP we Safe as continue, discussions statements. earnings to the we release, comparable to you refer measures. in I make GAAP Also, of its this call this press of our will refer earnings Please to statement release, measures measures. directly non-GAAP which most our a contains

stated, Finally, during figures mentioned are please unless this note otherwise all in that call RMB.

call Chief Chairman I to over would now Executive Donald our and like Yu. the turn Officer, Founder, to

the to and Good Thank earnings a call. In you, Mary. business quarter. robust second everyone. deliver rapid in results. momentum conference day, experienced second XXXX Tuniu’s on we quarter, saw strong the the recovery first quarter our Welcome Building

quarter, operating our revenues listing income In from revenues achieved the year-over-year XXX% the non-GAAP for even net growing the in by since first Tuniu's outbreak, first previous basis. with Our tours -- this year GAAP pandemic at our and XXX% quarter growing this profit faster year-over-year. on since packaged guidance, net we and beat both

to products, continuously advantages Tuniu’s in chain, been supply profitability. increase our and we able leveraging By channels, sales have

We in on also internal tools. technology -- premiumization, our focused improving the efficiency operational operation, through

year. from period to margin our during XX% the gross last quarter, the up improved During same XX%,

sustained domestic of is results and for And long-term step two are the from now to goal overcoming cash the profitability. we Additionally, this quarters. consecutive flow of impact our operating The realize positive pandemic. closer one growth we negative have encouraging Tuniu quarter maintained

on travel of both second travel warm with suppliers. quality, the To quantity quality meet to and terms industry the follows demand products to has holidays. the products roads. increasing offerings been customer product products for market for a popular traveling most with focus our weather regarding strategy travel people's search In demands in a quarter, enthusiasm Tuniu and in-house of diverse strict services In selection popular upcoming response and leading to provides and for be development specific in-house our standards destinations more through and for collaborations our

During which the several rate. an series quarter, Without satisfaction booked launched of second large in without customer impressive tour scheduled tour our new were were a classic launched number nearly tours quarter Notably, roads shopping planned September. XX% Europe, in fully new the itineraries activities. through with

higher the our Regarding to skill advantages procurement profitability rates effectively leading reduce and risk Tuniu our focus of on the in-house is price our in-house competition, product for products. differentiation resource to products minimize helps leverage costs for our take

We also increasingly higher long growing our expand offer collaborations customers the are an due public's to tours of of quality with to range demand experiences. products. continued Customized our suppliers the tail travel for diverse extended to popular, range

more than their our international have by compared for destinations class, quarter. repeat to the as And base primary In The expanded XXX%, often in upper customer middle as to travel tours increased customers, and tour for from customized customized the GMV quarter who to Tuniu's the tours the markets. with friends. well second previous private families domestic

value-added mainly cities. second increase during constantly due standard compared building a In organized travel trips services. time our spring to achieve peak a Customized incentive take noticeable and and in trips Tier with for first season higher can tours the Corporate rate, is [Indiscernible] companies. team products to the

services tour ensure additional high to quality service operators local for our addition, profitability. customized and helping In also self-operated provide tours,

sales network diverse more customers. of our terms sales In us reach channels, allow to

quarter, our staff staff committed destination-based seeing by strengthening tour and in capabilities. tech lie online In advantages with competitive building through And the advisers we key of the seeing become training help previous the team second improve tools. team developing we our of able that we their efforts Surpassing and sales technology year-over-year. through the enhance offline to significant professional to efficiency our both are And to to the the remain our productive continued advisors. tour employee to a business Tuniu's tools. experienced increase our new quarter, are of new more One of per training

of This Our trust at repeat for overall regular great Tuniu, due membership-based the remained customers have contribution our to and support the XX%. customers year, program. constantly largely GMV our loyalty show to over

of first-half [Indiscernible] every the month GMV days meeting on this our of the and tours growth. membership total GMV year, steady During packaged

our second the that three quarter sales and Douyin the live on streaming accounts, live During 's Difficulty] streaming top channels category. sales terms [Technical service within hotel in volumes nationwide among travel of

to We influencers and promote continued our collaborate leading products. (ph) also to [MC agencies] with

third by establishment. in the nationwide suppliers. first quarterly supply our Thanks ranked dedicated its the achieved channel recording since place travel significant side, the a Tuniu’s profit we milestone On streaming to drink, efforts, team's among live its

including distribution offline marketing and partner tools, channels, BXB stores social results. positive also platform, Our delivered our

strategy digit Travel distribution quarter. from procurement inventory and advantages scale During this to quarter, offline the growth, and our daily BXB compared The side demand, [Indiscernible] accumulate compared low frequency, is pressure. partners sales case. previous stores platform a to helps triple reduce necessary the company our for considered achieved the relatively

low base cost, we into BXB distribution stores at reach and influence. enhancing cities Tuniu's this while to Offline consumption. approach, able But customers have through brand our in relatively broader to transform frequency our low products Tier high are a a customer

automation have we technology, our further operations. Regarding across deployed

tours Through basis. expenses helping products quarters implemented automation on in chain for a technology, the further operating reviewing consecutive company's automated management. year-over-year For we enhanced example, four to for supply we Tuniu's efficiency, lower operational

automation the We employee will various promote increase and digitalization and continue to to scenarios across work processes productivity.

integrated progress reflecting positive made business service strategy both and our to. the on we have model line, and bottom the and product Tuniu's quarter, a effectiveness second always adhere In of top we the the

for and to continue create face the are weaker we and With prepared challenges season summer value our peak shareholders. well approaching, customers any to

I'll the Anqiang, the turn call Financial now to our financial Controller, highlights. for over

Hello, Thank you, everyone. Donald.

walk second the in that through quarter XXXX amounts detail. are Now in monetary results Please our will note unless I stated. you greater of all financial RMB otherwise

can of U.S. earnings numbers the You the dollar find release. equivalents in our

XXXX. recovers. quarter XXX% due was of the of revenue packaged representing second to increase period million, market the primarily the The a tours increase growth For XXXX, the were RMBXXX net from in travel corresponding of year-over-year and

total revenues net The XXX% The RMBXX.X year-over-year to due up increase were million the Other increase of increase XX% our to growth tours. the for to of revenues quarter. was primarily for in were RMBXX.X accounted an net due Revenues companies. fees up and and the XX% of tours revenues. XX% primarily service received from year-over-year insurance to million packaged accounted total organized was for from our

Operating of second profit XXXX the year-over-year. RMBXX.X fact impairment the decrease on due quarter not did in quarter of Gross were of gain and the million, subsidiaries incur XXXX to of XXX% company down the primarily for expenses second XXXX. that up the XX% for was million, second quarter of disposals the year-over-year. RMBXX.X The goodwill was

operating of recorded RMBXXX.X XXXX. operating incurred the amounts of expenses in and Gain of in of on income which the were second were amount subsidiaries, other in as million quarter million goodwill impairment RMBXX.X disposals the in of

the The product for XXXX the and million, decrease Sales primarily development primarily year-over-year. Research decrease amortization XXXX second RMBXX.X RMBXX.X assets. due to million, were was second down X% increase increase intangible and promotional due for The year-over-year. expenses marketing the in expenses. the of were expenses quarter acquired in was up X% to of of quarter

X% expenses the primarily due was general The decrease million, shareholders Tuniu and to quarter quarter second the expenses. ordinary personnel income XXXX General and were attributable the decrease administrative was RMBX.X of in of million RMBXX.X Corporation administrative XXXX. for second related of to Net year-over-year. down in

net Non-GAAP on the ordinary goodwill expenses, intangible impairment gain more second of attributable our Corporation, was excluded subsidiaries shareholders quarter and income RMBX private compensation assets of of XXXX. traditional disposals in of million a share-based of which Tuniu to the

As company XX, equivalents, cash short-term and RMBX.X investments cash of had June of cash billion. and XXXX, the restricted

expenditures of Capital quarter Cash RMBX.X second RMBXXX.X were was flow second million. generated of quarter XXXX from operations million. for XXXX the for the

third increase year-over-year. XXX% company RMBXXX.X expects to the of million generate XXX% XXXX, a of million the RMBXXX.X to to represents quarter net For revenues, which

Please is the which current view forecast preliminary note subject to that for listening. operations, Tuniu you on reflects and the its and Thank change. industry

We questions. Operator? are for now ready your

Thank you.

Rachel Instructions] first begin Our session. from go comes Please a question We ahead. will Private Lee, Investor. [Operator the now question-and-answer

Thank you, operator.

the congratulations quarter. First performance on excellent of this all

tourism their part business? For guidance, revenues of exceeded proportions the have quarter, second or better-than-expected your quarter's domestic last are What outbound revenues which and company's respectively? business recovers the

think you do perspective, your third in From outlook. profitability profitability regarding is Thank question quarter? expand another you. And will the the

strong growing had for for quarter We over you Thank second with the packaged X year-over-year. questions. times revenue

steady was before, due travels previous in also maintained quarter. year, This early little earlier second the a happen which month-by-month, saw since the bit July. to second-half in to of to years. season saw of up than GMV results come We peak the total growth a the it the contributed Our probably demand release through June, pent of This used positive so summer June.

from towards of a of faster and during travel In our accounted accounted for domestic quarter. Domestic experienced second have outbound and -- towards single-digit proportion terms over GMV XX% in XX%, previous tours, than for the quarter. outbound increasing both recovery less the total

domestic inter to For travels revenues. tours, the most tours our contribute

among products, the online family platform, fast our in such achieved direct quarter. and drivers. customized channels and Both channels live profitability tours, and BXB were corporate our distribution distribution private tours of grow of New a as streaming and the many revenue second tour main

SKUs of bookings launched For increased and second outbound quarter. with the a new tours in March, announced countries we saw more in the reopening

several become of with times, in largest bottom terms the quarter. compared March in from European included of list to were quarter, the GMV list. GMV as increased example, XXX countries overseas over Europe in our first something its the destination second the For second

released of are new last We countries about list week. excited the opening

before list and destinations Chinese them some were of among The pandemic. contains more third for much destinations popular travelers the

the release on Soon some increased outbound the list. the destination for platform new of in Tuniu searches significantly, especially countries after news,

positive for the as are as and We supply industry to chain the resume trying soon possible. our outlook of best

SKUs already destinations. So the newly have we’ve for far added launched

in the a profit quarter. achieve your question, we second goal the For second for regarding will feasibility quarterly our

third growth The we peak the line and year-over-year. season of are for a XXX% targeting XXX% is to quarter top

within -- strict room first measures, for quarter our maintain we will increasing tools margin both have we still account to we you. our to the the total head of technology Thank assist the peak basis. staff continue Thus on While increase the take business. non-GAAP and to a to in leveraging control XX% and year-on-year during cost improvement handle the season GAAP

This queue. over any would our the [Operator in turn to the Chen question-and-answer Mary session. to concludes conference I Instructions] no remarks. back There are more questions like for closing

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

has now Thank you concluded. today's presentation. attending for The conference

now disconnect. may You