Tuniu (TOUR) 5 Dec 242024 Q3 Earnings call transcript

Hello, and thank you for standing by for Tuniu's 2024 Third Quarter Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. [Operator Instructions] I would now like to turn the meeting over to your host for today's conference call. Director of Investor Relations, Mary.

Thank you, and welcome to our 2024 Third Quarter Earnings Conference Call.

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

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

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

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

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

to RMB have income our revenues continued exceeded RMB million, and to X high a In year On quarter non-GAAP a everyone. Mary. listing and earnings million. a XXXX you, this for we profitability basis, net call. profit since net the X our consecutive day, Good for GAAP of the XXX reaching Thank quarter, up XX.X achieved first quarters quarters. with our third income third record our grow Welcome to conference

enriched achieved market travel quarter. the customers. the summer, outbound introduced significantly year-over-year with compared product The During particularly our our demonstrated to transactional double-digit of products for quarter, strong for seasonally more growth third was the range last demand volume robust new products a outbound in travel,

choices and people, As from in noticed demand a products travel have growing services. we destination vacation more customer for essential summer ranging increasingly becomes to

products emerging as this streaming short more tours, single customers. rise and advanced in-depth differentiated aim [indiscernible] and channels Recognizing customers private as for services to tours, and the diverse of in we videos. meet create involve demand needs such to Additionally, live trend, and destination reaching

various collaborate the customer products, for Meanwhile, lines offering broad introduce the segments development, product meet to such niche and for demand of continue suppliers tailored of range optimizing as to strengthening occasional wider further with we to destinations. and products third-party terms our diverse product solutions demand, meet In are products to a customer travel. our in-house we

optimized the product third our in-house further line. we quarter, During

products a to industry-leading travel follow high-quality tour continue new Our to aiming deliver approach experiences.

In regions to covering destinations. itineraries, tour a for shopping our are more America [indiscernible] destinations, South which addition growth of considered often such policy range we are once-in-lifetime private the new Polar as broader and offering and tour

customers experiences tour XX% volume customized transaction new year-over-year. In tour repeat and Our travel prioritize this of bans, exploring products increased products new new of and are X are unique products open the the families who to year, definitions. for travel quarters first over and

products, and new in-depth newly travel a rate. Thailand XX% rate products achieving Additionally, with some outbound customer as tour to -- launched profit Bali, those a satisfaction maintained remarkable such satisfaction XXX%

organized third customers in-house of representing Tuniu's the detour responding tourism we to product in style cities the checklist search quarter, new travel young and launched During the core rise the in people, among our products, lower-tier slack and client. travel of from

products classic competitive at slack New highly include roads prices. most

further products New excellent of destination first time. the visiting Tuniu's diversify slack the for choice offerings in-house those range and for price

more new popular we to For product promotion, streaming live embraced channels the attract customers.

have We popular received summer for of are and positive see have pleased domestic to the launched during slack we new vacation. that response products the very destinations outbound

XXX% live increased we verification increased year-over-year, total by for travel streaming quarter, improving. over XXX%, rate further nearly streaming volume further payment from explored the During with volume large while our -- The by the shows shows. verification

a through channel. once single we Additionally, profitability again achieved

better have increasing on products. tours sales family of related more diverse by offerings During selected. the in-park capitalized and summer, travel for We the become product our demand

and demand such destinations outbound to a meet products like the diverse introduced consumer of coverage expanded slack also base. the Europe cost-effective We for new as [indiscernible]

customers. detour Additionally, attract organized more one-day options tours tour self-guided more offered to flexible as such we

more In systems, familiar entirely our addition, efficiency. who become our our has resulting our are in-house strengthened streaming by and live with experimental. team employees in products We the more of higher studios stopped setup

Additionally, we we leveraging target of verification help deep and enhanced verification models. customers large packaged dedicated further have of understanding a the more In the third team demand quickly. complete products quarter, to streaming our our our tour customers,

customers experience. their conducted studios live and the a influencers shows offering left immersive from streaming directly Our destinations more

rise quarter, we customer new in-house, range growth our we a to destinations, In monthly sales the process we show in to and expand third experience partnerships our offline us growth. continued that service ticket products bookings streaming services deliver helped the customers booking superior enhanced the to bookings. leading live the Transport, which our the during traffic our in-studio, with introduce such with trust gain as committed collaboration will adopted to provide Furthermore, to channels remain approach During encyclopedic and us in stores, peak platforms into in Through to customers we showcased professionalism sustainable quarter. attracted during of more streamline helping air with season. diversifying AliPay

local with Europe Thailand, travel experiences several tourists in tour Chinese rhythm visiting of collaborated countries, strength Tourism Tuniu's destinations. Saudi outbound travel to including leveraging market Australia, boost for and we Arabia Moreover, and these their enhance

ensuring on engagements. also high-quality services, and to we provide allowing addition tour feedback customers, potential our to season, us services for resolve regular maintaining guides, guests to on maintained tour inviting terms We prominently. follow-ups, of focused and customer our ongoing experience during identify In product, in the peak customer issues

enhancing on transparency. for policy We to our and integration experience also booking the promoted tickets, demonstrating Tuniu commitment non-volume flight our

at rating website to constantly XX%. our on the satisfaction which product have currently We displayed stands

customers. the days Festival extended will have of transactional Spring to the public's broadening repeat travel sector, achieving for volume. services X committed advantages forward a time, and especially meet was profitability. product The optimizing support the and our more healthy enhancing enthusiasm positive to long-term year. customers efficiency ever-changing sector. policy signal channels next needs the channels services the remains look to control our our the services upcoming industry. to to the of contributed our always forefront travel. prioritize development at be promotion In quality service We same for This boost and the long-term trend improvements, sales holiday XX% continue our to strict our adding the starting At industry, customers high-quality to constantly that company's in our and for the products competitive have cost of confidence a holiday further our holidays will the industry monitoring core public of an over we performance new development. Tuniu November, development growth been for and while Our the High products and closely tourism X introduced, and reinforcing remain inevitable is of upholding quality our needs the of which ensure

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

you, Thank Donald. Hello, everyone.

of Now I'll walk greater are that through note of our results Please XXXX quarter otherwise amounts mentions all financial you in third the detail. stated. unless in RMB

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

year-over-year XXX.X XXXX. provided revenue the down The revenues of accounted total up RMB million, the revenues quarter the tourism year-over-year for XXXX, third net for to of board of increase to was million the period RMB the and Revenues Other the in from year-over-year to decrease net For services X% were our revenues. million X% in X% representing growth XX% net XX% from and for to primarily for due RMB XX.X XXX advertising quarter. increase tours of due organized packaged fees corresponding a total of were to The bureaus. were primarily accounted and our tours. was decrease

quarter year-over-year. for Gross million, third of were the the The year-over-year. doubtful profit ordinary shareholders decrease primarily accounts. was million, in in Operating XXXX Tuniu to of RMB XXXX X% to XX.X income expenses. Corporation The XX.X due third RMB year-over-year. marketing XXXX. up were development to increase the was for quarter and of RMB RMB expenses. product due quarter and year-over-year. to due development XX% expenses and XXXX million, of was primarily third personnel-related XX% million, XXXX third for decrease expenses the attributable up expenses XX.X up primarily quarter RMB General of million research for administrative million, allowance the was RMB The Net XX.X in increase XX% the the third of XXXX quarter were promotion Sales down for and expenses of were down for of the Research reversal year-over-year. product XXX.X was the XX.X quarter decrease XX% third

ordinary quarter million to Corporation, attributable of expenses intangible in XXXX. income assets compensation shareholders amortization third acquired net and share-based excluded which of Tuniu was XX.X RMB of the Non-GAAP

cash million. restricted expenditures XX, September Cash of the and from had flow third of the and X.X investments XXXX for X.X company Capital the equivalents, XXXX, billion. RMB of generated was XXXX of short-term cash RMB were quarter XX million. RMB third operations cash quarter for As

Please fourth new represents view the to which its subject to a net increase listening. the X% million to change. Thank the expects quarter this on XXXX, to and For that operations which RMB XXX reflects industry of revenues preliminary generate is company forecast note of RMB XXX for X% current million you year-over-year. and

now We ready your for are questions. Operator?

question Wong, from The Investor. Instructions] Judy first [Operator Private a today comes

guidance quarter. year's tourists? another for share quarter. the of profitable on next My please and fourth the and market domestic Could any both line? insights question slowdown reasons you on can for the bottom Also, share for about on revenue the is Congratulations outlook the you some outbound

quarter On low a will total for for yon to Fourth due for the to our compared Thank Revenues revenues. we tourism. is quarters year-over-year last season seasonality. single-digit question. growth basis, off drop expect

In For the more destinations tourism demand. winter, tourism fourth some outbound domestic themes snow quarter for and policy such since speaking, both abroad due products with And Asia East and to cold this tours. Generally release are of are as were very year. year for the can and for domestic convenient choices countries, be as destinations, Overseas snow tours domestic more Southeast But fully Asia weather, winter traveling hot its the people base was we for this for as last and pent-up in launched heading and and [indiscernible] market, this Together, North, the more main comparatively popular period XXXX. year of ice high the has the avoiding the there was of have X winter. opened the Australia. last travel continued storm. popularity the purpose ice

to line, profit don't due specific quarter. the give effects scale guidance lower will fourth we revenues as the to for any bottom period. declined seasonality in lead the On in limitations

try to keep However, non-GAAP X will achieved our since we consecutive the profitability for quarters, already have best we momentum.

holidays. certain growth. the steady side, their further during we launch ages For industry more people continued pandemic. travel, From maintain after more new we locations. demand Also of the tourism will life is the of air the growth of the next and in regardless see especially becoming November, in the [indiscernible] year, Travel and encourage travel [indiscernible]

have silver cover Tuniu we generation new For [indiscernible]. example, many with a We tours. lot

more free travel. time enjoy have We disposable income and to

travelers of videos, for their outbound they of and Also, are abroad have through short very streaming with travels. first go from the and the popularity lower-tier them cities growths time live Many widespread shows Internet. increased for bookings promising

the With more destinations. hub, of bring overseas lower-tier transportation more cities we from travelers to emergence may

to we more itinerary catch For services. the may sizes are and trend activities, diversified. coming prices products new year, domestic prepared we need in This We become -- in provide destinations, to customers. and always needs market, [indiscernible] products to and continue are customer different launch already group

the from chains, airlines for North next outbound example, For growth depending region while will on continue you. year. year outbound see and to of the will Southeast distance America this long chances but is travel growth recovery it Asia region, of the momentum, Thank behind. its we Therefore, resuming travel, faster supply recovers rise for

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

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

for you presentation. This the participation Thank today's concludes your in conference.

Good now disconnect. day. may You