Financial Performance - In Q1 2024, Trip.com Group's net revenue reached RMB 11.9 billion (USD 1.6 billion), representing a year-over-year increase of 29% and a quarter-over-quarter increase of 15%[3]. - Q1 2024 net profit was RMB 4.3 billion (USD 599 million), compared to RMB 3.4 billion in the same period of 2023[5]. - Total revenue for the three months ended March 31, 2024, reached RMB 11,921 million, a 15.4% increase from RMB 10,338 million in the same period of 2023[13]. - Net profit attributable to Ctrip Group for the three months ended March 31, 2024, was RMB 4,312 million, compared to RMB 1,297 million in the same period of 2023, representing a significant increase of 232.5%[14]. - The gross profit for the three months ended March 31, 2024, was RMB 9,667 million, up from RMB 8,315 million in the same period of 2023, reflecting a growth of 16.3%[13]. - Operating profit for the three months ended March 31, 2024, was RMB 3,315 million, an increase of 50.9% from RMB 2,197 million in the same period of 2023[13]. - The EBITDA margin for the three months ended March 31, 2024, was 33%, compared to 28% in the same period of 2023, indicating improved operational efficiency[15]. - Ctrip Group's diluted earnings per share for the three months ended March 31, 2024, was RMB 6.38, compared to RMB 1.94 in the same period of 2023, reflecting a substantial increase[14]. Revenue Breakdown - Revenue from accommodation bookings in Q1 2024 was RMB 4.5 billion (USD 623 million), a 29% year-over-year increase[3]. - Transportation ticketing revenue for Q1 2024 was RMB 5 billion (USD 692 million), reflecting a 20% year-over-year increase[4]. - The company reported a significant increase in accommodation booking revenue, which reached RMB 4,496 million for the three months ended March 31, 2024, compared to RMB 3,480 million in the same period of 2023, marking a growth of 29.2%[13]. Investment and Development - The company invested RMB 3.1 billion (USD 431 million) in product development in Q1 2024, which accounted for 26% of net revenue[4]. - Research and development expenses for the three months ended March 31, 2024, amounted to RMB 214 million, slightly down from RMB 215 million in the previous quarter[14]. - Trip.com Group is committed to product and technology innovation to enhance user experience and drive sustainable growth[2]. - The company emphasized its commitment to enhancing its travel platform and expanding its market presence, particularly focusing on user engagement and innovative travel solutions[10]. - The company anticipates continued growth in user data and market expansion, driven by new product developments and strategic initiatives[15]. Financial Position - As of March 31, 2024, the company had cash and cash equivalents totaling RMB 81.9 billion (USD 11.3 billion)[5]. - As of March 31, 2024, the total assets of the company amounted to RMB 228.5 billion, an increase from RMB 219.1 billion as of December 31, 2023, representing a growth of approximately 4.2%[11]. - The total liabilities increased to RMB 99.9 billion as of March 31, 2024, compared to RMB 96.1 billion as of December 31, 2023, reflecting a rise of about 3.0%[12]. - The company's total equity rose to RMB 128.6 billion as of March 31, 2024, up from RMB 123.0 billion as of December 31, 2023, indicating an increase of approximately 4.6%[12]. - The cash and cash equivalents, along with restricted cash and short-term investments, totaled RMB 44.8 billion as of March 31, 2024, compared to RMB 44.0 billion as of December 31, 2023, showing a slight increase of about 1.8%[11]. - The net accounts receivable increased to RMB 12.3 billion as of March 31, 2024, from RMB 11.4 billion as of December 31, 2023, marking a growth of approximately 7.4%[11]. - The company reported a total current liabilities of RMB 86.8 billion as of March 31, 2024, up from RMB 72.4 billion as of December 31, 2023, which is an increase of about 19.9%[12]. - The goodwill remained stable at RMB 59.4 billion as of both December 31, 2023, and March 31, 2024, indicating no significant changes in this area[11]. Market Trends and Challenges - Domestic hotel and flight bookings grew by over 20% year-over-year, while outbound hotel and flight bookings increased by over 100%[2]. - The company's international OTA platform, Trip.com, saw total revenue growth of approximately 80% year-over-year[2]. - The company continues to face risks related to economic fluctuations and competition, which may impact future performance and strategic initiatives[7].

Core Insights - Trip.com Group Limited reported strong financial results for the first quarter of 2024, with net revenue increasing by 29% year over year to RMB11.9 billion (US$1.6 billion) [3] - The company experienced significant growth in both domestic and international travel bookings, with outbound hotel and air bookings increasing by over 100% year over year [2][3] - Adjusted EBITDA for the first quarter was RMB4.0 billion (US$550 million), reflecting an adjusted EBITDA margin of 33%, up from 31% in the same period of 2023 [3][14] Financial Performance - Net income for the first quarter of 2024 was RMB4.3 billion (US$599 million), compared to RMB3.4 billion for the same period in 2023 [3][14] - Accommodation reservation revenue increased by 29% year over year to RMB4.5 billion (US$623 million) [3] - Transportation ticketing revenue rose by 20% year over year to RMB5.0 billion (US$692 million) [3] - Packaged-tour revenue surged by 129% year over year to RMB883 million (US$122 million) [3] - Corporate travel revenue increased by 15% year over year to RMB511 million (US$71 million) [3] Cost Structure - Cost of revenue increased by 37% year over year to RMB2.2 billion (US$310 million), representing 19% of net revenue [3] - Product development expenses rose by 16% year over year to RMB3.1 billion (US$431 million), accounting for 26% of net revenue [3] - Sales and marketing expenses increased by 32% year over year to RMB2.3 billion (US$320 million), making up 19% of net revenue [3] Market Outlook - The company noted a significant increase in travel demand in China, supported by a more stabilized supply and relaxed visa requirements [2] - Management emphasized the commitment to investing in product and technology innovations to enhance user experience [2]

Group 1 - Trip.com Group Limited will announce its financial results for the three months ended March 31, 2024, on May 20, 2024, after market close [1] - A conference call will be hosted by the management team at 8:00 PM U.S. Eastern Time on May 20, 2024, with a live webcast available [1] - Participants must pre-register to join the conference call and will receive details including dial-in numbers and a unique access PIN upon registration [2] Group 2 - Trip.com Group Limited is a leading global one-stop travel platform, offering a comprehensive suite of travel products and services [3] - The company operates under various brands, including Ctrip, Qunar, Trip.com, and Skyscanner, and aims to provide cost-effective travel bookings and support [3] - Founded in 1999, Trip.com Group was listed on Nasdaq in 2003 and on HKEX in 2021, with a mission to pursue the perfect trip for a better world [3]

Company Performance - Trip.com closed at $53.87, reflecting a +1.07% change from the previous session, outperforming the S&P 500's daily gain of 1.03% [1] - The stock has increased by 10.72% over the past month, contrasting with a 4.02% loss in the Consumer Discretionary sector and a 1.57% loss in the S&P 500 [1] - The upcoming earnings report is projected to show earnings of $0.63 per share, indicating a year-over-year growth of 40%, with revenue expected to reach $1.61 billion, up 20.38% from the previous year [1] Annual Forecast - For the entire year, earnings are forecasted at $2.96 per share and revenue at $7.36 billion, representing changes of +8.03% and +18.18% respectively compared to the previous year [2] - Recent modifications to analyst estimates reflect shifting short-term business dynamics, with positive revisions indicating optimism about the company's outlook [2] Valuation and Industry Ranking - Trip.com has a Forward P/E ratio of 18.04, which is a premium compared to its industry's Forward P/E of 16.5 [3] - The Leisure and Recreation Services industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 177, placing it in the bottom 30% of over 250 industries [3] - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [3]

Core Viewpoint - Trip.com Group Limited has filed its annual report on Form 20-F, which includes audited financial statements for the three years ending December 31, 2023, with the Securities and Exchange Commission [1] Group 1: Company Overview - Trip.com Group Limited is a leading global one-stop travel platform that integrates a comprehensive suite of travel products and services [2] - The company operates under a portfolio of brands including Ctrip, Qunar, Trip.com, and Skyscanner [2] - Founded in 1999, the company was listed on Nasdaq in 2003 and on HKEX in 2021 [2] Group 2: Services and Mission - The company provides accommodation reservation, transportation ticketing, packaged tours, and corporate travel management [1] - It aims to be the go-to destination for travelers in China and increasingly for travelers worldwide [2] - The mission of the company is "to pursue the perfect trip for a better world" [2]

Corporate Structure and Governance - Trip.com Group's A类普通股每股面值为0.00125美元，截至2023年12月31日，已发行644,089,050股[4] - The company is registered as a large accelerated filer under the Securities Exchange Act of 1934[4] - The company's principal executive offices are located at 30 Raffles Place, 29-01, Singapore 048622[3] - Trip.com Group's American Depositary Shares (ADS) are listed on the NASDAQ Global Select Market under the ticker symbol "TCOM"[3] - The company has submitted all required reports under the Securities Exchange Act of 1934 for the past 12 months[4] - Trip.com Group has filed the auditor's attestation report on the effectiveness of internal control over financial reporting as required by Section 404(b) of the Sarbanes-Oxley Act[4] - The company is not a shell company as defined in the Securities Exchange Act of 1934[4] - The company's annual report is filed in both Chinese and English, with the English version prevailing in case of discrepancies[3] - The company's reporting currency is RMB, with financial data converted to USD at an exchange rate of RMB 7.0999 to USD 1.00 as of December 29, 2023[8] - The company underwent a 1:8 stock split on March 18, 2021, adjusting the ratio of American Depositary Shares (ADS) to ordinary shares from 8:1 to 1:1[8] - The company consolidates financial results of Variable Interest Entities (VIEs) under US GAAP, including entities like Ctrip Business, Shanghai Huacheng, Chengdu Ctrip, and Qunar Beijing[7] - The company primarily presents operational data for the Ctrip and Trip.com brands, excluding leased properties and employee headcount, which represent overall company data[8] - The exchange rate as of April 19, 2024, was RMB 7.2403 to USD 1.00, but this rate is not used for financial data conversion in the annual report[8] - The company's net income from variable interest entities accounted for 30%, 22%, and 23% of total net income for the years ended December 31, 2021, 2022, and 2023, respectively[13] - The company's business is primarily conducted in China through subsidiaries and variable interest entities, with contractual arrangements in place to manage operations[13] - The company has established a series of contractual arrangements with its Chinese subsidiaries, variable interest entities (VIEs), and their shareholders, granting effective control over these entities for accounting purposes under US GAAP[14] - The contractual arrangements provide the company with a controlling financial interest in the VIEs, allowing management of activities that significantly impact economic performance and rights to economic benefits[14] - The company's investors do not hold equity ownership in the VIEs, and the contractual arrangements do not equate to equity ownership of the VIE businesses[14] - The enforceability of the contractual arrangements with VIEs has not been tested in Chinese courts, posing potential risks[15] - The VIE structure exposes the company's Cayman Islands holding company investors to unique risks, including potential high costs and legal uncertainties[15] - Chinese regulatory authorities may prohibit the VIE structure, which could significantly impact the company's operations and cause a substantial decline in security value[16] - The company faces uncertainty regarding future Chinese laws and regulations that may affect the VIE structure and contractual arrangements[16] - The company's operations in China are subject to complex and evolving legal and regulatory environments, including cybersecurity and data privacy regulations[16] - Compliance with Chinese regulatory requirements, including those from the China Securities Regulatory Commission and Cyberspace Administration of China, remains uncertain[16] - Future regulatory developments may require additional approvals or actions for Chinese companies listed on foreign stock exchanges, creating potential uncertainties[16] - The company faces risks related to new regulatory measures in Hong Kong or Macau, which could impact its ability to operate, accept foreign investment, or maintain its listing status on the Hong Kong Stock Exchange[17] - The company was listed under the HFCAA by the SEC in May 2022 due to PCAOB's inability to inspect its auditor, but this designation was removed in December 2022[18] - The company expects not to be designated as a HFCAA issuer after submitting its 2022 annual report, but future designations remain uncertain[19] - The company's operations in China require various permits, and failure to obtain or maintain these permits could result in penalties, suspension of operations, or revocation of licenses[20] - The company's subsidiaries in Hong Kong have obtained necessary permits for travel agency and insurance agency businesses, while its Macau subsidiary has largely ceased operations[20] - The company's cash flow and asset transfer within the organization are subject to conditions and restrictions under applicable laws and regulations, with limitations on dividends and other payments from Chinese subsidiaries and variable interest entities totaling RMB 7.6 billion as of December 31, 2023[24] - The company's Chinese subsidiaries and variable interest entities are required to set aside certain statutory reserve funds or discretionary funds, which cannot be distributed as cash dividends unless the company is liquidated[24] - The company's ability to pay dividends and repay debts depends on dividends from Chinese subsidiaries and service fees from variable interest entities, with restrictions on transferring net assets[24] - The company is considered an "existing issuer" under the new overseas securities issuance and listing regulations and does not need to complete filing procedures for historical securities issuances, but future issuances will require filing within three business days[21] - The company has completed all required foreign debt issuance registrations with the National Development and Reform Commission as of the annual report date[22] - The company, its subsidiaries, and variable interest entities have not been identified as critical information infrastructure operators or subjected to cybersecurity reviews by the Cyberspace Administration of China as of the annual report date[22] - The company's operations and securities issuance to foreign investors are subject to potential regulatory uncertainties and interpretations by Chinese government agencies, which could lead to sanctions or other regulatory measures[23] - The company's Chinese subsidiaries and variable interest entities are restricted in paying dividends or transferring net assets, with limitations based on registered capital and statutory reserves[24] - The company's ability to transfer cash and assets within the organization is constrained by Chinese laws, requiring government registration and approval for funding transfers to subsidiaries and variable interest entities[24] - The company's historical securities issuances to foreign investors do not require approval or filing with the China Securities Regulatory Commission, but future issuances may require filing under the new regulations[22] - Trip.com Group's Chinese subsidiaries transferred a total of RMB 7.2 billion in dividends to its Hong Kong holding company, Ctrip Travel Network (Hong Kong) Limited, subject to a 5% withholding tax[27] - In 2023, Trip.com Group provided net cash inflows of RMB 1.8 billion in loan funds to its subsidiaries, compared to net cash outflows of RMB 7.58 billion in 2022[26] - The company's variable interest entities (VIEs) had net cash outflows of RMB 1.2 billion in loan funds to subsidiaries in 2023, compared to net cash inflows of RMB 4 billion in 2022[26] - Trip.com Group did not declare or pay any cash dividends for the years ended December 31, 2021, 2022, and 2023, and has no plans to pay cash dividends for its ordinary shares[27] - The company's subsidiaries received net cash inflows of RMB 800 million in loan funds from VIEs in 2023, compared to net cash outflows of RMB 7.8 billion in 2022[26] - Trip.com Group's Chinese subsidiaries and VIEs face restrictions on transferring cash to entities outside China due to government regulations on currency exchange and cross-border payments[25] - The company has a centralized fund management policy to improve efficiency and ensure the security of fund transfers between Trip.com Group, its subsidiaries, and VIEs[25] - In 2022, Trip.com Group invested RMB 580 million in its subsidiaries, while no investments were made in 2021 and 2023[26] Financial Performance - Net revenue for 2023 reached RMB 44,510 million (USD 6,269 million), a significant increase from RMB 20,039 million in 2022[29] - Gross profit for 2023 was RMB 36,389 million (USD 5,125 million), up from RMB 15,526 million in 2022[29] - Operating profit for 2023 was RMB 11,324 million (USD 1,595 million), compared to RMB 88 million in 2022[29] - Net profit attributable to Trip.com Group Limited for 2023 was RMB 9,918 million (USD 1,397 million), a substantial improvement from RMB 1,403 million in 2022[29] - Cash and cash equivalents increased to RMB 41,592 million (USD 5,858 million) in 2023 from RMB 17,000 million in 2022[30] - Total assets grew to RMB 219,137 million (USD 30,865 million) in 2023, up from RMB 191,691 million in 2022[30] - Total liabilities increased to RMB 96,131 million (USD 13,540 million) in 2023 from RMB 78,672 million in 2022[30] - Shareholders' equity attributable to Trip.com Group Limited rose to RMB 122,184 million (USD 17,209 million) in 2023 from RMB 112,283 million in 2022[30] - Basic earnings per share for 2023 were RMB 15.19 (USD 2.14), compared to RMB 2.17 in 2022[29] - Diluted earnings per share for 2023 were RMB 14.78 (USD 2.08), up from RMB 2.14 in 2022[29] - Trip.com Group's net revenue from third parties in 2023 was RMB 44.51 billion, a significant increase from RMB 20.039 billion in 2022[35][36] - The company's net profit attributable to Trip.com Group Limited in 2023 was RMB 9.918 billion, compared to RMB 1.403 billion in 2022[35][36] - Operating profit from subsidiaries and variable interest entities in 2023 was RMB 11.324 billion, a substantial improvement from RMB 88 million in 2022[35][36] - Total operating costs and expenses from third parties in 2023 were RMB 33.186 billion, up from RMB 19.951 billion in 2022[35][36] - The company's net interest income and other income in 2023 was RMB 10.68 billion, compared to RMB 2.635 billion in 2022[35][36] - Service fees charged by the primary beneficiaries of variable interest entities to the entities and their subsidiaries were RMB 4.3 billion in 2023, up from RMB 1.7 billion in both 2021 and 2022[37] - Total assets increased to 219,137 million RMB in 2023, up from 191,691 million RMB in 2022, reflecting growth in cash and cash equivalents, short-term investments, and receivables[40][44] - Cash and cash equivalents rose significantly to 41,592 million RMB in 2023, compared to 17,000 million RMB in 2022, indicating improved liquidity[40][44] - Short-term investments decreased to 17,748 million RMB in 2023 from 25,545 million RMB in 2022, suggesting a shift in investment strategy[40][44] - Total liabilities increased to 96,131 million RMB in 2023, up from 88,038 million RMB in 2022, driven by higher short-term debt and payables[41][44] - Shareholders' equity grew to 123,006 million RMB in 2023, compared to 104,833 million RMB in 2022, reflecting retained earnings and capital growth[41][44] - Goodwill remained stable at 59,372 million RMB in 2023, consistent with 59,337 million RMB in 2022, indicating no significant changes in acquisitions[40][44] - Intangible assets decreased slightly to 12,564 million RMB in 2023 from 12,742 million RMB in 2022, likely due to amortization[40][44] - Long-term debt increased to 19,099 million RMB in 2023, up from 19,070 million RMB in 2022, showing a slight rise in borrowing[41][44] - Deferred tax assets grew to 2,576 million RMB in 2023 from 1,324 million RMB in 2022, reflecting higher tax planning benefits[40][44] - Total equity and liabilities reached 219,137 million RMB in 2023, up from 191,691 million RMB in 2022, indicating overall financial growth[40][44] - Total liabilities for Trip.com Group amounted to RMB 78.672 billion, with short-term and current portion of long-term debt at RMB 32.674 billion[45] - Total equity for Trip.com Group was RMB 113.019 billion, with the parent company contributing RMB 111.090 billion[45] - Net cash provided by operating activities for Trip.com Group in 2023 was RMB 22.004 billion, a significant increase from RMB 2.641 billion in 2022[48][49] - Net cash used in financing activities for Trip.com Group in 2023 was RMB 2.547 billion, compared to RMB 6.717 billion in 2022[48][49] - Cash flow from other investment activities for Trip.com Group in 2023 was RMB 5.919 billion, up from RMB 1.136 billion in 2022[48][49] - Service fees paid by variable interest entities to their primary beneficiaries increased to RMB 4.3 billion in 2023, up from RMB 1.7 billion in 2021 and 2022[50] - Repurchase of ordinary shares by Trip.com Group in 2023 amounted to RMB 1.617 billion[48] - Dividends paid to ordinary shareholders by Trip.com Group in 2023 totaled RMB 400 million[48] - Net cash used in investing activities for Trip.com Group in 2021 was RMB 4.148 billion, compared to net cash provided of RMB 1.136 billion in 2023[49][50] - Total assets and liabilities for Trip.com Group in 2023 were RMB 191.691 billion, with total equity of RMB 113.019 billion[45] Risks and Challenges - The company faces risks such as economic slowdown in China, global recession, public health crises, and disruptions in the tourism industry, which could adversely affect its business and financial performance[9] - The company's quarterly performance may fluctuate due to seasonal factors in the tourism industry[9] - The company's growth strategy includes investments in complementary businesses and assets, which involve significant risks and uncertainties[9] - The company's ability to maintain profitability and control costs is a key focus for future performance[9] - The company's brand awareness is crucial for retaining existing users and business partners, as well as acquiring new ones[9] - The company's infrastructure and technology are critical to its operations, and any damage, failure, or obsolescence could harm its business[9] - The company's senior management plays a vital role in its operations, and the loss of their services could severely disrupt the business[9] - The company's variable interest entity structure and contractual arrangements in China are subject to legal risks, which could result in penalties and adversely affect its business[9] - The company faces significant risks related to pandemics, epidemics, or fears of infectious disease spread, which could disrupt the travel industry and its operations, potentially causing material adverse effects on its business, financial condition, and operating results[52] - The company's business is highly sensitive to global economic conditions, and a severe or prolonged recession in the global or Chinese economy could have a material adverse impact on its growth and profitability[52] - A general downturn or instability in the travel industry could significantly negatively affect the company's business and operating performance[52] - The company's inability to maintain relationships with ecosystem partners and strategic alliances, or to establish new arrangements on favorable terms, could materially adversely impact its business, market share, and operating results[53] - Strategic acquisitions of complementary businesses and assets pose significant challenges, including dilution of equity securities and impacts on financial performance, potentially leading to material adverse effects on the company's business, reputation, operating results, and financial condition[53] - The company has incurred substantial debt and may incur additional debt in the future, with potential risks of insufficient cash flow to meet debt obligations[53] - Significant goodwill and indefinite-lived intangible assets from strategic acquisitions and investments could lead to substantial impairment charges if the recoverability of these assets declines significantly[54] - The company faces risks from new and existing competitors, with potential loss of market share and material adverse impacts on its business if it fails to compete successfully[54] - Chinese laws and regulations restrict foreign investment in travel agencies and value-added telecommunications services, creating uncertainties in application and enforcement that could affect the company's operations[55] - Potential breaches of contractual arrangements by the company's variable interest entities (VIEs) could disrupt its business, harm its reputation, and lead to costly and time-consuming litigation[55] - The company's operations in China are subject to significant supervision and discretion by the Chinese government, which may lead to adverse changes in operations and the value of its American Depositary Shares (ADS) and ordinary shares[56] - PCAOB's inability to inspect auditors based in mainland China, including the company's independent auditor, may result in the delisting of its ADS from U.S. exchanges under the Holding Foreign Companies Accountable Act (HFCAA)[57] - Future overseas issuances by the company may require approval or filing with the China Securities Regulatory Commission (CSRC) or other Chinese government agencies, creating uncertainty over the ability to obtain such approvals[57] - Restrictions on currency conversion by the Chinese government may limit the company's ability to use funds from its Chinese subsidiaries or variable interest entities (VIEs) for operations outside China[58] - The evolving and uncertain nature of China's legal system may adversely affect the company's operations due to rapid changes in laws and regulations without prior notice[58] - The trading price of the company's listed securities has been and may continue to be volatile, potentially causing significant losses for investors[59] - The company's practices differ from those of many other companies listed on the Hong Kong Stock Exchange, which may pose risks[59] - Large-scale sales or potential sales of the company's ordinary shares, ADS, or other equity securities in the public market may lead to a decline in the price of its listed securities[59] - The company's revenue was significantly impacted by the COVID-19 pandemic in 2020, 2021, and 2022, with a substantial increase in costs and expenses due to user cancellations and

Business Operations - As of December 31, 2023, over 90% of total transaction orders were executed through mobile channels, with products and services available in 24 languages and 35 local currencies [277]. - The company has over 1.7 million global accommodation listings and offers flights from over 600 airlines, with a network of over 90,000 ecosystem partners as of December 31, 2023 [282]. - The transportation ticketing network covers over 220 countries and regions, with air ticket offerings from over 600 global airlines, covering over 3,400 airports [290][291]. - The company streamlined and optimized its offline stores, maintaining approximately 5,700 stores across about 300 cities in China as of December 31, 2023 [279]. - The company operates a one-stop travel platform integrating a comprehensive suite of travel products and services, enhancing user experience through AI capabilities and travel insights accumulated over 23 years [273][274]. - The company has established an open platform business model, allowing ecosystem partners to post their own offerings, thereby expanding business opportunities [281]. - The company provides 24/7 user support throughout the travel journey, ensuring a personalized and enjoyable experience for users [280]. - The company has been increasing its influence in target markets globally, focusing on personalized travel experiences for users [276]. - The company serves approximately 960,000 small and medium-sized enterprises and over 15,000 large enterprises, including over 300 Fortune 500 companies [298]. - The company operates four leading travel brands: Ctrip, Qunar, Trip.com, and Skyscanner, enhancing brand recognition in the travel sector [319]. - The company utilizes AI technologies for applications such as traffic forecasting and flight delay prediction, enhancing customer service and operational efficiency [311]. - The proprietary search and transaction engines can support hundreds of millions of queries per day, improving user experience on the platform [315]. - The rewards program allows users to accumulate membership points based on services purchased, promoting user loyalty [323]. - The company has established a travel safety center and a global travel SOS service, providing 24/7 emergency support for travelers [307][308]. - The company has a broad customer base, including ecosystem partners such as airlines, hotels, and various travel service providers [335]. Financial Performance - In 2023, the company generated approximately 39% of total revenues from accommodation reservations, 41% from transportation ticketing, 7% from packaged tours, 5% from corporate travel, and 8% from other products and services [424]. - The company's net revenues increased by 122% year-over-year in 2023, with net income rising by 632% compared to the previous year [437]. - The core online travel agency business achieved a record high in 2023, with a year-over-year increase in GMV of nearly 130% and a growth of about 30% compared to 2019 [437]. - Accommodation reservation revenue for 2023 was RMB17.3 billion (US$2.4 billion), representing 39% of total revenues [443]. - Transportation ticketing revenue for 2023 was RMB18.4 billion (US$2.6 billion), also representing 41% of total revenues [444]. - Packaged tour revenue for 2023 was RMB3.1 billion (US$442 million), showing significant growth from previous years [444]. - Corporate travel revenue increased from RMB1.1 billion in 2022 to RMB2.3 billion (US$317 million) in 2023, representing a growth of 109% [445]. - Revenue from other businesses rose from RMB2.5 billion in 2022 to RMB3.5 billion (US$488 million) in 2023, marking a 40% increase [446]. - Cost of revenues as a percentage of net revenues decreased from 23% in 2021 and 2022 to 18% in 2023 [447]. - Share-based compensation expense increased to RMB1.8 billion (US$258 million) in 2023, up from RMB1.2 billion in 2022 [448]. - Product development expenses as a percentage of net revenues decreased from 45% in 2021 to 27% in 2023 [448]. - Sales and marketing expenses remained stable at 21% of net revenues in both 2022 and 2023, down from 25% in 2021 [449]. - General and administrative expenses as a percentage of net revenues decreased from 15% in 2021 to 8% in 2023 [449]. - The effective income tax rate improved from -57% in 2021 to 16% in 2023 [450]. - Corporate travel services are recognized on a net basis after services are rendered, reflecting a shift in revenue recognition practices [445]. - The company anticipates continued growth in corporate travel and other business segments, driven by increased demand and market expansion strategies [445][446]. Regulatory Environment - The travel agency regulations in China require agencies to obtain licenses for outbound and domestic travel businesses from relevant authorities [355]. - Foreign investors can establish travel agencies in China, but are restricted from engaging in outbound tourism for mainland residents unless specified by the State Council [356]. - The Ministry of Culture and Tourism introduced measures to standardize online travel operations, mandating accurate service information and personal data protection [357]. - The air-ticketing business is regulated by the China Air Transport Association, which sets standards for sales agencies, including proper licensing and employee training [359]. - Online air-ticketing platforms are prohibited from bundling sales with other services by default and must display ancillary services explicitly [360]. - The PRC E-commerce Law imposes requirements on e-commerce operators to protect consumer rights and ensure fair trading practices [362]. - The PRC Consumer Protection Law mandates that business operators guarantee the quality and validity of goods and services sold [364]. - The PRC Data Security Law, effective September 2021, establishes a tiered system for data protection based on the importance of the data [372]. - Internet service providers face criminal penalties for failing to comply with information security obligations, including severe consequences from user information leakage [373]. - Recent regulations require data processing entities to apply for cybersecurity reviews if their operations could influence national security, with unclear parameters for implementation [374]. - The PRC Personal Information Protection Law, effective from November 2021, mandates compliance for processing personal information within China and for services provided to individuals in China [375]. - The Cybersecurity Review Measures, effective from February 2022, require cybersecurity reviews for internet platform operators with over one million users intending to pursue foreign listings [376]. - Security assessments for outbound data transfers are required if the data involves over 100,000 individuals' personal information or 10,000 individuals' sensitive personal information since January 1 of the previous year [377]. - The PRC Cybersecurity Law amendments proposed in September 2022 aim to enhance legal liability mechanisms for network operation security and personal information protection [378]. - The Administrative Measures on Data Security in Industry and Information Technology require data processors to regularly identify and file important data catalogs with local authorities [378]. - The PRC Anti-Monopoly Law amendment in June 2022 introduced a "safe harbor" for operators with market shares below a specific threshold, increasing penalties for violations [394]. - The Provisions on the Review of Concentrations of Undertakings issued in March 2023 clarify factors for determining control over other undertakings [394]. Sustainability Initiatives - Approximately 2,000 hotels have been selected as fulfilling the criteria for low-carbon hotel standards under the company's sustainability initiatives [338]. - The company is committed to promoting sustainable tourism and has launched initiatives like "Green Hotels" to encourage environmentally friendly practices among hotel partners [338]. - The company has established 28 country retreats across China as part of its rural tourism initiative, contributing to local income and talent development [340]. Market Competition - The company faces increasing competition in China's travel industry from both domestic and international players, necessitating a focus on brand recognition and user satisfaction [334]. - The company has a history of significant acquisitions, including Qunar in December 2015 and Skyscanner in December 2016, enhancing its market position [265]. - The company has not made any material acquisitions since 2020, focusing instead on evaluating strategic investments and acquisitions [337]. Intellectual Property - As of December 31, 2023, the company had over 1,550 patents registered in China, including over 600 invention patents and over 950 pending patent applications [330]. - The company owned over 1,700 registered trademarks and approximately 150 pending trademark applications in China, along with over 180 registered trademarks in various jurisdictions outside of China [330]. - The company has over 300 registered domain names in China and approximately 30 registered domain names outside China, ensuring full legal rights over these domains [332].

Company Performance - Trip.com closed at $50.60, with a daily increase of +0.36%, underperforming the S&P 500's gain of 1.02% [1] - The stock has gained 14.88% over the past month, while the Consumer Discretionary sector and S&P 500 have lost 6.35% and 3.15%, respectively [1] - Upcoming EPS is projected at $0.63, indicating a 40% increase year-over-year, with revenue expected at $1.61 billion, up 20.38% from the previous year [1] Full Year Estimates - For the full year, earnings are projected at $2.96 per share and revenue at $7.35 billion, reflecting increases of +8.03% and +17.97% from the prior year [2] - Recent analyst estimate revisions suggest confidence in the company's performance and profit potential [2] Analyst Ratings and Valuation - Trip.com holds a Zacks Rank of 1 (Strong Buy), with a historical average annual return of +25% for 1 stocks since 1988 [3] - The company is trading at a Forward P/E ratio of 17.06, which is a premium compared to the industry average of 16.13 [3] - The Leisure and Recreation Services industry ranks in the bottom 27% of all industries, with a Zacks Industry Rank of 185 [3]

Trip.com (TCOM) closed the most recent trading day at $48, moving -1.48% from the previous trading session. This move lagged the S&P 500's daily loss of 0.88%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, lost 2.05%.Heading into today, shares of the travel services company had gained 9.04% over the past month, outpacing the Consumer Discretionary sector's loss of 5.74% and the S&P 500's loss of 2.57% in that time.Market participants will be closely following the financial results of ...

Trip.com (TCOM) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this travel services company have returned +11.2%, compared to the Zacks S&P 500 composite's -0.9% change. During this period, the Zacks Leisure and Recreation Services industry, which Trip.com falls in, has lost 1.7%. The key question now is: What could be the stock's fu ...