Tuniu(TOUR) - 2023 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Tuniu reported net revenues of RMB 178.2 million for Q3 2023, a year-over-year increase of 129% [11] - Gross profit for the quarter was RMB 114.8 million, up 155% year-over-year [11] - Net income attributable to ordinary shareholders was RMB 39.4 million, marking the highest quarterly GAAP net income since the company's listing [4][12] - Operating expenses were RMB 83.1 million, up 40% year-over-year, but as a percentage of net revenue, they decreased to 47% from 17.6% in the same period last year [10][12] Business Line Data and Key Metrics Changes - Revenue from packaged tours increased by 262% year-over-year to RMB 150.1 million, accounting for 84% of total net revenues [11] - Other revenues decreased by 23% year-over-year to RMB 28.1 million, accounting for 16% of total net revenues [11] Market Data and Key Metrics Changes - Domestic tours contributed approximately 80% of total GMV, while outbound tours contributed 20%, up from over 10% in the previous quarter [14] - Popular domestic destinations included Yunnan and Guangdong provinces, while Europe was the top outbound destination, followed by the Maldives and Southeast Asia [14] Company Strategy and Development Direction - Tuniu is focused on leveraging centralized procurement to enhance price competitiveness and product offerings [5] - The company aims to maintain high service quality and customer satisfaction, achieving a 98% satisfaction rate for new tour products [6] - Tuniu plans to extend automation capabilities into supply chain management to improve efficiency [10] Management's Comments on Operating Environment and Future Outlook - Management noted a rapid recovery in the travel market, particularly in domestic tourism, and expressed confidence in achieving long-term profitability goals [4] - The company anticipates generating net revenues of RMB 87.4 million to RMB 92.9 million in Q4 2023, representing a 220% to 240% increase year-over-year [11][12] - Management acknowledged potential headwinds in certain outbound destinations due to environmental and security issues [15] Other Important Information - Tuniu's cash and cash equivalents, restricted cash, and short-term investments totaled RMB 1.2 billion as of September 30, 2023 [12] - The company has successfully incubated over 100 emerging influencers to enhance its live streaming capabilities [10] Q&A Session Summary Question: What are the proportions of domestic and outbound tourism in revenues, and what are the top tourist destinations? - Domestic tours contributed around 80% of total GMV, while outbound tours contributed 20%, with Yunnan and Guangdong being popular domestic destinations and Europe leading outbound travel [14] Question: What is the outlook for the fourth quarter and the full year 2023 regarding profitability? - The GMV generated during the National Day holiday has more than tripled compared to last year, and the company aims to achieve profitable yearly results for 2023 despite the off-season challenges [15]