TRIP.COM(TCOM)2024-02-22 03:28Financial Data and Key Metrics Changes - In Q4 2023, Trip.com Group reported a net revenue of RMB 10.3 billion, representing a 105% year-over-year increase and a 25% decrease quarter-over-quarter, but still 24% higher than the 2019 level [27] - For the full year of 2023, net revenue reached RMB 44.5 billion, marking a 122% increase year-over-year and a 25% increase from 2019 [27] - Adjusted EBITDA for Q4 was RMB 2.9 billion, reflecting a growth of 899% year-over-year and a 117% increase compared to 2019, with an adjusted EBITDA margin of 28% [32] - For the full year of 2023, adjusted EBITDA was RMB 14 billion, representing a growth of 550% year-over-year and an increase of 78% compared to 2019, with an adjusted EBITDA margin of 31% [32] Business Line Data and Key Metrics Changes - Accommodation reservation revenue for Q4 reached RMB 3.9 billion, a 131% increase year-over-year and a 32% growth compared to 2019 [27] - Transportation ticketing revenue for Q4 was RMB 4.1 billion, representing an 86% increase year-over-year and an 18% growth compared to 2019 [28] - Package tour revenue for Q4 was RMB 704 million, a 329% increase year-over-year, recovering to 88% of the 2019 level [29] - Corporate travel revenue for Q4 was RMB 634 million, a 129% increase year-over-year, which is 70% higher than the 2019 level [29] Market Data and Key Metrics Changes - In Q4, the China domestic market saw hotel bookings grow over 130% year-over-year and more than 60% compared to 2019 [9] - Outbound air ticket and hotel bookings recovered to more than 80% of pre-pandemic levels, surpassing the market overall recovery rate of 60% [12] - In the APAC region, total GMV of overseas OTA brands grew by more than 70% year-over-year and increased by over 100% compared to 2019 [12] Company Strategy and Development Direction - The company aims to become a leading player in the Asian market and globally within three to five years, focusing on globalization and enhancing product offerings [7][14] - The integration of AI technology, such as the TripGenie assistant, is a key part of the digital strategy to improve user experience and operational efficiency [18] - The company is committed to sustainability and corporate responsibility, focusing on community-friendly, environmental-friendly, and family-friendly initiatives [20][22] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the travel market, driven by strong consumer demand and the easing of travel restrictions [35] - The company anticipates stronger year-over-year growth in the first half of Q1 2024, followed by a softer second half due to seasonal factors [42] - The inbound travel market in China is seen as an untapped opportunity, with significant potential for growth as visa policies become more favorable [15][16] Other Important Information - The company has initiated a stock buyback program and approved a capital return program for 2024, reflecting confidence in long-term value [6][34] - The balance of cash and cash equivalents as of December 31, 2023, was RMB 77 billion, or USD 10.9 billion [33] Q&A Session Summary Question: Can you elaborate on Trip.com's globalization strategy and achievements? - Management highlighted that the digital strategy focuses on building global products and services, leveraging strong supply chains and technology to enhance user experience [36][38] Question: How has the business performed during the Chinese New Year? - Management noted that domestic hotel and air reservations increased by more than 60% and 50% year-over-year, respectively, with outbound reservations surpassing 2019 levels [40][42] Question: What factors might contribute to the slow recovery of outbound travel? - Management expressed confidence in the recovery, citing strong demand and improving market supply conditions, with expectations for significant growth in outbound travel [44][46] Question: What are the key competitive advantages of Trip.com in international markets? - Management emphasized the user-friendly mobile app, AI-driven personalized recommendations, and strong customer service as key competitive advantages [56][58]