Trip.com Group (TCOM) Q4 2023 earnings summary

Executive summary

• FY 2023 net revenue rose 122% YoY to RMB44.5B; net income reached RMB10.0B, versus RMB1.4B in 2022.

• Q4 net revenue grew 105% YoY to RMB10.3B, while net income was RMB1.3B and adjusted EBITDA was RMB2.9B.

• Travel demand recovered across domestic and international markets; management highlighted continued investment in globalization, AI, technology, product innovation and customer service.

Financial highlights

• Q4 net revenue increased 105% YoY and decreased 25% QoQ, primarily due to seasonal patterns; FY net revenue rose 122% YoY to RMB44.5B.

• Q4 net income was RMB1.3B, compared with RMB2.1B in Q4 2022 and RMB4.6B in Q3 2023; FY net income was RMB10.0B versus RMB1.4B in 2022.

• FY net income attributable to shareholders was RMB9.9B; adjusted non-GAAP net income was RMB13.1B, excluding specified compensation, fair-value and tax effects.

• Diluted EPS was RMB1.94 in Q4 and RMB14.78 for FY 2023; adjusted non-GAAP diluted EPS was RMB4.00 and RMB19.48, respectively.

Outlook and guidance

• Management expressed confidence in building on 2023 results through globalization and AI initiatives, alongside technology and product innovation, customer-service improvements and sustainable travel development.

• Management expects the resilient global travel industry to sustain its growth trajectory; no quantified financial outlook was stated.