Tuniu (TOUR) Q1 2025 earnings summary

Executive summary

• Core business achieved steady growth in Q1 2025, with packaged tour revenues up 19.3% year-over-year, driven by strong domestic travel and resilient outbound tour demand despite regional headwinds.

• Product and channel diversification, including premium and competitively priced offerings, expanded live streaming, and offline store growth, supported customer acquisition and engagement.

• Adoption of AI technology enhanced customer experience and operational efficiency, with the launch of an in-house travel AI assistant and increased user engagement during peak travel periods.

• Other revenues declined 25.8% year-over-year due to lower commission fees.

• Gross profit fell 15.5% year-over-year to RMB 69.3 million as cost of revenues surged 85.9% year-over-year.

Financial highlights

• Net revenues reached RMB 117.5 million, up 9% year-over-year; packaged tours contributed 84% of total net revenues.

• Gross profit was RMB 69.3 million, down 15% year-over-year; operating expenses rose 15% to RMB 80.1 million.

• Net loss attributable to ordinary shareholders was RMB 4.7 million; non-GAAP net income was RMB 0.8 million, excluding share-based compensation, amortization, and impairment.

• Cash and equivalents, short-term investments, and long-term deposits totaled RMB 1.2 billion as of March 31, 2025.

• Cost of revenues increased to RMB 48.2 million, representing 41% of net revenues, up from 24% a year ago.

Outlook and guidance

• Q2 2025 net revenues are expected to be RMB 131–136.8 million, representing a 12%–17% year-over-year increase.

• Management aims to achieve profitability in Q2 2025 by controlling internal costs despite lower gross profit ratios due to competitive pricing.