Tuniu (TOUR) Q2 2024 earnings summary

Executive summary

• Net revenues for Q2 2024 rose 17% year-over-year to RMB 116.9 million, driven by strong growth in package tours, with net income reaching a record RMB 43 million since listing.

• Domestic travel maintained steady growth, while outbound travel saw rapid expansion due to more open destinations and diverse offerings.

• Niu Tour products targeting middle to upper-class and senior travelers saw transaction volume rise over 40% year-over-year, with a repurchase rate twice that of regular products.

• Repeat customers contributed over 65% of transaction volume, and live streaming channels and offline stores experienced significant growth.

• The company enhanced product quality and leveraged new media to attract customers.

Financial highlights

• Net revenues were RMB 116.9 million, up 17% year-over-year; package tour revenues were RMB 89.8 million (77% of total), up 29% year-over-year.

• Gross profit was RMB 84.4 million, up 29% year-over-year, with gross margin improving to 72.2% from 65.4% a year ago.

• Operating expenses were RMB 49.9 million, down 15% year-over-year, aided by a RMB 24.6 million net gain on disposals of subsidiaries.

• Net income attributable to shareholders was RMB 43 million; non-GAAP net income was RMB 20.8 million.

• Cash, cash equivalents, restricted cash, and short-term investments totaled RMB 1.3 billion as of June 30, 2024.

Outlook and guidance

• Q3 2024 net revenues are expected to be RMB 183.5–192.4 million, a 3–8% year-over-year increase.

• Top-line growth rate in Q3 will be lower due to a high base last year and partial release of pent-up demand, but profitability is expected to be maintained.