Tuniu (TOUR) Q3 2024 earnings summary

Executive summary

• Achieved record GAAP net income of RMB 43.9 million in Q3 2024, with net income for the first three quarters exceeding RMB 100 million.

• Non-GAAP profitability maintained for six consecutive quarters.

• Highest quarterly profit since listing, driven by steady growth in core packaged tours and expanded offerings to meet diversified demand.

• Focused on enhancing user experience through 'travel + new media' marketing and technology integration.

• Customer satisfaction remains high, with repeat customers contributing over 65% of transaction volume.

Financial highlights

• Net revenues reached RMB 186 million, up 4.4% year-over-year; packaged tours revenue grew 6.2% to RMB 159.3 million.

• Gross profit was RMB 121.8 million, up 6.1% year-over-year, with improved gross margin as cost of revenues declined as a percentage of net revenues.

• Net income attributable to ordinary shareholders was RMB 44.4 million; GAAP net income was RMB 43.9 million; Non-GAAP net income was RMB 46.6 million.

• Operating expenses increased 11.5% year-over-year, mainly due to a 53% rise in sales and marketing expenses.

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

Outlook and guidance

• Q4 2024 net revenues expected to be RMB 100–105 million, representing 0–5% year-over-year growth.

• Q4 is a seasonal low for tourism, with lower revenues and profits anticipated.

• Industry expected to maintain steady growth in 2025, with new holiday policies supporting leisure travel.

• Outbound travel to continue growing, with regional recovery varying by destination.