Tuniu Reports Strong Growth in Q3 2024 with 4.4% Revenue Increase and Record Quarterly Profit for China’s Leading Online Leisure Travel Company

Tuniu Corporation (NASDAQ: TOUR), a leading online leisure travel company in China, has announced its unaudited financial results for the third quarter of 2024, marking another successful period of profitable growth. The company reported a significant year-over-year increase in net revenues and profits, driven by strong performance in its core packaged tours business and strategic advancements in marketing and customer engagement.

Strong Growth Amid Diversified Demand

Tuniu’s founder, Chairman, and CEO, Mr. Donald Dunde Yu, expressed satisfaction with the company’s performance, particularly highlighting the continued growth of its packaged tours segment. “We are pleased to see that Tuniu continued to maintain profitable growth in the third quarter of 2024, reaching our highest quarterly profit since our listing,” Yu stated. He emphasized that the company expanded its product and destination offerings to meet the growing and more diversified demand during the peak season, catering to a broader customer base with more personalized services.

Moreover, Tuniu adapted to changes in consumer habits, further developing its “travel + new media” marketing model. By integrating technology with travel services, Tuniu enhanced its user experience, attracting more customers and strengthening its market position.

Third Quarter 2024 Financial Results

For the third quarter of 2024, Tuniu reported net revenues of RMB186.0 million (US$26.5 million), reflecting a 4.4% year-over-year increase compared to the same period in 2023. This growth was largely attributed to a 6.2% rise in revenues from packaged tours, which reached RMB159.3 million (US$22.7 million). The company attributed this increase to the growing demand for organized tours, which have become an essential part of Tuniu’s offerings.

However, Tuniu experienced a slight dip in other revenues, which amounted to RMB26.7 million (US$3.8 million), representing a 5.1% decrease compared to the third quarter of 2023. This decline was primarily due to reduced advertising revenue from tourism boards and bureaus.

Cost and Profit Overview

Tuniu’s cost of revenues increased by 1.2% year-over-year to RMB64.2 million (US$9.2 million). However, the cost of revenues as a percentage of net revenues decreased from 35.6% in Q3 2023 to 34.5% in Q3 2024, signaling improved operational efficiency.

The company’s gross profit for the quarter amounted to RMB121.8 million (US$17.4 million), marking a 6.1% increase from the same period last year. This growth in gross profit is a positive sign of Tuniu’s ability to manage costs while generating higher revenues.

Increased Operating Expenses

Operating expenses for the third quarter of 2024 totaled RMB92.6 million (US$13.2 million), reflecting an 11.5% increase compared to the same period in 2023. This rise was primarily driven by a significant increase in sales and marketing expenses, which surged by 53.0% year-over-year to RMB60.6 million (US$8.6 million). The increase in marketing expenses was largely due to higher promotional activities as Tuniu expanded its customer outreach to capitalize on growing demand.

On the other hand, Tuniu reduced its research and product development expenses by 25.9% to RMB13.6 million (US$1.9 million), mainly due to lower personnel-related costs. As a percentage of net revenues, research and development expenses fell to 7.3% from 10.3% in Q3 2023, highlighting the company’s focus on optimizing costs in this area.

General and administrative expenses saw a decrease of 31.3%, totaling RMB18.6 million (US$2.7 million), mainly due to the reversal of allowance for doubtful accounts. This reduction in administrative costs helped offset some of the increases in other operational areas.

Profitability and Earnings Growth

Tuniu’s income from operations for Q3 2024 was RMB29.2 million (US$4.2 million), a slight decrease from RMB31.7 million in the third quarter of 2023. However, the company’s non-GAAP income from operations, which excludes share-based compensation and amortization of intangible assets, stood at RMB31.3 million (US$4.5 million).

The company reported net income of RMB43.9 million (US$6.3 million), an increase from RMB39.1 million in the same period last year. Non-GAAP net income, excluding non-recurring costs, was RMB46.0 million (US$6.6 million).

Net income attributable to Tuniu’s ordinary shareholders was RMB44.4 million (US$6.3 million), up from RMB39.4 million in Q3 2023. Non-GAAP net income attributable to shareholders reached RMB46.6 million (US$6.6 million), reflecting the company’s strong financial position.

Cash and Investments

As of September 30, 2024, Tuniu had cash and cash equivalents, restricted cash, and short-term investments totaling RMB1.3 billion (US$185.8 million), providing ample liquidity for future growth and strategic investments.

Business Outlook for Q4 2024

Looking ahead, Tuniu has provided guidance for the fourth quarter of 2024, expecting net revenues between RMB100.0 million and RMB105.0 million. This represents a slight increase of 0% to 5% year-over-year compared to Q4 2023, reflecting the company’s cautious optimism about the travel industry and its operations.

Share Repurchase Program Update

Tuniu’s Board of Directors authorized a share repurchase program in March 2024, allowing the company to repurchase up to US$10 million worth of its ordinary shares. As of November 30, 2024, Tuniu had repurchased approximately 6.2 million ADSs for around US$5.6 million as part of this program.

Conference Call and Webcast

Tuniu’s management will host an earnings conference call at 8:00 am U.S. Eastern Time (9:00 pm Beijing/Hong Kong Time) on December 5, 2024, to discuss the company’s third-quarter 2024 financial results.