omniture

Tuniu Announces Unaudited First Quarter 2018 Financial Results

2018-05-24 18:50 2216

Non-GAAP[1] Net Loss in Q1 2018 Decreased by 89.5% Year-Over-Year

Added 51 Offline Retail Stores and 7 Local Tour Operators[2]

NANJING, China, May 24, 2018 /PRNewswire/ -- Tuniu Corporation (NASDAQ:TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced its unaudited financial results for the first quarter ended March 31, 2018.

Highlights for the First Quarter of 2018

  • Revenues from package tours in the first quarter of 2018 increased by 13.1% year-over-year to RMB402.7 million (US$64.2 million[3]).
  • Operating expenses in the first quarter of 2018 decreased by 31.4% year-over-year to RMB383.8 million (US$61.2 million).
  • Non-GAAP net loss was RMB23.8 million (US$3.8 million) in the first quarter of 2018, compared to a Non-GAAP net loss of RMB226.2 million in the first quarter of 2017.
  • As of April 30, 2018, Tuniu added 51 new offline retail stores during the year.
  • As of April 30, 2018, Tuniu had 21 local tour operators in total, including 7 newly launched local tour operators in China[4] during April.

Mr. Donald Dunde Yu, Tuniu's co-founder, Chairman and Chief Executive Officer, said, "As the leading online leisure travel company in China, we have developed a comprehensive sales network that allows us to efficiently acquire customers through various channels at different departure cities. With a solid foundation established through our sales network, our next step is to replicate the expansion model to our service network at destinations. As China's consumption power continues its upward trend, Chinese travelers are demanding better services and experiences. We believe that many of these demands are still unmet and there continues to be an opportunity for Tuniu to provide products and services consistent with current demands through its service network."

Ms. Maria Yi Xin, Tuniu's Chief Financial Officer, said, "During the first quarter, we were able to continue reducing our net loss. The development of our sales network served a vital role in the reduction of our sales and marketing expenses. Tuniu's new retail model continues to gain traction as customers acquired through our offline retail stores contributed more than 10% of our packaged tour GMV for the first time during this quarter. With our blended user acquisition cost declining from the expansion of our sales network, and bargaining power increasing from the development of our service network, Tuniu's operational efficiency will continue to scale in the future."

 

1. The section below entitled "About Non-GAAP Financial Measures" provides information about the use of
Non-GAAP financial measures in this press release, and the table captioned "Reconciliations of GAAP and
Non-GAAP Results" set forth at the end of this press release reconciles Non-GAAP financial information with the
Company's financial results under GAAP.


2. The section below entitled "Highlights for the First Quarter of 2018" provides additional information about
some key financial figures and operating data.


3. The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of
US$1.00=RMB6.2726 on March 30, 2018 as set forth in H.10 statistical release of the U.S. Federal Reserve Board
and available at https://www.federalreserve.gov/releases/h10/default.htm.


4. The 7 newly opened local tour operators are located in Huhehot, Taiyuan, Chengde, Hulunbuir, Harbin, Dalian
and Urumqi in China.

 

First Quarter 2018 Results

Net revenues were RMB480.5 million (US$76.6 million) in the first quarter of 2018, representing a year-over-year increase of 5.4% from the corresponding period in 2017.

  • Revenues from packaged tours, which are mainly recognized on a net basis, were RMB402.7 million (US$64.2 million) in the first quarter of 2018, representing a year-over-year increase of 13.1% from the corresponding period in 2017. The increase was primarily due to the growth of organized tours and self-guided tours.
  • Other revenues were RMB77.9 million (US$12.4 million) in the first quarter of 2018, representing a year-over-year decrease of 22.2% from the corresponding period in 2017. The decrease was primarily due to the decline in revenues generated from financial services, commission fees received from air ticketing and service fees received from insurance companies.

Cost of revenues was RMB217.9 million (US$34.7 million) in the first quarter of 2018, representing a year-over-year increase of 6.4% from the corresponding period in 2017. As a percentage of net revenues, cost of revenues was 45.3% in the first quarter of 2018 compared to 44.9% in the corresponding period in 2017.

Gross profit was RMB262.6 million (US$41.9 million) in the first quarter of 2018, representing a year-over-year increase of 4.5% from the corresponding period in 2017. The increase was primarily due to the increase in efficiency resulting from economies of scale.

Operating expenses were RMB383.8 million (US$61.2 million) in the first quarter of 2018, representing a year-over-year decrease of 31.4% from the corresponding period in 2017. Share-based compensation expenses and amortization of acquired intangible assets, which were allocated to operating expenses, were RMB47.5 million (US$7.6 million) in the first quarter of 2018. Non-GAAP operating expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets, were RMB336.3 million (US$53.6 million) in the first quarter of 2018, representing a year-over-year decrease of 32.5%.

  • Research and product development expenses were RMB84.1 million (US$13.4 million) in the first quarter of 2018, representing a year-over-year decrease of 47.3%. Non-GAAP research and product development expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB1.7 million (US$0.3 million), were RMB82.4 million (US$13.1 million) in the first quarter of 2018, representing a year-over-year decrease of 47.6% from the corresponding period in 2017. Research and product development expenses as a percentage of net revenues were 17.5% in the first quarter of 2018, decreasing from 35.0% in the corresponding period in 2017. The decrease was primarily due to the increase in efficiency resulting from economies of scale and refined management, and optimization of research and product development personnel.
  • Sales and marketing expenses were RMB185.8 million (US$29.6 million) in the first quarter of 2018, representing a year-over-year decrease of 26.8%. Non-GAAP sales and marketing expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB34.3 million (US$5.5 million), were RMB151.5 million (US$24.1 million) in the first quarter of 2018, representing a year-over-year decrease of 30.9% from the corresponding period in 2017. Sales and marketing expenses as a percentage of net revenues were 38.7% in the first quarter of 2018, decreasing from 55.6% in the corresponding period in 2017. The decrease was primarily due to the optimization of promotional expense structure and preference for marketing channels with higher ROI.
  • General and administrative expenses were RMB114.6 million (US$18.3 million) in the first quarter of 2018, representing a year-over-year decrease of 24.3%. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses and amortization of acquired intangible assets of RMB11.5 million (US$1.8 million), were RMB103.1 million (US$16.4 million) in the first quarter of 2018, representing a year-over-year decrease of 19.0% from the corresponding period in 2017. General and administrative expenses as a percentage of net revenues were 23.9% in the first quarter of 2018, decreasing from 33.2% in the corresponding period in 2017. The decrease was primarily due to the increase in efficiency resulting from economies of scale and decline in personnel related fees.

Loss from operations was RMB121.1 million (US$19.3 million) in the first quarter of 2018, compared to a loss from operations of RMB308.0 million in the first quarter of 2017. Non-GAAP loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB73.4 million (US$11.7 million) in the first quarter of 2018.

Net loss was RMB71.6 million (US$11.4 million) in the first quarter of 2018, compared to a net loss of RMB287.4 million in the first quarter of 2017. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB23.8 million (US$3.8 million) in the first quarter of 2018.

Net loss attributable to ordinary shareholders was RMB74.7 million (US$11.9 million) in the first quarter of 2018, compared to a net loss attributable to ordinary shareholders of RMB288.2 million in the first quarter of 2017. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB26.9 million (US$4.3 million) in the first quarter of 2018.

As of March 31, 2018, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3.1 billion (US$500.3 million).

Business Outlook

For the second quarter of 2018, Tuniu expects to generate RMB519.9 million to RMB538.3 million of net revenues, which represents 13% to 17% growth year-over-year. This forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change.  

Conference Call Information

Tuniu's management will hold an earnings conference call at 8:00 am U.S. Eastern Time, on May 24, 2018, (8:00 pm, Beijing/Hong Kong Time, on May 24, 2018) to discuss the first quarter 2018 financial results.

To participate in the conference call, please dial the following numbers:

 

US:

+1-888-346-8982

Hong Kong:

800-905945

China:

4001-201203

International:

+1-412-902-4272

 

Conference ID: Tuniu 1Q 2018 Earnings Call

A telephone replay will be available one hour after the end of the conference through May 31, 2018. The dial-in details are as follows:

 

US:

+1-877-344-7529

International:

+1-412-317-0088

 

Replay Access Code: 10120454

Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.tuniu.com.

About Tuniu

Tuniu (Nasdaq:TOUR) is a leading online leisure travel company in China that offers a large selection of packaged tours, including organized and self-guided tours, as well as travel-related services for leisure travelers through its website tuniu.com and mobile platform. Tuniu has over 2,000,000 stock keeping units (SKUs) of packaged tours, covering over 420 departing cities throughout China and all popular destinations worldwide. Tuniu provides one-stop leisure travel solutions and a compelling customer experience through its online platform and offline service network. For more information, please visit http://ir.tuniu.com.

Safe Harbor Statement

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Tuniu may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Tuniu's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but are not limited to the following: Tuniu's goals and strategies; the growth of the online leisure travel market in China; the demand for Tuniu's products and services; its relationships with customers and travel suppliers; the Company's ability to offer competitive travel products and services; Tuniu's future business development, results of operations and financial condition; competition in the online travel industry in China; relevant government policies and regulations relating to the Company's structure, business and industry; and the general economic and business condition in China and elsewhere. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tuniu does not undertake any obligation to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement the Company's unaudited consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company has provided non-GAAP information related to cost of revenues, research and product development expenses, sales and marketing expenses, general and administrative expenses, operating expenses, loss from operations, net loss, net loss attributable to ordinary shareholders, net loss per ordinary share attributable to ordinary shareholders-basic and diluted and net loss per ADS, which excludes share-based compensation expenses and amortization of acquired intangible assets. We believe that the non-GAAP financial measures used in this press release are useful for understanding and assessing underlying business performance and operating trends, and management and investors benefit from referring to these non-GAAP financial measures in assessing our financial performance and when planning and forecasting future periods. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP Results" set forth at the end of this press release.

A limitation of using non-GAAP financial measures excluding share-based compensation expenses and amortization of acquired intangible assets is that share-based compensation expenses and amortization of acquired intangible assets have been – and will continue to be – significant recurring expenses in the Company's business. You should not view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies.

For investor and media inquiries, please contact:
China
Mary Chen
Investor Relations Director
Tuniu Corporation
Phone: +86-25-6960-9988
E-mail: ir@tuniu.com

 

 

Tuniu Corporation

Unaudited Condensed Consolidated Balance Sheets

(All amounts in thousands, except per share information)


 December 31, 2017 


 March 31, 2018 


 March 31, 2018 


 RMB 


 RMB 


 US$ 







ASSETS






Current assets






Cash and cash equivalents

484,101


612,269


97,610

Restricted cash 

91,810


145,904


23,261

Short-term investments

3,084,634


2,379,946


379,419

Accounts receivable, net

286,627


327,759


52,252

Amounts due from related parties

171,331


114,310


18,224

Prepayments and other current assets  

939,463


990,806


157,958

Yield enhancement products and accrued interest

31,337


6,708


1,069

Total current assets

5,089,303


4,577,702


729,793







Non-current assets






Long term investments

484,991


993,319


158,358

Property and equipment, net

148,278


148,919


23,741

Intangible assets, net

460,634


426,076


67,927

Goodwill

147,639


147,639


23,537

Yield enhancement products over one year and
accrued interest

170,505


106,569


16,990

Other non-current assets

156,455


166,558


26,553

Total non-current assets

1,568,502


1,989,080


317,106

Total assets

6,657,805


6,566,782


1,046,899







LIABILITIES AND SHAREHOLDERS' EQUITY






Current liabilities






Accounts payable 

852,500


1,161,487


185,168

Amounts due to related parties

86,923


83,541


13,318

Salary and welfare payable

187,561


99,822


15,914

Taxes payable

32,036


18,101


2,886

Advances from customers

1,210,615


1,033,293


164,731

Accrued expenses and other current liabilities

373,690


399,541


63,695

Amounts due to the individual investors of yield
enhancement products

177,971


141,012


22,481

Total current liabilities

2,921,296


2,936,797


468,193







Non-current liabilities

42,481


40,842


6,511

Total liabilities

2,963,777


2,977,639


474,704







Mezzanine equity






Redeemable noncontrolling interests

96,719


98,528


15,708







Shareholders' equity






Ordinary shares

248


248


40

Less: Treasury stock

(185,419)


(203,717)


(32,477)

Additional paid-in capital

9,013,793


9,025,354


1,438,854

Accumulated other comprehensive income

272,386


243,934


38,889

Accumulated deficit

(5,505,897)


(5,579,701)


(889,536)

Total Tuniu's shareholders' equity

3,595,111


3,486,118


555,770

Noncontrolling interests

2,198


4,497


717

Total Shareholders' equity

3,597,309


3,490,615


556,487

Total liabilities and shareholders' equity

6,657,805


6,566,782


1,046,899

 

 

Tuniu Corporation

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(All amounts in thousands, except per share information)


 Quarter Ended 


 Quarter Ended 


 Quarter Ended 


 Quarter Ended 


 March 31, 2017 


December 31, 2017 

 March 31, 2018 


 March 31, 2018 


 RMB 


 RMB 


 RMB 


 US$ 









Revenues








  Packaged tours

355,948


290,054


402,679


64,197

  Others

100,093


179,832


77,854


12,412

Net revenues

456,041


469,886


480,533


76,609

Cost of revenues

(204,737)


(234,733)


(217,907)


(34,740)

Gross profit

251,304


235,153


262,626


41,869









Operating expenses








Research and product development

(159,403)


(111,151)


(84,054)


(13,400)

Sales and marketing

(253,756)


(193,696)


(185,831)


(29,626)

General and administrative

(151,333)


(154,490)


(114,609)


(18,271)

Other operating income

5,223


3,348


735


117

Total operating expenses

(559,269)


(455,989)


(383,759)


(61,180)

Loss from operations

(307,965)


(220,836)


(121,133)


(19,311)

Other income/(expenses)








  Interest income

22,954


44,426


39,474


6,293

  Foreign exchange gains/(losses), net

(1,370)


(2,009)


5,977


953

  Other income/(loss), net

429


(147)


7,945


1,267

Loss before income tax expense

(285,952)


(178,566)


(67,737)


(10,798)

Income tax expense

(1,406)


(7,569)


(3,828)


(610)

Net loss

(287,358)


(186,135)


(71,565)


(11,408)

Net income/(loss) attributable to
noncontrolling interests

(751)


(2,939)


1,299


207

Net income/(loss) attributable to redeemable
noncontrolling interests

275


(93)


940


150

Net loss attributable to Tuniu Corporation

(286,882)


(183,103)


(73,804)


(11,765)

Accretion on redeemable noncontrolling
interest

(1,356)


(1,757)


(869)


(139)

Net loss attributable to ordinary
shareholders

(288,238)


(184,860)


(74,673)


(11,904)









Net loss

(287,358)


(186,135)


(71,565)


(11,408)

Other comprehensive income loss:








  Foreign currency translation adjustment, net
  of nil tax

(19,190)


(24,770)


(28,452)


(4,536)

Comprehensive loss

(306,548)


(210,905)


(100,017)


(15,944)









Loss per share








Net loss per ordinary share attributable to
ordinary shareholders - basic and diluted

(0.76)


(0.48)


(0.19)


(0.03)

Net loss per ADS - basic and diluted*

(2.28)


(1.44)


(0.57)


(0.09)

Weighted average number of ordinary shares
used in computing basic and diluted loss per
share

378,164,347


387,993,534


388,843,912


388,843,912









Share-based compensation expenses included are as follows







Cost of revenues

321


230


227


36

Research and product development

1,784


1,324


1,260


201

Sales and marketing

477


201


185


29

General and administrative

23,139


17,089


10,709


1,707

Total

25,721


18,844


12,381


1,973









*Each ADS represents three of the Company's ordinary shares.







 

Reconciliations  of GAAP and Non-GAAP Results

(All amounts in thousands, except per share information)










 Quarter Ended March 31, 2018


GAAP Result 


 Share-based 


Amortization of acquired 


 Non-GAAP 



 Compensation 


  intangible assets 


 Result 









Cost of revenues

(217,907)


227


-


(217,680)









Research and product development

(84,054)


1,260


399


(82,395)

Sales and marketing

(185,831)


185


34,163


(151,483)

General and administrative

(114,609)


10,709


781


(103,119)

Other operating income

735


-


-


735

Total operating expenses

(383,759)


12,154


35,343


(336,262)









Loss from operations

(121,133)


12,381


35,343


(73,409)









Net loss

(71,565)


12,381


35,343


(23,841)









Net loss attributable to ordinary shareholders

(74,673)


12,381


35,343


(26,949)









Net loss per ordinary share attributable to
ordinary shareholders - basic and diluted (RMB)

(0.19)






(0.07)

Net loss per ADS - basic and diluted (RMB)

(0.57)






(0.21)

Weighted average number of ordinary shares
used in computing basic and diluted loss per
share

 

388,843,912






388,843,912










 Quarter Ended December 31, 2017


GAAP Result 


 Share-based 


Amortization of acquired 


 Non-GAAP 



 Compensation 


  intangible assets 


 Result 









Cost of revenues

(234,733)


230


-


(234,503)









Research and product development

(111,151)


1,324


399


(109,428)

Sales and marketing

(193,696)


201


34,163


(159,332)

General and administrative

(154,490)


17,089


777


(136,624)

Other operating income

3,348


-


-


3,348

Total operating expenses

(455,989)


18,614


35,339


(402,036)









Loss from operations

(220,836)


18,844


35,339


(166,653)









Net loss

(186,135)


18,844


35,339


(131,952)









Net loss attributable to ordinary shareholders

(184,860)


18,844


35,339


(130,677)









Net loss per ordinary share attributable to
ordinary shareholders - basic and diluted (RMB)

(0.48)






(0.34)

Net loss per ADS - basic and diluted (RMB)

(1.44)






(1.02)

Weighted average number of ordinary shares
used in computing basic and diluted loss per
share

387,993,534






387,993,534










 Quarter Ended March 31, 2017


 GAAP Result 


 Share-based 


Amortization of acquired 


 Non-GAAP 



 Compensation 


  intangible assets 


 Result 









Cost of revenues

(204,737)


321


-


(204,416)









Research and product development

(159,403)


1,783


399


(157,221)

Sales and marketing

(253,756)


477


34,163


(219,116)

General and administrative

(151,333)


23,139


827


(127,367)

Other operating income

5,223


-


-


5,223

Total operating expenses

(559,269)


25,399


35,389


(498,481)









Loss from operations

(307,965)


25,720


35,389


(246,856)









Net loss 

(287,358)


25,720


35,389


(226,249)









Net loss attributable to ordinary shareholders

(288,238)


25,720


35,389


(227,129)









Net loss per ordinary share attributable to
ordinary shareholders - basic and diluted (RMB)

(0.76)






(0.60)

Net loss per ADS - basic and diluted (RMB)

(2.28)






(1.80)

Weighted average number of ordinary shares
used in computing basic and diluted loss per
share

 

378,164,347






378,164,347

 

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Source: Tuniu
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