Tuniu Announces Unaudited First Quarter 2023 Financial Results

NANJING, China, June 9, 2023 /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, 2023.

Highlights for the First Quarter of 2023

• Net revenues in the first quarter of 2023 increased by 52.3% year-over-year to RMB63.2 million (US$9.2 million^[1]).
• Revenues from package tours in the first quarter of 2023 increased by 179.2% year-over-year to RMB40.1 million (US$5.8 million).
• Gross profit in the first quarter of 2023 increased by 145.9% year-over-year to RMB38.9 million (US$5.7 million).
• Operating expenses in the first quarter of 2023 decreased by 18.6% year-over-year to RMB55.9 million (US$8.1 million).

"We are pleased to see a robust rebound in our business during the first quarter of 2023. Our net revenues experienced strong year-over-year growth of 52%, while revenues from packaged tours soared 179% compared to the previous year. By capitalizing on our integrated model, we are strategically leveraging our deep supply chain and broad network of sales channels to attract an increasing number of customers and partners with Tuniu's high-quality products and services. We are confident that this approach will continue to provide a strong foundation for our accelerated growth," said Mr. Donald Dunde Yu, Tuniu's founder, Chairman and Chief Executive Officer. "We're also pleased to note that our operating cash flow turned positive for the quarter as we continued to reduce operating expenses, further narrowing losses as compared to the same period last year. We remain committed to enhancing profitability by leveraging digitalization across all aspects of Tuniu's product development, management, and sales."

First Quarter 2023 Results

Net revenues were RMB63.2 million (US$9.2 million) in the first quarter of 2023, representing a year-over-year increase of 52.3% from the corresponding period in 2022. The increase was primarily due to the growth of packaged tours as the travel market recovers.

• Revenues from packaged tours were RMB40.1 million (US$5.8 million) in the first quarter of 2023, representing a year-over-year increase of 179.2% from the corresponding period in 2022. The increase was primarily due to the growth of organized tours.
• Other revenues were RMB23.1 million (US$3.4 million) in the first quarter of 2023, representing a year-over-year decrease of 15.0% from the corresponding period in 2022. The decrease was primarily due to the decrease in commission fees received from other travel-related products and revenues generated from financial services.

Cost of revenues was RMB24.3 million (US$3.5 million) in the first quarter of 2023, representing a year-over-year decrease of 5.3% from the corresponding period in 2022. As a percentage of net revenues, cost of revenues was 38.5% in the first quarter of 2023, compared to 61.9% in the corresponding period in 2022.

Gross profit was RMB38.9 million (US$5.7 million) in the first quarter of 2023, representing a year-over-year increase of 145.9% from the corresponding period in 2022.

Operating expenses were RMB55.9 million (US$8.1 million) in the first quarter of 2023, representing a year-over-year decrease of 18.6% from the corresponding period in 2022.

• Research and product development expenses were RMB14.3 million (US$2.1 million) in the first quarter of 2023, representing a year-over-year decrease of 11.5%. The decrease was primarily due to the decrease in research and product development personnel related expenses.
• Sales and marketing expenses were RMB20.0 million (US$2.9 million) in the first quarter of 2023, representing a year-over-year decrease of 32.9%. The decrease was primarily due to the decrease in sales and marketing personnel related expenses.
• General and administrative expenses were RMB22.3 million (US$3.3 million) in the first quarter of 2023, representing a year-over-year decrease of 19.3%. The decrease was primarily due to the decrease in general and administrative personnel related expenses.

Loss from operations was RMB17.0 million (US$2.5 million) in the first quarter of 2023, compared to a loss from operations of RMB52.8 million in the first quarter of 2022. Non-GAAP^[2] loss from operations, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB15.4 million (US$2.2 million) in the first quarter of 2023.

Net loss was RMB7.5 million (US$1.1 million) in the first quarter of 2023, compared to a net loss of RMB41.7 million in the first quarter of 2022. Non-GAAP net loss, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB5.9 million (US$0.9 million) in the first quarter of 2023.

Net loss attributable to ordinary shareholders was RMB7.0 million (US$1.0 million) in the first quarter of 2023, compared to a net loss attributable to ordinary shareholders of RMB40.4 million in the first quarter of 2022. Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses and amortization of acquired intangible assets, was RMB5.4 million (US$0.8 million) in the first quarter of 2023.

As of March 31, 2023, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB960.2 million (US$139.8 million). 

Business Outlook

For the second quarter of 2023, Tuniu expects to generate RMB88.7 million to RMB92.4 million of net revenues, which represents a 140% to 150% increase year-over-year compared with net revenues in the corresponding period in 2022. 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 June 9, 2023, (8:00 pm, Beijing/Hong Kong Time, on June 9, 2023) to discuss the first quarter 2023 financial results.

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

Conference ID: Tuniu 1Q 2023 Earnings Conference Call

A telephone replay will be available one hour after the end of the conference call through June 16, 2023. The dial-in details are as follows:

Replay Access Code: 8229010

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 integrated travel service with 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 provides one-stop leisure travel solutions and a compelling customer experience through its online platform and offline service network, including a dedicated team of professional customer service representatives, 24/7 call centers, extensive networks of offline retail stores and self-operated local tour operators. 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; the impact of the COVID-19 on Tuniu's business operations, the travel industry and the economy of China and elsewhere generally; 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 loss from operations, net loss, net loss attributable to ordinary shareholders, which excludes share-based compensation expenses, amortization of acquired intangible assets and net gain on disposals of subsidiaries. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. 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.

This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. Further, this non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. Tuniu encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

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.

(Financial Tables Follow)