Tuniu Corp ((TOUR)) has held its Q4 earnings call. Read on for the main highlights of the call.
Tuniu Corp’s recent earnings call painted a generally positive picture, highlighting significant achievements such as the company’s transition to profitability with its first GAAP profit since listing. The call also underscored substantial net income growth and the success of product lines like Niu Tour. Despite challenges like a decline in fourth-quarter gross profit and a net loss for the quarter, the overall sentiment remained optimistic due to the strong full-year performance and strategic advancements.
First GAAP Profit
Tuniu Corp celebrated a major milestone by achieving its first GAAP profit for the full year since its IPO. This achievement underscores the company’s successful transition to profitability, marking a significant turnaround in its financial performance.
Net Income Growth
On a non-GAAP basis, Tuniu’s net income grew by over 70% year-over-year, reaching a record high since the company’s IPO. This impressive growth highlights the company’s robust financial health and effective management strategies.
Shareholder Returns
The company approved a special cash dividend of approximately $4.2 million and spent over $6.2 million on share buybacks, returning a total of approximately $10 million to shareholders in 2024. This move reflects Tuniu’s commitment to enhancing shareholder value.
Niu Tour Product Success
The Niu Tour product line saw transaction volume grow by over 30% year-over-year, with a high repurchase rate. This success demonstrates the strong market demand and customer satisfaction with Tuniu’s offerings.
Expansion in Lower-Tier Cities
Tuniu’s strategy to expand in lower-tier cities paid off, with transaction volume from these areas contributing more than 50% of the company’s total transaction volume. This expansion is crucial for tapping into new markets and driving growth.
Live Streaming Channel Growth
The live streaming channels experienced significant growth, with both transactions and verification volumes increasing by over 100% year-over-year. This growth highlights the effectiveness of Tuniu’s digital strategy and its ability to engage with a broader audience.
Off-line Store Expansion
Transaction volume for off-line stores grew by over 50% year-over-year, with plans to double the number of stores in 2025. This expansion is part of Tuniu’s strategy to strengthen its physical presence and enhance customer accessibility.
Revenue Growth
Net revenues for the full year 2024 reached RMB513.6 million, representing a 16% year-over-year increase. This growth reflects the company’s successful execution of its business strategies and its ability to capture market opportunities.
Decline in Fourth Quarter Gross Profit
Despite the overall positive performance, Tuniu faced a 6% year-over-year decline in gross profit for the fourth quarter of 2024, amounting to RMB69.8 million. This decline highlights some of the challenges the company faced in the latter part of the year.
Fourth Quarter Net Loss
The company reported a net loss attributable to ordinary shareholders of RMB24.2 million for the fourth quarter. This loss indicates areas where Tuniu needs to focus on improving efficiency and cost management.
Increase in Sales and Marketing Expenses
Sales and marketing expenses for the fourth quarter of 2024 increased by 28% year-over-year to RMB42.7 million. This increase reflects Tuniu’s efforts to boost its market presence and drive sales growth.
Forward-Looking Guidance
Looking ahead, Tuniu projects net revenues between RMB116.6 million and RMB122 million for the first quarter of 2025, reflecting an 8% to 13% year-over-year increase. The company plans to focus on product innovation, sales channel expansion, and leveraging AI technology to enhance user experience and operational efficiency.
In conclusion, Tuniu Corp’s earnings call highlighted a year of significant achievements and strategic growth, despite some challenges in the fourth quarter. The overall sentiment was positive, driven by the company’s transition to profitability, robust net income growth, and successful expansion strategies. As Tuniu looks to the future, its focus on innovation and market expansion promises continued growth and shareholder value.