Tuniu Corp ((TOUR)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Tuniu Corp painted a mixed picture of the company’s financial health and strategic progress. While there was notable growth in outbound travel and self-drive tours, alongside an increase in overall revenue and profitability, challenges such as declines in gross profit and rising operating expenses were also highlighted.
Revenue Growth
Tuniu Corp reported a 9% year-over-year increase in net revenues, with a significant 12% growth in revenues from its core packaged tour products. This growth underscores the company’s ability to capitalize on the demand for travel services, particularly in its packaged tours segment.
Outbound Travel Success
The company achieved remarkable success in its outbound travel segment, with transaction volumes for new select outbound travel products increasing by over 100% year-over-year. This surge reflects Tuniu’s strategic focus on expanding its outbound travel offerings and capturing market share in this lucrative segment.
Self-Drive Tour Growth
During the National Day holiday, Tuniu saw a fivefold increase in transaction volumes for self-drive tour products. This impressive growth highlights the increasing popularity of self-drive tours among travelers and Tuniu’s effective positioning in this market.
Corporate Customer Growth
The company also recorded double-digit year-over-year growth in transaction volumes from corporate customers. This growth indicates Tuniu’s successful efforts to strengthen its relationships with corporate clients and expand its footprint in the corporate travel sector.
Profitability Achieved
Tuniu achieved quarterly profitability on both a GAAP and a non-GAAP basis, marking a significant milestone for the company. This achievement reflects the company’s effective cost management and revenue generation strategies.
Gross Profit Decline
Despite the positive revenue growth, Tuniu experienced a 10% year-over-year decline in gross profit for the third quarter of 2025, amounting to CNY 109.6 million. This decline poses a challenge for the company as it seeks to maintain profitability.
Decrease in Other Revenues
Other revenues decreased by 14% year-over-year due to a reduction in commission fees from other travel-related products. This decline suggests a need for Tuniu to diversify its revenue streams and reduce dependency on specific product lines.
Rising Operating Expenses
Operating expenses for the third quarter increased by 3% year-over-year, reaching CNY 95.8 million. The rise in expenses highlights the challenges Tuniu faces in managing its operational costs while pursuing growth.
Forward-Looking Guidance
Looking ahead, Tuniu Corp provided a positive outlook for its financial performance and operational growth. The company expects net revenues for the fourth quarter to range between CNY 111 million and CNY 116.1 million, representing an 8% to 13% year-over-year increase. Tuniu anticipates maintaining non-GAAP breakeven or profitability, driven by continued growth in both domestic and outbound travel segments.
In conclusion, Tuniu Corp’s earnings call revealed a company experiencing robust growth in key areas, yet facing challenges in maintaining profitability and managing expenses. The positive outlook for the upcoming quarter suggests that Tuniu is well-positioned to capitalize on market opportunities, despite the hurdles it must overcome.