Financial Data and Key Metrics - Net revenues increased by 71% year-over-year to RMB108 million in Q1 2024, driven by the recovery of the travel market [6][16] - Revenues from packaged tours grew by 107% year-over-year to RMB83 million, accounting for 77% of total net revenues [16] - Gross profit increased by 111% year-over-year to RMB82 million, marking the first GAAP profitability in Q1 since listing [7][17] - Net income attributable to ordinary shareholders was RMB13.9 million, with non-GAAP net income at RMB19.7 million [18] - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB1.2 billion as of March 30, 2024 [19] Business Line Performance - GMV of new tour products grew by over 60% compared to the previous quarter, driven by high-quality in-house products [8] - Loyal customers contributed over 65% to total transaction volume in Q1, reflecting strong brand loyalty [8] - Live streaming channels achieved a 200% year-over-year increase in total payment volume, with verification volume growing by 400% [11] - Offline stores saw transaction volume increase by over 200% year-over-year, with approximately 200 stores operational [13] Market Performance - Outbound travel products transaction volume increased by over 200% year-over-year during the Labor Day holiday [6] - Domestic tours accounted for 70% of GMV, while outbound tours increased to 30% of GMV in Q1 [24] - APAC countries were popular destinations due to short distances, warm weather, and visa-free policies [23] Strategic Direction and Industry Competition - The company focused on enhancing in-house products, aiming to increase their proportion in packaged tours [7] - Centralized procurement strategy lowered resource costs, improving product competitiveness [10] - The company strengthened its live streaming network with over 60 in-house accounts and collaborated with 1,000 influencers [13] - Automation technology was leveraged to refine management processes and improve operational efficiency [14] Management Commentary on Operating Environment and Future Outlook - The travel industry in China continued its healthy development trend, with robust growth in the outbound travel market [6] - The company expects net revenues for Q2 2024 to be between RMB114.9 million and RMB119.9 million, representing a 15% to 20% year-over-year increase [19] - The summer vacation is expected to drive significant growth, particularly in outbound travel, with strong demand for packaged tours to Japan [24] Other Important Information - Operating expenses as a percentage of net revenues dropped by 20 percentage points year-over-year [14] - Sales and marketing expenses increased by 84% year-over-year due to higher promotion and personnel-related costs [17] - General and administrative expenses decreased by 8% year-over-year, primarily due to the reversal of allowance for doubtful accounts [18] Q&A Session Question: Performance in outbound and domestic tourism, and outlook for the summer vacation - Domestic tours experienced double-digit growth year-over-year, while outbound travel increased multi-fold due to improved supply and more destination options [23] - Domestic tours accounted for 70% of GMV, and outbound tours increased to 30% of GMV in Q1 [24] - The summer vacation is expected to see significant growth in outbound travel, with strong demand for packaged tours to Japan [24] Question: Profitability outlook for Q2 2024 - The company expects net revenue growth to slow in Q2 due to a higher base in the previous year, but packaged tours will grow faster than total revenues [25] - Gross margin improved to over 70%, driven by a focus on profitable products and cost control measures [25] - The company aims to achieve continuous profitability through strict expense control [25]
Tuniu(TOUR) - 2024 Q1 - Earnings Call Transcript