Tuniu (TOUR) 5 Dec 24 2024 Q3 Earnings call transcript

Tuniu's recent earnings call for the third quarter of 2024 has shed light on the company's strategic growth and financial health, highlighting key themes and trends that are shaping its future trajectory. In a call led by Founder, Chairman, and CEO, Dunde Yu, along with Financial Controller Anqiang Chen, Tuniu shared updates on business operations, financial performance, and product development strategies.

Revenue Growth and Profitability

Tuniu reported a record-high GAAP net income of RMB 43.9 million, marking a significant milestone for the company since its listing. The net income for the first three quarters of 2024 surpassed RMB 100 million, underscoring the company's profitability and financial strength. On a non-GAAP basis, Tuniu achieved profitability for six consecutive quarters, demonstrating its ability to navigate market challenges and capitalize on growth opportunities.

Robust Demand and Diversified Product Offerings

The third quarter of 2024 saw robust demand for Tuniu's services, with a double-digit year-over-year growth in transactional volume for outbound travel products. Recognizing the evolving needs of customers, Tuniu is expanding its product range to include niche products and destinations, such as South America and the Polar regions. The company's focus on creating differentiated products and services to meet customer demand is a testament to its commitment to innovation and customer satisfaction.

Strategic Product Development and Partnerships

Tuniu's strategic product development initiatives, including the launch of new slack products and in-depth travel experiences, have resonated with customers. The company's collaborations with third-party suppliers and travel destinations, such as Tourism Europe, underscore its ability to offer diverse products and services to cater to a wide range of consumer preferences.

Financial Highlights and Operational Efficiency

Tuniu's financial highlights for the third quarter of 2024 include a net revenue of RMB 186 million, representing a 4% year-over-year increase. The company's focus on operational efficiency, cost control, and sales channel optimization is reflected in its financial performance, setting the stage for long-term sustainable growth.

Customer Satisfaction and Future Outlook

With a customer satisfaction rating of 94% and repeat customers contributing over 65% of the transactional volume, Tuniu's commitment to high-quality products and services is evident. The introduction of new holiday policies, such as the addition of two public holidays, is a positive sign for the tourism industry, further boosting Tuniu's confidence in its long-term development.

In conclusion, Tuniu's third-quarter 2024 earnings call paints a picture of a company that is strategically positioned for growth, with a focus on product innovation, customer satisfaction, and operational efficiency. As the company navigates the evolving travel industry landscape, its commitment to high-quality products and services remains a core competitive advantage. With a strong financial foundation and strategic partnerships, Tuniu is well-positioned to capitalize on growth opportunities and meet the diverse needs of its customers.