Tuniu Corporation (NASDAQ: TOUR) Q1 2025 Earnings Call | 06/12/2025

13 days ago

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AI Summary

Key Highlights:

Steady Core Business Growth: 2NEWS saw its core business maintain steady growth in Q1 2025, with revenues from packaged tours increasing by 19% year-over-year.
Domestic and Outbound Tour Performance: The domestic travel market experienced consistent growth, particularly during the Spring Festival. Outbound tour transaction volume achieved double-digit year-over-year growth, driven by long-haul destinations despite challenges in some Southeast Asian areas.
Strategic Adaptations: 2NEWS is focusing on proactive strategies, including:
- Differentiated Products: Attracting premium customers with high-quality services and products like the "New Tour," and expanding offerings to include luxury options and unique destinations (e.g., Caucasus region tour with 100% satisfaction).
- Competitively Priced Products: Introducing "New Select" products to cater to price-sensitive travelers, leading to an over 80% increase in transaction volume for these products quarter-over-quarter.
- Supply Chain Optimization: Reducing procurement costs through centralized and direct purchasing to offer more competitive prices.
- Open Collaboration: Engaging with partners and exploring new sales channels.
- AI Integration: Leveraging AI (e.g., AI Assistant Xiaoniu) for enhanced customer experience (smart search, price comparison, personalized recommendations) and improved operational efficiency.
Sales Channel Expansion:
- Live Streaming: Strong growth with double-digit year-over-year increases in transaction and verification volume, now contributing over 15% of total transaction volume. Notable success with a Maldives campaign generating over RMB 100 million in total payment volume.
- Offline Stores: Nearly 300 stores opened by the end of Q1 2025, strategically located for in-person promotions and local resource sharing.
- New Channels: Developing traffic platforms (for single items like flights/hotels) and corporate client services (customized group tours, individual/family packages).
Financial Performance (Q1 2025):
- Net Revenues: $117.5 million, a 9% year-over-year increase. Packaged tours accounted for 84% of total net revenues.
- Gross Profit: $69.3 million, down 15% year-over-year (due to returning value to customers through competitive pricing).
- Operating Expenses: $80.1 million, up 15% year-over-year, driven by increases in personnel-related expenses for R&D and sales/marketing.
- Net Loss: $4.7 million attributable to ordinary shareholders.
- Non-GAAP Net Income: $0.8 million.
- Cash and Equivalents: $1.2 billion as of March 31, 2025.
Q2 2025 Outlook: The company anticipates net revenues between $131 million and $136.8 million, representing a 12% to 17% year-over-year increase, and aims to achieve profitability.
Product Pricing Strategy: The company prioritizes quality but diversifies pricing to attract various customer segments, using competitive pricing to enhance repurchase rates and consolidate market share amidst increasing competition. This is achieved through supply chain consolidation and AI-assisted pricing.

About this video

Tuniu Corporation (NASDAQ: TOUR) reported Q1 2025 results on June 12, 2025, with net revenue rising 8.9% year-over-year to RMB117.5 million (US$16.2 million), led by a 19.3% surge in packaged tour revenue to RMB99.0 million. This growth was fueled by robust demand for organized tours and a strong domestic travel market, especially during the Spring Festival. Despite the top-line growth, Tuniu swung to a net loss of RMB4.7–5.4 million (US$0.6–0.7 million), compared to net income of RMB13.9–21.9 million in Q1 2024, as sharply higher costs squeezed margins. Cost of revenues soared 85.9% year-over-year, pushing gross profit down 15.5% to RMB69.3 million and gross margin to 59% from 76% a year ago. Operating expenses rose 14.9%, with notable increases in R&D, sales and marketing, and general and administrative costs. Key business drivers included: Live streaming campaigns: Now account for over 15% of total transactions (up from 10% last year), highlighted by a 21-day Maldives event that generated RMB100 million in payment volume. Live streaming, paired with influencer partnerships, has become a critical, cost-effective marketing channel and brand builder. Offline expansion: Tuniu operated over 300 offline stores at quarter-end, supporting localized procurement and deeper customer engagement in both high-demand source markets and tourist destinations. AI innovation: In April 2025, Tuniu launched its proprietary AI travel agent, Xiao Niu, which leverages vertical travel application scenarios and large language models to enhance customer experience and operational efficiency. The company maintained a strong cash position with RMB1.2 billion (US$167.2 million) in cash and equivalents, and continued its aggressive share buyback program, repurchasing US$9 million of ADSs toward a US$10 million target. Outlook: Q2 2025: Revenue guidance of RMB131.0–136.8 million, representing 12–17% year-over-year growth. Management expects continued momentum from holiday demand, live streaming, and hybrid product strategies, with a potential return to profitability if margin pressures are managed. Focus remains on cost control, product innovation, and scaling AI-driven customer engagement. #Tuniu #TOUR #EarningsCall #Q12025 #PackagedTours #LiveStreaming #AI #ChinaTravel #RevenueGrowth #InsideTicker

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