NANJING, China, Aug. 12, 2014 (GLOBE NEWSWIRE) -- Tuniu Corporation (Nasdaq:TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced its unaudited financial results for the second quarter ended June 30, 2014.
Highlights for the Second Quarter of 2014
Mr. Donald Yu, Tuniu's co-founder and Chief Executive Officer, said, "After our successful IPO in May, we are capitalizing on the IPO by strengthening our leading position in terms of market share and brand recognition. Despite the short-term impact of political instability in Southeast Asia and the tragic Malaysia Airline accident, we delivered a strong top line growth of 84.9% year-over-year in the second quarter. Our wide coverage of travel destinations and the professional guidance provided by our tour advisors enabled us to better serve a growing number of Chinese leisure travelers."
Mr. Alex Yan, Tuniu's co-founder and Chief Operating Officer, said, "During the second quarter, we launched our flash sale platform and established new regional service centers in five additional cities. In the second half of the year, we will continue to enhance customer service and improve our local sourcing and marketing capability by opening more regional service centers in second and third tier cities in China."
"In the second quarter, we made a strategic decision to price and market aggressively to increase our scale more quickly and achieve market share gains against our competitors. In the long run, as our scale increases over time, we shall obtain stronger bargaining power with our supply chain and improve our operational efficiency over a larger revenue base," said Mr. Conor Yang, Tuniu's Chief Financial Officer.
Second Quarter 2014 Results
Net revenues for the second quarter of 2014 were RMB716.4 million (US$115.5 million), representing a year-over-year increase of 84.9% from the corresponding period in 2013. The increase was primarily due to the growth in revenues from both organized tours and self-guided tours. Number of trips sold in the second quarter of 2014 was 549,228, a 76.0% increase from 312,054 in the second quarter of 2013.
Cost of revenues for the second quarter of 2014 was RMB674.3 million (US$108.7 million), representing a year-over-year increase of 88.9% from the corresponding period in 2013. The increase was primarily due to the increase of cost to suppliers of the organized tours and headcount-related expenses for our tour advisors. As a percentage of net revenues, cost of revenues was 94.1% in the second quarter of 2014 as compared to 92.1% in the corresponding period in 2013.
Gross margin for the second quarter of 2014 was 5.9% compared to 7.9% in the second quarter of 2013. The decline in gross margin was primarily due to Tuniu's competitive pricing strategy, and the higher costs associated with new product lines and newly-added second and third tier departure cities.
Operating expenses for the second quarter of 2014 were RMB159.2 million (US$25.7 million), representing a year-over-year increase of 287.4% from the corresponding period of 2013. Share-based compensation expenses, which were allocated to related operating expense line items, were RMB18.3 million (US$3.0 million) in the second quarter of 2014. The majority of share-based compensation expenses were related to the vested options that became exercisable upon the successful completion of the initial public offering, of which the cumulative expenses were recognized in the second quarter of 2014. Non-GAAP operating expenses, which excluded share-based compensation expenses, were RMB140.8 million (US$22.7 million), representing a year-over-year increase of 242.8%.
Loss from operations was RMB117.1 million (US$18.9 million) in the second quarter of 2014, compared to a loss from operations of RMB10.6 million in the corresponding period in 2013. Non-GAAP loss from operations, which excluded share-based compensation expenses, was RMB98.1 million (US$15.8 million) in the second quarter of 2014.
Net loss in the second quarter of 2014 was RMB113.6 million (US$18.3 million), compared to a net loss of RMB7.4 million in the second quarter of 2013. Non-GAAP net loss, which excluded share-based compensation expenses, was RMB94.7 million (US$15.3million).
Net loss attributable to ordinary shareholders was RMB129.2 million (US$20.8 million) in the second quarter of 2014, which includes a one-off deemed dividend to preferred shareholders of RMB15.6 million (US$2.5 million). Non-GAAP net loss attributable to ordinary shareholders, which excluded share-based compensation expenses, was RMB110.3 million (US$17.8 million) in the second quarter of 2014.
As of June 30, 2014, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB1.54 billion (US$248.9 million).
For the third quarter of 2014, Tuniu expects to generate RMB1,201 million to RMB1,237 million of net revenues, which represents 70% to 75%growth year-over-year. This forecast reflects Tuniu's current and preliminary view on the industry and its operations, which is subject to change.
Conference Call Information
Tuniu's management will hold an earnings conference call at 8:00 am U.S. Eastern Time, on August 12, 2014, (8:00 pm, Beijing/Hong Kong Time, on August 12, 2014) to discuss the second quarter 2014 financial results.
|Listeners may access the call by dialing the following numbers:|
|Conference ID: Tuniu Corporation conference call|
A telephone replay will be available one hour after the end of the conference through August 19, 2014. The dial-in details are as follows:
|Replay Access Code: 10050614|
Additionally, a live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.tuniu.com.
Tuniu (Nasdaq:TOUR) is a leading online leisure travel company in China that offers a large selection of packaged tours, including organized and self-guided tours, as well as travel-related services for leisure travelers through its website tuniu.com and mobile platform. Tuniu has over 320,000 stock keeping units (SKUs) of packaged tours, covering over 70 countries worldwide and all the popular tourist attractions in China. Tuniu provides one-stop leisure travel solutions and a compelling customer experience through its online platform and offline service network, including over 500 tour advisors, a 24/7 call center and 20 regional service centers. For more information, please visit http://ir.tuniu.com.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Tuniu may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Tuniu's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Tuniu's goals and strategies; the growth of the online leisure travel market in China; the demand for its products and services; its relationships with customers and travel suppliers; its ability to offer competitive travel products and services; its future business development, results of operations and financial condition; competition in the online travel industry in China; relevant government policies and regulations relating to the corporate structure, business and industry; and the general economic and business condition in China and elsewhere. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tuniu does not undertake any obligation to update such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement the Company's unaudited consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), the Company has provided non-GAAP information related to cost of revenues, research and product development expenses, sales and marketing expenses, general and administrative expenses, operating expenses, loss from operations, net loss, net loss attributable to ordinary shareholders, net loss per ordinary share attributable to ordinary shareholders-basic and diluted and net loss per ADS, all of which excludes share-based compensation expenses. We believe that the non-GAAP financial measures used in this press release are useful for understanding and assessing underlying business performance and operating trends, and management and investors benefit from referring to these non-GAAP financial measures in assessing our financial performance and when planning and forecasting future periods. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP Results" set forth at the end of this press release.
A limitation of using non-GAAP financial measures excluding share-based compensation expenses is that share-based compensation expenses have been – and will continue to be – a significant recurring expense in the Company's business. You should not view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies.
1 Gross bookings refer to the total amount paid by our customers for the travel products that we have delivered and the travel services that we have rendered, including the related taxes, fees and other charges borne by our customers.
|For investor and media inquiries, please contact:|
|Investor Relations Director|
|Unaudited Condensed Consolidated Balance Sheets|
|December 31, 2013||June 30, 2014||June 30, 2014|
|Cash and cash equivalents||419,402,835||1,195,931,456||192,780,233|
|Accounts receivable, net||1,651,087||9,452,590||1,523,727|
|Prepayments and other current assets||286,560,247||287,901,484||46,408,776|
|Total current assets||1,043,864,169||1,841,155,530||296,788,241|
|Property and equipment, net||24,851,303||32,052,354||5,166,734|
|Other non-current assets||6,657,304||18,138,753||2,923,908|
|Total non-current assets||31,508,607||50,191,107||8,090,642|
|LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY/(DEFICIT)|
|Salary and welfare payable||47,388,096||54,733,274||8,822,824|
|Advances from customers||396,737,968||566,462,559||91,311,909|
|Accrued expenses and other current liabilities||29,732,090||73,586,844||11,861,960|
|Total current liabilities||764,147,046||1,099,367,970||177,214,517|
|Series A Convertible Preferred Shares||9,360,443||--||--|
|Series B Convertible Preferred Shares||48,890,116||--||--|
|Series C Convertible Preferred Shares||290,255,691||--||--|
|Series D Convertible Preferred Shares||367,934,993||--||--|
|Total mezzanine equity||716,441,243||--||--|
|Additional paid-in capital||200,000||1,383,140,400||222,957,702|
|Accumulated other comprehensive loss||(19,723,270)||(17,982,094)||(2,898,655)|
|Total shareholders' equity/(deficit)||(425,085,515)||767,693,109||123,749,614|
|Total liabilities, mezzanine equity and shareholders' equity/(deficit)||1,075,372,776||1,891,346,637||304,878,883|
|Unaudited Condensed Consolidated Statements of Comprehensive Loss|
|Quarter Ended||Quarter Ended||Quarter Ended||Quarter Ended|
|June 30, 2013||March 31, 2014||June 30, 2014||June 30, 2014|
|Less: Business and related taxes||(2,393,567)||(4,167,166)||(3,729,296)||(601,150)|
|Cost of revenues||(356,880,079)||(535,879,586)||(674,317,930)||(108,697,842)|
|Research and product development||(7,619,095)||(16,976,928)||(21,476,835)||(3,461,995)|
|Sales and marketing||(19,251,025)||(73,479,566)||(96,914,198)||(15,622,251)|
|General and administrative||(14,774,912)||(19,737,451)||(41,901,547)||(6,754,392)|
|Other operating income||565,856||1,374,411||1,138,325||183,494|
|Total operating expenses||(41,079,176)||(108,819,534)||(159,154,255)||(25,655,144)|
|Loss from operations||(10,608,174)||(66,525,649)||(117,109,963)||(18,877,742)|
|Foreign exchange related gains / (losses), net||248,376||(2,752,245)||(1,746,187)||(281,480)|
|Other loss, net||(41,675)||(51,429)||(370,204)||(59,676)|
|Loss before provision for income taxes||(7,372,870)||(62,734,289)||(113,642,091)||(18,318,733)|
|Provision for income taxes||--||--||--||--|
|Deemed dividends to preferred shareholders||--||--||(15,605,908)||(2,515,621)|
|Net loss attributable to ordinary shareholders||(7,372,870)||(62,734,289)||(129,247,999)||(20,834,354)|
|Other comprehensive loss:|
|Foreign currency translation adjustment, net of nil tax||(720,022)||2,921,311||(1,180,135)||(190,234)|
|Loss per share|
|Net loss per ordinary share attributable to ordinary shares - basic and diluted||(0.28)||(2.41)||(1.36)||(0.22)|
|Net loss per ADS —basic and diluted||(0.09)||(0.80)||(0.45)||(0.07)|
|Weighted average number of ordinary shares used in computing basic and diluted loss per share||26,000,000||26,000,000||95,218,953||95,218,953|
|Share-based compensations included are as follows:|
|Cost of revenues||--||--||655,008||105,585|
|Research and product development||--||--||1,232,516||198,678|
|Sales and marketing||--||--||681,361||109,833|
|General and administrative||--||--||16,417,507||2,646,448|
|Reconciliations of GAAP and Non-GAAP Results|
|(In RMB, except % and per share information)|
|Quarter Ended June 30, 2014|
|Cost of revenues||(674,317,930)||655,008||(673,662,922)|
|Research and product development||(21,476,835)||1,232,516||(20,244,319)|
|Sales and marketing||(96,914,198)||681,361||(96,232,837)|
|General and administrative||(41,901,547)||16,417,507||(25,484,040)|
|Other operating income||1,138,325||--||1,138,325|
|Total operating expenses||(159,154,255)||18,331,384||(140,822,871)|
|Loss from operations||(117,109,963)||18,986,392||(98,123,571)|
|Net loss attributable to ordinary shareholders||(129,247,999)||18,986,392||(110,261,607)|
|Net loss per ordinary share attributable to ordinary shares - basic and diluted||(1.36)||--||(1.16)|
|Net loss per ADS —basic and diluted||(0.45)||--||(0.39)|
|Quarter Ended March 31, 2014|
|Cost of revenues||(535,879,586)||--||(535,879,586)|
|Research and product development||(16,976,928)||--||(16,976,928)|
|Sales and marketing||(73,479,566)||--||(73,479,566)|
|General and administrative||(19,737,451)||--||(19,737,451)|
|Other operating income||1,374,411||--||1,374,411|
|Total operating expenses||(108,819,534)||--||(108,819,534)|
|Loss from operations||(66,525,649)||--||(66,525,649)|
|Net loss attributable to ordinary shareholders||(62,734,289)||--||(62,734,289)|
|Net loss per ordinary share attributable to ordinary shares - basic and diluted||(2.41)||--||(2.41)|
|Net loss per ADS —basic and diluted||(0.80)||--||(0.80)|
|Quarter Ended June 30, 2013|
|Cost of revenues||(356,880,079)||--||(356,880,079)|
|Research and product development||(7,619,095)||--||(7,619,095)|
|Sales and marketing||(19,251,025)||--||(19,251,025)|
|General and administrative||(14,774,912)||--||(14,774,912)|
|Other operating income||565,856||--||565,856|
|Total operating expenses||(41,079,176)||--||(41,079,176)|
|Loss from operations||(10,608,174)||--||(10,608,174)|
|Net loss attributable to ordinary shareholders||(7,372,870)||--||(7,372,870)|
|Net loss per ordinary share attributable to ordinary shares - basic and diluted||(0.28)||--||(0.28)|
|Net loss per ADS —basic and diluted||(0.09)||--||(0.09)|