Tuniu Q2 2025 Earnings Report

Tuniu EPS Results

• Actual EPS: $0.03
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Tuniu Revenue Results

• Actual Revenue: $18.83 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Tuniu Announcement Details

• Quarter: Q2 2025
• Date: 8/15/2025
• Time: Before Market Opens
• Conference Call Date: Friday, August 15, 2025
• Conference Call Time: 8:00AM ET

Tuniu (NASDAQ:TOUR) operates as an online leisure travel company in China. The company offers various packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services, as well as advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels, including tuniu.com website; mobile platform; a call center in Nanjing; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, the People's Republic of China.

Tuniu Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Net revenues rose 15% YoY to RMB134.9 million and packaged tour revenues grew 26% YoY.
• Positive Sentiment: Tuniu achieved quarterly profitability on both GAAP and non-GAAP basis again in Q2.
• Positive Sentiment: Emerging sales channels gained traction, with live streaming contributions rising from 15% to nearly 20% of transaction volume and offline store sales up over 20% YoY.
• Negative Sentiment: Operating expenses increased 58% YoY, driven by higher research & product development (+29%) and sales & marketing costs (+12%).
• Positive Sentiment: Management forecasts Q3 net revenues to grow 7%–12% YoY, backed by sustained demand into the peak travel season.

Presentation

[Operator]

Hello and thank you for standing by for Tuniu's twenty twenty five Second Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. If you have any objections, you may disconnect at this time.

[Operator]

I would now like to turn the meeting over to your host for today's conference call, Director of Investor Relations, Ms. Mary Chen. Please go ahead.

[Mary Chen, Investor Relations Director at Tuniu Corporation]

Thank you, and welcome to our twenty twenty five second quarter earnings conference call. Joining me on the call today are Donald Yu, Juniu's Founder, Chairman and Chief Executive Officer and An Jiang Chen, Juniu's Financial Controller. For today's agenda, management will discuss business updates, operational highlights and financial performance for the 2025. Before we continue, I refer you to our Safe Harbor statement in the earnings press release, which applies to this call, as we will make forward looking statements. Also, this call includes discussions of certain non GAAP financial measures.

[Mary Chen, Investor Relations Director at Tuniu Corporation]

Please refer to our earnings release, which contains a reconciliation of non GAAP measures to most directly comparable GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB. I would now like to turn the call over to our Founder, Chairman and Chief Executive Officer, Donald Yu.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Thank you, Mary. Good day, everyone. Welcome to our second quarter twenty twenty five earnings conference call. In the second quarter, we saw a robust performance across the travel sector as the three holiday period helped sustain strong consumer demand. During these holidays, Tuniu recorded year over year growth in both transaction volume and the number of trips.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

During the quarter, the company continued to maintain consistent growth momentum with net revenues increasing by 15% year over year and revenues from packaged tours growing by 26%. Tuniu's robust supply chain has allowed us to execute our product strategy effectively with positive results. By expanding our range of offerings, we are meeting the needs of diverse customer segments while attracting more customers through competitive pricing. Together, these efforts are driving sustained growth across the business. In addition, our diversified sales channels have enabled us to reach a broader customer base.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

We are seeing more and more of our sales coming from new channels like live streaming and offline stores. At the same time, we are closely monitoring the ROI of each channel and maintaining strict cost control over internal operations. In the second quarter, we once again achieved quarterly profitability on both GAAP and non GAAP basis. Let me walk you through some of our key initiatives in more detail. In the second quarter, we continued to strengthen our supply chain, which remains central to delivering high quality products at competitive prices.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

First, we further enhanced our direct and centralized procurement strategies in order to lower purchasing costs. Second, we focused on resource integration. For example, by leveraging our nationwide sales network, we consolidated international flight resources and introduced connecting flights for certain outbound travel products. This approach allowed us to consolidate customers from across the country to depart from K-twelve cities, expanding our departure city coverage and making travel more convenient for customers in different regions. It also enabled us to take advantage of airline discounts available in those hubs, allowing us to offer even more competitive pricing to our customers.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

In addition, we support our suppliers by offering more favorable payment terms, as well as providing system and technical support. These initiatives help us attract high quality suppliers to collaborate closely with us in delivering better products and services to our customers. On the product side, our various product lines continued to provide more targeted solutions for different types of customers. New Tour targets mid to high end customers and maintain a high repurchase rate by focusing on quality. Over half of the customers booking new tour products to NIO's loyal customers.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

NIO Select products have gained popularity among customers due to its cost effective value proposition, especially on live streaming channels. We continue to expand the offerings of new select products, covering more destinations and itineraries. In the second quarter, transaction volume for New Tour plus New Select products grew by more than 25% year over year. In terms of product innovation, we've continued to explore new destination offerings. For example, Niu Tour launched its first tour in the emerging destination of the Caucasus region, which received 100% satisfaction rate.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

In response to strong demand, we expanded beyond the premium pop lighting tours and introduced more price competitive Kokuso products under our new select line. As the summer peak season approached, we conducted a live streaming show in the region in July. As a result, transaction volume for Kokuso's products in the second quarter grew by over 150% year over year. We also continue to diversify our sales network during the quarter, with emerging channels contributing an increasing share of total transaction volume. During the second quarter, both payment and verification volume through our live streaming channels achieved double digit year over year growth.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Backed by our leading position in travel, live streaming, as well as strong brand recognition and product reputation, we expanded our live stream offerings to include higher priced items such as luxury hotels, upscale island destinations and long haul outbound tour. With over a decade of deep experience in outbound travel segment, we successfully brought our expertise into the live streaming channel, offering products tailored to live stream viewers supported by professional presentations and comprehensive services such as Buisa assistance. As a result, we quickly emerged as a leading outbound travel supplier through live streaming. For example, one of our in house products for Dubai has already surpassed 10,000 paying customers since its launch earlier this year. For live streaming leader travel products, we've been encouraging more influencers to step out of their studios and conduct live streaming shows directly from the destination, offering customers a more immersive experience.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

At the same time, we've partnered with a number of top and mid tier influencers to host the dedicated live streaming shows and jointly promote our offerings. In the second quarter, live streaming's contribution to the company's total transaction volume continued to grow, rising from over 15% in the previous quarter to nearly 20%. In the second quarter, we continued to strengthen our offline store network. We expanded coverage in key cities, particularly popular departure cities, tourist destinations and the transportation hubs to build local scale and drive down operating costs. As a result, transaction volume from offline stores grew by over 20% year over year during the quarter.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

On the technology front, we continue to explore the application of AI agents across various scenarios with a focus on enhancing customer experience and improving internal operational efficiency. We are pleased to see that more and more customers and employees are actually using our AI tools to help book trips and complete tasks. We will continue to enhance and update our technology tools in response to user feedback. In conclusion, with the arrival of the summer season, the travel industry is entering its peak period. While managing the surge in travel demand, we are also closely observing shifts in customer behavior, including booking habits, travel preferences and product choices, and are continuously refining our products and services in response.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Our goal is to ensure that more new and regular customers think of Tuniu first when it comes to planning their trips. I'll now turn the call over to An Qian, our financial controller, for the financial highlights.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

Thank you, Donald. Hello, everyone. Now I'll walk you through our 2025 financial results in greater detail. Please note that all the monthly amounts are in RMB unless otherwise stated. You can find the U.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

S. Dollar equivalent of the numbers in our earnings release. For the 2025, net revenues were RMB134.9 million, representing a year over year increase of 15% from the corresponding period in 2024. Revenues from packaged tours were up 26% year over year to million and accounted for 84% of our total net revenues for the quarter. The increase was primarily due to the growth of offline tours and self drive tours.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

Other revenues were down 21% year over year to RMB21.5 million and accounted for 16% of our total net revenues. The decrease was primarily due to the decrease in the fees for advertising services provided to Toys and Boards and Bureaus. Gross profit for the 2025 was million, up 2% year over year. Operating expenses for the 2025 were million, up 58% year over year. Research and product development expenses for the 2025 were RMB16.4 million, up 29% year over year.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

The increase was primarily due to the increase in research and product development personnel related expenses. Sales and marketing expenses for the 2025 were million, up 12% year over year. The increase was primarily due to the increase in sales and marketing personnel related expenses and promotion expenses. General and administrative expenses for the 2025 were million, down 18% year over year. The decrease was primarily due to the reversal of current expected credit losses allowance.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

Net income attributable to ordinary shareholders of Tuniu Corporation was million in the 2025. Non GAAP net income attributable to ordinary shareholders of Tuniu Corporation, which excluded share based compensation expenses and amortization of acquired intangible assets, was million in the 2025. As of 06/30/2025, the company had cash and cash equivalents, restricted cash, short term investments and long term deposits of RMB1.2 billion. Cash flow generated from operations for the 2025 was RMB46 million. Capital expenditures for the 2025 were RMB1 million.

[Anqiang Chen, Financial Controller at Tuniu Corporation]

For the 2025, the company expects to generate RMB199 million to RMB208.3 million of net revenues, which represents a 7% to 12% increase year over year. Please note that this forecast reflects new current and preliminary view on the industry and its operations, which is subject to change. Thank you for listening. We are now ready for your questions. Operator?

[Operator]

Thank you. We will now begin the question and answer session. In order to be fair to all callers who wish to ask a question, we will take one question at a time from each caller. If you have more than one question, please request to join the queue again after your second question has been addressed. And the first question is Ms. Lisa Lu, investor. Please go ahead.

[Analyst]

Hi, management. Thank you for taking my questions. I've got two questions. First, management share the revenue breakdown by destinations for this quarter? At which destinations drove the growth of packaged tour revenues?

[Analyst]

Second, can you give more details about the bookings in its summer vacation? That's all. Thank you.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Thank you for your questions. As you know, our packaged tour revenue increased to 26% year over year, making a solid growth. In terms of the key drivers for the growth, domestic destinations achieved double digit growth during the quarter. Outbound tours grew faster than domestic tours in terms of GMV. Europe, Japan and The Middle East all posted double digit year over year growth.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Some emerging destinations had higher growth rates. For example, South America increased over 50%, Sri Lanka and The Caucasus both increased over 100%, But the headwinds from some Southeast Asia countries have slowed down and lowered the demand for the destination. Southeast Asia declined roughly 30% during the quarter. In terms of destination breakdown, domestic tours contributed about two thirds of our total GMV and outbound tours about one third during the quarter. Within outbound destinations, Europe is the top one destination, which contributed about one third of our outbound tour GMV.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Japan and The Maldives each contributed about over 10%. Middle East and Africa, as well as America, less than 10% respectively. For the rest of the outbound destinations each contributed less than 5%. For the second question about summer vacation, the demand has increased significantly during the peak season. Families with children are one of the main customer growth during the summer.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Domestic city tours are hot, especially cities with museums such as Xi'an and Nanjing, as well as cities with theme parks such as Shanghai and Guangzhou. For long haul tours, Guizhou is a popular destination due to its cool weather. Following the shift of customer habits, this summer we launched more small growth tours at more competitive prices and sell our products through live streaming shows at scenic sports in Weizhou. For outbound travel, although we don't have full picture now, we have seen double digit year on year growth in Japan, Europe and certain islands including Maldives in July. For Southeast Asia, in spite of headwinds in Thailand and Cambodia, Singapore and Malaysia are gaining popularity since the summer vacation.

[Donald Dunde Yu, Founder, Chairman and CEO at Tuniu Corporation]

Our new select itineraries covering both Singapore and Malaysia launched this summer house plus 10,000 paying customers to live streaming shows so far. In general, the market continues its growth momentum in the peak season. As a result, we expect a 7% to 12% net revenues growth in the third quarter and we will try to make profit again. Thank you.

[Operator]

We are now approaching the end of our conference call. I would now like to turn the call over to Tuniu's Director of Investor Relations, Ms. Mary Chen. Please go ahead.

[Mary Chen, Investor Relations Director at Tuniu Corporation]

Once again, thank you for joining us today. Please don't hesitate to contact us if you have any further questions. Thank you for your continued support and we look forward to speaking with you in the coming months.

[Operator]

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Mary Chen, Investor Relations Director
• Donald Dunde Yu, Founder, Chairman and CEO
• Anqiang Chen, Financial Controller

Analysts

• Analyst