Release Date: March 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Hi, management, congratulations on a profitable year. Can you share with us your projections for the 2025 revenue and profit? What are some key drivers to support revenue growth? Are you going to maintain quarterly or yearly profitability? Thank you. A: Thank you for the questions. In 2025, the total travel market will continue to grow while the market competition is getting more intense in terms of both quality and price. We will continue to adopt a high-quality business development strategy, aiming to beat the industry average growth rate. On the product side, we will invest in product upgrading and innovation for our core products, such as introducing more in-depth and single-definition tour products for our new tours to better serve and retain our repeat customers. Despite the intense competition, we will keep competitive pricing for certain products to attract more new customers, which may negatively impact our gross profits. On the sales side, we'll expand the diversity of our sales channels, leveraging new media channels and live streaming. Last year, live-streaming contributed about 10% of our total GMV. We plan to significantly increase the number of offline stores, potentially doubling them. On the technology side, we focus on AI agents to enhance user experience and improve operational efficiency. Despite our investments, we aim for a profitable year in 2025, with quarterly performance varying due to seasonality, particularly expecting the third quarter to be the peak season contributing the majority of annual profits.
Q: Can you elaborate on the impact of your live-streaming channels and offline stores on your business? A: In 2024, our live-streaming channels performed exceptionally well, with both transaction and verification volumes increasing by over 100% year on year. We will continue to leverage our experience and capabilities in live streaming to explore new media channels. Our offline stores also saw significant growth, with transaction volumes increasing by over 50% year on year. These stores have attracted partners with their diverse product offerings and have contributed to brand promotion. This year, we plan to open more offline stores and work closely with partners to provide more personalized premium services.
Q: How are you planning to address the changing user habits and preferences in the travel market? A: We are continuously expanding the diversity of our sales channels to adapt to changing user habits, such as the increasing consumption of information via video content. We have made significant progress in live streaming, introducing more organized tours and outbound travel products. We also adjusted our product structure seasonally to meet diverse customer needs. Additionally, we are exploring new approaches by experimenting with live streaming directly from travel destinations, which has received positive feedback.
Q: What are your plans for product innovation and development in 2025? A: We remain committed to innovation and adapting to evolving customer needs. In 2025, we will focus on product upgrading and innovation for our core products. We plan to introduce more in-depth and single-definition tour products for our new tours to better serve and retain our repeat customers. We will also expand our offerings to include new destinations and premium products, including customized travel itineraries tailored to customer preferences.
Q: Can you provide more details on your financial performance and outlook for 2025? A: For the fourth quarter of 2024, net revenues were RMB102.7 million, representing a year-over-year increase of 3%. For the full year 2024, net revenues were RMB513.6 million, a 16% year-over-year increase. We achieved our first GAAP profit for the full year since our listing, with net income growing by over 70% year over year. For the first quarter of 2025, we expect to generate RMB116.6 million to RMB122 million in revenues, representing an 8% to 13% increase year over year. Despite the investments planned for 2025, we are still aiming for a profitable year, with the third quarter expected to be the peak season contributing the majority of annual profits.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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