Shares in Tuniu Corp. (Nasdaq: TOUR) climbed as much as 11% intraday Thursday after it provided upbeat top-line guidance for the second quarter.
The Nanjing-based travel agency said in its first-quarter financial release today that it expects its revenue for the June quarter to come in the range of 142.9 million yuan to 149.7 million yuan ($23.38 million). That would represent a year-over-year increase of between 320% to 340%.
"We are excited to see that China's domestic travel market has been recovering at a rapid pace,” Donald Dunde Yu, the founder, chairman, and chief executive officer of Tuniu said.
“As a leading high-quality tourism company in China, Tuniu is benefiting from the strong market momentum as travelers increasingly trust us to provide integrated services including product development, destination services and reservations. Looking ahead, we will continue to create more innovative products and services to fulfill our mission of making travel easier."
While the top-line results for the first quarter weren’t too pretty, that was to be expected with coronavirus cases raging to alarming heights at the beginning of the year.
For the three months ended March, Tuniu said it generated $11.81 million in revenue, down 56% year-over-year. As a result of a lack of international destinations, revenues from packages slipped 62% in the quarter to $6.92 million.
Tuniu narrowed its net loss to 41.63 million yuan ($6.35 million) in the quarter compared with 205.17 million yuan in the same period last year.
And while the stock is still up year-to-date, Tuniu shares have lost more than half their value since Mar. 19.
But most importantly for shareholders of Tuniu, the worst appears to be over for the company and others operating in the traveling space.
In fact, it looks like traveling in China is already above pre-pandemic levels. During China’s five-day labor holiday in early May, an all-time high of 230 million trips were taken domestically, up roughly 18% from 2019 levels, according to data from the Ministry of Culture and Tourism.