TCOM Earning Date, Transcript Summary & Report

Strong Travel Market Performance: Trip.com Group achieved a GMV of over RMB 1.2 trillion (USD 169 billion) in 2024, indicating strong performance in the travel market.

Q4 Revenue Growth: Net revenue in Q4 grew by 23% year-over-year, reflecting continued strength in travel demand.

Travel Revenue Resilience: For the full year of 2024, total net revenue increased by 20%, showcasing resilience in travel consumption.

Outbound Travel Recovery: Outbound travel bookings have recovered to over 120% compared to 2019, outperforming the industry by 30% to 40%.

Domestic Travel Surge: In 2024, China saw 5.6 billion domestic trips, highlighting the essential role of travel in daily life.

Inbound Travel Surge: Inbound travel bookings on Trip.com platforms increased by over 100% year-over-year, with visa-free country bookings rising by over 150%.

User Engagement Surge: TripGenie saw a traffic surge of 200%, indicating strong user engagement with AI tools.

Free City Tours Initiative: The company launched free city tours for international travelers, enhancing the travel experience and promoting inbound tourism.

Booking Growth Surge: Trip.com Group's international OTA platform saw air ticket and hotel bookings grow by over 70% year-over-year, with APAC bookings rising around 80%.

Customer Service Accolades: The company received multiple accolades for customer service, including Contact Center of the Year and Asia’s leading online travel agency 2024.

Senior Travel Initiative: The Old Friends Club initiative targets travelers aged 50 and above, catering to a growing demographic with higher purchasing power.

Adjusted EBITDA Growth: Adjusted EBITDA for Q4 was RMB 3.0 billion, showing growth compared to the previous year, and for the full year, it was RMB 17.1 billion, a 22% increase year-over-year.

Share Repurchase and Dividend: The company announced a share repurchase program of up to USD 400 million and a cash dividend of approximately USD 200 million, reflecting a strong financial position.

Q4 Revenue Decline: Net revenue for Q4 decreased by 20% compared to the previous quarter, indicating potential seasonal fluctuations or market challenges.

Accommodation Revenue Decline: Accommodation reservation revenue saw a 24% decrease quarter-over-quarter, suggesting a decline in demand or competitive pressures in the market.

Transportation Ticketing Decline: Transportation ticketing revenue also experienced a 15% decrease quarter-over-quarter, which may reflect a slowdown in travel activity or increased competition.

Packaged Tour Revenue Decline: Packaged tour revenue dropped by 44% quarter-over-quarter, raising concerns about the sustainability of growth in this segment.

Rising Product Development Costs: Adjusted product development expenses increased by 18% year-over-year, indicating rising costs that could impact profitability if not managed effectively.

Rising G&A Expenses: Adjusted G&A expenses rose by 24% year-over-year, which could signal inefficiencies or increased operational costs that need to be addressed.

Increased Marketing Investment: Adjusted sales and marketing expenses increased by 45% year-over-year, suggesting a significant investment in marketing that may not yet be yielding proportional returns.

Revenue Volatility Analysis: Despite a year-over-year growth in revenue, the overall financial performance showed signs of volatility, particularly in quarter-over-quarter comparisons.