Trip.com Group (NASDAQ:TCOM) reported quarterly losses of $(0.24) per share. This is a 380 percent decrease over losses of $(0.05) per share from the same period last year. The company reported $649.00 million in sales this quarter. This is a 3.34 percent increase over sales of $628.00 million the same period last year.
Trip.com Group shares fell 0.3% in aftermarket trading.
Key Highlights for the First Quarter of 2022
The Company delivered resilient results in the first quarter despite the disruptions of the COVID-19 resurgence inChina.
- Net revenue for the first quarter remained stable year-over-year and decreased by 12% quarter-over-quarter, mainly due to the impact from the latest wave of COVID-19 resurgence inChina.
- Staycation travel continued to serve as a major contributor to the recovery of the Chinese domestic market, with local hotel bookings increased by over 20% year-over-year.
- Air-ticket bookings on global platforms increased by over 270% year-over-year, mainly driven by the recovery of European and Asian Pacific markets. Hotel bookings on our global platforms also outgrew the pre-pandemic level.
"In the first quarter, we are encouraged to see solid growth of travel demand in the global markets, especially acrossEuropeand theAsia Pacific, as more countries started to ease travel restrictions," saidJames Liang, Executive Chairman. "We are keen to build on these positive signals to further strengthen our market position and fortify our globalization footprints."
"Though it was challenging for domestic travel due to the COVID-19 resurgence inChinaduring the first quarter, our results demonstrated our resilience amidst a confluence of challenges and uncertainties," saidJane Sun, Chief Executive Officer. "While we may continue to see short-term fluctuations, demand for travel is still strong and shows a bright outlook in the long-term. We will remain adaptive to embrace the changing environment and be flexible with our strategies to swiftly seize growth opportunities."
First Quarter of 2022 Financial Results and Business Updates
In the first quarter of 2022, the COVID-19 resurgence continued to disrupt the travel industry inChina, which discouraged user demand for the Company's services. As a result, the Company's results of operations for the first quarter of 2022 were materially and adversely affected.
For the first quarter of 2022,Trip.com Groupreported net revenue ofRMB4.1 billion(US$649 million), which was flat comparing to the same period in 2021. Net revenue for the first quarter of 2022 decreased by 12% from the previous quarter, primarily due to the continued disruptions resulting from the COVID-19 resurgence inChina.
Accommodation reservation revenue for the first quarter of 2022 wasRMB1.5 billion(US$229 million), representing an 8% decrease from the same period in 2021, and a 24% decrease from the previous quarter, primarily due to the continued disruptions resulting from the COVID-19 resurgence inChina.
Transportation ticketing revenue for the first quarter of 2022 wasRMB1.7 billion(US$262 million), representing a 10% increase from the same period in 2021 and a 10% increase from the previous quarter, primarily driven by strong recovery of air travel in the oversea market.
Packaged-tour revenue for the first quarter of 2022 was RMB124 million (US$20 million), representing a 27% decrease from the same period in 2021 and a 30% decrease from the previous quarter, primarily due to the continued disruptions resulting from the COVID-19 resurgence inChina.
Corporate travel revenue for the first quarter of 2022 was RMB222 million (US$35 million), representing a 12% decrease from the same period in 2021 and a 40% decrease from the previous quarter, primarily due to the continued disruptions resulting from the COVID-19 resurgence inChina.
Cost of revenue for the first quarter of 2022 was relatively stable atRMB1.1 billion(US$168 million) comparing to the same period in 2021. Cost of revenue decreased by 5% from the previous quarter. Cost of revenue as a percentage of net revenue was 26% for the first quarter of 2022.
Product development expenses for the first quarter of 2022 decreased by 11% toRMB2.0 billion (US$311 million) from the same period in 2021 and decreased by 12% from the previous quarter, primarily due to a decrease in product development personnel related expenses. Product development expenses as a percentage of net revenue was 48% for the first quarter of 2022.
Sales and marketing expenses for the first quarter of 2022 decreased by 11% toRMB843 million(US$133 million) from the same period in 2021 and decreased by 35% from the previous quarter, primarily due to a decrease in expenses relating to sales and marketing promotion activities. Sales and marketing expenses as a percentage of net revenue was 21% for the first quarter of 2022.
General and administrative expenses for the first quarter of 2022 decreased by 15% toRMB584 million(US$92 million) from the same period in 2021 and decreased by 20% from the previous quarter, primarily due to a decrease in general and administrative personnel related expenses. General and administrative expenses as a percentage of net revenue was 14% for the first quarter of 2022.
Loss from operations for the first quarter of 2022 wasRMB359 million(US$55 million), compared to loss from operations ofRMB787 millionfor the same period in 2021 and loss from operations ofRMB704 millionfor the previous quarter. Adjusted EBITDA for the first quarter of 2022 wasRMB91 million(US$16 million), compared toRMB-216 millionfor the same period in 2021 andRMB54 millionfor the previous quarter. Adjusted EBITDA margin was 2% for the first quarter of 2022, compared to -5% for the same period in 2021 and 1% for the previous quarter.
Income tax benefit for the first quarter of 2022 was RMB14 million (US$2 million), compared to income tax expense ofRMB41 millionfor the same period in 2021 and income tax expense ofRMB37 millionin the previous quarter. The change in our effective tax rate was primarily due to the combined impacts of changes in respective profitability of our subsidiaries with different tax rates, certain non-taxable income or loss resulting from the fair value changes in equity securities investments and exchangeable senior notes, and changes in valuation allowance provided for deferred tax assets.
Net loss attributable toTrip.com Group'sshareholders for the first quarter of 2022 wasRMB989 million(US$155 million), compared to net income attributable toTrip.com Group'sshareholders ofRMB1.8 billionfor the same period in 2021 and net loss attributable toTrip.com Group'sshareholders ofRMB834 millionfor the previous quarter. Excluding share-based compensation charges and fair value changes of equity securities investments and exchangeable senior notes recorded in other income/(expense), non-GAAP net loss attributable toTrip.com Group'sshareholders wasRMB36 million(US$5 million), compared to non-GAAP net loss attributable toTrip.com Group'sshareholders ofRMB204 millionin the same period in 2021 and non-GAAP net income attributable toTrip.com Group'sshareholders ofRMB309 millionfor the previous quarter.
Diluted loss per ordinary share and per ADS wasRMB1.52 (US$0.24) for the first quarter of 2022. Excluding share-based compensation charges and fair value changes of equity securities investments and exchangeable senior notes, non-GAAP diluted loss per ordinary share and per ADS wasRMB0.06 (US$0.01) for the first quarter of 2022. Each ADS currently represents one ordinary share of the Company.
As ofMarch 31, 2022, the balance of cash and cash equivalents, restricted cash, short-term investment, held to maturity time deposit and financial products wasRMB63.3 billion(US$10.0 billion).
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