Qunar Cayman Islands Limited (Nasdaq:QUNR) ("Qunar" or the
"Company"), China's leading search-based travel commerce platform,
today announced its unaudited financial results for the quarter
ended September 30, 2013.
Highlights for the Third Quarter of 2013
- Total revenues for the third quarter of 2013
were RMB241.1million (US$39.4 million), an increase of 57.5%
year-on-year.
- Mobile revenues for the third quarter of 2013
were RMB35.3 million (US$5.8 million), an increase of 386.0%
year-on-year, representing 14.6% of total revenues.
- Total number of web and mobile users for the
12-month period ended September 30, 2013 was 218.2 million and 46.7
million, compared to 173.8 million and 16.1 million, respectively,
in the 12-month period ended September 30, 2012.
- Qualified flight clicks from Qunar's proprietary SaaS
system1 accounted for 85.9% of the Company's qualified
flight clicks and led to bookings for 135,008 air tickets per day
in the third quarter of 2013, compared to 65.0% and 59,996 in the
same period in 2012.
- Qualified hotel clicks from Qunar's proprietary SaaS
system accounted for 58.6% of qualified hotel clicks and
led to bookings for 34,564 room nights per day in the third quarter
of 2013, compared to 31.2% and 8,598 in the same period in
2012.
"We delivered solid top-line growth in the third quarter as user
numbers and GMV, Gross Merchandise Volume, continued to show
impressive growth," said Chenchao (CC) Zhuang, chief executive
officer and co-founder of Qunar. "Following our successful IPO on
the Nasdaq, we'll continue to grow our GMV and will remain focused
on delivering the best travel-search user experience across PC and
mobile to enhance our franchise value and build upon our
market-leading position."
"With more and more users making travel searches on the go, our
market-leading mobile platform grew very strongly, already
accounting for 53% of hotel search queries and 33% of hotel
pay-for-performance revenue in the third quarter," said Sam Sun,
chief financial officer of Qunar."We will continue
to invest aggressively in product development to capitalize on the
huge opportunities ahead."
1 SaaS is a proprietary software-as-a-service
system through which we host web outlets for a large and growing
number of travel service providers ("TSPs"). Our SaaS system helps
provide a more consistent and high quality transaction experience
for our users while helping TSPs with limited or no online presence
to have online outlets and be connected to our large number of
users, among other benefits. |
Third Quarter 2013 Financial Results
Total revenues were RMB241.1 million (US$39.4 million) for the
third quarter of 2013, an increase of 57.5% year-on-year and 36.9%
quarter-on-quarter. Mobile revenues for the third quarter of 2013
were RMB35.3 million (US$5.8 million), an increase of 386.0%
year-on-year, representing 14.6% of total revenues.
Pay-for-performance ("P4P") revenues for the third quarter of 2013
were RMB210.9 million (US$34.5 million), an increase of 61.0%
year-on-year and 37.6% quarter-on-quarter.
Among the P4P revenues, flight and flight related revenues for
the third quarter of 2013 were RMB152.9 million (US$25.0 million),
an increase of 70.6% year-on-year and 33.1% quarter-on-quarter.
Year-on-year P4P flight revenue growth was primarily due to a 69.9%
increase in flight search queries; quarter-on-quarter P4P flight
revenue growth was primarily due to a 19.6% growth in revenue per
thousand search queries and a 11.3% growth in flight search
queries.
P4P hotel revenues were RMB50.1 million (US$8.2 million), an
increase of 26.6% year-on-year and 48.2% quarter-on-quarter.
Year-on-year P4P hotel revenue growth was primarily due to a 49.7%
growth in hotel search queries and a 15.4% decrease in revenue per
thousand search queries, mainly as a result of the hotel coupon
program launched in January 2013; quarter-on-quarter P4P hotel
revenue growth was primarily due to a 20.6% growth in hotel search
queries and a 22.9% growth in revenue per thousand search
queries.
Gross profit for the third quarter of 2013 was RMB191.4 million
(US$31.3 million), an increase of 50.5% year-on-year and 39.0%
quarter-on-quarter. The increase was primarily due to the
significant increase in revenues and partially offset by the
increase in sales tax and surcharges and the increase in
short-message-service fees.
Product development expenses for the third quarter of 2013 were
RMB90.7 million (US$14.8 million), an increase of 75.3%
year-on-year and 40.7% quarter-on-quarter, primarily due to an
increase in salary, welfare and other headcount-related expenses
associated with the growth of the product development team.
Excluding share-based compensation expenses, product development
expenses accounted for 35.5% of total revenues, compared to 31.4%
for the corresponding period of 2012 and 34.5% for the second
quarter of 2013.
Sales and marketing expenses for the third quarter of 2013 were
RMB108.0 million (US$17.7million), an increase of 53.6%
year-on-year and 31.8% quarter-on-quarter, primarily due to
increases in online marketing expenses and the number of sales and
marketing personnel. Excluding share-based compensation expenses,
sales and marketing expenses accounted for 44.2% of total revenues,
compared to 45.3% for the corresponding period of 2012 and 45.9%
for the second quarter of 2013.
General and administrative expenses for the third quarter of
2013 were RMB29.1 million (US$4.8 million), an increase of 119.3%
year-on-year and 38.8% quarter-on-quarter, primarily due to an
increase in headcount. Excluding share-based compensation expenses,
general and administrative expenses accounted for 11.2% of total
revenues, compared to 7.6% for the corresponding period of 2012 and
10.8% for the second quarter of 2013.
Operating loss for the third quarter of 2013 was RMB36.4 million
(US$5.9 million), compared to RMB8.1 million in the corresponding
period of 2012 and RMB29.7 million in the second quarter of
2013.
Net loss attributable to Qunar's shareholders for the third
quarter of 2013 was RMB48.8 million (US$8.0million), compared to
RMB8.4million in the corresponding period of 2012 and RMB41.2
million in the second quarter of 2013. The increased net loss
attributable to Qunar's shareholders was primarily due to continued
investment in product development, as well as sales and marketing
efforts to drive business growth. Basic and diluted net loss per
ADS for the third quarter of 2013 was RMB0.48 (US$0.08).
Adjusted net loss (non-GAAP), defined as net loss excluding
share-based compensation expenses and non-cash expenses relating to
free user traffic contributed by Baidu, Inc., was RMB38.7 million
(US$6.3 million) for the third quarter of 2013, compared to RMB0.4
million in the corresponding period of 2012 and RMB33.0 million in
the second quarter of 2013.
Adjusted EBITDA (non-GAAP), defined as net loss before income
taxes, interest expenses, depreciation and amortization, further
adjusted to exclude share-based compensation expenses and non-cash
expenses relating to free user traffic contributed by Baidu, Inc.,
was negative RMB18.8million (US$3.1 million) for the third quarter
of 2013, compared to positive RMB4.9 million in the corresponding
period of 2012 and negative RMB14.8 million in the second quarter
of 2013.
As of September 30, 2013, Qunar had cash and cash equivalents
and short-term investments of RMB486.4million (US$79.5
million).
As of September 30, 2013, Qunar had 2,359 full-time employees,
of which 49% were product development personnel.
Business Outlook
For the fourth quarter of 2013, the Company expects year-on-year
revenue growth in the range of 60% to 65%. This forecast reflects
Qunar's current and preliminary view, which is subject to
change.
Recent Business Highlights
Upon completion of Qunar's initial public offering ("IPO") of
its American depositary shares and the private placement
concurrently with the IPO, Qunar raised total gross proceeds of
US$194.2 million, representing 12,612,800 ADSs at the price of
US$15.00 per ADS and 1,000,000 Class B ordinary shares at the price
of US$5.00 per share. Immediately following the closing of the IPO,
Qunar had 12,777,650 ADSs outstanding, each representing three
Class B ordinary shares. The total number of ordinary shares
outstanding is 342,183,204 ordinary shares, comprised of
302,850,254 Class A ordinary shares and 39,332,950 Class B ordinary
shares.
Conference Call
Qunar's management team will host an earnings conference call at
8:00PM on November 19, 2013, U.S. Eastern Time (09:00AM on November
20, 2013, Beijing Time).
The dial-in details for the live
conference call are as follows: |
|
|
International: |
+65-6823-2299 |
U.S.: |
+1-631-514-2526 |
UK: |
+44-20-3078-7622 |
Hong Kong: |
+852-5808-3202 |
Mainland China: |
400-120-0539 |
|
|
Passcode for all regions: |
7895550 |
A replay of the conference call may be accessed by phone at the
following number until November 27, 2013:
International: +61-2-9641-7900 |
Passcode: 7895550 |
Additionally, a live and archived webcast of this conference
call will be available at http://investor.qunar.com.
Forward-looking Statements
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, quotations from management and the Business Outlook
section in this press release, as well
as Qunar's strategic and operational plans, contain
forward-looking statements. Qunar may also make written
or oral forward-looking statements in its periodic reports to
the U.S. Securities and Exchange Commission, in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not
historical facts, including statements about Qunar's beliefs
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: the Company's goals and strategies; its
future business development, financial condition and results of
operations; the expected growth of the online travel markets in
China; the Company's expectations regarding demand for and market
acceptance of its products and services; its expectations regarding
our relationships with users and travel service providers; the
execution of the business cooperation framework agreement with
Baidu; its plans to invest in the technology platform; competition
in our industry; fluctuations in general economic and business
conditions in China; and relevant government policies and
regulations relating to our industry. Further information regarding
these and other risks is included in our prospectus and other
documents filed with the Securities and Exchange Commission.
All information provided in this press release and in the
attachments is as of the date of the press release,
and Qunar undertakes no duty to update such information,
except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Qunar's consolidated financial results presented
in accordance with United Statements Generally Accepted Accounting
Principles ("GAAP"), Qunar also uses Adjusted net income/(loss) and
Adjusted EBITDA as additional non-GAAP financial measures. These
non-GAAP financial measures enable management to assess the
Company's operating results without considering the impact of
noncash charges, including share-based payments, depreciation and
amortization, expenses relating to free user traffic contributed by
Baidu, Inc. Furthermore, these non-GAAP financial measures
eliminate the impact of items that Qunar does not consider
indicative of the performance of its business.
Qunar presents these non-GAAP financial measures because they
are used by management to evaluate its operating performance,
formulate business plans, and make strategic decisions on capital
allocation. Qunar also believes that these non-GAAP financial
measures provide useful information to investors and others in
understanding and evaluating its operating performance and
consolidated results of operations in the same manner as management
and in comparing financial results across accounting periods and to
those of its peer companies. The presentation of these non-GAAP
financial measures is not intended to be considered in isolation or
as a substitute for the financial information prepared and
presented in accordance with GAAP. A limitation of using these
non-GAAP financial measures is that these non-GAAP measures do not
include all items that impact the Company's results of operations
for the period. The table captioned "Reconciliations of GAAP and
non-GAAP Measures" has more details on the reconciliations between
GAAP financial measures that are most directly comparable to the
non-GAAP financial measures.
Currency Convenience Translation
The United States dollar (US$) amounts disclosed in this press
release are presented solely for the convenience of the reader. The
conversion of Renminbi (RMB) into U.S. dollars is based on the
exchange rate set forth in the H.10 statistical release of the
Federal Reserve Bank of New York on September 30, 2013, which was
RMB6.1200 to US$1.00. The Company makes no representation that any
Renminbi or U.S. dollar amounts could have been, or could be,
converted into U.S. dollars or Renminbi, as the case may be, at any
particular rate, or at all. The percentages stated are calculated
based on the RMB amounts.
About Qunar
Qunar Cayman Islands Limited is the leading search-based
commerce platform for the travel industry in China. Qunar's goal is
to empower Chinese travelers to define their travel experience.
Founded in May 2005 and headquartered in Beijing, Qunar is
committed to providing travelers with a one-stop travel information
source on both PC and mobile devices. The Company enables travelers
to find the best-value deals by aggregating and processing highly
fragmented travel product information from tens of thousands of
travel service providers into an organized and user-friendly
display through its proprietary technology. According to research
firm iResearch, Qunar has ranked No. 1 among all non-state-owned
online travel companies in China in terms of monthly unique
visitors since November 2010. Qunar's mobile application "Qunar
Travel" was ranked the most frequently used mobile travel
application in China by China Internet Network Information Center
in September 2012.
Leveraging its large user base and advanced technologies, the
Company provides an attractive value proposition to its customers,
which include travel service providers and display advertisers.
Qunar means "where to go" in Mandarin Chinese.
For more information, please contact: |
|
China |
Jenna Qian |
Qunar |
Tel: 8610 5760 3609 |
ir@qunar.com / press@qunar.com |
|
Nick Beswick |
Brunswick Group |
Tel: +86-10-5960-8600 |
Email: qunar@brunswickgroup.com |
|
U.S. |
Cindy Zheng |
Brunswick Group |
Tel: +1-212-333-3810 |
Email: qunar@brunswickgroup.com |
|
|
|
|
Qunar Cayman Islands
Limited |
Condensed Consolidated
Balance Sheets |
|
December |
September |
September |
|
31 |
30 |
30 |
|
2012 |
2013 |
2013 |
(In thousands except for number of
shares and per share data) |
RMB |
RMB |
USD |
|
Audited |
Unaudited |
Unaudited |
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash
equivalents |
148,511 |
485,897 |
79,395 |
Restricted
cash |
49,047 |
9,161 |
1,497 |
Funds
receivable |
30,838 |
311,434 |
50,888 |
Short-term
investments |
521 |
534 |
87 |
Accounts
receivable, net |
45,631 |
87,949 |
14,371 |
Due from related
parties |
38,756 |
10,000 |
1,634 |
Prepayments and
other current assets |
46,174 |
68,799 |
11,242 |
|
|
|
|
Total current
assets |
359,478 |
973,774 |
159,114 |
|
|
|
|
Non-current
assets: |
|
|
|
Property and
equipment, net |
32,298 |
38,967 |
6,367 |
Other non-current
assets |
576 |
12,558 |
2,052 |
Total non-current
assets |
32,874 |
51,525 |
8,419 |
|
|
|
|
Total assets |
392,352 |
1,025,299 |
167,533 |
|
|
|
|
|
|
|
|
LIABILITIES, MEZZANINE EQUITY AND
SHAREHOLDERS' DEFICIT |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
Customer advances
and deposits |
69,081 |
134,491 |
21,976 |
Due to related
parties |
50,200 |
56,049 |
9,158 |
Accounts
payable |
2,284 |
3,184 |
520 |
Salaries and
welfare payable |
43,669 |
52,416 |
8,565 |
Income tax
payable |
1,166 |
2,849 |
465 |
Accrued expenses
and other current liabilities |
148,616 |
375,877 |
61,418 |
Total current
liabilities |
315,016 |
624,866 |
102,102 |
|
|
|
|
Non-current
liabilities: |
|
|
|
Non-current
liabilities |
17,594 |
28,409 |
4,642 |
Total non-current
liabilities |
17,594 |
28,409 |
4,642 |
|
|
|
|
Total liabilities |
332,610 |
653,275 |
106,744 |
|
|
|
|
Mezzanine
equity |
|
|
|
Redeemable ordinary shares (US$
0.001 of par value per share; 100,280,392 shares issued and
outstanding with a redemption value of US$1.45533 per share as of
December 31, 2012 and September 30, 2013) |
998,666 |
998,666 |
163,181 |
Total mezzanine
equity |
998,666 |
998,666 |
163,181 |
|
|
|
|
Shareholders'
deficit: |
|
|
|
Ordinary shares
(US$ 0.001 of par value per share; 800,000,000 shares authorized;
181,402,116 and 203,064,412 shares issued and outstanding as of
December 31, 2012 and September 30, 2013) |
1,172 |
1,306 |
213 |
Additional paid-in capital |
(716,364) |
(333,620) |
(54,513) |
Accumulated other
comprehensive loss |
(11,603) |
(16,465) |
(2,690) |
Accumulated deficit |
(212,129) |
(277,863) |
(45,402) |
Total shareholders'
deficit |
(938,924) |
(626,642) |
(102,392) |
|
|
|
|
Total liabilities, mezzanine equity
and shareholders' deficit |
392,352 |
1,025,299 |
167,533 |
|
|
|
|
|
|
|
|
|
Qunar Cayman Islands
Limited |
Condensed Consolidated
Statements of Operations |
|
Three Months
Ended |
|
|
|
|
|
|
September 30 |
June 30 |
September 30 |
September 30 |
|
2012 |
2013 |
2013 |
2013 |
(In thousands except for share, per
share (or ADS) information) |
RMB |
RMB |
RMB |
USD |
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Revenues |
|
|
|
|
Pay-for-performance
services |
131,034 |
153,330 |
210,909 |
34,462 |
Display advertising
services |
13,074 |
14,183 |
18,147 |
2,965 |
Other services |
8,954 |
8,616 |
12,090 |
1,976 |
Total revenues |
153,062 |
176,129 |
241,146 |
39,403 |
Cost of Revenue |
(25,841) |
(38,455) |
(49,712) |
(8,123) |
Gross profit |
127,221 |
137,674 |
191,434 |
31,280 |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Product
development(Note1) |
(51,741) |
(64,478) |
(90,700) |
(14,820) |
Sales and
marketing(Note1) |
(70,337) |
(81,945) |
(108,026) |
(17,651) |
General and
administrative(Note1) |
(13,278) |
(20,980) |
(29,117) |
(4,758) |
|
|
|
|
|
Operating loss |
(8,135) |
(29,729) |
(36,409) |
(5,949) |
|
|
|
|
|
Interest income, net |
198 |
305 |
1,087 |
178 |
Foreign exchange
gain/(loss), net |
27 |
(344) |
108 |
18 |
Other income, net |
39 |
295 |
463 |
75 |
|
|
|
|
|
Loss before income
taxes |
(7,871) |
(29,473) |
(34,751) |
(5,678) |
|
|
|
|
|
Income tax expense |
(537) |
(11,734) |
(14,058) |
(2,297) |
|
|
|
|
|
Net loss attributable to ordinary
shareholders |
(8,408) |
(41,207) |
(48,809) |
(7,975) |
|
|
|
|
|
Loss per share for ordinary
shares: |
|
|
|
|
Net loss per ordinary share—basic |
(0.03) |
(0.14) |
(0.16) |
(0.03) |
Net loss per ordinary share—diluted |
(0.03) |
(0.14) |
(0.16) |
(0.03) |
|
|
|
|
|
Loss per ADS (Each ADS
represents three ordinary shares): |
|
|
|
Net loss per ADS—basic |
(0.09) |
(0.41) |
(0.48) |
(0.08) |
Net loss per ADS—diluted |
(0.09) |
(0.41) |
(0.48) |
(0.08) |
|
|
|
|
|
Weighted average number of ordinary
shares: |
|
|
|
|
Basic |
281,682,508 |
303,344,804 |
303,344,804 |
303,344,804 |
Diluted |
281,682,508 |
303,344,804 |
303,344,804 |
303,344,804 |
|
|
|
|
|
Note1: Includes
share-based compensation expenses as follows: |
|
|
|
Product development |
(3,633) |
(3,726) |
(5,110) |
(835) |
Sales and marketing |
(1,048) |
(1,122) |
(1,511) |
(247) |
General and administrative |
(1,630) |
(1,913) |
(2,045) |
(334) |
Total share-based compensation
expenses |
(6,311) |
(6,761) |
(8,666) |
(1,416) |
|
|
|
|
|
|
|
|
|
|
Reconciliations of GAAP and
non-GAAP measures (in thousands, unaudited) |
|
|
Three Months
Ended |
|
September 30 |
June 30 |
September 30 |
September 30 |
|
2012 |
2013 |
2013 |
2013 |
|
RMB |
RMB |
RMB |
USD |
Net loss attributable to ordinary
shareholders |
(8,408) |
(41,207) |
(48,809) |
(7,975) |
Add: |
|
|
|
|
Share-based
compensation expenses |
6,311 |
6,761 |
8,666 |
1,416 |
Non-cash expenses
relating to free user traffic contributed by Baidu |
1,663 |
1,480 |
1,480 |
242 |
Adjusted net loss
(non-GAAP)(*) |
(434) |
(32,966) |
(38,663) |
(6,317) |
|
|
|
|
|
Add: |
|
|
|
|
Income tax expense |
537 |
11,734 |
14,058 |
2,297 |
Depreciation |
4,784 |
5,388 |
5,459 |
892 |
Interest expense |
-- |
1,059 |
351 |
57 |
Adjusted EBITDA
(non-GAAP)(**) |
4,887 |
(14,785) |
(18,795) |
(3,071) |
|
|
|
|
|
*Adjusted net loss (non-GAAP), defined as net
loss excluding share-based compensation expenses and non-cash
expenses relating to free user traffic contributed by Baidu,
Inc. |
** Adjusted EBITDA (non-GAAP), defined as net
loss before income taxes, interest expenses, depreciation and
amortization, further adjusted to exclude share-based compensation
expense and non-cash expenses relating to free user traffic
contributed by Baidu, Inc. |
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