Ctrip.Com International Ltd (NASDAQ: CTRP) stock rose over 11.5% on March 5^th, 2019 (pre market session on March 5^th, 2019; Source: Google finance) after the company in the fourth quarter of FY 18 has reported a 22% growth in the net revenue to RMB7.6 billion (US$1.1 billion) year-on-year. Transacting users of Ctrip and Qunar brands has totaled 135 million, increasing 25% CAGR over the past two years. Further, the user base is getting younger. Customers under the age 30 make up 50% of the user base, up significantly from one-third in 2013. Moreover, in the fourth quarter of 2018, revenue generated from the international business makes up 30% to 35% of the group level total revenue. The international hotel and air ticketing business units both expanded at about three times the industry growth rate.

However, the net revenue for the fourth quarter of 2018 has fallen by 19% from the previous quarter, primarily due to seasonality. As of the end of Q4 2018, the group level MAU was 200 million despite weaker seasonality. The company’s non-GAAP operating margin was 3%, compared to 11% in the same period in 2017 and 20% in the previous quarter. The decrease in operating margin is resulted from the changes in gross margin and increase in operating expenses. CTRP has reported the net loss attributable to Ctrip’s shareholders for the fourth quarter of 2018 of RMB1.2 billion (US$176 million), compared to net income of RMB350 million in the same period in 2017 and net loss of RMB1.1 billion in the previous quarter, mainly due to the loss of the fair value changes in equity securities investments

The company has posted the accommodation reservation revenue for the fourth quarter of 2018 of RMB2.7 billion (US$386 million), representing a 22% increase from the same period in 2017, primarily due to an increase in accommodation reservation volume. CTRP has posted transportation ticketing revenue for the fourth quarter of 2018 pf RMB3.4 billion (US$496 million), representing a 17% increase from the same period in 2017, primarily driven by an increase in ticketing volume. The company has posted the packaged tour revenue for the fourth quarter of 2018 of RMB721 million (US$105 million), representing a 31% increase from the same period in 2017, primarily driven by an increase in volume of organized tours and self-guided tours. The company has posted the corporate travel revenue for the fourth quarter of 2018 of RMB279 million (US$41 million), representing a 35% increase from the same period in 2017, primarily due to an expansion in travel product coverage.

For the first quarter of 2019, the company expects the net revenue growth to continue at a year-on-year rate of approximately 18~23%.