Trip.com Group Limited (TCOM) 6-K Trip.com Group Limited Reports Unaudited Third Quarter of 2019 Financial Results

Exhibit 99.1

Trip.com Group Limited Reports Unaudited Third Quarter of 2019 Financial Results

Shanghai, China, November 13, 2019 - Trip.com Group Limited (Nasdaq: TCOM) (“Trip.com Group” or the “Company”), a leading provider of online travel and related services, including accommodation reservation, transportation ticketing, packaged tours andin-destination services, corporate travel management, and other travel-related services, today announced its unaudited financial results for the third quarter ended September 30, 2019.

Key Highlights for the Third Quarter of 2019

• The Company officially changed its corporate name to “Trip.com Group Limited” on October 25, 2019 and its ticker to “TCOM” on November 5, 2019. Trip.com Group operates a family of travel brands, which mainly consists of Trip.com, Ctrip, Skyscanner and Qunar.

• Trip.com Group reported strong financial results for the third quarter of 2019.

• Income from operations increased by 52% year-over-year to RMB2.2 billion (US$314 million). Excluding share-based compensation charges,non-GAAP income from operations increased by 40% year-over-year to RMB2.6 billion (US$369 million) in the third quarter of 2019.

• Operating margin was 21% for the third quarter of 2019, compared to 16% in the same period in 2018, and 15% in the previous quarter. Excluding share-based compensation charges,non-GAAP operating margin reached 25%, the highest margin over the past 6 years.

• Trip.com Group’s international businesses (excluding Greater China destinations) sustained robust growth momentum.

• The year-over-year revenue growth rate of international hotel business (excluding Greater China destinations) reached 50% in the third quarter of 2019.

• Trip.com brand’s international air ticketing volume maintained triple digit growth for the 12th consecutive quarter.

Third Quarter of 2019 Financial Results and Business Updates

For the third quarter of 2019, Trip.com Group reported net revenue of RMB10.5 billion (US$1.5 billion), representing a 12% increase from the same period in 2018. Net revenue for the third quarter of 2019 increased by 21% from the previous quarter.

Accommodation reservation revenue for the third quarter of 2019 was RMB4.1 billion (US$576 million), representing a 14% increase from the same period in 2018, primarily due to our brand’s extensive global reach, expansion in our global product portfolio, and provision of diversified accommodation choices to prospective customers. Accommodation reservation revenue for the third quarter of 2019 increased by 21% from the previous quarter, primarily due to seasonality.

Transportation ticketing revenue for the third quarter of 2019 was RMB3.7 billion (US$521 million), representing a 3% increase from the same period in 2018, primarily due to an increase in international air ticketing and ground transportation ticketing demands. Transportation ticketing revenue for the third quarter of 2019 increased by 9% from the previous quarter, primarily due to seasonality.

Packaged-tour revenue for the third quarter of 2019 was RMB1.6 billion (US$229 million), representing a 19% increase from the same period in 2018, primarily driven by a significant increase in traffic generated from offline stores and further penetration in lower-tier cities in China. Packaged-tour revenue for the third quarter of 2019 increased by 56% from the previous quarter, primarily due to seasonality.

Corporate travel revenue for the third quarter of 2019 was RMB335 million (US$47 million), representing a 26% increase from the same period in 2018, primarily driven by expansion in corporate customer base and an optimized product mix trend. Corporate travel revenue for the third quarter of 2019 increased by 9% from the previous quarter, primarily due to seasonality.

Gross margin was 79% for the third quarter of 2019, which remained consistent with that for the same period in 2018 and the previous quarter.

Product development expenses for the third quarter of 2019 increased by 12% to RMB2.8 billion (US$390 million) from the same period in 2018 and increased by 6% from the previous quarter, primarily due to an increase in expenses relating to product development personnel. Product development expenses for the third quarter of 2019 accounted for 27% of the net revenue for the same period. Excluding share-based compensation charges,non-GAAP product development expenses for the third quarter of 2019 accounted for 25% of the net revenue for the same period, which increased from 24% in the same period in 2018 and decreased from 28% in the previous quarter.

Sales and marketing expenses for the third quarter of 2019 decreased by 8% to RMB2.5 billion (US$347 million) from the same period in 2018, primarily due to a decrease in expenses relating to sales and marketing activities. Sales and marketing expenses increased by 18% from the previous quarter, primarily due to an increase in expenses relating to sales and marketing activities. Sales and marketing expenses for the third quarter of 2019 accounted for 24% of the net revenue for the same period. Excluding share-based compensation charges,non-GAAP sales and marketing expenses for the third quarter of 2019 accounted for 23% of the net revenue for the same period, which decreased from 29% in the same period in 2018 and 24% in the previous quarter.

General and administrative expenses for the third quarter of 2019 increased by 18% to RMB809 million (US$113 million) from the same period in 2018, primarily due to an increase in general and administrative personnel related expenses. General and administrative expenses remained consistent with the previous quarter. General and administrative expenses for the third quarter of 2019 accounted for 8% of the net revenue for the same period. Excluding share-based compensation charges,non-GAAP general and administrative expenses accounted for 6% of the net revenue for the same period, which remained consistent with those for the same period in 2018 and decreased from 8% in the previous quarter.

Income from operations for the third quarter of 2019 was RMB2.2 billion (US$314 million), compared to RMB1.5 billion in the same period in 2018 and RMB1.3 billion in the previous quarter. Income from operations increased by 52% year-over-year in the third quarter of 2019. Excluding share-based compensation charges,non-GAAP income from operations was RMB2.6 billion (US$369 million), compared to RMB1.9 billion in the same period in 2018 and RMB1.7 billion in the previous quarter.Non-GAAP income from operations increased by 40% year-over-year in the third quarter of 2019.

Operating margin was 21% for the third quarter of 2019, compared to 16% in the same period in 2018, and 15% in the previous quarter. Excluding share-based compensation charges,non-GAAP operating margin was 25%, compared to 20% in the same period in 2018 and in the previous quarter.

Income tax expense for the third quarter of 2019 was RMB365 million (US$51 million), compared to RMB257 million in the same period of 2018 and RMB336 million in the previous quarter. The change in our effective tax rate was primarily due to changes in the profitability of our subsidiaries that have different tax rates, including certainnon-deductible expenses of the fair value changes in equity securities investments.

Net income attributable to Trip.com Group’s shareholders for the third quarter of 2019 was RMB793 million (US$112 million), compared to net loss attributable to Trip.com Group’s shareholders of RMB1.1 billion in the same period in 2018 and RMB403 million in the previous quarter. Excluding share-based compensation charges and fair value changes of equity securities investments,non-GAAP net income attributable to Trip.com Group’s shareholders was RMB2.3 billion (US$317 million), compared to RMB1.7 billion in the same period in 2018 and RMB1.3 billion in the previous quarter.

Diluted earnings per ADS were RMB1.35 (US$0.19) for the third quarter of 2019. Excluding share-based compensation charges and fair value changes of equity securities investments,non-GAAP diluted earnings per ADS were RMB3.70 (US$0.52) for the third quarter of 2019.

As of September 30, 2019, the balance of cash and cash equivalents, restricted cash, short-term investment, held to maturity time deposit and financial products was RMB61.0 billion (US$8.5 billion).

Business Outlook

For the fourth quarter of 2019, the Company expects the net revenue growth to continue at ayear-over-year rate of approximately8-13%. This forecast reflects Trip.com Group’s current and preliminary view, which is subject to change.

Conference Call

Trip.com Group’s management team will host a conference call at 7:00PM U.S. Eastern Time on November 13, 2019 (or 8:00AM on November 14, 2019 in the Shanghai/Hong Kong Time) following the announcement.

The conference call will be available on Webcast live and replay at:https://investors.trip.com The call will be archived for twelve months at this website.

Listeners may access the call by dialing the following numbers:

US:	1-855-881-1339 or1-914-202-3258
Hong Kong:	800-966-806
Mainland China:	400-120-0659
International:	+61-731-454-010
Passcode:	10002551

Forpre-registration, please click

https://s1.c-conf.com/diamondpass/Ctrip-10002551-invite.html

A telephone replay of the call will be available after the conclusion of the conference call until November 21, 2019.

Thedial-in details for the replay:

Internationaldial-in number:  +61-7-3107-6325

Passcode:                                   10002551

Safe Harbor Statement

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 “may,” “will,” “expect,” “anticipate,” “future,” “intend,” “plan,” “believe,” “estimate,” “is/are likely to,” “confident” or other similar statements. Among other things, quotations from management and the Business Outlook section in this press release, as well as Trip.com Group’s strategic and operational plans, contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, severe or prolonged downturn in the global or Chinese economy, general declines or disruptions in the travel industry, volatility in the trading price of Trip.com Group’s ADSs, Trip.com Group’s reliance on its relationships and contractual arrangements with travel suppliers and strategic alliances, failure to compete against new and existing competitors, failure to successfully manage current growth and potential future growth, risks associated with any strategic investments or acquisitions, seasonality in the travel industry in the relevant jurisdictions where Trip.com Group operates, failure to successfully develop Trip.com Group’s existing or future business lines, damage to or failure of Trip.com Group’s infrastructure and technology, loss of services of Trip.com Group’s key executives, adverse changes in economic and political policies of the PRC government, inflation in China, risks and uncertainties associated with PRC laws and regulations with respect to the ownership structure of Trip.com Group’s affiliated Chinese entities and the contractual arrangements among Trip.com Group, its affiliated Chinese entities and their shareholders, and other risks outlined in Trip.com Group’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the issuance, and Trip.com Group does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

AboutNon-GAAP Financial Measures

To supplement Trip.com Group’s unaudited condensed consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Trip.com Group usesNon-GAAP financial information related to product development expenses, sales and marketing expenses, general and administrative expenses, income from operations, operating margin, net income attributable to Trip.com Group’s shareholders, and diluted earnings per ordinary share and per ADS, each of which (except for net commission earned) is adjusted from the most comparable GAAP result to exclude the share-based compensation charges recorded under ASC 718, “Compensation-Stock Compensation” and its share-based compensation charges are not tax deductible, and fair value changes of equity securities investments, net of tax, recorded under ASU2016-1. Trip.com Group’s management believes theNon-GAAP financial measures facilitate better understanding of operating results from quarter to quarter and provide management with a better capability to plan and forecast future periods.

Non-GAAP information is not prepared in accordance with GAAP and may be different fromNon-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for GAAP results. A limitation of usingNon-GAAP financial measures is thatNon-GAAP measures exclude share-based compensation charges and fair value changes of equity securities investments that have been and will continue to be significant recurring expenses in Trip.com Group’s business for the foreseeable future.

Reconciliations of Trip.com Group’sNon-GAAP financial data to the most comparable GAAP data included in the consolidated statement of operations are included at the end of this press release.

About Trip.com Group Limited

Trip.com Group Limited (Nasdaq: TCOM) is a leadingone-stop travel service provider consisting of Trip.com, Ctrip, Skyscanner, and Qunar. Across its platforms, Trip.com Group enables local partners and travelers around the world to make informed and cost-effective bookings for travel products and services, through aggregation of comprehensive travel-related information and resources, and an advanced transaction platform consisting of mobile apps, Internet websites, and 24/7 customer service centers. Founded in 1999 and listed on Nasdaq in 2003, Trip.com Group has become one of the largest travel companies in the world in terms of gross merchandise value.

For further information, please contact:

Investor Relations

Trip.com Group Limited

Tel: +86 (21) 3406-4880 X 12229

Email:iremail@trip.com

Trip.com Group Limited

Unaudited Consolidated Balance Sheets

(In millions, except share and per share data)

	December 31, 2018		September 30, 2019		September 30, 2019
	RMB (million)		RMB (million)		USD (million)
	(unaudited)		(unaudited)		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		21,530		18,330		2,565
Restricted cash		4,244		3,905		546
Short-term investments		36,753		26,069		3,647
Accounts receivable, net		5,668		9,295		1,300
Prepayments and other current assets		11,199		17,979		2,515
Total current assets		79,394		75,578		10,573
Long-term deposits and prepayments		768		594		83
Land use rights		94		92		13
Property, equipment and software		5,872		5,978		836
Investments		26,874		47,647		6,666
Goodwill		58,026		57,915		8,103
Intangible assets		13,723		13,281		1,858
Other long-term receivable		229		26		4
Right-of-use asset*		—		993		139
Deferred tax assets		850		979		137
Total assets		185,830		203,083		28,412
LIABILITIES
Current liabilities:
Short-term debt and current portion of long-term debt		36,011		36,751		5,142
Accounts payable		11,714		13,386		1,873
Salary and welfare payable		3,694		4,387		614
Taxes payable		1,019		1,367		191
Advances from customers		9,472		9,944		1,391
Accrued liability for customer reward program		528		471		66
Other payables and accruals*		6,346		7,812		1,093
Total current liabilities		68,784		74,118		10,370
Deferred tax liabilities		3,838		3,624		507
Long-term debt		24,146		20,600		2,882
Other long-term liabilities		329		257		36
Long-term lease liability*		—		653		91
Total liabilities		97,097		99,252		13,886
MEZZANINE EQUITY
Redeemablenon-controlling interests		—		1,122		157
SHAREHOLDERS’ EQUITY
Total Trip.com Group Limited shareholders’ equity		86,715		100,662		14,083
Non-controlling interests		2,018		2,047		286
Total shareholders’ equity		88,733		102,709		14,369
Total liabilities, mezzanine equity and shareholders’ equity		185,830		203,083		28,412

* The Company adopted ASUNo. 2016-02 and ASUNo.2018-11, “Leases,” beginning January 1, 2019 and elected to utilize the additional transition method which allowed the Company to initially apply the new lease standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings of 2019, with no adjustments to prior periods and no cumulative effect to the opening balance of retained earnings. The adoption of the new guidance did not have a material effect on our results of operations, financial condition or liquidity.

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Trip.com Group Limited

Unaudited Consolidated Statements of Comprehensive Income

(In millions, except share and per share data)

	Quarter Ended			Quarter Ended			Quarter Ended			Quarter Ended
	September 30, 2018			June 30, 2019			September 30, 2019			September 30, 2019
	RMB (million)			RMB (million)			RMB (million)			USD (million)
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenue:
Accommodation reservation		3,627			3,410			4,117			576
Transportation ticketing		3,621			3,407			3,721			521
Packaged-tour		1,378			1,051			1,638			229
Corporate travel		267			309			335			47
Others		503			524			688			96
Total revenue		9,396			8,701			10,499			1,469
Less: Sales tax and surcharges		(41	)		(10	)		(23	)		(3	)
Net revenue		9,355			8,691			10,476			1,466
Cost of revenue		(1,991	)		(1,798	)		(2,157	)		(302	)
Gross profit		7,364			6,893			8,319			1,164
Operating expenses:
Product development ***		(2,491	)		(2,642	)		(2,790	)		(390	)
Sales and marketing ***		(2,705	)		(2,108	)		(2,478	)		(347	)
General and administrative ***		(688	)		(810	)		(809	)		(113	)
Total operating expenses		(5,884	)		(5,560	)		(6,077	)		(850	)
Income from operations		1,480			1,333			2,242			314
Interest income		521			562			509			71
Interest expense		(393	)		(426	)		(423	)		(59	)
Other loss **		(2,625	)		(1,412	)		(1,349	)		(189	)
(Loss)/income before income tax expense, equity in income of affiliates andnon-controlling interests		(1,017	)		57			979			137
Income tax expense **		(257	)		(336	)		(365	)		(51	)
Equity in income/(loss) of affiliates		169			(123	)		206			29
Net (loss)/income		(1,105	)		(402	)		820			115
Net (income)/loss attributable tonon-controlling interests		(34	)		7			(18	)		(2	)
Accretion to redemption value of redeemablenon-controlling interests		—			(8	)		(9	)		(1	)
Net (loss)/ income attributable to Trip.com Group Limited		(1,139	)		(403	)		793			112
Comprehensive (loss)/income attributable to Trip.com Group Limited **		(1,561	)		(308	)		477			67
(Losses)/earnings per ordinary share
- Basic		(16.62	)		(5.81	)		11.19			1.57
- Diluted		(16.62	)		(5.81	)		10.83			1.52
(Losses)/earnings per ADS
- Basic		(2.08	)		(0.73	)		1.40			0.20
- Diluted		(2.08	)		(0.73	)		1.35			0.19
Weighted average ordinary shares outstanding
- Basic		68,518,501			69,484,264			70,979,652			70,979,652
- Diluted		68,518,501			69,484,264			75,203,352			75,203,352
-Diluted-non GAAP		80,394,301			77,807,991			79,585,733			79,585,733
*** Share-based compensation included in Operating expenses above is as follows:
Product development		217			215			213			30
Sales and marketing		36			34			34			5
General and administrative		148			144			146			20
** Fair value changes of equity securities investments included in Net (loss)/income is as follow:
Fair value loss of equity securities investments, net of tax		2,470			1,339			1,076			150

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Trip.com Group Limited

Reconciliation of GAAP andNon-GAAP Results

(In millions, except % and per share data)

	Quarter Ended September 30, 2019
	GAAP Result			% of Net Revenue			Non-GAAP Adjustment		% of Net Revenue			Non-GAAP Result			% of Net Revenue
Share-based compensation included in Operating expense is as follows:
Product development		(2,790	)		-27	%		213		2	%		(2,577	)		-25	%
Sales and marketing		(2,478	)		-24	%		34		0	%		(2,444	)		-23	%
General and administrative		(809	)		-8	%		146		1	%		(663	)		-6	%
Total operating expenses		(6,077	)		-58	%		393		4	%		(5,684	)		-54	%
Income from operations		2,242			21	%		393		4	%		2,635			25	%
Fair value changes of equity securities investments, net of tax		(1,076	)		-10	%		1,076		10	%		—			0	%
Net income attributable to Trip.com Group’s shareholders		793			8	%		1,469		14	%		2,262			22	%
Diluted earnings per ordinary share (RMB)		10.83						18.73					29.56
Diluted earnings per ADS (RMB)		1.35						2.35					3.70
Diluted earnings per ADS (USD)		0.19						0.33					0.52
	Quarter Ended June 30, 2019
	GAAP Result			% of Net Revenue			Non-GAAP Adjustment		% of Net Revenue			Non-GAAP Result			% of Net Revenue
Share-based compensation included in Operating expense is as follows:
Product development		(2,642	)		-30	%		215		2	%		(2,427	)		-28	%
Sales and marketing		(2,108	)		-24	%		34		0	%		(2,074	)		-24	%
General and administrative		(810	)		-9	%		144		2	%		(666	)		-8	%
Total operating expenses		(5,560	)		-64	%		393		5	%		(5,167	)		-59	%
Income from operations		1,333			15	%		393		5	%		1,726			20	%
Fair value changes of equity securities investments, net of tax		(1,339	)		-15	%		1,339		15	%		—			0	%
Net (loss)/income attributable to Trip.com Group’s shareholders		(403	)		-5	%		1,732		20	%		1,329			15	%
Diluted (losses)/earnings per ordinary share (RMB)		(5.81	)					23.81					18.00
Diluted (losses)/earnings per ADS (RMB)		(0.73	)					2.98					2.25
Diluted (losses)/earnings per ADS (USD)		(0.11	)					0.43					0.33
	Quarter Ended September 30, 2018
	GAAP Result			% of Net Revenue			Non-GAAP Adjustment		% of Net Revenue			Non-GAAP Result			% of Net Revenue
Share-based compensation included in Operating expense is as follows:
Product development		(2,491	)		-27	%		217		2	%		(2,274	)		-24	%
Sales and marketing		(2,705	)		-29	%		36		0	%		(2,669	)		-29	%
General and administrative		(688	)		-7	%		148		2	%		(540	)		-6	%
Total operating expenses		(5,884	)		-63	%		401		4	%		(5,483	)		-59	%
Income from operations		1,480			16	%		401		4	%		1,881			20	%
Fair value changes of equity securities investments, net of tax		(2,470	)		-26	%		2,470		26	%		—			0	%
Net (loss)/income attributable to Trip.com Group’s shareholders		(1,139	)		-12	%		2,871		31	%		1,732			19	%
Diluted (losses)/earnings per ordinary share (RMB)		(16.62	)					39.68					23.06
Diluted (losses)/earnings per ADS (RMB)		(2.08	)					4.96					2.88
Diluted (losses)/earnings per ADS (USD)		(0.30	)					0.72					0.42

Notes for all the condensed consolidated financial schedules presented:

Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the certified exchange rate of USD1.00=RMB7.1477 on September 30, 2019 published by the Federal Reserve Board.

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