Core Viewpoint - Groupon has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks Consensus Estimate for Groupon's earnings per share (EPS) for the fiscal year ending December 2024 is projected to be $0.30, reflecting a year-over-year increase of 157.7% [5]. - Over the past three months, the Zacks Consensus Estimate for Groupon has risen by 105.7%, indicating a strong upward trend in earnings estimates [5]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, and their buying or selling actions based on these estimates can significantly influence stock prices [3]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. - The upgrade of Groupon to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [7].

This year is likely to be a good one for ecommerce, with the segment expected to take away big slices of the total retail pie. Commerce Department numbers for the last quarter is proof of this: ecommerce sales in the first quarter of 2024 grew 8.6% over 1Q23 (2.1% sequentially), with total retail sales increasing 1.5% (-0.1% sequentially). Ecommerce accounted for around 15.9% of total U.S. retail sales. The convenience of online shopping remains the top reason for ecommerce volumes and this is particularly ...

Eric Lefkofsky knows the public listing rodeo well and is about to enter it for a fourth time. The serial entrepreneur, whose net worth is estimated at nearly $4 billion, has already taken three businesses he’s founded public. Today he’s the founder of Tempus, a genomic testing and data analysis company preparing to IPO. But he’s best known as the cofounder of daily deals pioneer Groupon, which went public at a valuation of nearly $13 billion in 2011, in one of that year’s most high-profile debuts.  Groupo ...

Group 1 - Groupon is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating a strong earnings outlook and potential to outperform the market in the next one to three months [1] - The Zacks Consensus Estimate for Groupon's full-year earnings has increased by 41.5% over the past quarter, reflecting improved analyst sentiment [2] - Year-to-date, Groupon has gained approximately 16.8%, outperforming the average gain of 9% in the Retail-Wholesale sector [2] Group 2 - Groupon belongs to the Internet - Commerce industry, which has an average gain of 15.1% this year, indicating that Groupon is performing better than its industry peers [3] - In contrast, Wingstop, another stock in the Retail-Wholesale sector, has achieved a year-to-date return of 50.8% and has a Zacks Rank of 1 (Strong Buy) [2][3] - The Retail - Restaurants industry, to which Wingstop belongs, is currently ranked 176 and has experienced a decline of 5% year to date [3]

Core Viewpoint - Groupon has experienced a significant increase in stock performance, returning +41.1% over the past month, outperforming the S&P 500's +4.2% and the Internet - Commerce industry’s +3.5% [1] Earnings Estimates - For the current quarter, Groupon is expected to report a loss of $0.16 per share, a decrease of -60% year-over-year, with the consensus estimate remaining unchanged [3] - The consensus earnings estimate for the current fiscal year is $0.05, reflecting a year-over-year increase of +109.6%, also unchanged over the last 30 days [3] - For the next fiscal year, the consensus estimate is $0.33, indicating a substantial increase of +560% compared to the previous year, with no changes in the estimate over the past month [3] Revenue Growth - The consensus sales estimate for the current quarter is $123.83 million, showing a year-over-year decline of -4.1% [6] - The sales estimates for the current and next fiscal years are $539.26 million and $579.85 million, indicating increases of +4.7% and +7.5%, respectively [6] Recent Performance - Groupon reported revenues of $123.08 million in the last quarter, a year-over-year increase of +1.2%, and an EPS of $0.06 compared to -$0.65 a year ago [7] - The reported revenues exceeded the Zacks Consensus Estimate of $118.37 million by +3.98%, and the EPS surprise was +133.33% [7] - The company has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times during this period [7] Valuation - Groupon's valuation is assessed through various multiples, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to determine if the stock is fairly valued [8] - The Zacks Value Style Score grades Groupon as C, indicating it is trading at par with its peers [10] Market Outlook - The Zacks Rank 1 (Strong Buy) for Groupon suggests potential for outperforming the broader market in the near term [11]

Stock Performance - Groupon's stock has returned +68.9% over the past month, significantly outperforming the Zacks S&P 500 composite's +5% change and the Zacks Internet - Commerce industry's +5.5% gain [1] Earnings Estimates - Current quarter earnings estimate is a loss of $0.16 per share, representing a year-over-year change of -60% [2] - Current fiscal year consensus earnings estimate is $0.05, indicating a year-over-year change of +109.6% [3] - Next fiscal year consensus earnings estimate is $0.33, showing a year-over-year change of +560% [3] - Zacks Rank 1 (Strong Buy) assigned to Groupon based on earnings estimate revisions [3] Revenue Estimates - Current quarter consensus sales estimate is $123.83 million, representing a year-over-year change of -4.1% [5] - Current fiscal year revenue estimate is $539.26 million, indicating a year-over-year change of +4.7% [5] - Next fiscal year revenue estimate is $579.85 million, showing a year-over-year change of +7.5% [5] Recent Financial Performance - Last reported quarter revenues were $123.08 million, representing a year-over-year change of +1.2% [6] - Last reported quarter EPS was $0.06, compared to -$0.65 a year ago [6] - Revenue surprise of +3.98% compared to Zacks Consensus Estimate of $118.37 million [6] - EPS surprise of +133.33% in the last reported quarter [6] - Company has beaten consensus EPS estimates in each of the trailing four quarters [6] - Company has topped consensus revenue estimates three times over the last four quarters [6] Valuation - Groupon is graded C on the Zacks Value Style Score, indicating it is trading at par with its peers [9] - Valuation metrics suggest the stock is fairly valued compared to its peers [9]

Groupon stock could be a turnaround in the making.Groupon (GRPN 27.43%) -- remember Groupon? It's apparently still a thing -- reported earnings last night, and investors are cheering the results. Shares of the online coupon site soared 22.2% through 10:20 a.m. ET Friday after the company missed on earnings, but beat on sales.The question is why.Heading into the Q1 2024 report, analysts forecast Groupon would earn $0.05 per share on sales of $121.6 million. As it turned out, sales were better than expected a ...

Core Insights - Groupon reported non-GAAP earnings of 6 cents per share for Q1 2024, surpassing the Zacks Consensus Estimate of a loss of 18 cents per share, compared to a non-GAAP loss of 65 cents per share in the same quarter last year [1] - Revenues reached $123.1 million, exceeding the consensus estimate by 4% and showing a 1% year-over-year increase [1] Revenue Breakdown - North America revenues were $94.1 million, beating the consensus by 10.7% and increasing 5.5% year-over-year [1] - International revenues totaled $28.95 million, missing the consensus by 4.1% and declining 10.5% year-over-year [1] - Local revenues amounted to $111.2 million, exceeding estimates by 6.4% and rising 4.3% year-over-year [2] - Consolidated Travel revenues were $6.4 million, beating estimates by 32.6% and increasing 12.3% year-over-year [2] - Goods revenues were $5.5 million, missing estimates by 7.5% and declining 40.7% year-over-year [2] Customer Metrics - Groupon had approximately 16.1 million active customers at the end of Q1, down from 18.2 million year-over-year but beating the consensus estimate by 4.6% [3] - North America active customers were approximately 10.2 million, exceeding the consensus by 11.4%, while international active customers were 5.9 million, missing the consensus by 5.3% [3] Operating Performance - Gross profit for Q1 was $110.6 million, up 6% year-over-year [4] - Selling, general and administrative expenses decreased by 26.9% to $74.3 million, while marketing expenses rose by 15.9% to $28.8 million [4] - The company reported a GAAP operating income of $7.4 million, a significant improvement from a loss of $30.6 million in the previous year [4] Financial Position - Groupon ended the quarter with cash and cash equivalents of $158.7 million, up from $141.6 million at the end of 2023 [5] - The operating cash outflow was $10.1 million, compared to an operating cash flow of $54.5 million in the prior quarter [5] - Free cash outflow was $13.8 million, down from $51.1 million of free cash flow in the previous quarter [5] Guidance - For Q2 2024, Groupon expects revenues between $116 million and $122 million, indicating a year-over-year decline of 10-5% [6] - Adjusted EBITDA is projected to be between $12 million and $17 million [6] - For the full year 2024, revenues are expected to be between $489 million and $515 million, reflecting a year-over-year change of (5%)-0% [6] - Adjusted EBITDA for 2024 is anticipated to be between $80 million and $100 million, with a positive free cash flow expected for the year [6]

Groupon 1st Quarter Earnings May 9th, 2024 Agenda Dusan Senkypl CEO ● CEO Commentary ● Financial Overview Jiri Ponrt ● Guidance CFO ● Q&A Rana Kashyap SVP, Corp Dev & IR ...

Financial Data and Key Metrics Changes - In Q1 2024, Groupon reported global billings of $381 million, a decrease of approximately 4% year-over-year, while revenue increased by 1% year-over-year to $123 million, exceeding guidance [27][28] - Adjusted EBITDA was positive $20 million, marking the fourth consecutive quarter of positive adjusted EBITDA, with the last twelve months adjusted EBITDA reaching $80 million, a $93 million increase from the previous year [28][29] - The company ended the quarter with $159 million in cash and cash equivalents, excluding $30 million of restricted cash [29] Business Line Data and Key Metrics Changes - North America Local and Travel categories saw a combined revenue increase of 8% year-over-year, representing 74% of total business in Q1 [7][8] - Consolidated local billings were $316 million, flat compared to the prior year, with North America local billings up 4% year-over-year [30] - The Travel category experienced consolidated billings of $36 million, up 2% year-over-year, with North America travel billing growth of 30% year-over-year [30] Market Data and Key Metrics Changes - Active customers worldwide totaled approximately 16 million, down 0.4 million from the prior quarter, with a slight decline in North America [29] - International local billings were down 9% year-over-year, indicating challenges in that segment [30] Company Strategy and Development Direction - The company is focused on a transformation plan aimed at stabilizing revenue and driving profitable growth, with an emphasis on improving customer and merchant experiences [8][18] - Groupon is shifting from quantity to quality by removing low-quality deals and enhancing deal content using AI [19] - The company aims to increase the number of bookable deals, particularly in the Travel category, to improve customer experience and drive sales [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformation plan, noting that while challenges remain, there is a positive trajectory towards sustained growth [17][21] - The company anticipates that technical issues affecting performance will be resolved, with expectations for revenue growth in the second half of 2024 [37] - Management reiterated the importance of building a motivated performance-driven team to achieve long-term goals [22][26] Other Important Information - Groupon has taken steps to improve liquidity, including the sale of non-core assets and a successful rights offering [34] - The company is facing a tax assessment issue in Italy, which has temporarily paused local voucher sales in that market [35] Q&A Session Summary Question: Progress on increasing frequency of Groupon as a gift and making the platform more merchant-friendly - Management highlighted improvements in merchant dashboards to enhance visibility on promotional activities, which were previously lacking [40] - Focus remains on enhancing gifting options for the upcoming Q4 season [41] Question: Disparity between North America and international travel performance - Management noted better connectivity in North America as a key factor, with plans to implement improvements in international markets [44] Question: Incremental investments for platform growth - Management emphasized the need to focus on quality merchants and improving deal structures rather than increasing the number of merchants [48] - Competitive advantages include a performance-based model where merchants pay only for delivered customers [50]