For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Groupon (GRPN) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.Groupon is a member of the Retail-Wholesale sector. This group includes ...

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum, addressing the challenges of defining momentum [2] Company Overview: Groupon (GRPN) - Groupon currently holds a Momentum Style Score of B, indicating potential for solid momentum [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4] Performance Metrics - Over the past week, GRPN shares increased by 2.88%, while the Zacks Internet - Commerce industry remained flat [6] - In the last month, GRPN's price change was 63.47%, significantly outperforming the industry's 3.89% [6] - Over the past quarter, GRPN shares surged by 176.38%, and gained 84.02% over the last year, compared to the S&P 500's -0.52% and 14.2% respectively [7] Trading Volume - GRPN's average 20-day trading volume is 1,764,950 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - Recent earnings estimate revisions for GRPN have been positive, with three estimates moving higher and none lower, raising the consensus estimate from -$0.14 to $0.20 over the past 60 days [10] - For the next fiscal year, two estimates have increased with no downward revisions, indicating a favorable earnings outlook [10] Conclusion - Considering the positive momentum indicators and earnings outlook, GRPN is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]

Core Insights - Groupon has been recognized as a leading online platform for discovering and booking local activities, emphasizing its usability and role in providing affordable experiences [1] - The demand for experience-driven spending is increasing, positioning Groupon as a trusted tool for connecting users to entertainment, wellness, and leisure opportunities [1][12] Promotions and Campaigns - In celebration of Mother's Day, Groupon is offering limited-time experience-first gifts, including spa treatments and wellness getaways, running through May 11 [3][4] - Current featured promotions include access to Universal Studios Hollywood Fan Fest Nights and discounted concert tickets through a partnership with Live Nation [11] Local Experience Offerings - Groupon connects consumers with a variety of local merchants, offering experiences such as spa treatments, movie tickets, and outdoor tours [5] - The platform highlights hyperlocal, time-sensitive offers, such as discounted access to King Spa and Foot Smile Spa, catering to wellness seekers [6][9] Entertainment and Leisure - Groupon partners with Marcus Theatres to provide discounted movie tickets, helping families maintain entertainment habits despite rising costs [9] - The platform also offers cultural experiences like the Chicago Architecture Tours and recreational activities such as Paintball USA [9][10] Community Engagement - With millions of active users, Groupon facilitates affordable exploration and enriches community engagement, adapting to changing consumer habits while focusing on value and simplicity [12]

Core Viewpoint - Groupon reported a significant earnings beat in Q1 2025, with earnings of 18 cents per share, surpassing the Zacks Consensus Estimate by 190% and improving from a loss of 33 cents per share in the same quarter last year [1] Financial Performance - Revenues for the quarter were $117.2 million, exceeding the consensus estimate by 1.46%, but reflecting a year-over-year decline of 4.8% [2] - North America revenues were $91.11 million, beating the consensus by 2% but down 3.2% year-over-year; International revenues were $26.07 million, missing the consensus by 3.09% and down 9.9% year-over-year [2] - Local revenues totaled $108.4 million, beating estimates by 3.28% but declining 2.6% year-over-year; North America Local revenues decreased 0.6%, while International Local revenues fell 9.4% [3] - Consolidated Travel revenues were $5.05 million, missing estimates by 21.57% and down 20.5% year-over-year; North America Travel revenues decreased 20.4% [4] - Goods revenues were $3.78 million, missing estimates by 10.33% and declining 31.6% year-over-year; North America Goods revenues fell 50.9% [5] Customer Metrics - Groupon had approximately 15.5 million active customers at the end of Q1, down from 16.1 million year-over-year but beating the consensus estimate by 5.66%; North America had about 10.5 million active customers, exceeding estimates by 6.38% [6] Operating Details - Consolidated gross profit fell 3.9% year-over-year to $106.3 million, with North America gross profit down 1.5% and International gross profit down 9.4% [7] - Gross margin improved by 90 basis points to 90.7%; Selling, general and administrative expenses decreased by 6% to $69.84 million, while marketing expenses rose by 19.5% to $34.4 million [7] - GAAP operating profit was $1.88 million, down from $7.37 million year-over-year; adjusted EBITDA declined 21.5% to $15.3 million [8] Balance Sheet & Cash Flow - Groupon ended the quarter with cash and cash equivalents of $226.8 million, slightly down from $228.8 million at the end of 2024 [9] - Operating cash inflow remained stable at $67 million, while free cash outflow was $3.8 million compared to a free cash inflow of $63.2 million in the previous quarter [10] Guidance - For Q2 2025, Groupon expects revenues between $121 million and $123 million, indicating a year-over-year decline of 3-1%; adjusted EBITDA is projected to be between $14 million and $17 million [11] - For the full year 2025, the company anticipates revenues between $493 million and $500 million, reflecting a year-over-year growth of 0-2%; adjusted EBITDA is expected to be between $70 million and $75 million [12] - Groupon expects a positive free cash flow of at least $41 million for 2025 [13]

Financial Data and Key Metrics Changes - The company reported a strong start to the year with Q1 results exceeding guidance on both billings and adjusted EBITDA, with a slight beat on revenue [6] - Global billings grew by 1.4% year over year, driven by North America Local, which saw an 11% year over year growth in billings, marking the first double-digit growth since February 2017, excluding the pandemic recovery period [6][11] - The company raised its guidance for billings growth rate from 2-4% to 3-5% for the full year, while keeping revenue and adjusted EBITDA guidance unchanged [11] Business Line Data and Key Metrics Changes - Within North America Local, the "Things to Do" segment grew billings by double digits for the fifth consecutive quarter, significantly outpacing industry trends [7] - The international local business, excluding Italy, showed approximately 5% year over year billings growth [8] Market Data and Key Metrics Changes - The top 10 cities in North America experienced double-digit growth in billings, indicating a successful hyperlocal strategy [6][10] - The company noted that the macro environment is favorable, contributing positively to the performance of enterprise clients [17] Company Strategy and Development Direction - The company is transitioning from a daily deals platform to a trusted destination for quality local experiences, focusing on marketplace health, platform modernization, and financial strength [9] - The leadership team has been strengthened with key appointments to enhance the company's strategic direction [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core business despite the sale of GiftCloud, which removed approximately $6 million in revenue and $4 million in adjusted EBITDA from consolidated results [11] - The company is optimistic about accelerating year-over-year growth in both billings and revenue for Q2 [11][12] Other Important Information - The company is leveraging AI to improve sales and operational efficiency, with plans to enhance customer experience and deal design [57][59] - The company is focusing on customer retention and increasing purchase frequency, with initiatives like the "Wow Deal" pilot showing promising early results [72][73] Q&A Session Summary Question: What is driving the strength in North American merchants doing more than $1 million in billings? - Management attributed the growth to a hyper geo approach and improved category management, focusing on quality deals and service [15][17] Question: How does the macro environment act as a tailwind for the business? - Management noted that the volatile macro environment has led to weakening traffic trends for some clients, presenting an opportunity for Groupon to deepen cooperation with existing clients and attract new brands [25][29] Question: Can you provide an update on international markets? - Management reported strong performance in international markets, particularly in Spain, with double-digit growth and improvements across major markets [35][36] Question: How is the company leveraging AI? - Management highlighted opportunities in sales and technology efficiency, with plans to ensure compatibility with major AI platforms [57][59] Question: What are the expectations regarding the GiftCloud sale? - Management indicated that the sale price was on the high end of expectations and that it would strengthen the cash position [61][66]

Financial Data and Key Metrics Changes - Groupon reported a strong start to Q1 2025, with global billings growing by 1.4% year over year, exceeding guidance on both billings and adjusted EBITDA, with a slight beat on revenue [6][11] - North America Local billings accelerated to 11% year over year growth, marking the first double-digit growth since February 2017, excluding the pandemic recovery period [6][11] - The company raised its guidance for billings growth rate from 2-4% to 3-5% for the full year, while maintaining revenue and adjusted EBITDA guidance unchanged despite the sale of GiftCloud [11][12] Business Line Data and Key Metrics Changes - The "Things to Do" segment within North America Local grew billings by double digits for the fifth consecutive quarter, significantly outpacing industry trends [7] - International local business, excluding Italy, showed approximately 5% year over year billings growth [7] Market Data and Key Metrics Changes - The top 10 cities in North America experienced double-digit growth in billings, expanding from the previous focus on the top 5 cities [6][11] - Spain remains the leading market for growth in international operations, with strong double-digit growth, while other major markets like Germany, UK, and France are also performing well [35][36] Company Strategy and Development Direction - Groupon's mission is to transform from a daily deals platform to a trusted destination for quality local experiences, focusing on marketplace health, platform modernization, and financial strength [8][12] - The company is shifting from chasing volume to building quality, with a focus on improving customer experience and financial performance [8][12] Management's Comments on Operating Environment and Future Outlook - Management views the current macro environment as a potential tailwind for the business, with signs of increasing merchant pipeline as brands seek deeper integration with the platform [26][30] - The company expects another quarter of accelerating year-over-year growth in both billings and revenue for Q2 2025 [11][12] Other Important Information - Groupon is investing in AI to enhance sales capabilities and improve deal performance analysis, which is expected to significantly benefit the business over the next 12 to 24 months [56][58] - The sale of GiftCloud is expected to strengthen the company's cash position, with proceeds from the sale being utilized to enhance financial stability [61][66] Q&A Session Summary Question: What is driving the strength in North American merchants doing more than $1 million in billings? - Management attributed the increase to a hyper-local approach and improved category management, focusing on quality deals and services [15][17] Question: Is the $1 million in billings based on a trailing twelve months basis? - Yes, it is based on a trailing twelve months basis [19][20] Question: How does the macro environment act as a tailwind for the business? - Management noted that the volatile macro environment has led to weakening traffic trends for some clients, presenting an opportunity for Groupon to deepen cooperation with existing clients and attract new brands [26][30] Question: Can you discuss the marketing investments and ROI? - Management highlighted that the strategy is to acquire new customers with a 100% ROI within seven days, with improvements in marketing performance allowing for increased volumes [31][32] Question: What is the update on international markets? - Management reported that trends across major international markets continue to improve, with Spain leading in growth and other markets like Germany, UK, and France also performing well [35][36] Question: How is Groupon leveraging AI? - AI is being used to enhance sales communication with merchants and improve deal design, with expectations for significant efficiency gains in engineering and technology [56][58] Question: What was the outcome of the GiftCloud sale? - The sale price was on the high end of expectations, allowing management to focus on core growth opportunities, with a one-time gain expected to be reported in Q2 [61][66]

For the quarter ended March 2025, Groupon (GRPN) reported revenue of $117.19 million, down 4.8% over the same period last year. EPS came in at $0.18, compared to $0.06 in the year-ago quarter.The reported revenue represents a surprise of +1.46% over the Zacks Consensus Estimate of $115.5 million. With the consensus EPS estimate being -$0.20, the EPS surprise was +190.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ex ...

Core Viewpoint - Groupon reported quarterly earnings of $0.18 per share, significantly beating the Zacks Consensus Estimate of a loss of $0.20 per share, marking an earnings surprise of 190% [1] - The company generated revenues of $117.19 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.46%, although this represents a decline from $123.08 million year-over-year [2] Group 1: Earnings Performance - Groupon's earnings of $0.18 per share compare favorably to earnings of $0.06 per share a year ago, indicating growth [1] - The company has surpassed consensus EPS estimates two times over the last four quarters [2] Group 2: Revenue Insights - The reported revenue of $117.19 million exceeded the consensus estimate, but is lower than the previous year's revenue of $123.08 million [2] - Groupon has topped consensus revenue estimates three times in the last four quarters [2] Group 3: Stock Performance and Outlook - Groupon shares have increased by approximately 39.3% since the beginning of the year, contrasting with a -4.7% decline in the S&P 500 [3] - The company's future stock performance will largely depend on management's commentary during the earnings call [3][4] Group 4: Earnings Estimates and Industry Context - Current consensus EPS estimate for the upcoming quarter is -$0.12 on revenues of $119.22 million, and -$0.25 on revenues of $497.1 million for the current fiscal year [7] - The Internet - Commerce industry is currently ranked in the top 31% of Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Groupon Reports First Quarter 2025 ResultsMay 07, 2025 4:15 PM EDT | Source: GrouponGlobal Revenue down 5% and Billings up 1%North America Local Revenue down less than 1% and Local Billings up 11% International Local revenue declined 8%. Excluding Italy, International Local revenue grew 4%Chicago, Illinois--(Newsfile Corp. - May 7, 2025) - Groupon, Inc. (NASDAQ: GRPN) today announced its financial results for the first quarter ended March 31, 2025. The company filed its Form 10-Q with the Secu ...

Groupon Reports First Quarter 2025 Results Global Revenue down 5% and Billings up 1%% North America Local Revenue down less than 1% and Local Billings up 11% International Local revenue declined 8%. Excluding Italy, International Local revenue grew 4% CHICAGO - May 7, 2025 - Groupon, Inc. (NASDAQ: GRPN) today announced its financial results for the first quarter ended March 31, 2025. The company filed its Form 10-Q with the Securities and Exchange Commission and posted updated earning commentary on its inve ...