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]

Core Insights - Groupon reported revenue of $117.19 million for the quarter ended March 2025, reflecting a year-over-year decline of 4.8% but exceeding the Zacks Consensus Estimate by 1.46% [1] - The company's EPS was $0.18, a significant increase from $0.06 in the same quarter last year, resulting in an EPS surprise of 190.00% compared to the consensus estimate of -$0.20 [1] Revenue Performance - North America revenue was $91.11 million, surpassing the average estimate of $89.33 million, but down 3.2% year-over-year [4] - International revenue totaled $26.07 million, below the average estimate of $26.91 million, marking a 9.9% decline year-over-year [4] - Local revenue in North America was $85.94 million, exceeding the estimate of $83.23 million, but down 0.6% from the previous year [4] - International goods revenue was $2.26 million, above the estimate of $1.97 million, yet down 7.4% year-over-year [4] - North America goods revenue plummeted to $1.51 million, significantly below the estimate of $2.24 million, representing a drastic 50.9% decline year-over-year [4] - International local revenue was $22.42 million, slightly below the estimate of $22.54 million, reflecting a 9.4% decrease year-over-year [4] - International travel revenue was $1.39 million, falling short of the estimate of $2.41 million, with a year-over-year decline of 20.7% [4] - North America travel revenue was $3.66 million, below the estimate of $3.87 million, indicating a 20.4% decrease year-over-year [4] Stock Performance - Groupon's shares have returned +0.7% over the past month, in contrast to the Zacks S&P 500 composite's +10.6% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]

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 ...

Financial Performance - Gross billings for the three months ended March 31, 2025, were $386,476 thousand, a 1.0% increase from $381,146 thousand in 2024[142] - Total revenue for the three months ended March 31, 2025, was $117,187 thousand, down 4.8% from $123,084 thousand in 2024[145] - Total gross profit for North America decreased by 1.5% to $82,872 thousand for the three months ended March 31, 2025[154] - Total revenue for the international segment decreased by $2.9 million, from $28.95 million in Q1 2024 to $26.07 million in Q1 2025, a decline of 9.9%[160] - Adjusted EBITDA for the three months ended March 31, 2025 was $15.33 million, down from $19.52 million in Q1 2024, a decrease of 21.5%[176] - Revenue for the same period was $117.2 million, reflecting a decrease of $583 thousand from prior rates[180] - The company reported a gross profit of $106.3 million, down by $512 thousand due to exchange rate fluctuations[180] Customer Metrics - Active customers for the trailing twelve months ended March 31, 2025, were 15,472 thousand, a decrease of 4.1% from 16,130 thousand in 2024[142] - TTM active customers in the international segment fell by 15.1%, from 5,896 thousand in Q1 2024 to 5,006 thousand in Q1 2025[158] Segment Performance - North America segment gross billings increased by $13.6 million, or 5.0%, to $286,519 thousand for the three months ended March 31, 2025[153] - The Local category in North America saw gross billings increase by 10.6% to $255,656 thousand for the three months ended March 31, 2025[153] - The Goods category in North America experienced a significant decline in gross billings, down 42.4% to $8,621 thousand for the three months ended March 31, 2025[153] - International segment total gross billings decreased by $8.3 million, from $108.2 million in Q1 2024 to $99.9 million in Q1 2025, representing a 7.6% decline[158] Expenses - Marketing expenses in North America increased by 21.5% to $26,474 thousand, representing 29.1% of revenue for the three months ended March 31, 2025[156] - International marketing expenses increased by 13.3%, from $7.03 million in Q1 2024 to $7.96 million in Q1 2025, representing 30.5% of revenue[162] - Consolidated operating expenses rose by 1.2%, from $103.19 million in Q1 2024 to $104.41 million in Q1 2025[165] Profitability - Contribution profit in North America decreased by 9.5% to $56,398 thousand for the three months ended March 31, 2025[156] - International contribution profit decreased by 20.3%, from $19.4 million in Q1 2024 to $15.5 million in Q1 2025, primarily due to increased marketing expenses[162] Cash Flow and Liquidity - Free cash flow for the three months ended March 31, 2025, was $(3,759) thousand, an improvement from $(13,820) thousand in 2024[145] - The company experienced a net cash used in operating activities of $22 thousand for Q1 2025, a significant improvement from $10.1 million in Q1 2024[189] - Free cash flow for the three months ended March 31, 2025, was reported at $(3.8) million, compared to $(13.8) million in the prior year[187] - As of March 31, 2025, the company had a cash balance of $226.8 million, with sufficient liquidity to support operational needs and repay 2026 Notes upon maturity[182] - As of March 31, 2025, the company had $85.4 million in cash held by international subsidiaries, primarily in various foreign currencies[199] Other Financial Metrics - Other income improved significantly, with a net gain of $7.57 million in Q1 2025 compared to a loss of $12.68 million in Q1 2024, reflecting a $21.9 million favorable change in foreign currency gains[168] - The provision for income taxes decreased by 76.9%, from $6.19 million in Q1 2024 to $1.43 million in Q1 2025[169] - The company raised $80.0 million through a Rights Offering, selling 7,079,646 shares at $11.30 each[192] - The 2026 Notes have a principal amount of $230.0 million with a fixed interest rate of 1.125% per annum[195] Market Conditions - Approximately 22.2% of the company's revenue was derived from international operations, exposing it to foreign currency exchange risks[205] - The business is affected by changes in merchants' and customers' discretionary spending, which is expected to continue[209] - Increased inflation could negatively impact the business by driving up operating costs[209] - The company may struggle to offset higher costs through price increases or cost efficiency measures if inflationary pressures become significant[209]

In its upcoming report, Groupon (GRPN) is predicted by Wall Street analysts to post quarterly loss of $0.20 per share, reflecting a decline of 433.3% compared to the same period last year. Revenues are forecasted to be $115.5 million, representing a year-over-year decrease of 6.2%.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 34.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this ...

Company Performance - Groupon's stock closed at $18.10, showing no change from the previous day, while the S&P 500 gained 0.58% [1] - Over the past month, Groupon's shares declined by 3.57%, underperforming the Retail-Wholesale sector's loss of 0.19% and the S&P 500's loss of 0.84% [1] Upcoming Financial Results - Groupon is expected to report an EPS of -$0.20, which represents a decline of 433.33% from the same quarter last year [2] - The consensus estimate for revenue is $115.5 million, down 6.16% from the prior-year quarter [2] Full-Year Estimates - The full-year Zacks Consensus Estimates predict earnings of -$0.25 per share and revenue of $497.1 million, indicating year-over-year changes of +83.44% and +0.92%, respectively [3] Analyst Forecasts - Recent revisions to analyst forecasts for Groupon are important as they reflect changing business trends, with positive changes indicating a favorable outlook on the company's health and profitability [4] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently places Groupon at 3 (Hold) [6] - The Zacks Consensus EPS estimate for Groupon has decreased by 76.79% in the past month [6] Industry Context - Groupon operates within the Internet - Commerce industry, which is part of the Retail-Wholesale sector, currently holding a Zacks Industry Rank of 83, placing it in the top 34% of all industries [7]

Core Insights - Groupon is recognized as a leading destination for families seeking local experiences, particularly in the Chicago area, due to its diverse range of affordable activities [1][10] - The company focuses on supporting local businesses while providing value-driven experiences that align with consumer trends prioritizing affordability and meaningful outings [10] Group 1: Family Activities - Groupon offers a variety of family activities, including the Chuck E. Cheese Family Play & Pizza Package, which includes 60 minutes of unlimited games, a large pizza, and beverages [4] - My Kidzplay Indoor Playground spans 32,000 square feet and features trampolines, a ninja course, and a three-story play structure, catering to children aged six months to 12 years [5] - Discounted admission to LEGOLAND Discovery Center Chicago provides families with immersive LEGO experiences, including creative building zones and a 4D cinema [6] - The Exploritorium in Skokie encourages creativity through hands-on activities and offers accessible family admission options [7] Group 2: Upcoming Events and Promotions - Groupon is promoting the Mother's Day Family Fest by Event Wiz Inc., which includes carnival rides, food vendors, and live entertainment, scheduled for May 2025 [8] - The Mother's Day promotions from April 28 to May 11 feature discounted experiences such as spa packages, therapeutic massages, and personalized gifts, aimed at providing thoughtful options for families [9] Group 3: Business Model and Community Engagement - Groupon's business model emphasizes partnerships with local businesses, creating a bridge between merchants and communities, which enhances customer engagement and supports local economies [10][11] - The company's commitment to diversity, equity, and inclusion (DEI) is integral to its operations, aiming to foster a sense of belonging among employees and highlight the cultural heritage of its partners [11]

Core Insights - Groupon has been recognized as a leading platform for discovering and booking shared group experiences in New York, emphasizing its role in connecting people through accessible outings [1][3] - The platform is noted for making group experiences convenient and affordable, catering to the growing consumer demand for social interaction [3][8] Group Activities Overview - Notable activities featured on Groupon include N.Y.C Skyline Tours & Cruises, Bowlero, AMC Theatres, Ferox Ninja Park, and Area 53, showcasing a diverse range of group-friendly experiences [5][6][7] - N.Y.C Skyline Tours & Cruises offers scenic boat rides highlighting landmarks like the Statue of Liberty and Brooklyn Bridge, appealing to both tourists and locals [5][7] - Bowlero combines bowling with arcade games and a lounge atmosphere, making it suitable for group celebrations [5][7] - AMC Theatres provides discounted black ticket deals via Groupon, making movie nights more affordable for groups [6][7] - Ferox Ninja Park features obstacle courses and parkour elements, promoting teamwork and physical engagement [6][7] - Area 53 is an indoor adventure park with climbing structures and immersive zones, ideal for various group activities [6][7] Local Business Impact - Groupon's partnerships with local venues enhance the quality of experiences offered while supporting small businesses in reaching new customers [8][10] - The platform plays a vital role in strengthening local economies by fostering connections between merchants and consumers [10]