Core Viewpoint - Groupon's recent earnings report shows a mixed performance with a significant earnings beat but declining revenues, raising questions about future growth potential [2][3][12]. Financial Performance - Adjusted earnings for Q3 2024 were 33 cents per share, surpassing the Zacks Consensus Estimate of a loss of 25 cents by 232%, compared to a loss of $1.31 per share in the same quarter last year [2]. - Revenues totaled $114.5 million, missing the consensus estimate by 3.8% and reflecting a 9% year-over-year decline [3]. - North America revenues were $86.9 million, down 9% year-over-year, while international revenues were $27.6 million, decreasing 13% year-over-year [4]. Customer Metrics - Active customers at the end of Q3 were approximately 15.5 million, down from 17 million a year ago, but exceeding the consensus estimate by 3.68% [8]. Operating Details - Gross profit was $102.9 million, down 7% year-over-year, while selling, general, and administrative expenses fell 10.8% to $71.3 million [9]. - Marketing expenses increased by 25.4% to $36.3 million, leading to a GAAP operating loss of $5.6 million compared to a loss of $464K in the previous year [9]. Balance Sheet & Cash Flow - Cash and cash equivalents at the end of the quarter were $159.7 million, down from $178.1 million as of June 30, 2024 [10]. - The company reported an operating cash outflow of $16.3 million, contrasting with an inflow of $15.3 million in the prior quarter [10]. Guidance - For Q4 2024, Groupon expects revenues between $124 million and $131 million, indicating a year-over-year decline of 10% to 5% [12]. - The company anticipates adjusted EBITDA between $14 million and $19 million for Q4 2024 [13]. Industry Context - Groupon is part of the Zacks Internet - Commerce industry, which has seen mixed performance, with competitors like Wayfair gaining 42.8% over the past month [21].

Groupon (GRPN) shares have dipped 25.7% year to date (YTD), underperforming the broader Zacks Retail-Wholesale sector’s appreciation of 28.8%.It has also underperformed the Zacks Internet - Commerce industry and its peers like Booking Holdings (BKNG) , Amazon (AMZN) and Travelzoo (TZOO) . In the same time frame, shares of TZOO, BKNG and AMZN have returned 105.4%, 47.3%, and 38.6%, respectively. The industry has risen 33.5% YTD.The company’s underperformance can be attributed to the decline in North America ...

Core Viewpoint - Groupon's stock has underperformed recently, with a return of -8.8% over the past month compared to the S&P 500's +3.1% and the Internet - Commerce industry's +7% [1] Earnings Estimate Revisions - The current quarter's earnings estimate for Groupon is $0.06 per share, reflecting a significant decline of -80% year-over-year, with a consensus estimate change of -129.2% in the last 30 days [4] - The consensus earnings estimate for the current fiscal year is -$0.29, indicating a year-over-year increase of +44.2%, with a recent change of +59.2% [4] - For the next fiscal year, the consensus earnings estimate is $0.20, representing a +169% change from the previous year, although it has decreased by -63.6% recently [5] Revenue Estimates - The consensus sales estimate for the current quarter is $129.17 million, showing a year-over-year decline of -6.2% [8] - For the current fiscal year, the sales estimate is $491.35 million, indicating a -4.6% change, while the next fiscal year's estimate is $511.91 million, reflecting a +4.2% change [8] Last Reported Results and Surprise History - Groupon reported revenues of $114.48 million in the last quarter, a year-over-year decrease of -9.5%, with an EPS of $0.33 compared to -$0.12 a year ago [9] - The reported revenues were below the Zacks Consensus Estimate of $119.02 million, resulting in a surprise of -3.82%, while the EPS surprise was +232% [10] - Over the last four quarters, Groupon has surpassed consensus EPS estimates three times and revenue estimates three times [10] Valuation - Groupon has a Zacks Rank of 3 (Hold), suggesting it may perform in line with the broader market in the near term [6][15] - The Zacks Value Style Score for Groupon is graded C, indicating it is trading at par with its peers [14]

Core Insights - Groupon's stock plummeted by 27% following the release of its quarterly figures and news regarding financing arrangements [1] Financial Performance - In Q3, Groupon reported revenue of $114.5 million, a 9% decline year over year, attributed to an 8% drop in gross billings, which were just under $299 million [2] - The company achieved a GAAP profit of $13.9 million ($0.33 per share), a significant turnaround from a loss of over $41 million in Q3 2023 [2][3] - Groupon exceeded analyst expectations, which forecasted a loss of $0.25 per share, but fell short of revenue estimates by nearly 4% [3] Revenue Drivers - The revenue decline was linked to increased local voucher redemption rates in the U.S. and the exit from the local deals segment in Italy, impacting the international segment [3] Financing Developments - Groupon announced a restructuring of its financing arrangements, agreeing to exchange its 1.125% convertible senior notes maturing in 2026 for new notes at a 6.25% rate maturing in 2027, with an aggregate principal amount of nearly $176.3 million [4][5] - Certain holders of the existing notes will sell $21 million worth of securities for a gross cash payment of $20 million [5]

Core Insights - Groupon reported adjusted earnings of 33 cents per share in Q3 2024, significantly beating the Zacks Consensus Estimate of a loss of 25 cents by 232% [1] - The company experienced a loss of $1.31 per share in the same quarter last year [1] - Revenues of $114.5 million missed the consensus estimate by 3.8% and decreased 9% year-over-year [2] Revenue Breakdown - North America revenues were $86.9 million, lagging the consensus mark by 3.68% and declining 9% year-over-year [3] - International revenues totaled $27.6 million, missing the consensus mark by 4.85% and decreasing 13% year-over-year [3] - Local revenues of $105 million missed the Zacks Consensus Estimate by 5.81% and declined 9% year-over-year [4] Customer Metrics - Groupon had approximately 15.5 million active customers at the end of Q3, down from 17 million a year ago but beating the consensus estimate by 3.68% [7] - North America had about 10.2 million active customers, exceeding the consensus mark by 6.58% [7] Operating Performance - Gross profit was $102.9 million, down 7% year-over-year [8] - Selling, general and administrative expenses fell 10.8% year-over-year to $71.3 million [8] - The company reported a GAAP operating loss of $5.6 million compared to a loss of $464K in the year-ago quarter [8] Cash Flow and Balance Sheet - Groupon exited the quarter with cash and cash equivalents of $159.7 million, down from $178.1 million as of June 30, 2024 [9] - The operating cash outflow was $16.3 million, contrasting with an inflow of $15.3 million in the prior quarter [9] Future Guidance - For Q4 2024, Groupon expects revenues between $124 million and $131 million, indicating a year-over-year decline of 10-5% [11] - For the full year 2024, the company anticipates revenues between $486 million and $493 million, reflecting a year-over-year change of (6)-(4%) [12]

Groupon (GRPN) reported $114.48 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 9.5%. EPS of $0.33 for the same period compares to -$0.12 a year ago.The reported revenue represents a surprise of -3.82% over the Zacks Consensus Estimate of $119.02 million. With the consensus EPS estimate being -$0.25, the EPS surprise was +232.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to deter ...

Groupon (GRPN) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of a loss of $0.25 per share. This compares to loss of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 232%. A quarter ago, it was expected that this online daily deal service would post a loss of $0.01 per share when it actually produced a loss of $0.02, delivering a surprise of -100%.Over the last four quarters, the ...

Financial Data and Key Metrics Changes - In Q3 2024, Groupon reported Global Billings of $373 million, a decrease of approximately 10.9% year-over-year, and revenue of $114 million, down 9.5% year-over-year, at the low end of guidance [45] - Adjusted EBITDA was positive $15 million, marking the sixth consecutive quarter of positive adjusted EBITDA, with trailing 12 months adjusted EBITDA at positive $78 million [47] - Operating cash flow was negative $16 million, and free cash flow was negative $20 million, slightly declining versus last year but in line with expectations [48] Business Line Data and Key Metrics Changes - Consolidated Local Billings were $326 million, down 8.1% year-over-year, with North America local billings at $249 million, down 4.5% year-over-year [50] - International Local Billings decreased by 18.0% year-over-year, primarily due to exiting the local business in Italy, but excluding Italy, the international local business showed recovery signs [51] - The Travel category saw consolidated billings of $23 million, down 21.9% year-over-year, while Goods category billings were $25 million, down 29.6% year-over-year, indicating struggles in both segments [52][53] Market Data and Key Metrics Changes - Active customers worldwide totaled approximately 15 million, down 0.3 million from the prior quarter, with North America active customer count remaining flat sequentially [49] - Excluding the Goods category, North America active customers grew sequentially for the third quarter in a row and year-over-year for the second quarter in a row [49] Company Strategy and Development Direction - The company is focused on transforming its platform and enhancing customer experience to lay the groundwork for sustainable growth, with a strong emphasis on rebuilding sales capacity and improving inventory selection [16][25] - Groupon is implementing a marketplace playbook to reinvigorate local experiences in several countries, with Spain showing strong double-digit growth as a case study [15] - The company plans to continue hiring sales resources and expects SG&A to increase quarter-over-quarter as it ramps up hiring [55] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in North America due to technical issues related to platform migrations, impacting retention rates of legacy customers [7][14] - Despite the setbacks, management remains optimistic about the potential for growth in North America Local and the positive trends in International Local [24][42] - The company expects Q4 2024 revenues to decline year-over-year between 10% and 5%, with positive adjusted EBITDA and free cash flow anticipated [59] Other Important Information - Groupon announced an agreement to raise $197 million in new secured convertible debt, providing additional financial flexibility for its transformation [13][64] - The company is exploring changes to payment methods, including offering PayPal to all US customers and returning it to several international markets [61] - Management continues to evaluate the monetization of noncore assets, potentially generating proceeds of approximately $90 million [69] Q&A Session Summary Question: Why don't you think the legacy retention rates would bounce back in North America? - Management indicated that multiple activities are in place to reactivate legacy cohorts, but they do not take it for granted this year due to previous technical changes causing friction for customers [71][72] Question: What is the timing for the tech stack upgrade internationally? - The plan is to implement the tech stack upgrade in the first half of the next year [73] Question: What needs to happen for you to hit the marketing payback? - Management noted that while there were periods of inefficiency in marketing systems, they are close to achieving their target ROI and do not foresee major blockers [75] Question: Why would an increase in local voucher redemption rates be a headwind to revenue? - Management explained that higher redemptions can impact revenue due to the relationship with variable consideration, where good deals lead to higher redemptions affecting breakage [78] Question: Can you provide an update on the SumUp stake? - Management reiterated that they are considering selling their stake in SumUp, but any sale would require coordination with SumUp and depend on market demand [81] Question: What progress has been made in rebuilding the sales force in North America? - Management confirmed that hiring has paused for efficiency reasons but ramped up significantly prior, with plans to continue hiring in January, focusing on major population centers [84]

Groupon 3rd Quarter Earnings November 12, 2024 GROUPON Agenda 2 | --- | --- | |---------|---------------------------------| | | | | | | | | Dusan Senkypl | | CEO CFO | Jiri Ponrt | | | Rana Kashyap SVP, Corp Dev & IR | ● CEO Commentary ● Financial Overview ● Guidance ● Q&A 2 Forward-looking statements and other information 3 The statements contained in this presentation that refer to plans and expectations for the next quarter, the full year or the future are forward-looking statements within the meaning of ...

Groupon Announces $197 Million Financing TransactionNovember 12, 2024 4:57 PM EST | Source: GrouponChicago, Illinois--(Newsfile Corp. - November 12, 2024) - Groupon, Inc. (NASDAQ: GRPN) announced today that it has entered into privately negotiated agreements with certain of the holders (the "Offering Participants") of its existing 1.125% Convertible Senior Notes due 2026 (the "2026 Notes") to (i) exchange an aggregate principal amount of $176,260,000 of 2026 Notes for an aggregate principal am ...