Groupon (GRPN) reported a non-GAAP loss of 2 cents per share in the second quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 1 cent per share. The company reported a non-GAAP loss of 10 cents per share in the year-ago quarter.Revenues of $124.6 million beat the consensus estimate by 2.4%. The figure decreased 3.5% on a year-over-year basis (down 3.4%, excluding the foreign exchange effect).Region-wise, North America revenues of $98.4 million beat the consensus mark by 7.4% and rose 2.6% ...

Key TakeawaysGroupon reported a surprise second-quarter net loss after the closing bell Tuesday.The stock fell sharply in premarket trading Wednesday, as analysts had projected Groupon to start reporting profitable quarters starting in Q2.CEO Dusan Senkypl cited performance issues with the Groupon website as a reason for the results. Groupon (GRPN) shares tumbled in premarket trading Wednesday, a day after the company reported an unexpected loss. The e-commerce platform reported a net loss of $9.4 million f ...

Financial Data and Key Metrics - Global Billings for Q2 2024 were $374 million, a 5% YoY decrease, while revenue was $125 million, a 3% YoY decrease, above the high-end of guidance [23] - Gross profit as a percentage of revenue remained at 90%, consistent with the prior quarter, and is expected to stay in the 88% to 90% range going forward [24] - Adjusted EBITDA was positive $16 million, marking the fifth straight quarter of positive adjusted EBITDA, with trailing 12-month adjusted EBITDA at $81 million [24] - Free cash flow for Q2 was positive $11 million, a $55 million improvement compared to Q2 2023, bringing trailing 12-month free cash flow to positive $30 million [25][29] Business Line Performance - North America Local revenues grew YoY, with active customers growing sequentially for the second straight quarter [6] - Consolidated Local Billings were $317 million, down 1% YoY, with North America Local Billings up 5% YoY to $244 million [26] - International Local Billings declined 17% YoY, primarily due to the pause in local voucher sales in Italy, which accounted for an 8% decline excluding Italy [26] - Travel Billings were $29 million, down 8% YoY, with North America Travel Billings growing 1% YoY, while International Travel Billings declined 27% YoY [27] - Goods Billings were $28 million, down 34% YoY, representing only 4% of Q2 revenues, with no near-term improvement expected [27] Market Performance - North America Local showed strong performance, driven by improved supply quality, enterprise merchant growth, and regionalization efforts [9][11] - International markets, particularly Italy, faced challenges, leading to the decision to exit the local business in Italy, incurring up to $7 million in pre-tax restructuring charges [34][35] Strategy and Industry Competition - The company is focusing on supply quality over quantity, curating high-quality deals, and enhancing deal presentation to improve performance per unique visitor [10] - Investments in marketing and sales are being ramped up, with marketing spend increasing to 32% of gross profit in Q2, achieving satisfactory ROI targets [16] - The company is modernizing its technology infrastructure, including cloud migration and a new front-end platform, to improve efficiency, stability, and agility [17][20] Management Commentary on Operating Environment and Future Outlook - Management acknowledged setbacks in July due to site stability issues related to cloud migration, impacting Q3 performance and leading to revised guidance [8][18] - Despite challenges, the company remains committed to its transformation plan, aiming to become the ultimate destination for local experiences and services [8] - Q3 2024 guidance includes revenues between $114 million and $120 million, a YoY decline of 5% to 10%, and positive adjusted EBITDA between $6 million and $11 million [31] Other Important Information - The company ended Q2 with $178 million in cash and cash equivalents, excluding $28 million of restricted cash [25] - Active customers worldwide were 16 million, down 0.3 million from the prior quarter, with North America active customers flat sequentially [26] - The company is exploring potential changes to payment methods and evaluating the monetization of non-core assets, which could generate proceeds of approximately $90 million [32][33] Q&A Session Summary Question: How was the company able to maintain high-end guidance despite the Q3 setback? [38] - The company cited a strong Q1 performance and ongoing investments in the SaaS organization in North America as reasons for maintaining guidance [39] Question: What drove the strong performance in June? [46] - The company attributed the strong June performance to improved conversion rates and the ability to scale marketing efforts effectively [47] Question: What is the current state of conversion rates and their potential for improvement? [48] - Conversion rates are estimated to be at 3 out of 10, with significant room for improvement, particularly in the checkout process [49] Question: What is the strategy for rolling out the new web and application platform? [50] - The focus is on ramping up the new platform in North America by Q4 2024, with international rollouts to follow [51] Question: What is the go-to-market strategy for new merchants? [52] - The company has separate teams for local and enterprise merchants, with a focus on regionalized market managers to curate high-quality deals [55] Question: What enabled the company to increase marketing investments? [62] - Improved supply quality, better deal curation, and enhanced conversion rates have allowed the company to ramp up marketing spend while maintaining ROI targets [63]

Groupon (GRPN) reported $124.62 million in revenue for the quarter ended June 2024, representing a year-over-year decline of 3.5%. EPS of -$0.02 for the same period compares to -$0.10 a year ago.The reported revenue represents a surprise of +2.40% over the Zacks Consensus Estimate of $121.7 million. With the consensus EPS estimate being -$0.01, the EPS surprise was -100.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Groupon (GRPN) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.01. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that this online daily deal service would post a loss of $0.18 per share when it actually produced earnings of $0.06, delivering a surprise of 133.33%.Over the last four quarters, the company ...

Groupon 2nd Quarter Earnings July 30th, 2024 Agenda Dusan Senkypl CEO Jiri Ponrt CFO Rana Kashyap SVP, Corp Dev & IR ● CEO Commentary ● Financial Overview ● Guidance ● Q&A 2 2 Forward-looking statements and other information 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 Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Secu ...

Groupon Reports Second Quarter 2024 ResultsJuly 30, 2024 4:21 PM EDT | Source: GrouponNorth America Local revenues grew 7% compared to prior yearPositive Second Quarter operating cash flow of $15 million and Free Cash Flow of $11 millionPositive Trailing twelve month operating cash flow of $46 million and Free Cash Flow of $30 millionSecond Quarter revenue above the high-end of guidanceChicago, Illinois--(Newsfile Corp. - July 30, 2024) - Groupon, Inc. (NASDAQ: GRPN) today announced its financ ...

Groupon Reports Second Quarter 2024 Results North America Local revenues grew 7% compared to prior year Positive Second Quarter operating cash flow of $15 million and Free Cash Flow of $11 million Positive Trailing twelve month operating cash flow of $46 million and Free Cash Flow of $30 million Second Quarter revenue above the high-end of guidance • Global revenue of $124.6 million • Global billings of $373.6 million • Net loss of $9.4 million • Adjusted EBITDA of $16.5 million • Exited Q2 with $178.1 mill ...

North America Performance - Gross billings for North America increased by $3.1 million to $278.969 million for the three months ended June 30, 2024, compared to the same period in 2023, primarily driven by favorable refund rates and increased demand for the Local category [174]. - Total units sold in North America decreased by 0.1 million to 5.882 million for the three months ended June 30, 2024, while trailing twelve months (TTM) active customers decreased by 0.4 million to 10.235 million [174][173]. - For the six months ended June 30, 2024, gross billings increased by $9.9 million to $551.901 million, attributed to favorable refund rates in the Local category and increased demand for the Travel category [175]. - Revenue for North America for the three months ended June 30, 2024, was $124.615 million, a decrease from $129.109 million in the same period in 2023 [165]. - Gross profit for North America for the three months ended June 30, 2024, was $112.667 million, slightly down from $112.965 million in the prior year [165]. - Adjusted EBITDA for North America increased to $16.479 million for the three months ended June 30, 2024, compared to $15.197 million in the same period in 2023 [165]. - Active customers in North America for the trailing twelve months ended June 30, 2024, decreased by 3.5% to 10.235 million from 10.604 million in the prior year [173]. - North America revenue increased by $2.5 million (2.6%) and gross profit increased by $5.8 million (7.0%) for the three months ended June 30, 2024 compared to the prior year, primarily due to favorable refund rates and increased demand for the Local category [178]. - Total revenue for the six months ended June 30, 2024 was $192.491 million, a 4.0% increase from $185.093 million in the prior year [178]. - Contribution profit for North America decreased by $9.2 million (13.5%) for the three months ended June 30, 2024, primarily due to increased marketing expenses [182]. - Marketing expenses for North America increased by $15.03 million (104.0%) for the three months ended June 30, 2024, reflecting increased investment in performance marketing campaigns [182]. - Total cost of revenue for North America decreased by $3.3 million (25.6%) for the three months ended June 30, 2024, primarily due to a decrease in payroll costs [178]. - Gross margin for North America improved to 35.3% for the three months ended June 30, 2024, compared to 34.7% in the prior year [182]. International Performance - International gross billings decreased by $23.0 million (19.5%) for the three months ended June 30, 2024, attributed to an overall decline in demand across all categories [187]. - TTM active customers in the international segment decreased by 1.3 million (18.8%) for the trailing twelve months ended June 30, 2024 compared to the prior year [186]. - International segment revenue decreased by $45.0 million for the six months ended June 30, 2024, reflecting a decline in demand across all categories [188]. - The Local category in the international segment saw a decrease in gross billings of $14.756 million (16.8%) for the three months ended June 30, 2024 [185]. - International revenue for the three months ended June 30, 2024, decreased by $7.0 million, primarily due to an overall decline in demand across all categories [191]. Financial Metrics - Total revenue for the three months ended June 30, 2024, decreased by 21.1% to $26,258 million compared to $33,275 million in the same period of 2023 [190]. - Gross profit for the three months ended June 30, 2024, decreased by 20.4% to $23,788 million compared to $29,872 million in the same period of 2023 [190]. - Marketing expenses for the three months ended June 30, 2024, decreased by 9.9% to $7,043 million compared to $7,820 million in the same period of 2023 [193]. - Total operating expenses for the three months ended June 30, 2024, decreased by 8.1% to $108,309 million compared to $117,841 million in the same period of 2023 [195]. - Other income (expense), net for the three months ended June 30, 2024, was $(4,483) million compared to $(4,805) million in the same period of 2023 [200]. - Provision for income taxes for the three months ended June 30, 2024, was $9,287 million, compared to $2,323 million in the same period of 2023 [203]. - Contribution profit for the three months ended June 30, 2024, decreased by 24.1% to $16,745 million compared to $22,052 million in the same period of 2023 [193]. - The effective tax rate for the three months ended June 30, 2024, was (7,429.6)% compared to (24.0)% in the same period of 2023 [203]. - The gross margin for the three months ended June 30, 2024, was 27.7%, compared to 28.3% in the same period of 2023 [190]. - For the three months ended June 30, 2024, the company reported a net loss of $9.4 million compared to a net loss of $12.0 million in the same period of 2023, representing a 21.7% improvement [210]. - Adjusted EBITDA for the three months ended June 30, 2024, was $16.5 million, up from $15.2 million in the same period of 2023, indicating an 8.6% increase [210]. - The company generated free cash flow of $10.8 million for the three months ended June 30, 2024, compared to a negative free cash flow of $44.6 million in the same period of 2023, showing a significant turnaround [220]. - Cash provided by operating activities for the six months ended June 30, 2024, was $5.2 million, a substantial improvement from cash used in operating activities of $118.6 million in the prior period [222]. - The company’s cash balance totaled $178.1 million as of June 30, 2024, providing sufficient liquidity to support ongoing operational needs [216]. - Gross billings for the six months ended June 30, 2024, were reported at $754.8 million, reflecting a slight increase from $752.9 million in the same period of 2023 [215]. Capital and Tax Management - The company received $80.0 million in gross proceeds from a fully backstopped Rights Offering, which involved the purchase of 7,079,646 shares at $11.30 per share [225]. - The company prepaid $43.1 million to terminate all commitments under its Credit Agreement, utilizing a portion of the proceeds from the Rights Offering [226]. - The effective tax rates for the three and six months ended June 30, 2024, were influenced by pretax losses in jurisdictions with valuation allowances against deferred tax assets [204]. - The company expects its consolidated effective tax rate to continue to differ significantly from the U.S. federal income tax rate due to its tax obligations in profitable jurisdictions and valuation allowances in loss jurisdictions [204]. - As of June 30, 2024, the company had $53.0 million in cash held by international subsidiaries, primarily in various foreign currencies [228]. - For the three and six months ended June 30, 2024, approximately 21.1% and 22.3% of the company's revenue was derived from the International segment [235]. - The net working capital deficit from subsidiaries subject to foreign currency translation risk was $7.2 million as of June 30, 2024, with a potential increase of $0.7 million from a hypothetical 10% adverse change in foreign currency exchange rates [237]. - The company issued the 2026 Notes with a principal amount of $230.0 million, maturing on March 15, 2026, and is exploring options for refinancing [227]. - The company has $5.4 million in lease obligations as of June 30, 2024, with limited exposure to interest rate risk due to fixed-rate debt [238]. - The company anticipates that inflationary pressures may adversely impact its operating costs and overall financial condition [239]. - There were no off-balance sheet arrangements as of June 30, 2024 [231]. - Contractual obligations and commitments as of June 30, 2024, did not materially change from the previous year [230]. - The company intends to reinvest earnings from non-U.S. subsidiaries in those operations or remit them in a tax-efficient manner [228]. - Management's estimates and assumptions in financial reporting are based on historical experience and reasonable assumptions, which may differ from actual results [231].

Wall Street analysts forecast that Groupon (GRPN) will report quarterly loss of $0.01 per share in its upcoming release, pointing to a year-over-year increase of 90%. It is anticipated that revenues will amount to $121.7 million, exhibiting a decline of 5.7% compared to the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections ov ...