Cost Management and Financial Strategy - The company initiated a multi-phase cost savings plan in August 2022, with phases approved in January 2023 and July 2023, aimed at reducing expenses and aligning with financial objectives[79]. - The company may not realize the anticipated benefits of its restructuring plans within the expected timeframe, which could disrupt operations[79]. - The company’s financial condition may be adversely affected by increased refund rates or estimated liabilities related to unredeemed vouchers[73]. - The company estimates future refunds based on historical experiences, and an increase in refund rates could significantly reduce liquidity and profitability[94]. - The company may incur significant costs related to misclassification of workers, which could adversely impact its financial position and results of operations[152]. - The company’s ability to utilize its net operating losses (NOLs) and other tax attributes may be limited by ownership changes as defined by the U.S. Internal Revenue Code[161]. - The company is currently facing a proposed tax assessment of $122.3 million related to transfer pricing for transactions occurring in 2011[158]. - The company has outstanding debt of $53.7 million and $197.3 million in aggregate principal amount for its 2026 Notes and 2027 Notes respectively[163]. - The conditional conversion feature of the 2026 and 2027 Notes may adversely affect the company's liquidity if triggered, requiring cash or shares to settle conversion obligations[170]. - The aggregate principal amount of the 2026 and 2027 Notes is $53.7 million and $197.3 million, respectively, with fixed interest rates, limiting exposure to interest rate changes[298]. - The company does not intend to pay dividends for the foreseeable future, opting to retain earnings for business operations and expansion[174]. Market Strategy and Competition - The company’s strategy focuses on becoming a trusted marketplace for local services and experiences, emphasizing long-term relationships with local merchants to enhance inventory selection and customer experience[77]. - The company faces increased competition from e-commerce sites and traditional media companies, which could adversely impact market share and gross profit[90]. - The company competes against larger companies with more resources, which may allow them to respond more quickly to market changes[92]. - The company must continue to invest significant resources to retain existing customers and acquire new customers to grow profitability[89]. - The company believes that maintaining and enhancing its brand is essential for expanding its customer and merchant base, which may require significant investments[138]. - Unfavorable media coverage could adversely affect the company's reputation, impacting revenue and customer loyalty[139]. Operational Risks and Challenges - The company faces significant risks from macroeconomic challenges, including inflationary pressures, higher labor costs, and supply chain issues, which may hinder the execution of its strategy[78]. - The company’s operating results may vary significantly from quarter to quarter due to the rapidly evolving nature of its business and external factors[80]. - The company is dependent on attracting and retaining high-quality merchants to improve profitability and grow its marketplace, with a focus on enhancing the merchant experience[86]. - The company’s international operations are subject to diverse sociopolitical conditions and regulatory challenges, which may adversely affect its business[82]. - The company’s ability to maintain and improve its technology infrastructure is critical, as disruptions could lead to customer loss[73]. - The company faces challenges in maintaining and improving its technology infrastructure, which is critical for operational success[122]. - Disruptions in service on the company's platforms could result in loss of customers and merchants, adversely affecting financial results[122]. - The company operates in thirteen countries, maintaining significant proprietary and personal data, which poses a constant risk of cyber-attacks[114]. - Cybersecurity breaches could lead to significant reputational harm and customer attrition, impacting financial performance[116]. - The company continues to invest in cybersecurity measures, but there are no assurances that these will be sufficient to prevent breaches[119]. - The company is subject to payments-related risks, including potential increases in interchange fees and holdbacks from payment processors[104]. - The company relies on email and internet search engines for traffic, and a decline in these sources could adversely affect business operations[108]. - The company relies heavily on Internet search engines for traffic generation, with potential negative impacts from algorithm changes affecting search rankings[110]. Legal and Regulatory Risks - The company is currently subject to multiple lawsuits related to intellectual property, which could result in substantial financial and managerial resource expenditure[137]. - The company may face legal liabilities related to content published on its platforms, which could materially affect its business[153]. - The company is exposed to risks associated with compliance to new ESG regulations, which could harm its reputation and financial condition[162]. - The company may face increased compliance costs due to evolving privacy laws, which could impact its operational results[149]. - Noncompliance with privacy regulations could result in significant fines, potentially up to €20 million or 4% of annual global revenue under GDPR[149]. - The company may be subject to additional laws and regulations as it expands into new markets, which could increase operational costs and affect profitability[144]. - The company is subject to regular audits by tax authorities, which could result in significant liabilities and penalties[158]. - The company may face increased costs and operational challenges due to potential changes in tax laws affecting internet commerce[159]. Management and Governance - The company has experienced significant turnover in its senior management team, which could impede the execution of its business and growth strategy[97]. - The material weakness in internal control over financial reporting identified as of December 31, 2022, has not yet been fully remediated, potentially affecting financial accuracy[99]. - The company must provide a competitive compensation package to attract and retain key executives and employees in a competitive marketplace[98]. - Provisions in the company's charter documents may discourage favorable takeovers, limiting stockholder influence over management changes[175]. Financial Performance and Market Conditions - The company’s trading price is highly volatile, influenced by various operational and market risks[76]. - The trading price of the company's Common Stock has been highly volatile, influenced by operating results and external factors specific to technology and Internet commerce[171]. - The company expects continued volatility in its stock price and financial markets due to various factors, including macroeconomic conditions and analyst coverage[172]. - Approximately 23.6% of the company's revenue for the year ended December 31, 2024, was derived from international operations, exposing it to foreign currency exchange risks[295]. - As of December 31, 2024, the company's net working capital surplus from subsidiaries subject to foreign currency translation risk was $8.3 million, compared to a deficit of $21.7 million in 2023[297].

Group 1 - Groupon, Inc. plans to release its fourth quarter and full year 2024 financial results after market close on March 11, 2025 [1] - A conference call will be held on March 12, 2025, at 8:00 AM ET to discuss the results, with investors able to submit questions via email [2] - The conference call will be accessible via a live webcast, with a replay available afterward [2] Group 2 - Groupon is described as a trusted local marketplace for consumers to purchase services and experiences [3]

Company Performance - Groupon's stock closed at $10.26, reflecting a -1.63% change from the previous day, underperforming compared to the S&P 500's daily loss of 1.22% [1] - Over the past month, Groupon's stock performance remained flat at 0%, outperforming the Retail-Wholesale sector's loss of 4.52% and the S&P 500's loss of 2.31% [1] Upcoming Earnings - Groupon is expected to report an EPS of -$0.06, indicating a 120% decline from the same quarter last year [2] - The consensus estimate for revenue is $128.92 million, which represents a 6.39% decrease compared to the same quarter of the previous year [2] Analyst Forecasts - Recent revisions to analyst forecasts for Groupon are important as they reflect changes in near-term business trends [3] - Positive changes in estimates suggest a favorable outlook on the company's business health and profitability [3] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [5] - Groupon currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [5] Industry Overview - The Internet - Commerce industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 35, placing it in the top 14% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Company Performance - Groupon's stock closed at $11.80, reflecting a -1.09% change from the previous session, underperforming the S&P 500's daily loss of 0.47% [1] - Over the past month, Groupon's shares have increased by 13.62%, outperforming the Retail-Wholesale sector's loss of 0.47% and the S&P 500's loss of 1.78% [1] Earnings Forecast - Groupon is projected to report earnings of -$0.06 per share, indicating a year-over-year decline of 120% [2] - The consensus estimate for revenue is $128.92 million, representing a 6.39% decline compared to the same quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for Groupon are being closely monitored, as they often indicate shifts in near-term business trends [3] - Positive estimate revisions are interpreted as favorable signs for the company's business outlook [3] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have delivered an average annual return of +25% since 1988 [5] - Groupon currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the last 30 days [5] Industry Overview - The Internet - Commerce industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 63, placing it in the top 26% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Company Performance - Groupon's stock closed at $11.76, reflecting a slight increase of +0.09% from the previous trading day, but underperformed compared to the S&P 500, which gained 0.67% [1] - Over the past month, Groupon's shares have decreased by 3.37%, while the Retail-Wholesale sector gained 7.15% and the S&P 500 increased by 2.07% [1] Upcoming Earnings - Groupon is expected to report an EPS of -$0.06, indicating a significant decline of 120% compared to the same quarter last year [2] - The consensus estimate for quarterly revenue is $128.92 million, which represents a decrease of 6.39% from the previous year [2] Analyst Projections - Recent shifts in analyst projections for Groupon should be monitored, as positive estimate revisions indicate optimism regarding the company's business and profitability [3] - The Zacks Rank system, which assesses these estimate changes, provides actionable insights for investors [4] Zacks Rank and Industry Performance - Groupon currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the past month [5] - The Internet - Commerce industry, which includes Groupon, has a Zacks Industry Rank of 59, placing it in the top 24% of over 250 industries, indicating strong performance potential [6]

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]