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 ...

Financial Performance - Groupon reported third quarter revenue at the low-end of guidance, while EBITDA exceeded the high-end of guidance [2] - International Local revenue declined by 13%, but excluding Italy, the decline was only 2% [2] Strategic Initiatives - The company announced a $197 million financing transaction to support its operations [2] - CEO Dusan Senkypl expressed optimism about the company's future, highlighting progress in platform transformation and customer experience [3] - New features such as gifting and video content have received positive responses, indicating potential for sustainable growth [3] Market Position - 100% of North America mobile web and desktop traffic is now on Groupon's new front-end platform, showcasing a significant technological advancement [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR | --- | --- | --- | |---------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------| | ☐ TRANSITIO ...

Groupon Reports Third Quarter 2024 Results Third Quarter revenue at the low-end of guidance and EBITDA above the high-end of guidance International Local revenue declined 13%. Excluding Italy, International Local revenue declined 2% 100% of North America mobile web and desktop traffic on our new front-end platform Announces $197 million financing transaction • Global revenue of $114.5 million • Global billings of $373.4 million • Net income of $14.5 million • Adjusted EBITDA of $14.8 million • Exited Q3 wit ...

Core Viewpoint - Groupon is expected to report a decline in revenues for the third quarter of 2024, with estimates indicating a year-over-year decrease of 5-10% [3][8]. Revenue Expectations - For Q3 2024, Groupon anticipates revenues between $114 million and $120 million, with a Zacks Consensus Estimate of $119.02 million, reflecting a 5.89% decline from the previous year [3]. - The consensus estimate for loss is set at 25 cents per share, compared to a loss of 12 cents per share in the same quarter last year [3]. Earnings Performance - In the last reported quarter, Groupon experienced a negative earnings surprise of 100% and has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 107.77% [4]. - Current indicators suggest that Groupon has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell), which does not predict an earnings beat this time [5]. Growth Drivers - Solid momentum in the local category in North America is expected to drive growth, alongside efforts to enhance performance marketing channels and improve supply quality [6]. - Rising demand from enterprise customers and growth in the "things to do" vertical are anticipated to contribute positively to revenue [7]. Challenges - Sluggish performance in goods categories and a weakening international market are significant headwinds, with international revenue estimates at $29 million, indicating an 8.1% year-over-year decline [8]. - The goods revenue estimate stands at $4.56 million, reflecting a 33.5% decline from the previous year [9]. - Ongoing site stability issues related to cloud migration have adversely affected performance [8]. Competitive Landscape - Groupon operates in a highly competitive market, facing challenges from companies like Yelp, Rakuten, Travelzoo, and Wowcher [10]. - Market uncertainties, inflation, recession fears, and changing consumer spending patterns are expected to dampen near-term prospects [10]. Stock Performance - Year-to-date, Groupon's stock has declined by 14.6%, underperforming the Zacks Retail-Wholesale sector, which has returned 25.3% [11]. - The stock is trading at a forward P/E ratio of 29.26X, higher than the Zacks Internet - Commerce industry's 25.36X, indicating a stretched valuation [12]. Operational Considerations - Groupon's struggles in the competitive local commerce landscape raise concerns about sustainable growth, with a declining merchant base and waning consumer engagement [14]. - Recent cost-cutting initiatives may not sufficiently address fundamental challenges, as local merchants shift towards direct-to-consumer strategies [14].

Groupon (GRPN) closed the most recent trading day at $10.90, moving +1.63% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.74%.Heading into today, shares of the online daily deal service had gained 3.67% over the past month, outpacing the Retail-Wholesale sector's gain of 3.49% and the S&P 500's gain of 3.16% in that time.Investors will be eagerly watching for the performance of Groupon in its upcoming earnings disclosure. The company's earnings report i ...