Why Groupon Stock Plummeted by 27% on Wednesday

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]