Why Is Groupon (GRPN) Up 51.5% Since Last Earnings Report?

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].