Groupon(US:GRPN) ZACKSยท2025-05-09 16:26Core Viewpoint - Groupon reported a significant earnings beat in Q1 2025, with earnings of 18 cents per share, surpassing the Zacks Consensus Estimate by 190% and improving from a loss of 33 cents per share in the same quarter last year [1] Financial Performance - Revenues for the quarter were $117.2 million, exceeding the consensus estimate by 1.46%, but reflecting a year-over-year decline of 4.8% [2] - North America revenues were $91.11 million, beating the consensus by 2% but down 3.2% year-over-year; International revenues were $26.07 million, missing the consensus by 3.09% and down 9.9% year-over-year [2] - Local revenues totaled $108.4 million, beating estimates by 3.28% but declining 2.6% year-over-year; North America Local revenues decreased 0.6%, while International Local revenues fell 9.4% [3] - Consolidated Travel revenues were $5.05 million, missing estimates by 21.57% and down 20.5% year-over-year; North America Travel revenues decreased 20.4% [4] - Goods revenues were $3.78 million, missing estimates by 10.33% and declining 31.6% year-over-year; North America Goods revenues fell 50.9% [5] Customer Metrics - Groupon had approximately 15.5 million active customers at the end of Q1, down from 16.1 million year-over-year but beating the consensus estimate by 5.66%; North America had about 10.5 million active customers, exceeding estimates by 6.38% [6] Operating Details - Consolidated gross profit fell 3.9% year-over-year to $106.3 million, with North America gross profit down 1.5% and International gross profit down 9.4% [7] - Gross margin improved by 90 basis points to 90.7%; Selling, general and administrative expenses decreased by 6% to $69.84 million, while marketing expenses rose by 19.5% to $34.4 million [7] - GAAP operating profit was $1.88 million, down from $7.37 million year-over-year; adjusted EBITDA declined 21.5% to $15.3 million [8] Balance Sheet & Cash Flow - Groupon ended the quarter with cash and cash equivalents of $226.8 million, slightly down from $228.8 million at the end of 2024 [9] - Operating cash inflow remained stable at $67 million, while free cash outflow was $3.8 million compared to a free cash inflow of $63.2 million in the previous quarter [10] Guidance - For Q2 2025, Groupon expects revenues between $121 million and $123 million, indicating a year-over-year decline of 3-1%; adjusted EBITDA is projected to be between $14 million and $17 million [11] - For the full year 2025, the company anticipates revenues between $493 million and $500 million, reflecting a year-over-year growth of 0-2%; adjusted EBITDA is expected to be between $70 million and $75 million [12] - Groupon expects a positive free cash flow of at least $41 million for 2025 [13]