Groupon (GRPN) Q1 Earnings and Revenues Beat Estimates, Up Y/Y

Core Insights - Groupon reported non-GAAP earnings of 6 cents per share for Q1 2024, surpassing the Zacks Consensus Estimate of a loss of 18 cents per share, compared to a non-GAAP loss of 65 cents per share in the same quarter last year [1] - Revenues reached $123.1 million, exceeding the consensus estimate by 4% and showing a 1% year-over-year increase [1] Revenue Breakdown - North America revenues were $94.1 million, beating the consensus by 10.7% and increasing 5.5% year-over-year [1] - International revenues totaled $28.95 million, missing the consensus by 4.1% and declining 10.5% year-over-year [1] - Local revenues amounted to $111.2 million, exceeding estimates by 6.4% and rising 4.3% year-over-year [2] - Consolidated Travel revenues were $6.4 million, beating estimates by 32.6% and increasing 12.3% year-over-year [2] - Goods revenues were $5.5 million, missing estimates by 7.5% and declining 40.7% year-over-year [2] Customer Metrics - Groupon had approximately 16.1 million active customers at the end of Q1, down from 18.2 million year-over-year but beating the consensus estimate by 4.6% [3] - North America active customers were approximately 10.2 million, exceeding the consensus by 11.4%, while international active customers were 5.9 million, missing the consensus by 5.3% [3] Operating Performance - Gross profit for Q1 was $110.6 million, up 6% year-over-year [4] - Selling, general and administrative expenses decreased by 26.9% to $74.3 million, while marketing expenses rose by 15.9% to $28.8 million [4] - The company reported a GAAP operating income of $7.4 million, a significant improvement from a loss of $30.6 million in the previous year [4] Financial Position - Groupon ended the quarter with cash and cash equivalents of $158.7 million, up from $141.6 million at the end of 2023 [5] - The operating cash outflow was $10.1 million, compared to an operating cash flow of $54.5 million in the prior quarter [5] - Free cash outflow was $13.8 million, down from $51.1 million of free cash flow in the previous quarter [5] Guidance - For Q2 2024, Groupon expects revenues between $116 million and $122 million, indicating a year-over-year decline of 10-5% [6] - Adjusted EBITDA is projected to be between $12 million and $17 million [6] - For the full year 2024, revenues are expected to be between $489 million and $515 million, reflecting a year-over-year change of (5%)-0% [6] - Adjusted EBITDA for 2024 is anticipated to be between $80 million and $100 million, with a positive free cash flow expected for the year [6]