NASDAQ$GRPN

Groupon Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Groupon's performance was marked by adjusted EBITDA exceeding expectations and sequential growth in local revenue, amidst ongoing efforts to return the company to growth.

Groupon reported Q3 2020 revenue of $304 million and a net loss of $16.3 million, but adjusted EBITDA was $31 million, exceeding company expectations. The company focused on expanding inventory and modernizing the marketplace, leading to sequential growth in local revenue compared to Q2. Groupon is restructuring to reduce costs and is focusing on long-term growth.

  • Revenue reached $304 million, with a gross profit of $160 million.
  • Loss from continuing operations was $17 million.
  • Adjusted EBITDA was $31 million.
  • Ended the quarter with $779 million in cash.

Headline financials

Total Revenue

$304M

Previous: $496M-38.7%
EPS (adj)

$0.15

Previous: $0.20-25.0%
Adjusted EBITDA

$30.8M

Previous: $50M-38.4%
Capital Expenditures

-$36.7M

Previous: -$51.9M+29.3%
Free Cash Flow

-$52.9M

Previous: -$68.5M+22.8%
Net Income

-$16.3M

Previous: -$16.7M+2.5%
Operating Income

-$16.2M

Previous: $4.64M-448.9%
Gross Profit

$160M

Previous: $278M-42.4%
Cash & Equivalents

$779M

Previous: $567M+37.3%
Total Assets

$1.35B

Previous: $1.37B-1.5%
Stock-Based Comp

$8.38M

Previous: $19.5M-57.1%

Revenue & EPS history

Groupon · Revenue · Quarterly

$304M

Q3 2020-38.7%vs Q3 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Groupon · $304M total across 3 segments · Q3 2020

  • Goods
    $161M
  • Local
    $135M
  • Travel
    $7.89M

Forward guidance

Groupon expects to realize approximately $140 million in savings from restructuring actions and furloughs for 2020 and approximately $200 million in savings from restructuring actions for 2021. The multi-phase restructuring plan is expected to deliver approximately $225 million in annualized fixed cost savings once fully implemented.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-3.0%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+3.9%

Avg return

30 days after

37%

23 / 62 earnings

Positive

+55.8%

Q2 2020

Best reaction

-39.9%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.6%+9.9%+3.8%
Q4 2025-4.2%-11.1%+2.4%
Q3 2025-5.0%+0.4%-6.1%
Q1 2025+42.6%+55.8%+94.0%
Q4 2024+43.1%+63.6%+95.0%
Q3 2024-29.8%-31.0%+0.8%
Q2 2024-22.2%-32.5%-18.9%
Q1 2024+20.9%+57.4%+32.2%
Q4 2023-21.0%-17.9%-42.9%
Q3 2023-36.6%-31.0%-18.7%
Q2 2023-7.9%+18.4%+45.9%
Q1 2023-9.3%-16.1%+42.2%
Q4 2022-19.8%-17.5%-26.5%
Q3 2022+26.9%+42.9%+3.0%
Q2 2022-2.0%-0.9%-15.2%
Q1 2022-16.7%-10.3%-0.5%
Q4 2021-12.8%-26.0%-16.2%
Q3 2021+14.6%+10.3%-15.5%
Q2 2021-14.6%-24.9%-36.6%
Q1 2021-2.0%-2.5%-10.1%
Q4 2020+12.6%+49.4%+23.5%
Q3 2020+4.2%+7.7%+61.5%
Q2 2020+55.8%+53.6%+99.8%
Q1 2020-11.0%-10.7%-26.9%
Q4 2019-39.9%-41.7%-80.2%
Q3 2019+4.5%+2.4%+1.0%
Q2 2019-9.0%-9.8%-28.0%
Q1 2019+3.1%+1.7%-0.8%
Q4 2018-6.1%-6.9%-9.6%
Q3 2018-8.0%-10.1%-4.9%
Q2 2018-3.4%-6.8%-9.9%
Q1 2018+7.0%+5.2%-3.1%
Q4 2017-12.1%-13.3%-11.5%
Q3 2017+10.5%+14.9%+18.0%
Q2 2017+10.1%+6.5%+14.5%
Q1 2017-14.3%-11.3%-24.3%
Q4 2016+22.5%+23.3%+7.9%
Q3 2016-22.9%-25.0%-22.7%
Q2 2016+24.6%+27.6%+37.6%
Q1 2016-21.5%
Q4 2015+28.4%
Q3 2015-22.5%
Q2 2015-8.3%
Q1 2015-10.2%
Q4 2014+5.1%
Q3 2014+26.3%
Q2 2014-12.1%
Q1 2014-22.6%
Q4 2013-19.9%
Q3 2013+1.0%
Q2 2013+21.8%
Q1 2013+15.6%
Q4 2012-18.4%
Q3 2011-31.4%
Q3 2012-26.6%
Q2 2011-29.5%
Q2 2012-25.9%
Q1 2011+11.2%
Q1 2012+22.9%
Q4 2009-13.7%
Q4 2010-13.7%
Q4 2011-13.7%
Q3 2010
Q2 2010
Q1 2010

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