NASDAQ$GRPN

Groupon Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported sequential improvement in Adjusted EBITDA and free cash outflow. Local Billings Year-over-Year Growth was achieved and a plan to strengthen liquidity position by approximately $100 million was announced.

Groupon's Q3 2023 results showed a global revenue of $126.5 million and a net loss of $40.8 million, with adjusted EBITDA at $18.2 million. The company is shifting focus from cost-cutting to topline growth, targeting projects in product, engineering, sales, marketing, and revenue management.

  • Sequential improvement in Adjusted EBITDA and Free Cash outflow.
  • Returned to Local Billings Year-over-Year Growth.
  • Announced plan to strengthen liquidity position by approximately $100 million.
  • Focus shifting to topline growth and marketplace reinvigoration.

Headline financials

Total Revenue

$126M

Previous: $144M-12.4%
EPS (adj)

-$0.12

Previous: -$0.68+82.4%
Adjusted EBITDA

$18.2M

No prior period
Capital Expenditures

-$15.9M

Previous: -$30.5M+47.8%
Free Cash Flow

-$57.3M

Previous: -$86.7M+34.0%
Net Income

-$41.4M

Previous: -$56.2M+26.4%
Operating Income

-$464K

Previous: -$36.3M+98.7%
Gross Profit

$111M

Previous: $126M-12.0%
Cash & Equivalents

$86.1M

Previous: $308M-72.1%
Total Assets

$524M

Previous: $889M-41.1%
Stock-Based Comp

$3.89M

Previous: $8.12M-52.1%

Revenue & EPS history

Groupon · Revenue · Quarterly

$126M

Q3 2023-12.4%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Groupon · $214M total across 3 segments · Q3 2021

  • Local
    $175M+29.7%
  • Goods
    $30.3M-81.2%
  • Travel
    $8.71M+10.4%

Forward guidance

Groupon plans to raise approximately $100 million through an equity rights offering and non-core asset sales to strengthen its liquidity.

Tailwinds

  • Board of Directors has approved an $80.0 million fully backstopped rights offering.
  • Pale Fire Capital SICAV a.s. has entered into a binding commitment to backstop the entire offering.
  • Agreement to sell a portion of its investment in SumUp for $8.8 million was entered on October 6th.
  • Agreement to sell a portion of its investment in SumUp for approximately $10 million was entered on November 9th.
  • New management team and the announcement of today's financing strategy, Groupon is on the right track to become the ultimate destination for experiences and services.

Headwinds

  • Did not make as much progress on key projects as expected.
  • Business continues to be challenged.
  • Global economic uncertainty, including as a result of inflationary pressures, ongoing impacts from the COVID-19 pandemic and labor and supply chain challenges.
  • Volatility in operating results.
  • Challenges arising from international operations, including fluctuations in currency exchange rates, legal and regulatory developments in the jurisdictions in which we operate and geopolitical instability resulting from the conflicts in Ukraine and the Middle East

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 2023

Historical avgQ3 2023

-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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