NASDAQ$GRPN

Groupon Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Groupon's financial performance was below expectations in Q4 2019, with the company announcing a strategic plan to exit the Goods category by the end of 2020 and focus on the local experiences market.

Groupon's Q4 2019 results revealed a revenue decrease of 23% to $612.3 million and a net income of $77.0 million, or $0.13 per diluted share. The company announced a strategic shift to focus on the local experiences market by exiting the Goods category by the end of 2020.

  • Groupon plans to exit the Goods category by the end of 2020 to focus on the $1 trillion local experiences market.
  • Q4 revenue decreased by 23% to $612.3 million.
  • Q4 net income from continuing operations was $79.2 million.
  • The company is focusing on four key priorities: inventory, modernization, brand, and cost reduction.

Headline financials

Total Revenue

$612M

Previous: $800M-23.5%
EPS (adj)

$1.40

Previous: $2.00-30.0%
Active Customers

43.6M

No prior period
Units

42.6M

No prior period
Capital Expenditures

$15.5M

Previous: $16.1M-3.8%
Free Cash Flow

$186M

Previous: $308M-39.6%
Net Income

$77M

Previous: $46.2M+66.6%
Operating Income

$40.1M

Previous: $61.9M-35.2%
Gross Profit

$310M

Previous: $366M-15.3%
Cash & Equivalents

$751M

Previous: $841M-10.7%
Total Assets

$1.59B

Previous: $1.64B-3.4%
Stock-Based Comp

$19.1M

Previous: $14.2M+35.0%

Revenue & EPS history

Groupon · Revenue · Quarterly

$612M

Q4 2019-23.5%vs Q4 2018
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

Groupon · $612M total across 3 segments · Q4 2019

  • Goods
    $326M
  • Local
    $267M
  • Travel
    $18.5M

Forward guidance

For the full year 2020, Groupon is focused on achieving operational goals related to product launches, unit growth in North America Local, inventory density in key cities, brand relaunch, and cost base reset with the exit of Goods.

Tailwinds

  • Launch a new mobile app and expand bookable offers
  • Grow North America Local units year-over-year in the second half of 2020
  • Execute density strategy in 10 cities
  • Relaunch the brand and deploy a full-funnel marketing strategy
  • Reset the cost base with the exit of Goods

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 Q4 2019

Historical avgQ4 2019

-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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