NASDAQ$GRPN

Groupon Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Groupon's financial performance improved sequentially, with revenue, gross profit, and Adjusted EBITDA growing compared to the third quarter.

Groupon's Q4 2020 results showed sequential growth in revenue and gross profit, alongside positive free cash flow and a strong cash balance. The company is scaling its growth strategy in North America in 2021, focusing on expanding inventory and modernizing its marketplace.

  • Fourth quarter revenue reached $343 million, while full-year revenue was $1.4 billion.
  • Gross profit for the fourth quarter amounted to $179 million, and $677 million for the full year.
  • The company's fourth quarter income from continuing operations was $14 million, compared to a $287 million loss for the full year.
  • Groupon ended the year with $851 million in cash.

Headline financials

Total Revenue

$343M

Previous: $612M-44.0%
EPS (adj)

$0.51

Previous: $1.40-63.6%
Adjusted EBITDA

$40.1M

No prior period
Capital Expenditures

$12M

Previous: $15.5M-22.1%
Free Cash Flow

$68.9M

Previous: $186M-63.0%
Net Income

$14M

Previous: $77M-81.8%
Operating Income

$9.06M

Previous: $40.1M-77.4%
Gross Profit

$179M

Previous: $310M-42.3%
Cash & Equivalents

$851M

Previous: $751M+13.3%
Total Assets

$1.41B

Previous: $1.59B-11.0%
Stock-Based Comp

$8.07M

Previous: $19.1M-57.7%

Revenue & EPS history

Groupon · Revenue · Quarterly

$343M

Q4 2020-44%vs Q4 2019
Beat estimate in 5 of 16 quarters(31%)
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 is focusing on expanding inventory and modernizing the marketplace. The company believes it will benefit from COVID-19 recovery and strong execution of its growth strategy. These drivers, coupled with a substantially lower fixed cost base should position Groupon for sustainable, long-term profitable growth.

Tailwinds

  • Expanding inventory through Offers and removal of deal restrictions.
  • Improving merchant experience with self-service tools.
  • Enhancing customer experience with personalized home pages and improved search.
  • Leveraging Groupon Connect API for seamless integration of quality supply.
  • Scaling inventory strategy across North America based on successful test results.

Headwinds

  • COVID-19 impacts and the need for more insights on recovery.
  • Volatility in operating results.
  • Challenges arising from international operations.
  • Global economic uncertainty.
  • Competing successfully in our industry.

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 2020

Historical avgQ4 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro