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Groupon (GRPN) Q1 Loss Beat Estimates, Revenues Down Y/Y
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Groupon (GRPN - Free Report) reported a non-GAAP loss of 65 cents per share in first-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 81 cents. The company reported non-GAAP loss of 80 cents per share in the year-ago quarter.
Revenues of $121.6 million missed the Zacks Consensus Estimate by 9.15%. The figure declined 21% on a year-over-year basis (down 19% excluding the foreign exchange effect).
Region-wise, North America revenues slumped 19% year over year to $89.3 million. International revenues fell 25% (down 21%, excluding the foreign exchange effect) to $32.4 million.
Quarterly Details
Local revenues of $106.6 million declined 18% year over year (down 17%, excluding the foreign exchange effect). North America Local revenues declined 16%, while International Local revenues fell 24% year over year.
Consolidated Travel revenues fell 30.8% year over year to $5.7 million. North America Travel revenues declined 43.1% year over year. International Travel revenues declined 12% in the reported quarter.
On a consolidated basis, Goods revenues declined 38.2% year over year to $9.3 million. North America Goods revenues declined 38.9%, while International Goods revenues fell 37.4%, excluding the foreign exchange effect, on a year-over-year basis.
Customer Metrics
At the end of the first quarter, Groupon had approximately 18.2 million active customers compared with 22.2 million at the end of the previous year’s quarter.
At the end of the first quarter, the company had approximately 10.9 million active customers based in North America and 7.3 million active international customers.
Operating Details
In the first quarter, gross profit came in at $104.7 million, down 21.9% year over year.
Selling, general and administrative expenses fell 19.6% year over year to $101.6 million in the reported quarter. Marketing expenses declined 37% to $24.8 million.
The company reported GAAP operating loss of $30.6 million compared with a loss of $32.1 million in the year-ago quarter.
Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $163.8 million, down from $281 million as of Dec 31, 2022.
In the first quarter, the company generated $76.3 million in operating cash outflow against the operating cash flow of $15.9 million generated in the prior quarter.
Groupon reported a free cash outflow of $85.9 million against $10.2 million of free cash flow reported in the previous quarter.
Guidance
For the second quarter of 2023, Groupon expects its second-quarter revenues to decline year over year at a similar rate as observed in the first quarter. It anticipates to generate a positive adjusted EBITDA in the current quarter.
Groupon shares have declined 53.7% year to date, while the Retail Wholesale sector has been up 7.8%. MercadoLibre, Rover Group and Booking Holdings shares have gained 52.3%, 26.7% and 31.3% year to date, respectively.
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Groupon (GRPN) Q1 Loss Beat Estimates, Revenues Down Y/Y
Groupon (GRPN - Free Report) reported a non-GAAP loss of 65 cents per share in first-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 81 cents. The company reported non-GAAP loss of 80 cents per share in the year-ago quarter.
Revenues of $121.6 million missed the Zacks Consensus Estimate by 9.15%. The figure declined 21% on a year-over-year basis (down 19% excluding the foreign exchange effect).
Region-wise, North America revenues slumped 19% year over year to $89.3 million. International revenues fell 25% (down 21%, excluding the foreign exchange effect) to $32.4 million.
Quarterly Details
Local revenues of $106.6 million declined 18% year over year (down 17%, excluding the foreign exchange effect). North America Local revenues declined 16%, while International Local revenues fell 24% year over year.
Groupon, Inc. Price, Consensus and EPS Surprise
Groupon, Inc. price-consensus-eps-surprise-chart | Groupon, Inc. Quote
Consolidated Travel revenues fell 30.8% year over year to $5.7 million. North America Travel revenues declined 43.1% year over year. International Travel revenues declined 12% in the reported quarter.
On a consolidated basis, Goods revenues declined 38.2% year over year to $9.3 million. North America Goods revenues declined 38.9%, while International Goods revenues fell 37.4%, excluding the foreign exchange effect, on a year-over-year basis.
Customer Metrics
At the end of the first quarter, Groupon had approximately 18.2 million active customers compared with 22.2 million at the end of the previous year’s quarter.
At the end of the first quarter, the company had approximately 10.9 million active customers based in North America and 7.3 million active international customers.
Operating Details
In the first quarter, gross profit came in at $104.7 million, down 21.9% year over year.
Selling, general and administrative expenses fell 19.6% year over year to $101.6 million in the reported quarter. Marketing expenses declined 37% to $24.8 million.
The company reported GAAP operating loss of $30.6 million compared with a loss of $32.1 million in the year-ago quarter.
Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $163.8 million, down from $281 million as of Dec 31, 2022.
In the first quarter, the company generated $76.3 million in operating cash outflow against the operating cash flow of $15.9 million generated in the prior quarter.
Groupon reported a free cash outflow of $85.9 million against $10.2 million of free cash flow reported in the previous quarter.
Guidance
For the second quarter of 2023, Groupon expects its second-quarter revenues to decline year over year at a similar rate as observed in the first quarter. It anticipates to generate a positive adjusted EBITDA in the current quarter.
Zacks Rank & Stocks to Consider
Groupon currently has a Zacks Rank #3 (Hold).
Groupon shares were down 4.28% in pre-market trading following the results. This Zacks Rank #3 (Hold) company’s shares have underperformed the Zacks Retail Wholesale sector and its Zacks Internet-Commerce peers like MercadoLibre (MELI - Free Report) , Rover Group and Booking Holdings (BKNG - Free Report) year to date. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Groupon shares have declined 53.7% year to date, while the Retail Wholesale sector has been up 7.8%. MercadoLibre, Rover Group and Booking Holdings shares have gained 52.3%, 26.7% and 31.3% year to date, respectively.