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Groupon (GRPN) Q2 Loss Narrower Than Estimates, Revenues Down
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Groupon (GRPN - Free Report) reported a non-GAAP loss of 10 cents per share in second-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 17 cents. The company reported a non-GAAP loss of 34 cents per share in the year-ago quarter.
Revenues of $129.1 million beat the Zacks Consensus Estimate by 0.39%. The figure declined 15.7% on a year-over-year basis (down 16%, excluding the foreign exchange effect).
Region-wise, North America revenues of $95.8 million beat the consensus mark by 7.74% but slumped 14.5% year over year. International revenues of $33.3 million beat the consensus mark by 2.32% but fell 19% year over year (down 19.9%, excluding the foreign exchange effect).
Quarterly Details
Local revenues of $112.8 million beat the Zacks Consensus Estimate by 6.38% but declined 15.5% year over year (down 15.7%, excluding the foreign exchange effect). North America Local revenues declined 15.8%, while International Local revenues fell 14.8% year over year.
Consolidated Travel revenues of $7.8 million beat the consensus mark by 43.01% and increased 0.9% year over year. North America Travel revenues soared 25.3% year over year. International Travel revenues declined 32.8% in the reported quarter.
On a consolidated basis, Goods revenues of $8.5 million missed the consensus mark by 14.74% and declined 28.8% year over year. North America Goods revenues declined 23%, while International Goods revenues fell 35.1%, excluding the foreign exchange effect, on a year-over-year basis.
Customer Metrics
At the end of the second quarter, Groupon had approximately 17.5 million active customers compared with 21.1 million at the end of the prior-year quarter. The metric missed the Zacks Consensus Estimate by 3.48%.
At the end of the second quarter, the company had approximately 10.6 million active customers based in North America and 6.9 million active international customers, missing the consensus mark by 5.44% and 0.43%, respectively.
Operating Details
In the second quarter, gross profit came in at $113 million, down 15.7% year over year.
Selling, general and administrative expenses fell 22.3% year over year to $96.3 million in the reported quarter. Marketing expenses declined 24.2% to $22.3 million.
The company reported a GAAP operating loss of $4.9 million compared with a loss of $66.5 million in the year-ago quarter.
Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $118.1 million, down from $163.8 million as of Mar 31, 2023.
In the second quarter, the company generated $42.3 million in operating cash outflow against the operating cash outflow of $76.3 million generated in the prior quarter.
Groupon reported a free cash outflow of $44.6 million against $85.9 million of free cash flow reported in the previous quarter.
Guidance
For the third and the fourth quarter of 2023, Groupon expects to see slight improvements in the rate of year-over-year declines each quarter. It anticipates generating a positive adjusted EBITDA in the remaining two quarters.
Groupon shares have declined 11.5% year to date, while the Retail Wholesale sector has been up 19%. Amazon, Rover Group and Alibaba shares have gained 64.9%, 72.2% and 12.6% year to date, respectively.
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Groupon (GRPN) Q2 Loss Narrower Than Estimates, Revenues Down
Groupon (GRPN - Free Report) reported a non-GAAP loss of 10 cents per share in second-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 17 cents. The company reported a non-GAAP loss of 34 cents per share in the year-ago quarter.
Revenues of $129.1 million beat the Zacks Consensus Estimate by 0.39%. The figure declined 15.7% on a year-over-year basis (down 16%, excluding the foreign exchange effect).
Region-wise, North America revenues of $95.8 million beat the consensus mark by 7.74% but slumped 14.5% year over year. International revenues of $33.3 million beat the consensus mark by 2.32% but fell 19% year over year (down 19.9%, excluding the foreign exchange effect).
Quarterly Details
Local revenues of $112.8 million beat the Zacks Consensus Estimate by 6.38% but declined 15.5% year over year (down 15.7%, excluding the foreign exchange effect). North America Local revenues declined 15.8%, while International Local revenues fell 14.8% year over year.
Groupon, Inc. Price, Consensus and EPS Surprise
Groupon, Inc. price-consensus-eps-surprise-chart | Groupon, Inc. Quote
Consolidated Travel revenues of $7.8 million beat the consensus mark by 43.01% and increased 0.9% year over year. North America Travel revenues soared 25.3% year over year. International Travel revenues declined 32.8% in the reported quarter.
On a consolidated basis, Goods revenues of $8.5 million missed the consensus mark by 14.74% and declined 28.8% year over year. North America Goods revenues declined 23%, while International Goods revenues fell 35.1%, excluding the foreign exchange effect, on a year-over-year basis.
Customer Metrics
At the end of the second quarter, Groupon had approximately 17.5 million active customers compared with 21.1 million at the end of the prior-year quarter. The metric missed the Zacks Consensus Estimate by 3.48%.
At the end of the second quarter, the company had approximately 10.6 million active customers based in North America and 6.9 million active international customers, missing the consensus mark by 5.44% and 0.43%, respectively.
Operating Details
In the second quarter, gross profit came in at $113 million, down 15.7% year over year.
Selling, general and administrative expenses fell 22.3% year over year to $96.3 million in the reported quarter. Marketing expenses declined 24.2% to $22.3 million.
The company reported a GAAP operating loss of $4.9 million compared with a loss of $66.5 million in the year-ago quarter.
Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $118.1 million, down from $163.8 million as of Mar 31, 2023.
In the second quarter, the company generated $42.3 million in operating cash outflow against the operating cash outflow of $76.3 million generated in the prior quarter.
Groupon reported a free cash outflow of $44.6 million against $85.9 million of free cash flow reported in the previous quarter.
Guidance
For the third and the fourth quarter of 2023, Groupon expects to see slight improvements in the rate of year-over-year declines each quarter. It anticipates generating a positive adjusted EBITDA in the remaining two quarters.
Zacks Rank & Stocks to Consider
Groupon currently has a Zacks Rank #4 (Sell).
Groupon’s shares have underperformed the Zacks Retail Wholesale sector and its Zacks Internet-Commerce peers like Amazon (AMZN - Free Report) , Rover Group and Alibaba (BABA - 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 11.5% year to date, while the Retail Wholesale sector has been up 19%. Amazon, Rover Group and Alibaba shares have gained 64.9%, 72.2% and 12.6% year to date, respectively.