We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Groupon (GRPN) Q4 Earnings Beat Estimates, Revenues Down Y/Y
Read MoreHide Full Article
Groupon (GRPN - Free Report) reported non-GAAP earnings of 30 cents per share in fourth-quarter 2023, beating the Zacks Consensus Estimate of a loss of 11 cents per share. The company reported a non-GAAP loss of 38 cents per share in the year-ago quarter.
Revenues of $137.72 million beat the consensus estimate of $135 million. The figure declined 7% on a year-over-year basis (down 8%, excluding the foreign exchange effect).
Region-wise, North America revenues of $99.9 million beat the consensus mark by 2.9% but slumped 6% year over year. International revenues of $37.8 million beat the consensus mark by 8.3% but fell 10% year over year (down 15%, excluding the foreign exchange effect).
Local revenues of $123.6 million beat the Zacks Consensus Estimate by 6.3% but declined 2.8% year over year (down 4% excluding the foreign exchange effect). North America Local revenues declined 2.8% while International Local revenues fell 2.9% year over year.
Consolidated Travel revenues of $5.4 million missed the consensus mark by 8.1% and decreased 8.3% year over year. North America Travel revenues rose 0.4% year over year. International Travel revenues declined 21.4% in the reported quarter.
On a consolidated basis, Goods revenues of $8.7 million missed the consensus mark by 11.4% and declined 42.1% year over year. North America Goods revenues declined 42.4% while International Goods revenues fell 44.8%, excluding the foreign exchange effect, on a year-over-year basis.
Customer Metrics
At the end of the fourth quarter, Groupon had approximately 16.5 million active customers compared with 18.8 million at the end of the year-ago quarter. The metric beat the Zacks Consensus Estimate by 6.1%.
At the end of the fourth quarter, the company had approximately 10.3 million active customers based in North America, beating the consensus mark by 14.1%, and 6.2 million active international customers, missing the consensus mark by 4.8%.
Operating Details
In the fourth quarter, gross profit was $122.3 million, down 5% year over year.
Selling, general and administrative expenses fell 35% year over year to $72.5 million in the reported quarter. Marketing expenses declined 18.8% to $34.5 million.
The company reported a GAAP operating income of $17.65 million against a loss of $32.8 million in the year-ago quarter.
Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $141.6 million, up from $86.1 million as of Sep 30, 2023.
In the fourth quarter, the company generated $54.5 million in operating cash flow against the operating cash outflow of $13.85 million in the prior quarter.
Groupon reported a free cash flow of $51.1 million against $17.97 million of free cash outflow reported in the previous quarter.
Guidance
For first-quarter 2024, the company expects revenues in the band of $113-$118 million, indicating a 7-3% year-over-year decline.
Adjusted EBITDA is expected to be between $7 million and $12 million.
Groupon expects a free cash outflow for the first quarter.
For 2024, the company expects revenues between $489 million and $515 million, indicating a year-over- year change in the band of (5%)-0%.
Adjusted EBITDA is expected to be between $80 million and $100 million.
Groupon expects a positive free cash flow for 2024.
Image: Bigstock
Groupon (GRPN) Q4 Earnings Beat Estimates, Revenues Down Y/Y
Groupon (GRPN - Free Report) reported non-GAAP earnings of 30 cents per share in fourth-quarter 2023, beating the Zacks Consensus Estimate of a loss of 11 cents per share. The company reported a non-GAAP loss of 38 cents per share in the year-ago quarter.
Revenues of $137.72 million beat the consensus estimate of $135 million. The figure declined 7% on a year-over-year basis (down 8%, excluding the foreign exchange effect).
Region-wise, North America revenues of $99.9 million beat the consensus mark by 2.9% but slumped 6% year over year. International revenues of $37.8 million beat the consensus mark by 8.3% but fell 10% year over year (down 15%, excluding the foreign exchange effect).
Groupon, Inc. Price, Consensus and EPS Surprise
Groupon, Inc. price-consensus-eps-surprise-chart | Groupon, Inc. Quote
Quarterly Details
Local revenues of $123.6 million beat the Zacks Consensus Estimate by 6.3% but declined 2.8% year over year (down 4% excluding the foreign exchange effect). North America Local revenues declined 2.8% while International Local revenues fell 2.9% year over year.
Consolidated Travel revenues of $5.4 million missed the consensus mark by 8.1% and decreased 8.3% year over year. North America Travel revenues rose 0.4% year over year. International Travel revenues declined 21.4% in the reported quarter.
On a consolidated basis, Goods revenues of $8.7 million missed the consensus mark by 11.4% and declined 42.1% year over year. North America Goods revenues declined 42.4% while International Goods revenues fell 44.8%, excluding the foreign exchange effect, on a year-over-year basis.
Customer Metrics
At the end of the fourth quarter, Groupon had approximately 16.5 million active customers compared with 18.8 million at the end of the year-ago quarter. The metric beat the Zacks Consensus Estimate by 6.1%.
At the end of the fourth quarter, the company had approximately 10.3 million active customers based in North America, beating the consensus mark by 14.1%, and 6.2 million active international customers, missing the consensus mark by 4.8%.
Operating Details
In the fourth quarter, gross profit was $122.3 million, down 5% year over year.
Selling, general and administrative expenses fell 35% year over year to $72.5 million in the reported quarter. Marketing expenses declined 18.8% to $34.5 million.
The company reported a GAAP operating income of $17.65 million against a loss of $32.8 million in the year-ago quarter.
Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $141.6 million, up from $86.1 million as of Sep 30, 2023.
In the fourth quarter, the company generated $54.5 million in operating cash flow against the operating cash outflow of $13.85 million in the prior quarter.
Groupon reported a free cash flow of $51.1 million against $17.97 million of free cash outflow reported in the previous quarter.
Guidance
For first-quarter 2024, the company expects revenues in the band of $113-$118 million, indicating a 7-3% year-over-year decline.
Adjusted EBITDA is expected to be between $7 million and $12 million.
Groupon expects a free cash outflow for the first quarter.
For 2024, the company expects revenues between $489 million and $515 million, indicating a year-over- year change in the band of (5%)-0%.
Adjusted EBITDA is expected to be between $80 million and $100 million.
Groupon expects a positive free cash flow for 2024.
Zacks Rank & Stocks to Consider
Groupon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are American Eagle Outfitters (AEO - Free Report) , eBay (EBAY - Free Report) and Amazon (AMZN - Free Report) . While American Eagle Outfitters currently sports a Zacks Rank #1 (Strong Buy), Best Buy and Amazon carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters shares have gained 9.5% year to date. It has a long-term earnings growth rate of 12.53%.
eBay shares have increased 19.7% on a year-to-date basis. The company has a long-term earnings growth rate of 6.71%.
Amazon shares have rallied 14.8% on a year-to-date basis. AMZN has a long-term earnings growth rate of 28.13%.