GRPN
Groupon, INC
NASDAQ
8-K: Groupon Achieves First Revenue Growth Since 2016, Names Permanent CEO
Sentiment:
Quarterly Report
9 May 2024 4:09 PM
Groupon reports its first consolidated revenue growth since 2016, exceeding guidance for the first quarter of 2024, and appoints Dusan Senkypl as permanent CEO.
Better than expected
The company's results were better than expected as they exceeded the high end of guidance.
The company achieved its first consolidated revenue growth since 2016.
Adjusted EBITDA turned positive, a significant improvement from the previous year.
Summary
- Groupon's first quarter 2024 results show a 1% year-over-year increase in consolidated revenue, reaching $123.1 million, marking the first revenue growth since 2016.
- Excluding the Goods category, North America segment revenue grew by 8% compared to the prior year.
- The company reported a net loss of $11.5 million, an improvement from the $28.6 million loss in the same period last year.
- Adjusted EBITDA was $19.5 million, a significant turnaround from a negative $4.9 million in the first quarter of 2023.
- Groupon ended the quarter with $158.7 million in cash.
- Global billings totaled $381.1 million for the quarter.
- Local revenue increased by 4% year-over-year to $111.2 million.
Sentiment
Score: 7
Explanation: The sentiment is moderately positive due to the return to revenue growth and positive adjusted EBITDA, but concerns remain about international performance and customer declines.
Positives
- Consolidated revenue grew for the first time since 2016, indicating a potential turnaround.
- Adjusted EBITDA turned positive, showing improved profitability.
- The net loss significantly decreased year-over-year, suggesting better cost management.
- North America segment revenue showed strong growth, particularly in the Travel category.
- Gross profit increased by 6% year-over-year.
- SG&A expenses decreased due to lower payroll costs.
Negatives
- International revenue decreased by 11% year-over-year, indicating weakness in overseas markets.
- Active customers in both North America and International segments declined year-over-year.
- Operating cash outflow was $10.1 million, and free cash flow was negative $13.8 million.
- The Goods category experienced a significant decline in demand in both North America and International segments.
- Marketing expenses increased as a percentage of gross profit.
Risks
- The decline in international revenue and active customers poses a risk to future growth.
- The company's reliance on the Travel category for growth in North America makes it vulnerable to fluctuations in travel demand.
- The negative operating and free cash flow could impact the company's financial stability.
- The increase in marketing expenses could put pressure on profitability.
- The company faces risks related to global economic uncertainty and competition.
Future Outlook
The company is focused on restarting growth and becoming the ultimate destination for local experiences and services, but acknowledges that the business is not yet firing on all cylinders. The company will host a conference call to discuss forward-looking statements and other material information.
Management Comments
- Dusan Senkypl, Chief Executive Officer of Groupon, stated that the first quarter results were above the high-end of guidance and that consolidated revenues returned to growth for the first time since 2016.
- He also mentioned that the business is back on its feet and momentum is in the right direction, but not yet firing on all cylinders.
- He expressed confidence in restarting the engines of growth and realizing the company's mission.
Industry Context
Groupon's results reflect a challenging but potentially improving environment for online marketplaces focused on local experiences. The company's return to revenue growth is a positive sign, but it still faces competition from other platforms and needs to address weaknesses in its international operations and customer base.
Comparison to Industry Standards
- Groupon's return to revenue growth is a positive sign, but it lags behind some competitors in the e-commerce and local experiences space, such as LivingSocial and Yelp, which have shown more consistent growth.
- The company's adjusted EBITDA of $19.5 million is a significant improvement, but it is still relatively low compared to larger tech companies with similar business models.
- The decline in active customers is a concern, as many competitors are focused on growing their user base.
- Groupon's performance in the travel category is strong, but it needs to diversify its revenue streams to reduce reliance on this sector.
- Compared to companies like Expedia and Booking.com, Groupon's travel revenue is still relatively small.
Stakeholder Impact
- Shareholders may view the return to revenue growth and positive adjusted EBITDA favorably.
- Employees may be encouraged by the company's improved financial performance and new leadership.
- Customers may benefit from the company's focus on local experiences and services.
- Merchants may see increased opportunities for sales through the Groupon platform.
- Creditors may be reassured by the company's improved financial stability.
Next Steps
- Groupon will host a conference call on May 9, 2024, to discuss the results and provide further guidance.
- The company will continue to focus on its go-forward strategy and improving its business operations.
- Groupon will work to address the decline in active customers and improve its international performance.
Key Dates
- May 9, 2024: Date of the earnings press release and 8-K filing.
- March 31, 2024: End of the fiscal quarter for which results are reported.
Keywords
Groupon, revenue growth, adjusted EBITDA, financial results, local experiences, e-commerce, online marketplace, Dusan Senkypl, Q1 2024, active customers
GRPN
Groupon, INC
NASDAQ
Sector: Communication Services
Filings with Classifications
Capital raise
18 June 2025 7:29 AM
Financing Transaction Announcement
- The company is issuing $244,071,000 aggregate principal amount of new 4.875% Convertible Senior Notes due 2030 in exchange for existing notes. While it's an exchange and not a cash raise, it is a form of capital restructuring that impacts the company's debt capital.
Delay expected
17 June 2025 3:40 PM
Insider Transaction Report
- The Form 4 was filed late due to an inadvertent administrative oversight.
Delay expected
17 June 2025 3:39 PM
Insider Transaction Report
- The Form 4 filing was submitted late due to an inadvertent administrative oversight.
Delay expected
17 June 2025 3:39 PM
Insider Transaction Report
- The Form 4 was filed late due to an inadvertent administrative oversight.
Delay expected
16 June 2025 3:48 PM
Insider Transaction Report
- The Form 4 filing was submitted late due to an "inadvertent administrative oversight."
Delay expected
5 June 2025 1:29 PM
Insider Transaction Report
- The Form 4 filing itself was delayed, submitted late due to an inadvertent administrative oversight.
Worse than expected
5 June 2025 1:29 PM
Insider Transaction Report
- The Form 4 was filed late, indicating a lapse in regulatory compliance due to an inadvertent administrative oversight.
Delay expected
4 June 2025 5:36 PM
Insider Transaction Report
- The Form 4 filing was submitted late due to an inadvertent administrative oversight, as stated in the filing.
Better than expected
27 May 2025 1:31 PM
Insider Transaction Report Amendment
- The vesting of 109,250 Performance Share Units indicates that Groupon successfully met a pre-established stock price hurdle, which is a positive performance indicator for the company's stock.
Worse than expected
7 May 2025 4:11 PM
Earnings Press Release
- Global revenue decreased by 5% year-over-year, indicating a decline in overall sales performance.
- Adjusted EBITDA decreased from $19.5 million to $15.3 million, suggesting a decrease in profitability.
Worse than expected
7 May 2025 4:11 PM
Quarterly Report
- Revenue decreased from $123.08 million to $117.19 million, indicating a worse than expected performance.
- Adjusted EBITDA decreased from $19.52 million to $15.33 million, indicating a worse than expected performance.
Worse than expected
28 April 2025 4:07 PM
Proxy Statement
- The company reported a net loss of $57 million in 2024.
- The adjusted EBITDA goal for the 2024 Annual Bonus Plan remained below threshold.
Worse than expected
11 March 2025 4:13 PM
Earnings Release
- While North America Local billings showed positive growth, overall revenue, gross billings, and unit sales decreased year-over-year, and the company reported a net loss for both the quarter and the full year.
Worse than expected
11 March 2025 4:12 PM
Annual Results
- Gross billings, units, revenue, and gross profit all decreased year-over-year, indicating a decline in overall business activity.
Capital raise
19 November 2024 4:10 PM
Debt Issuance Announcement
- The document details a capital raise of $20 million through the issuance of convertible senior secured notes.
- The total issuance was $197.26 million, with the majority being an exchange of existing debt.
Capital raise
12 November 2024 4:51 PM
Quarterly Report
- The company completed an $80 million fully backstopped rights offering in January 2024.
- The company entered into exchange and subscription agreements for $197.3 million of new convertible senior secured notes due 2027.
Worse than expected
12 November 2024 4:51 PM
Quarterly Report
- The company's revenue, gross profit, and adjusted EBITDA all decreased compared to the same period last year, indicating worse than expected results.
Delay expected
12 November 2024 4:51 PM
SEC Form 4 Filing
- The Form 4 filing was submitted late due to an inadvertent administrative oversight.
Capital raise
12 November 2024 4:50 PM
Financing Announcement
- Groupon is raising $20 million in gross cash proceeds through the issuance of new 2027 convertible secured notes.
- The company is also exchanging $176.26 million of existing 2026 notes for new 2027 notes, which is a form of capital restructuring.
Better than expected
30 July 2024 4:19 PM
Quarterly Report
- The company reported a smaller net loss compared to the same quarter last year.
- The company achieved positive operating and free cash flow.
- North America local revenue grew by 7% year-over-year.
Worse than expected
30 July 2024 4:18 PM
Quarterly Report
- The company's revenue decreased slightly year-over-year, indicating a worse performance than expected in terms of top-line growth.
Better than expected
9 May 2024 4:09 PM
Quarterly Report
- The company's results were better than expected as they exceeded the high end of guidance.
- The company achieved its first consolidated revenue growth since 2016.
- Adjusted EBITDA turned positive, a significant improvement from the previous year.
Capital raise
9 May 2024 4:06 PM
Quarterly Report
- The company completed an $80 million fully backstopped rights offering in January 2024.
- The rights offering was fully backstopped by Pale Fire Capital SICAV a.s.
Worse than expected
9 May 2024 4:06 PM
Quarterly Report
- While the net loss improved, the company still reported a loss and gross billings decreased, indicating worse than expected performance.
Capital raise
7 May 2024 9:26 AM
Executive Appointment and Compensation Announcement
- The company is seeking stockholder approval to increase the number of shares available under the 2011 Incentive Plan by 7,000,000 shares.
- This increase is necessary to cover the PSU awards granted to the CEO and CFO, as well as future awards to other employees.
Capital raise
29 April 2024 5:25 PM
Proxy Statement
- The Pale Fire Parties amended and restated the Standstill Agreement to (a) modify the termination date from the earlier to occur of forty-five days following the date on which Mr.
- Senkypl shall cease to serve for any reason as Interim Chief Executive Officer or Chief Executive Officer of the Company to December 31, 2024; and (b) exclude any and all shares of common stock purchased by the Pale Fire Parties in connection with (i) their exercise of basic subscription rights prior to the expiration of the Rights Offering, (ii) fully purchasing any and all unsubscribed shares in the Rights Offering following its expiration, and (iii) the exercise of their over-subscription privileges, if applicable, from the Pale Fire Parties existing 25% beneficial ownership limitation.
Capital raise
15 March 2024 7:05 AM
Quarterly Report
- In January 2024, Groupon closed a fully backstopped Rights Offering that was oversubscribed and raised $80.0 million.
Better than expected
15 March 2024 7:05 AM
Quarterly Report
- The company's Q4 results were better than expected, with positive net income and adjusted EBITDA, which is a significant improvement from previous quarters.
- The company also resolved its going concern issue, which was a major concern in previous periods.
Worse than expected
15 March 2024 6:58 AM
Annual Results
- The document outlines numerous risks and challenges, suggesting that the company's future performance may be worse than expected.
Capital raise
14 February 2024 7:29 PM
Debt Repayment Announcement
- Groupon conducted an $80 million fully backstopped rights offering.
- The rights offering was made available to all holders of record of the company's common stock.
- The proceeds from the rights offering were used to repay debt and for general corporate purposes.
Capital raise
22 January 2024 8:30 AM
Capital Raise Announcement
- Groupon completed an $80 million rights offering.
- The offering was fully backstopped and significantly oversubscribed.
- The company issued 7,079,646 shares at $11.30 per share.
Better than expected
12 January 2024 8:41 AM
Business Update
- The company expects Q4 2023 results to be at or above the high end of guidance, indicating better than expected performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.