GRPN
Groupon, INC
NASDAQ
8-K: Groupon Expects Strong Q4 2023 Results, Reaffirms 2024 Outlook
Sentiment:
Business Update
12 January 2024 8:41 AM
Groupon anticipates fourth-quarter 2023 financial results to be near or above the high end of its guidance and reaffirms its preliminary 2024 outlook.
Better than expected
The company expects Q4 2023 results to be at or above the high end of guidance, indicating better than expected performance.
Summary
- Groupon has released a business update indicating that they expect their fourth-quarter 2023 revenue and adjusted EBITDA to be close to or above the high end of their previously issued guidance.
- The company also anticipates positive free cash flow for the fourth quarter of 2023.
- Groupon ended the year with approximately $141 million in cash and cash equivalents, and $26 million in restricted cash.
- They paid down $3.9 million of borrowings under their revolving credit agreement and received $18.9 million from the sale of a portion of their investment in SumUp during the fourth quarter.
- The company is reaffirming its preliminary 2024 outlook, expecting revenue growth between -5% and 0% compared to 2023.
- They also expect adjusted EBITDA to be between $80 million and $100 million and positive free cash flow for the full year 2024.
- Groupon anticipates negative free cash flow in the first quarter of 2024 due to the seasonality of accrued merchant payables.
Sentiment
Score: 7
Explanation: The sentiment is moderately positive due to the better-than-expected Q4 results and reaffirmed 2024 outlook, but tempered by the projected revenue stagnation and Q1 negative free cash flow. The risks and uncertainties mentioned also contribute to a less optimistic outlook.
Positives
- Groupon's Q4 2023 financial results are expected to be strong, potentially exceeding previous guidance.
- The company is generating positive free cash flow in Q4 2023.
- Groupon has a solid cash position with approximately $141 million in cash and cash equivalents at the end of 2023.
- The company is reaffirming its 2024 outlook, indicating confidence in its future performance.
- Debt was reduced by $3.9 million in Q4 2023.
Negatives
- Groupon expects negative free cash flow in the first quarter of 2024 due to the timing of accrued merchant payables.
- The company's 2024 revenue growth is projected to be between -5% and 0%, indicating a potential decline or stagnation.
Risks
- The preliminary financial information is unaudited and subject to change upon completion of the closing procedures and audit.
- The company's actual results may differ materially from the provided outlook due to various risks and uncertainties.
- There are risks associated with the company's ability to execute its business strategy, manage international operations, and navigate global economic uncertainty.
- The company faces risks related to competition, customer and merchant fraud, cybersecurity breaches, and legal and regulatory compliance.
- Groupon's ability to continue as a going concern is also a risk factor.
Future Outlook
Groupon reaffirms its preliminary 2024 outlook, expecting revenue growth between -5% and 0%, adjusted EBITDA between $80 million and $100 million, and positive free cash flow for the year. They anticipate negative free cash flow in Q1 2024 due to seasonality.
Management Comments
- Groupon's management plans to announce and discuss the company's complete fourth quarter 2023 and full year financial results in March 2024.
- The updated and reaffirmed outlook and preliminary financial information are based on management's preliminary, unaudited analysis of financial results.
Industry Context
This announcement comes as Groupon continues to navigate the competitive landscape of local services and experiences marketplaces, focusing on improving its financial performance and operational efficiency. The company's focus on positive free cash flow and adjusted EBITDA is in line with industry trends towards profitability and sustainable growth.
Comparison to Industry Standards
- Groupon's focus on positive free cash flow aligns with industry trends, where companies are increasingly prioritizing profitability over pure growth.
- The projected revenue growth of -5% to 0% for 2024 is a concern, as many tech companies are aiming for higher growth rates, however, this is in line with other companies in the sector that are focusing on profitability.
- Companies like LivingSocial, which was a direct competitor, have struggled to maintain growth and profitability, highlighting the challenges in this sector.
- Other companies in the local services and experiences space, such as Yelp and Eventbrite, have shown varying degrees of success, with some focusing on specific niches or geographic areas.
Stakeholder Impact
- Shareholders may react positively to the better-than-expected Q4 results and reaffirmed 2024 outlook.
- Employees may be impacted by the company's restructuring efforts and focus on efficiency.
- Merchants and customers may be affected by changes in the company's business strategy and service offerings.
- Creditors may be reassured by the company's positive free cash flow and debt reduction.
Next Steps
- Groupon will announce and discuss its complete fourth-quarter 2023 and full-year financial results in March 2024.
- The company will continue to execute its business strategy and monitor its financial performance.
Key Dates
- January 12, 2024: Date of the press release providing a business update and preliminary Q4 2023 financial information.
- December 31, 2023: End of the fourth quarter and full year for which preliminary financial results are provided.
- March 2024: Expected date for the announcement and discussion of complete Q4 2023 and full-year financial results.
Keywords
Groupon, financial results, revenue, EBITDA, free cash flow, outlook, cash position, debt, SumUp, guidance
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.
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
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.
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.
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.
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.
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.
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