GRPN
Groupon, INC
NASDAQ
8-K: Groupon Reports Mixed Q1 2025 Results: Revenue Declines, but North America Local Billings Show Strength
Sentiment:
Earnings Press Release
7 May 2025 4:11 PM
Groupon's Q1 2025 results reveal a decline in global revenue, but positive momentum in North America local billings.
Worse than expected
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.
Summary
- Groupon's global revenue for Q1 2025 was $117.2 million, a 5% decrease year-over-year.
- Global billings increased by 1% to $386.5 million.
- Net income from continuing operations was $8.0 million, a significant improvement from the previous year's net loss of $11.5 million.
- Adjusted EBITDA was $15.3 million, down from $19.5 million in the prior year period.
- North America Local revenue decreased by less than 1%, while Local billings increased by 11%.
- International Local revenue declined by 8%, but excluding Italy, it grew by 4%.
Sentiment
Score: 6
Explanation: The sentiment is neutral to slightly positive. While revenue declined, there's positive momentum in North America Local billings and a significant improvement in net income. Management's comments are optimistic, but the overall results are mixed.
Positives
- North America Local billings showed strong growth, increasing by 11%.
- Net income from continuing operations improved significantly, reaching $8.0 million.
- The company maintains a solid cash position with $226.8 million in cash and cash equivalents.
- North America active customers were up 3% compared with the prior year period.
Negatives
- Global revenue decreased by 5% year-over-year.
- Adjusted EBITDA decreased from $19.5 million to $15.3 million.
- International Local revenue declined by 8% overall.
- Unit sales were down 6% compared with the prior year period.
- Active customers were down 4% compared with the prior year period.
Risks
- The company faces challenges in its international operations, including currency exchange rate fluctuations and geopolitical instability.
- Global economic uncertainty and inflationary pressures could impact performance.
- The company needs to retain and add high-quality merchants and customers to sustain growth.
- The company faces strong competition in its industry.
- The company must manage refund risks effectively.
Future Outlook
The company expects to continue to accelerate its growth by focusing on delivering sustainable value for consumers and merchants, with North America Local Billings accelerating to double-digit growth and the local marketplace strategy showing green shoots across geographies and verticals.
Management Comments
- Dusan Senkypl, Chief Executive Officer of Groupon, stated, 'After a strong start to 2025, it is time to go on offense.'
- He also mentioned, 'With North America Local Billings accelerating to double-digit growth and our local marketplace strategy showing green shoots across geographies and verticals, we are building momentum and expect to continue to accelerate our growth.'
- He added, 'We're focused on delivering sustainable growth by creating exceptional value for both consumers and merchants.'
Industry Context
Groupon operates in a competitive local marketplace industry, facing competition from other deal providers, online marketplaces, and traditional advertising channels. The company's focus on local experiences and services aligns with consumer trends towards supporting local businesses.
Comparison to Industry Standards
- Comparing Groupon's performance to other online marketplace companies like LivingSocial (though significantly smaller now) or even larger players like Yelp (which focuses more on reviews but also offers deals) shows a mixed picture.
- Groupon's revenue decline contrasts with the growth seen by some e-commerce platforms, but its focus on local deals differentiates it.
- Companies like RetailMeNot, which focus on digital coupons, might be considered competitors in certain aspects, but Groupon's emphasis on experiences sets it apart.
- Benchmarking against these companies requires considering their different business models and target markets.
Stakeholder Impact
- Shareholders will be interested in the improved net income, but concerned about the revenue decline.
- Merchants may benefit from the growth in North America Local billings.
- Customers will continue to have access to deals and experiences through Groupon's marketplace.
Next Steps
- The company will hold a conference call on May 8, 2025, to discuss the earnings results.
- Investors are encouraged to refer to the earnings commentary posted on Groupon's investor relations website.
Key Dates
- May 7, 2025: Date of report and earnings press release.
- March 31, 2025: End of the fiscal quarter for which results are reported.
- May 8, 2025: Conference call to discuss earnings.
Keywords
Groupon, financial results, Q1 2025, revenue, billings, EBITDA, local, North America, international
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."
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
5 June 2025 1:29 PM
Insider Transaction Report
- The Form 4 filing itself was delayed, submitted late 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.
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.
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.
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.