GRPN
Groupon, INC
NASDAQ
8-K: Groupon Reports Mixed Q2 2024 Results: North America Local Revenue Up, International Declines
Sentiment:
Quarterly Report
30 July 2024 4:19 PM
Groupon's second quarter results show growth in North America local revenue and positive cash flow, but a decline in international revenue.
Better than expected
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.
Summary
- Groupon's Q2 2024 revenue was $124.6 million, a 3% decrease year-over-year.
- North America local revenue increased by 7%, while international local revenue decreased by 18%.
- The company reported a net loss of $9.4 million, an improvement from the $12.0 million loss in the same quarter last year.
- Adjusted EBITDA was $16.5 million, up from $15.2 million year-over-year.
- Operating cash flow was $15 million and free cash flow was $11 million for the quarter.
- Groupon ended the quarter with $178.1 million in cash.
- Global billings were $373.6 million.
Sentiment
Score: 6
Explanation: The sentiment is moderately positive due to the positive cash flow and growth in North America local revenue, but tempered by the decline in international revenue and increased marketing expenses.
Positives
- North America local revenue showed a strong 7% growth.
- The company generated positive operating and free cash flow.
- There was a decrease in net loss compared to the same quarter last year.
- Adjusted EBITDA increased year-over-year.
- SG&A expenses decreased due to lower payroll costs.
Negatives
- Global revenue decreased by 3% year-over-year.
- International revenue declined by 21%.
- International local revenue decreased by 18%.
- Marketing expenses increased significantly as a percentage of gross profit.
- Active customers in North America were down 3% year-over-year.
- International active customers decreased by 19% year-over-year.
Risks
- The company faces challenges with site reliability.
- There is a decline in demand for the Goods category in North America.
- International operations are experiencing an overall decline in demand across all categories.
- The company is exposed to risks related to currency exchange rates and geopolitical instability.
- There are risks associated with retaining and adding high-quality merchants and customers.
- The company is exposed to cybersecurity breaches and payment-related risks.
Future Outlook
The company acknowledges ongoing challenges but expresses confidence in restarting growth and achieving its mission to be the ultimate destination for local experiences and services. The company will be hosting a conference call to discuss forward-looking statements and other material information.
Management Comments
- Our financial results, with positive Free Cash Flow and growing North America Local sales, are significantly improved compared to where we were one year ago, said Dusan Senkypl, Chief Executive Officer of Groupon.
- While our transformation still faces numerous challenges, including site reliability, I am confident we can restart the engines of growth and realize our mission to become the ultimate destination for local experiences and services.
Industry Context
Groupon's results reflect a mixed performance in the e-commerce and local deals space, with a strong showing in North America local but struggles in international markets. This is consistent with trends of varying regional performance in the industry.
Comparison to Industry Standards
- Groupon's North America local revenue growth of 7% is a positive sign, but it is important to compare this to other local marketplace platforms such as LivingSocial or Yelp, which may have different growth rates.
- The decline in international revenue by 21% is concerning and should be compared to the performance of other global e-commerce companies in similar markets, such as those in the travel and goods sectors.
- The positive free cash flow is a good indicator of financial health, but it needs to be compared to the cash flow generation of other companies in the online deals and local services space, such as RetailMeNot or similar platforms.
- The increase in marketing expenses as a percentage of gross profit should be benchmarked against industry averages to determine if Groupon is overspending or if this is a necessary investment for growth.
Stakeholder Impact
- Shareholders may view the positive cash flow and North America growth favorably, but will be concerned about the international decline.
- Employees may be impacted by the restructuring and cost-cutting measures.
- Merchants may be affected by changes in the platform and its performance.
- Customers may experience changes in the availability and quality of deals.
Next Steps
- Groupon will host a conference call on July 30, 2024, to discuss the results.
- The company will continue to focus on its transformation and address challenges such as site reliability.
Key Dates
- July 30, 2024: Date of the earnings press release and 8-K filing.
- June 30, 2024: End of the fiscal quarter for which results are reported.
- July 30, 2024: Date of the conference call to discuss the results.
Keywords
Groupon, financial results, revenue, EBITDA, cash flow, local revenue, North America, international, active customers, billings
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.
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.
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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