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Groupon (GRPN) Reports Loss in Q2, Revenues Decrease Y/Y
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Groupon (GRPN - Free Report) reported a non-GAAP loss of 2 cents per share in the second quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 1 cent per share. The company reported a non-GAAP loss of 10 cents per share in the year-ago quarter.
Revenues of $124.6 million beat the consensus estimate by 2.4%. The figure decreased 3.5% on a year-over-year basis (down 3.4%, excluding the foreign exchange effect).
Region-wise, North America revenues of $98.4 million beat the consensus mark by 7.4% and rose 2.6% year over year. International revenues of $26.3 million missed the consensus mark by 13.5% and fell 21.1% year over year (down 20.8%, excluding the foreign exchange effect).
Local revenues of $114.1 million beat the Zacks Consensus Estimate by 6.9% and rose 1.1% year over year (1.2% excluding the foreign exchange effect). North America Local revenues increased 7.3%, while International Local revenues fell 18.2% year over year.
Consolidated Travel revenues of $5.5 million missed the consensus mark by 24.9% and decreased 29.7% year over year. North America Travel revenues fell 30.8% year over year. International Travel revenues declined 26.9% in the reported quarter.
On a consolidated basis, Goods revenues of $5.1 million missed the consensus mark by 6.5% and declined 40.5% year over year. North America Goods revenues declined 41.6%, while International Goods revenues fell 38.5%, excluding the foreign exchange effect, on a year-over-year basis.
Customer Metrics
At the end of the second quarter, Groupon had approximately 15.8 million active customers compared with 17.5 million at the end of the year-ago quarter. The metric beat the Zacks Consensus Estimate by 5.1%.
At the end of the second quarter, the company had approximately 10.2 million active customers based in North America, beating the consensus mark by 9.7%, and 5.6 million active international customers, missing the consensus mark by 2.3%.
Operating Details
In the second quarter, gross profit was $112.7 million, down 0.3% year over year.
Selling, general and administrative expenses fell 19.8% year over year to $77.2 million in the reported quarter. Marketing expenses rose 64% to $36.5 million.
The company reported a GAAP operating income of $4.4 million against a loss of $4.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $178.1 million, up from $158.7 million as of Mar 31, 2024.
In the second quarter, the operating cash inflow was $15.3 million against the operating cash outflow of $10.1 million in the prior quarter.
Groupon reported a free cash flow of $10.8 million against $13.8 million of free cash outflow reported in the previous quarter.
Guidance
For the third quarter of 2024, the company expects revenues in the band of $114-$120 million, indicating a 10-5% year-over-year decline. The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $132.58 million, indicating a 4.8% year-over-year growth.
Adjusted EBITDA is expected to be between $6 million and $11 million.
Groupon expects a free cash outflow for the third quarter.
For 2024, the company expects revenues between $495 million and $515 million, indicating a year-over-year change in the band of (4%)-0%.
Adjusted EBITDA is expected to be between $65 million and $80 million.
Groupon expects a positive free cash flow for 2024.
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Groupon (GRPN) Reports Loss in Q2, Revenues Decrease Y/Y
Groupon (GRPN - Free Report) reported a non-GAAP loss of 2 cents per share in the second quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 1 cent per share. The company reported a non-GAAP loss of 10 cents per share in the year-ago quarter.
Revenues of $124.6 million beat the consensus estimate by 2.4%. The figure decreased 3.5% on a year-over-year basis (down 3.4%, excluding the foreign exchange effect).
Region-wise, North America revenues of $98.4 million beat the consensus mark by 7.4% and rose 2.6% year over year. International revenues of $26.3 million missed the consensus mark by 13.5% and fell 21.1% year over year (down 20.8%, 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 $114.1 million beat the Zacks Consensus Estimate by 6.9% and rose 1.1% year over year (1.2% excluding the foreign exchange effect). North America Local revenues increased 7.3%, while International Local revenues fell 18.2% year over year.
Consolidated Travel revenues of $5.5 million missed the consensus mark by 24.9% and decreased 29.7% year over year. North America Travel revenues fell 30.8% year over year. International Travel revenues declined 26.9% in the reported quarter.
On a consolidated basis, Goods revenues of $5.1 million missed the consensus mark by 6.5% and declined 40.5% year over year. North America Goods revenues declined 41.6%, while International Goods revenues fell 38.5%, excluding the foreign exchange effect, on a year-over-year basis.
Customer Metrics
At the end of the second quarter, Groupon had approximately 15.8 million active customers compared with 17.5 million at the end of the year-ago quarter. The metric beat the Zacks Consensus Estimate by 5.1%.
At the end of the second quarter, the company had approximately 10.2 million active customers based in North America, beating the consensus mark by 9.7%, and 5.6 million active international customers, missing the consensus mark by 2.3%.
Operating Details
In the second quarter, gross profit was $112.7 million, down 0.3% year over year.
Selling, general and administrative expenses fell 19.8% year over year to $77.2 million in the reported quarter. Marketing expenses rose 64% to $36.5 million.
The company reported a GAAP operating income of $4.4 million against a loss of $4.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
Groupon exited the quarter with cash and cash equivalents of $178.1 million, up from $158.7 million as of Mar 31, 2024.
In the second quarter, the operating cash inflow was $15.3 million against the operating cash outflow of $10.1 million in the prior quarter.
Groupon reported a free cash flow of $10.8 million against $13.8 million of free cash outflow reported in the previous quarter.
Guidance
For the third quarter of 2024, the company expects revenues in the band of $114-$120 million, indicating a 10-5% year-over-year decline. The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $132.58 million, indicating a 4.8% year-over-year growth.
Adjusted EBITDA is expected to be between $6 million and $11 million.
Groupon expects a free cash outflow for the third quarter.
For 2024, the company expects revenues between $495 million and $515 million, indicating a year-over-year change in the band of (4%)-0%.
Adjusted EBITDA is expected to be between $65 million and $80 million.
Groupon expects a positive free cash flow for 2024.
Zacks Rank & Other Stocks to Consider
Groupon currently carries a Zacks Rank #4 (Sell).
Investors interested in the broader retail-wholesale sector can consider some better-ranked stocks like The Gap (GPS - Free Report) , Amazon (AMZN - Free Report) and Best Buy (BBY - Free Report) . While The Gap sports a Zacks Rank #1 (Strong Buy), Amazon and Best Buy carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap has gained 11.2% in the year-to-date period. The long-term earnings growth rate for GPS is currently estimated at 3.38%.
Shares of Amazon have gained 19.6% in the year-to-date period. The long-term earnings growth rate for AMZN is currently projected at 29.60%.
Best Buy has gained 11.5% in the year-to-date period. The long-term earnings growth rate for BBY is currently anticipated at 5.07%.