GRPN Earnings Prediction
The chart below shows how GRPN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GRPN sees a +8.28% change in stock price 10 days leading up to the earnings, and a +2.21% change 10 days following the report. On the earnings day itself, the stock moves by -4.04%. This data can give you a slight idea of what to expect for the next quarter's release.
GRPN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
114.48M
-9.48%
-8.13%
Gross Margin
89.88%
2.71%
-0.59%
Operating Margin
-4.10%
-394.96%
382.35%
Net Margin
12.69%
139.34%
-268.08%
EPS
0.31
123.66%
-224.00%
No Data Available
GRPN Earnings Analysis
Groupon, Inc.Common Stock Corporation (GRPN.O) Earnings Conference Call
Positive
Consistent Positive EBITDA: 1. Positive Adjusted EBITDA: Groupon achieved a positive adjusted EBITDA of $15 million for Q3 2024, marking the sixth consecutive quarter of positive adjusted EBITDA, with a trailing twelve months adjusted EBITDA of $78 million.
Revenue Percentage Improvement: 2. Stable Revenue Percentage: Revenue as a percentage of gross billings increased to 31%, reflecting a 0.5% year-over-year improvement, indicating effective management of revenue generation relative to billings.
North America Customer Growth: 3. Customer Growth in North America: Excluding goods, North America active customer counts grew year-over-year for the second consecutive quarter, demonstrating the effectiveness of new customer acquisition strategies.
Effective Cost Reduction: 4. Cost Management Success: SG&A expenses decreased by 10.9% year-over-year to $71 million, driven by lower cloud costs and a slower ramp in sales hiring, showcasing effective cost management efforts.
Positive Free Cash Flow: 5. Improved Free Cash Flow: Groupon reported a trailing twelve-month free cash flow of $28 million, marking the second consecutive quarter of positive free cash flow after a prolonged period of negative cash outflow.
Negative
Revenue Decline Analysis: 1. Decline in Revenue: Groupon reported a revenue of $114 million for Q3 2024, a decrease of 9.5% year-over-year, landing at the low end of their guidance.
Global Billings Decline: 2. Drop in Global Billings: Global billings fell to $373 million, representing a decline of approximately 10.9% year-over-year.
Cash Flow Challenges: 3. Negative Cash Flow: The company experienced negative operating cash flow of $16 million and free cash flow of $20 million in Q3 2024, indicating ongoing cash flow challenges.
Customer Count Decline: 4. Customer Count Decrease: Active customer count worldwide decreased by 0.3 million from the prior quarter, reflecting a stagnation in customer growth.
Travel and Goods Decline: 5. Significant Decline in Travel and Goods Categories: Travel billings dropped by 21.9% year-over-year, while Goods billings saw a steep decline of 29.6%, indicating struggles in these segments.
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GRPN Earning Call Sentiment
Groupon, Inc. (GRPN) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
GRPN.O
-4.62%Positive
The earnings call presents mixed signals: while there are positive aspects such as consistent positive adjusted EBITDA and efforts in transformation, there are also negative elements like declining revenue and billings, negative cash flow, and uncertainties in legacy retention and international upgrades. The Q&A did not reveal strong positive catalysts or severe risks. The new secured debt and asset sales are neutral in impact. Overall, the stock is likely to remain stable in the short term, leading to a neutral prediction.
