Groupon (NASDAQ:GRPN) shares surged by over 9% at the opening bell today after the internet marketplace provided a key business update following a strong holiday season. The company expects its fourth-quarter revenue and adjusted EBITDA to be close to or above the upper end of its outlook. Further, Groupon expects to be free cash flow positive in Q4.
The company ended 2023 with a cash pile of $141 million and nearly $26 million in restricted cash. During the quarter, it lowered its debt by $3.9 million and raised $18.9 million from selling its stake in SumUp.
Groupon continues to expect top-line growth of between -5% and 0% for 2024. It anticipates $80 million to $100 million in adjusted EBITDA for the year. However, the company anticipates negative free cash flow in Q1 due to seasonality in accrued merchant payables. Groupon is slated to report its fourth-quarter results on February 14. Analysts expect the company to generate an EPS of $0.01 on revenue of $134.1 million for the quarter.
Is Groupon Stock a Good Buy Now?
Overall, the Street has a Hold consensus rating on Groupon. Following an impressive 56% jump in the company’s share price over the past year, the average GRPN price target of $13.63 indicates the stock may be hovering at fair valuation levels at present.
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