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Groupon Inc (GRPN)
NASDAQ:GRPN
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Groupon
(NASDAQ:GRPN)
57Neutral
Groupon (GRPN) vs. S&P 500 (SPY)
Market Cap
$673.27M
Dividend YieldN/A
Average Volume (3M)1.66M
Price to Earnings (P/E)35.5
Beta (1Y)1.81
Revenue Growth-5.76%
EPS Growth21.27%
CountryUS
Employees2,079
SectorCommunication Services
Sector Strength85
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.17
Shares Outstanding39,791,553
10 Day Avg. Volume1,893,016
30 Day Avg. Volume1,655,902
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.75
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit1.13
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.67Price Target Upside-10.49% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Groupon Business Overview & Revenue Model
Company DescriptionGroupon, Inc., together with its subsidiaries, operates a marketplace that connects consumers to merchants. It operates in two segments, North America and International. The company sells goods or services on behalf of third-party merchants; and first-party goods inventory. It serves customers through its mobile applications and websites. The company was formerly known as ThePoint.com, Inc. and changed its name to Groupon, Inc. in October 2008. Groupon, Inc. was incorporated in 2008 and is headquartered in Chicago, Illinois.
How the Company Makes MoneyGroupon makes money primarily through the sale of vouchers and deals that offer discounts on local services, goods, and travel. The company generates revenue by taking a commission on each deal sold, which is a percentage of the price paid by the consumer. Additionally, Groupon earns money through its Goods segment, where it sells merchandise directly to consumers, and the Travel segment, offering discounted travel packages and hotel stays. Key revenue streams include local deals, Groupon Goods, and Groupon Getaways. Partnerships with local businesses, as well as marketing and promotional strategies to attract both merchants and consumers to its platform, significantly contribute to its earnings.
Groupon Financial Statement Overview
Summary
Groupon's financial performance is under pressure due to declining revenues and consistent net losses. The balance sheet shows high leverage and equity erosion, presenting significant risks. However, operational improvements in cash flow and EBITDA margins provide some optimism.Income Statement
Groupon's income statement shows a declining revenue trend, with a significant drop from $2.2 billion in 2019 to $492.6 million in 2024. Gross profit margin remained relatively stable, but the net profit margin is negative due to consecutive net losses. Revenue growth has been negative for several years, indicating a struggle to sustain top-line growth. EBITDA margin improvement in 2024 is a positive sign, albeit from a low base.―
Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio that has increased due to declining equity, turning negative in 2023. The equity ratio is weak, reflecting financial instability. Despite some reduction in total debt, equity erosion poses a significant risk. The return on equity is negative, largely due to consistent net losses.30
Cash Flow
Cash flow analysis shows an improvement in operating cash flow from negative to positive in 2024. Free cash flow has also turned positive, indicating better cash management. However, the historical volatility in free cash flow and operating cash flow to net income ratio suggests a need for sustained cash generation capability.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 492.56M | 514.91M | 599.09M | 967.11M | 1.42B | Gross Profit |
| 444.31M | 450.66M | 522.82M | 737.12M | 677.29M | EBIT |
| 8.79M | -18.25M | -47.75M | 79.14M | 116.25M | EBITDA |
| 9.04M | 23.51M | -114.93M | 178.05M | -173.35M | Net Income Common Stockholders |
| -59.03M | -55.41M | -234.38M | 118.67M | -286.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 228.84M | 141.56M | 281.28M | 498.73M | 850.59M | Total Assets |
| 612.69M | 570.96M | 793.12M | 1.16B | 1.41B | Total Debt |
| 252.93M | 278.75M | 309.23M | 382.15M | 520.42M | Net Debt |
| 24.09M | 137.19M | 27.95M | -116.58M | -330.17M | Total Liabilities |
| 571.64M | 611.27M | 784.26M | 947.59M | 1.30B | Stockholders Equity |
| 40.81M | -40.63M | 8.47M | 209.87M | 107.67M |
| Cash Flow | Free Cash Flow | |||
| 40.56M | -99.80M | -174.83M | -176.72M | -116.55M | Operating Cash Flow |
| 55.89M | -77.98M | -135.99M | -123.96M | -63.60M | Investing Cash Flow |
| -6.81M | -1.40M | -38.84M | -45.81M | -20.12M | Financing Cash Flow |
| 47.79M | -35.69M | -34.41M | -183.85M | 176.80M |
Groupon Technical Analysis
Positive
24.21
Price Trends
16.56
Positive
14.06
Positive
12.74
Positive
Market Momentum
0.62
Negative
75.95
Negative
44.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRPN, the sentiment is Positive. The current price of 24.21 is above the 20-day moving average (MA) of 18.69, above the 50-day MA of 16.56, and above the 200-day MA of 12.74, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 75.95 is Negative, neither overbought nor oversold. The STOCH value of 44.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRPN.
Groupon Risk Analysis
Groupon disclosed 45 risk factors in its most recent earnings report. Groupon reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Groupon Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $838.11M | 22.57 | 32.17% | ― | 113.43% | ― | |
67 Neutral | $618.35M | 16.14 | 7.07% | 7.09% | 10.30% | -57.87% | |
65 Neutral | $539.44M | 15.81 | 5.05% | ― | -16.79% | ― | |
60 Neutral | $13.41B | 7.23 | -2.74% | 3.81% | 2.12% | -37.24% | |
59 Neutral | $359.76M | 25.25 | -1.00% | ― | 0.82% | -102.72% | |
57 Neutral | $673.27M | 35.54 | -90.27% | ― | -5.76% | 21.27% | |
44 Neutral | $575.13M | ― | -18.77% | ― | 12.01% | 35.71% |
* Communication Services Sector Average
Performance Comparison
GRPN
Groupon
24.21
11.24
86.66%
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14.98
-9.32
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Shutterstock
18.62
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-52.16%
EVER
EverQuote
23.13
0.33
1.45%
SEAT
Vivid Seats
1.83
-3.67
-66.73%
KIND
Nextdoor Holdings
1.41
-0.84
-37.33%
Groupon Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 42.58%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong start to the year with exceeded guidance and significant growth in billings, especially in North America and international markets like Spain. Leadership changes and raised guidance demonstrate confidence, but challenges remain with revenue lagging due to strategic take rate adjustments and slow progress in app conversion.Q1-2025 Updates
Positive Updates
Exceeding Guidance and Growth in Billings
Q1 results exceeded guidance on billings and adjusted EBITDA, with global billings growing 1.4% year-over-year. North America Local billings accelerated to 11% year-over-year growth, the first double-digit growth since 2017, excluding the pandemic recovery period.
Strong Performance in North America Local
Top 10 cities in North America saw double-digit growth in billings. The Things to Do segment grew billings double digits for the 5th straight quarter, significantly outpacing current industry trends.
Impressive International Growth
International local business (excluding Italy) showed a 5% year-over-year billings growth. Spain led the international markets with strong double-digit growth, showcasing the success of the transformation strategy.
Strategic Leadership and Team Strengthening
Key appointments were made with Josef Buryan as Chief Marketing Officer, Ales Drabek as Chief Technology Officer, Barbara Weisz as Chief Revenue Officer, Filip Popovic as Chief Commercial Officer, and Marie Havlickova as Chief Product Officer.
Raised Guidance for Core Business
Despite the sale of the Giftcloud subsidiary, which removed $6 million in revenue and $4 million in adjusted EBITDA, the company raised its guidance for the core business, demonstrating confidence in their operations.
Negative Updates
Revenue Lagging Due to Take Rate Compression
Progress in revenue is lagging billings due to the deliberate compression of take rates in North America Local, a consequence of focusing on building a sustainable foundation for long-term growth.
Challenges in Mobile Application Conversion
Slow progress in transitioning to the MobileNext application, with some legacy customers struggling with the new interface.
Company Guidance
During the call, Groupon provided guidance indicating a positive outlook for 2025, with billings and adjusted EBITDA exceeding expectations in the first quarter. The company reported a year-over-year global billings growth of 1.4%, driven by an 11% increase in North America Local billings. Additionally, the Things to Do vertical experienced double-digit growth for the fifth consecutive quarter. Internationally, excluding Italy, billings grew by approximately 5%. Despite a compression in take rates affecting revenue growth, Groupon raised its full-year billings growth guidance from 2%-4% to 3%-5%, while maintaining revenue and adjusted EBITDA guidance, even after the $6 million revenue and $4 million adjusted EBITDA impact from the sale of Giftcloud. The leadership team has been strengthened with key appointments, and the company is committed to a strategy focused on marketplace health, platform modernization, and financial strength, positioning itself for long-term sustainable growth.Groupon Corporate Events
Business Operations and Strategy
Groupon CEO to Discuss Strategy at Fireside Chat
Positive
Dec 10, 2024
Groupon, Inc. is set to participate in the Northland Capital Markets Fireside Chat, where CEO Dusan Senkypl will discuss the company’s recent performance and future strategy. Despite facing risks such as global economic uncertainties and competition, Groupon remains focused on empowering customers with unique experiences at unbeatable value. With a presence in 14 countries and partnerships with over 50,000 merchants, Groupon aims for significant growth in billings, leveraging new revenue streams and geographic expansion.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.