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Groupon Inc (GRPN)
NASDAQ:GRPN
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Groupon
(NASDAQ:GRPN)
52Neutral
Groupon (GRPN) vs. S&P 500 (SPY)
Market Cap
$756.41M
Dividend YieldN/A
Average Volume (3M)2.06M
Price to Earnings (P/E)35.5
Beta (1Y)1.94
Revenue Growth-4.34%
EPS Growth20.50%
CountryUS
Employees2,079
SectorCommunication Services
Sector Strength74
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-1.47
Shares Outstanding39,810,936
10 Day Avg. Volume1,521,586
30 Day Avg. Volume2,060,546
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.38
Price to Cash Flow (P/CF)2.50
P/FCF Ratio2.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.00Price Target Upside0.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Groupon Business Overview & Revenue Model
Company DescriptionGroupon, Inc. is an American worldwide e-commerce marketplace connecting subscribers with local merchants by offering activities, travel, goods, and services in more than 15 countries. The company operates in the sectors of online retail and local commerce, providing a platform for merchants to offer discounts and deals to consumers. Groupon's core products include daily deals and promotions on a variety of local services, activities, and goods, accessible through its website and mobile application.
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 faces financial difficulties with declining revenues and high leverage. Despite improvements in cash flow and EBITDA margins, the company struggles with consistent losses and negative equity.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.45
Neutral
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
Negative
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.50
Neutral
| 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
18.96
Price Trends
14.64
Positive
12.83
Positive
12.53
Positive
Market Momentum
1.16
Positive
68.86
Neutral
78.90
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 18.96 is above the 20-day moving average (MA) of 18.09, above the 50-day MA of 14.64, and above the 200-day MA of 12.53, indicating a bullish trend. The MACD of 1.16 indicates Positive momentum. The RSI at 68.86 is Neutral, neither overbought nor oversold. The STOCH value of 78.90 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $751.27M | 25.14 | 29.75% | ― | 73.72% | ― | |
69 Neutral | $533.62M | 15.17 | 6.87% | 8.04% | 6.94% | -66.92% | |
60 Neutral | $597.52M | 40.17 | 5.15% | ― | 8.80% | -91.33% | |
59 Neutral | $13.83B | 7.37 | -0.59% | 3.89% | 2.56% | -39.63% | |
58 Neutral | $626.91M | 17.03 | 3.42% | ― | -17.69% | ― | |
52 Neutral | $756.41M | 35.54 | -9999.00% | ― | -4.34% | 20.50% | |
45 Neutral | $567.86M | ― | -19.38% | ― | 13.27% | 34.93% |
* Communication Services Sector Average
Performance Comparison
GRPN
Groupon
18.96
9.25
95.26%
ANGI
Angi
11.43
-9.07
-44.24%
SSTK
Shutterstock
14.98
-24.19
-61.76%
EVER
EverQuote
21.89
3.77
20.81%
SEAT
Vivid Seats
2.42
-3.44
-58.70%
KIND
Nextdoor Holdings
1.48
-0.47
-24.10%
Groupon Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: 94.06% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
Groupon has made significant strides in growth and transformation with positive financial outcomes and platform improvements. However, technical challenges and a slow start to Q1 present some concerns. The highlights outweigh the lowlights, indicating a positive trajectory.Highlights
North America Local Billings Growth
North America Local achieved a positive 8% billings growth in Q4, a significant turnaround from a 19% decline in 2022.
Financial Strength Improvement
Groupon generated $69 million in adjusted EBITDA and $41 million in free cash flow for the full year, marking the first positive free cash flow since exiting the pandemic.
Platform Modernization Success
Major migrations completed, including fraud detection platform, North America cloud infrastructure, new website, and ERP system, enhancing innovation and user experience.
International Market Growth
International Local, excluding Italy, grew billings by 2% with positive momentum in major markets like Spain, UK, France, and Germany.
Double-Digit Growth in Key Verticals
Significant growth observed in key verticals such as Things to Do, enterprise brands, gifting, and seasonal offerings.
Improved Cash Position
Cash position improved to $229 million, providing a strong foundation for future growth initiatives.
Lowlights
Technical Migration Challenges
Q3 was impacted by technical migrations, affecting platform performance and causing challenges in operations.
Slow Start to Q1
Q1 outlook suggests a slight negative trend in billings, with lower take rates impacting revenue.
Lack of Specificity in Gifting Growth
Gifting saw improvement, but specific growth metrics were not disclosed, indicating it is still a work in progress.
Company Guidance
During the call, Groupon provided key metrics and guidance for 2025, emphasizing the company's recent progress and future strategies. In 2024, Groupon achieved $69 million in adjusted EBITDA and $41 million in free cash flow, marking its first positive free cash flow since the pandemic. North America Local experienced 8% billings growth in Q4, a significant turnaround from a 19% decline in 2022. International Local, excluding Italy, saw a 2% increase in billings, with positive momentum in major markets. Looking ahead, Groupon aims to sustain growth in 2025 by focusing on high-impact categories such as Things to Do, beauty and wellness, and gifting. The company plans to enhance customer retention through improved personalization and support merchant success with better tools. Groupon also reported a stronger cash position of $229 million, positioning it well for future 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.