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Groupon, Inc. (GRPN)

  • Tue, Feb. 17, 2:52 PM
    • Groupon (NASDAQ:GRPN) finished Friday up 6.8% as analysts came in with largely positive notes on its Q4 results, and shares are moving again today (+1.5%) as Barrington reiterates its Outperform rating.
    • Jeff Houston says Groupon is increasingly fulfilling demand rather than just generating it, and says he's "cautiously optimistic" on the firm shifting focus to non-email from email and increasing the profitability of its goods business.
    • He estimates Groupon will post Q1 revenues of $805.4M (slightly below newly lower analyst consensus of $824.8M) and earn $0.01/share.
    • Barrington has a $9 price target; GRPN is trading at $8.09.
  • Fri, Feb. 13, 11:49 AM
    • Groupon (NASDAQ:GRPN) stock swung from negative to postive and back again in post-session trading Thursday following its Q4 earnings beat, but shares are sharply higher today, +8.2%, as analysts come in with positive reviews.
    • B. Riley reiterated its Buy rating and target the stock price at $9.50.
    • RBC Capital maintains its Sector Perform rating, but boosts its own price target to $8 from $7.
    • Meanwhile, Brean sees a "wonderful buying opportunity," somewhat dependent on the sale of South Korean unit Ticket Monster, and an $11 price target.
    • Groupon is trading currently at $8.07.
    • Previously: Groupon Q4 in detail: Revenues keep shifting to goods (Feb. 12 2015)
  • Thu, Feb. 12, 5:17 PM
    • In its Q4 report, Groupon (NASDAQ:GRPN) notes global units (vouchers and products sold before cancellations/refunds) rose 81% Y/Y to 101M (up 11% in North America, 20% in EMEA and 340% in Rest of World, thanks to Ticket Monster). Active deals at year's end were about 370K globally (135K in NA), up from Q3's 300K.
    • Active customers up 23% to 53.9M (24.1M in NA, 15.2M in EMEA, 14.6M in Rest of World).
    • Billings per avg. active customer: $155, up sequentially from $149.
    • Segment info: Gross billings of $2.1B comprised $984.6M in North America; $560.5M in EMEA; $574.8M in Rest of World. Revenue breakouts: North America, $551M; EMEA, $272.5M; Rest of World, $101M.
    • Shift away from deals toward e-commerce continues: Local revenues were $302.5M (down 5%). Goods revenues were $581M (up 40%). Travel revenue of $41.9M (up 15.7%).
    • Eric Lefkofsky is delivering remarks now on the company conference call; shares currently -2.6% after hours.
  • Thu, Feb. 12, 4:24 PM
    • In a Q4 report that beat expectations, Groupon (NASDAQ:GRPN) notes gross billings were up 31% worldwide to $2.1B in Q4.
    • Adjusted EBITDA for Q4 was $87M, a bit shy of expecations of $91.8M. Gross profit was offset somewhat by investment related to acquisitions (Ticket Monster in Q1, and ideel).
    • The company guided to Q1 revenue of $790M-840M, short of expectations for $855.5M, and adjusted EBITDA of $45M-60M vs. an expected $77M. Groupon says Q1 non-GAAP EPS should be between $0.00 and $0.02, vs. consensus of $0.02.
    • Free cash flow was $266M, bringing trailing twelve-month free cash flow to $200.5M. Groupon has $1.1B in cash and equivalents.
    • Foreign exchange concerns hit the firm as it says excluding FX, revenue would have increased 25% rather than 20%; and gross billings would have increased 36% rather than 31% (North America up 20%, EMEA up 8% and Rest of World up 154%).
    • Volatile after hours, GRPN currently +0.5%.
    • Press release; conference call at 5 p.m. ET
    • Previously: WSJ: Groupon in talks to sell TMON stake at ~$1B valuation (Feb. 05 2015)
  • Thu, Feb. 12, 4:08 PM
    • Groupon (NASDAQ:GRPN): Q4 EPS of $0.06 beats by $0.03.
    • Revenue of $925.4M (+20.4% Y/Y) beats by $17.02M.
    • Shares -5%.
    • Press Release
  • Wed, Feb. 11, 5:35 PM
  • Wed, Feb. 11, 11:54 AM
    • Groupon (NASDAQ:GRPN) is up 2.3% and rising ahead of tomorrow's Q4 earnings release.
    • Eyes will be on the company's 2015 outlook, after peer couponers RetailMeNot and traded off by guiding lower. U.S. billings and mobile spending should be keys.
    • Expectations are for a non-GAAP EPS of $0.03, on revenues of $908.6M -- which would be up 20% sequentially.
    • Deutsche Bank maintains a Buy rating and set a price target of $8, while on Monday Brean set a target of $11, and on Friday B. Riley set their target at $9.50. Shares currently trade at $7.59.
    • Previously: RetailMeNot sharply lower early on light guidance (Feb. 10 2015)
    • Previously: plunges after revenue miss, low guidance (Feb. 09 2015)
  • Thu, Feb. 5, 11:14 AM
    • Groupon (GRPN +2%) is talking with P-E firms and South Korean conglomerates about selling a majority stake in its Ticket Monster (TMON) Korean deals platform for a valuation of around $1B, the WSJ reports. A deal could be closed by the end of March.
    • KKR and Samsung offshoot CJ Group are reportedly among the interested parties. With Groupon having struck a deal to buy Ticket Monster from LivingSocial for just $260M in late 2013, the company could be staring at a ~4x return on part of its investment. For reference, Groupon currently has a $5.1B market cap. Ticket Mosnter's 2014 GMV totaled $1.6B.
    • Groupon is rallying following the scoop, which comes ahead of the company's Feb. 12 Q4 report. A Korean site reported of P-E interest in Ticket Monster last month.
  • Thu, Jan. 15, 9:28 AM
    • Evercore's Ken Sena has upgraded Groupon (NASDAQ:GRPN) and YELP to Hold, and respectively set targets of $8 and $60.
    • Regarding Groupon (downgraded on Oct. 10, when shares were at $6.38), Sena sees positive trends going into the company's Feb. 12 Q4 report. "Specifically, minutes-per-user has inflected positive for the third consecutive quarter, reflecting a combination of product enhancements and seller initiatives. Factoring this engagement improvement, coupled with expected proceeds from a partial [Ticket Monster] sale, lead us to step to the sidelines on shares."
    • Sena's Yelp upgrade is partly a valuation call: Shares have fallen 10% below his $60 target. In addition, the company is seeing improving unique visitor growth (a recent concern), ad loads are showing "some signs of increase," and Evercore's survey work points to "continued seller reliance" on Yelp's platform.
    • Nonetheless, he maintains "some concerns with the business as seller commentary remained negative for 18 of the 43 business owners surveyed, reflecting concerns around review handling and ROI." New competitive efforts from Google, Facebook, and Groupon are also a concern.
    • YELP +1.9% premarket. GRPN +0.5%. In spite of recent market choppiness, Groupon remains up 24% from where it traded going into its Q3 report.
    | Comment!
  • Fri, Jan. 9, 12:43 PM
    • Groupon (NASDAQ:GRPN) will report Q4 results on Feb. 12.
    • The conference call is scheduled to begin at 5.00 p.m. ET.
    • Consensus view is revenues of $910.23M.
    | Comment!
  • Tue, Jan. 6, 2:18 PM
    • "Private equity firms both at home and abroad participated in the preliminary bidding" for the sale of a stake in Groupon's (GRPN -0.3%) Ticket Monster Korean deals site, BusinessKorea reports. A "preferred bidder" will reportedly be selected in a month, and a deal finalized within two months.
    • The site adds a 20%-51% stake is expected to be sold, and that Groupon will remain the largest shareholder. Ticket Monster rival Wemakeprice has officially expressed interest in buying a stake.
    • Groupon rallied two weeks ago on a report that Goldman is thinking of buying a stake in Ticket Monster, which Groupon has been seeking a partner for. Shares are near breakeven today in spite of a 1.5% Nasdaq drop.
    | Comment!
  • Dec. 26, 2014, 12:49 PM
    • The Korea Times reports Goldman is thinking of taking a stake in Groupon's (NASDAQ:GRPN) Korean Ticket Monster deals site, acquired from Living Social a year ago for $260M. The paper adds Groupon "wants to sell at least a 20 percent stake and is also considering handing over managerial control, selling over half of its stake."
    • Groupon stated in October it's exploring options for its Asian ops (Ticket Monster included), and that it could benefit from having a partner in some markets. However, the company added it's not looking to fully unload Ticket Monster.
    • CEO Eric Lefkofsky on the Q3 CC (transcript): "Right now, we’re in 47 countries and we can’t invest in every country at the level that we would like to at all time ... [Ticket Monster] is growing faster than we thought. [It's] certainly growing faster than it was when we acquired it ... it has the potential to be the leader in e-commerce in Korea and we’re very focused on the long-term."
    • Shares at their highest levels since March.
    | 1 Comment
  • Dec. 18, 2014, 12:37 PM
    • Groupon (NASDAQ:GRPN) is among the tech sector's top performers on a day the Nasdaq is up 1.5%. 21.3M shares (well above a 3-month daily average of 15.9M) have already changed hands.
    • The gains come a day after Leon Cooperman declared on CNBC Groupon is worth 40%-50% more than what it's trading for. 89.3M shares (21% of the float) were shorted as of Nov. 28.
    | Comment!
  • Dec. 17, 2014, 1:12 PM
    • Omega Advisors' Leon Cooperman just gave Groupon (GRPN +3.5%) a favorable mention on CNBC. Though stating the daily deals/e-commerce firm isn't a major holding, he nonetheless declared shares to be significantly undervalued.
    • Shares have popped in response. They had given back some of their big post-earnings gains in recent weeks.
    | Comment!
  • Dec. 2, 2014, 9:21 AM
    • From Black Friday through Cyber Monday, Groupon's (NASDAQ:GRPN) North American sales were up over 25% Y/Y. The company adds Black Friday and Cyber Monday "were the two biggest days in Groupon's North American history."
    • Promos for electronics and retail coupons contributed to the growth. For reference, Groupon's North American billings were up 16.4% Y/Y in Q3.
    • Yesterday: BofA/Merrill upgrades Groupon
    | Comment!
  • Dec. 1, 2014, 9:25 AM
    • Believing the company's "downward estimate revision cycle could be ending," BofA/Merrill's Paul Bieber has upgraded Groupon (NASDAQ:GRPN) to Buy, and hiked his target by $1.50 to $9.50.
    • Bieber touts Groupon's large customer base (it had 52.7M active customers in Q3), believes e-mail traffic pressures (caused in part by Google's addition of a Promotions tab to Gmail) are diminishing, and argues recent numbers point to stabilizing spending within cohort groups.
    • He also thinks Ticket Monster, for whom Groupon is seeking local partners, has seen its value grow in recent quarters.
    • Shares now +32% since Groupon's Oct. 30 Q3 report.
    | Comment!
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Company Description
Groupon Inc provides a local e-commerce marketplace that connects merchants to consumers by offering goods and services at discount. The Company features a daily deal on stuff to do, see, eat, and buy.