Why Groupon Can Soar Like Priceline.com
Kevin Kuo • 66 Comments
Kevin Kuo • 66 Comments
Thu, Feb. 11, 5:35 PM
Thu, Feb. 11, 4:14 PM
- Groupon (NASDAQ:GRPN): Q4 EPS of $0.04 beats by $0.04.
- Revenue of $917.2M (-0.9% Y/Y, +4% if adjusted for the TMON divestiture) beats by $71.3M.
- Continues to expect 2016 revenue of $2.75B-$3.05B vs. a $2.97B consensus. 2016 adjusted EBITDA guidance hiked to $80M-$130M.
- Shares +20.5% after hours.
- Press Release
Wed, Feb. 10, 5:35 PM
Fri, Feb. 5, 12:43 PM
- On a day the Nasdaq is down 2.4%, Internet stocks are seeing outsized losses after LinkedIn (down 41.3%) issued weak Q1/2016 guidance with its Q4 beat.
- The professional social networking leader forecast its corporate hiring solutions business would see slower growth in 2016 (international macro issues were blamed). It also noted display ad sales fell by a high-30s % Y/Y in Q4 amid ongoing secular industry pressures, and reported just 7% Y/Y unique visitor member growth.
- Facebook (FB -5.5%), which soared last week after blowing away Q4 estimates on the back of 57% Y/Y ad revenue growth, is among the casualties. As is Amazon (AMZN -4.9%), which sold off last week after missing Q4 estimates and issuing in-line Q1 sales guidance, is also down sharply. As is Twitter (TWTR -5.3%), which reports in five days and continues trading near post-IPO lows amid growth/engagement concerns.
- Other decliners include Yelp (YELP -7.9%), TripAdvisor (TRIP -6.3%), Expedia (EXPE -6%), LendingClub (LC -8.3%), Wix.com (WIX -6.8%), Wayfair (W -7.6%), Groupon (GRPN -4.9%), Shopify (SHOP -6.3%), and Zillow (Z -6%), as well as ad tech firms Criteo (CRTO -8.9%) and TubeMogul (TUBE -7.6%). The aforementioned companies are generally expected to post Q4 results in the coming weeks.
- Earlier: Enterprise software and security stocks hammered after Tableau/LinkedIn's earnings
Mon, Jan. 25, 5:41 PM
Wed, Jan. 20, 1:18 PM
- Like clockwork, high-beta tech stocks continue selling off at a feverish pace as markets nosedive. Today's selloff comes with the Nasdaq down 2.7%, and the S&P 3%. Margin calls are likely a contributing factor.
- Solar stocks, which sold off yesterday even as major indices moved little, are underperforming again as energy stocks get routed once more and oil drops below $27/barrel. Hard-luck SunEdison (SUNE -13.6%) is now close to $2. Also tumbling: Canadian Solar (CSIQ -8.8%), ReneSola (SOL -8.2%), and Yingli (YGE -6.9%).
- Security tech plays FireEye (FEYE -9.3%), Palo Alto Networks (PANW -6.1%), Rapid7 (RPD -11.6%), and Vasco (VDSI -10.5%) aren't faring better - peers Fortinet and Barrcauda were downgraded this morning. Nor are Splunk (SPLK -7.7%) and Tableau (DATA -7.2%), two firms often hyped as big data/analytics plays, or Russian tech firms Yandex (YNDX -6.6%) and Qiwi (QIWI -6.9%), which often sell off when oil prices and the ruble are under pressure.
- Elsewhere in tech, big decliners include Zillow (Z -7.1%), Square (SQ -6.7%), Fitbit (FIT -6.6%), Groupon (GRPN -6.9%), TrueCar (TRUE -7.7%), Pure Storage (PSTG -7.8%), Jive Software (JIVE -7.4%), Shopify (SHOP -7.2%), Ruckus Wireless (RKUS -8%), Renren (RENN -6.8%), Infinera (INFN -6.1%), TripAdvisor (TRIP -6.5%), Ellie Mae (ELLI -6.7%), and Knowles (KN -6.2%).
- Also off sharply: Several large-cap tech stocks, TowerJazz, Synaptics, Adtran
Fri, Jan. 15, 2:53 PM
- In Wall Street's latest bloodletting, the Nasdaq is down 3.1% and the S&P 2.4%. The decline comes amid tumbling energy prices (crude is below $30/barrel), soft macro data, and disappointing earnings reports from the likes of Intel and Citigroup.
- Tech companies seeing outsized losses amid the carnage include chipmakers NXP (NXPI -8.1%), Qorvo (QRVO -8.9%), InvenSense (INVN -3.7%), IDT (IDTI -6.4%), Sigma Designs (SIGM -6.5%), and Knowles (KN -6.6%), as well as solar plays Trina (TSL -9.3%), ReneSola (SOL -11.5%), JinkoSolar (JKS -10.7%), Enphase (ENPH -8.5%), and Canadian Solar (CSIQ -8.4%).
- Also off sharply: Action camera leader GoPro (GPRO -8.7%), 3D printer maker 3D Systems (DDD -7.5%), daily deals leader Groupon (GRPN -6.4%), server interconnect provider Mellanox (MLNX -8.5%), OLED materials/IP provider Universal Display (OLED -10.3%), Latin American online marketplace MercadoLibre (MELI -7.2%), data management software firm Varonis (VRNS -8.3%), ad tech firm Rocket Fuel (FUEL -7.1%), Chinese online retailers Vipshop (VIPS -6.9%) and Jumei (JMEI -12.7%), and home automation system provider Control4 (CTRL -7.8%).
- GoPro is down 22% since issuing a Q4 warning on Wednesday afternoon. Trina has been downgraded to Neutral by Goldman. IDT and Mellanox could be affected by the weaker-than-expected Q4 sales reported for Intel's server CPU division (DCG).
- Previously covered: Chip equipment makers, Yandex/Qiwi, Intel, Textura, PC industry firms, Rackspace, CommVault, Ericsson
- Wednesday's notable decliners
Dec. 23, 2015, 3:02 PM
- Groupon (NASDAQ:GRPN) is up sharply on a day that has seen the Nasdaq rise 0.9%. Volume is light - 5.1M shares have been traded thus far vs. a 3-month daily average of 9.7M.
- With a slew of other well-shorted tech names also up sharply (see 3D printing stocks), short-covering is likely helping out. 66.3M shares (15% of the float) were shorted as of Nov. 30.
- The local deals leader is at its highest levels since plunging in early November due to a Q3 sales miss and soft Q4 guidance. The numbers were accompanied by news COO Rich Williams is replacing Eric Lefkofsky is CEO.
- Three weeks ago: New Groupon CEO Williams shakes up management; CTO out
Dec. 4, 2015, 6:51 PM
- Sri Viswanath, Groupon's (NASDAQ:GRPN) CTO for the last 14 months, is resigning, effective Jan. 1. Meanwhile, former Mozilla exec Jay Sullivan has been named chief product officer, a role giving him responsibility for Groupon's product and engineering teams.
- North American Goods chief Aaron Cooper will now be in charge of North American Services, which encompasses local (deals) and travel sales. Former Aeropostale e-commerce chief Jacob Hawkins is Groupon's new North American Goods chief.
- The changes come a month after Groupon announced (along with a sales miss and soft guidance) COO Rich Williams is replacing Eric Lefkofsky as CEO.
Nov. 20, 2015, 6:13 PM
- "We’re misunderstood by analysts. We’re misunderstood by media. We’re misunderstood by consumers — both those who haven’t visited our site in awhile and those who’ve never purchased from us," says new Groupon (NASDAQ:GRPN) CEO Rich Williams, trying to improve his company's image at a time when shares trade over 65% below where they started the year.
- Williams, who replaced Eric Lefkofsky earlier this month, does admit Groupon "scaled too far, too fast." He has already promised to streamline the company's international ops - the company recently pulled out of Scandinavia, after having previously exited South Korea, India, Turkey, Greece, and several other markets - and to stop chasing "lower-margin empty calorie" e-commerce sales.
- However, he also argues Groupon's efforts to grow non-e-mail sales channels don't get enough respect. "Sure, email is still important, but more of our purchases come from on-site search than email, and more than half our purchases occur on mobile." - and that the company is still faring well in local deals. "[W]e are the market leader ... we’ve had seven consecutive quarters of double-digit billings growth in North America; we’ve doubled our customers over the past five years."
- Regarding accusations Groupon is bad for the merchants it sells deals for: "The vast majority of our deals (82% as of the last report) are breakeven or better on the deal itself ... we still have to improve here. Not every brand or business is comfortable with deep discounts. We want to give more merchants more opportunities to run on our platform at lower discounts and with market rate offerings."
- The remarks follow a GeekWire interview in which Williams asserted the vast majority of merchant partners are now "in perpetual relationships" with Groupon. "They may phase in and out seasonally just with their trends in their business but they’re on the platform basically all the time."
- Groupon nosedived two weeks ago in response to the Q3 sales miss and soft Q4 guidance provided with news of Williams' promotion. Since then, the 2016 EPS consensus has dropped to -$0.09 from $0.18.
Nov. 4, 2015, 12:44 PM
Nov. 4, 2015, 9:15 AM| Nov. 4, 2015, 9:15 AM | 2 Comments
Nov. 3, 2015, 6:33 PM| Nov. 3, 2015, 6:33 PM | 15 Comments
Nov. 3, 2015, 4:57 PM
- "I'm assuming the CEO role with three immediate priorities," says Rich Williams. "First, we will renew our investment in customer acquisition to introduce more new customers to our marketplace and accelerate growth. Second, we will increase our focus on streamlining our international operations to ensure we are operating as lean and efficiently as possible. Finally, we will shift our Shopping category away from lower-margin empty calorie products to grow a sustainable, healthy Goods business with stronger margins." The remarks suggest Groupon plans to follow up on its September layoffs with more job cuts.
- Groupon's (NASDAQ:GRPN) Q3 numbers suggest Williams has plenty of work to do. Gross billings fell 2% Y/Y to $1.47B (they were up 6% excluding forex), after rising 2% in Q2. With revenue nearly flat after adjusting for the TMON sale, take rate improved modestly. North American billings +12.3% to $869.2M, EMEA -15.3% to $414.5M, rest of world -18.9% to $183.8M.
- Segment performance: Local billings (daily deals-driven) -4% Y/Y to $757.1M; Local revenue -10% to $260.9M (lower Local take rate). Goods billings +2% to $513M; Goods revenue +8% to $411.6M (higher Goods take rate). Travel billings -1% to $197.4M; Travel revenue -2% to $41.1M.
- Financials: Buybacks boosted Q3 EPS: $192.9M was spent to repurchase 44.1M shares. Gross margin (hurt by shift from Local to Goods) fell to 46.1% from 49.7% a year ago. Excluding a one-time gain, GAAP operating expenses rose 17% to $413M. Groupon ended Q3 with $963.6M in cash, and $195M in credit facility borrowings.
- Shares are still halted.
- Q3 results, PR
Nov. 3, 2015, 4:12 PM
- Groupon (NASDAQ:GRPN): Q3 EPS of $0.05 beats by $0.03.
- Revenue of $713.6M (-5.7% Y/Y) misses by $19.14M.
- Expects Q4 revenue of $815M-$865M and EPS of -$0.01 to $0.01, below a consensus of $956.8M and $0.07.
- Eric Lefkofsky steps down as CEO. COO Rich Williams is the new CEO. Lefkofsky will serve as chairman, replacing Ted Leonsis, who will now serve as lead independent director.
- Shares are halted.
Nov. 2, 2015, 5:35 PM
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Groupon, Inc. is a local commerce marketplace that connects merchants to consumers by offering goods and services at a discount. The company operates through three segments: North America, EMEA, which is comprised of Europe, Middle East and Africa, and the remainder of the Company's... More
Industry: Internet Information Providers
Country: United States
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