Oct. 30, 2014, 4:47 PM
- Groupon's (NASDAQ:GRPN) gross billings rose 38.6% Y/Y in Q3 to $1.86B. Revenue equaled 41% of billings, down from 44% a year ago. North American revenue +16% to $418.5M; EMEA +54.9% to $230.1M; rest of world +25.8% to $108.5M.
- Local revenue (daily deals-driven) -3% to $297M. Goods (e-commerce-driven) +63% to $410.9M. Travel +35% to $49.1M.
- Thanks to the ongoing mix shift towards e-commerce sales relative to deals, gross profit as a % of billings fell to 20.4% from 21.4% in Q2 and 26.8% a year ago. GAAP SG&A spend +11% Y/Y to $325.9M; marketing spend +12% to $59.9M.
- Free cash flow was $25.4M, below net income of $46.1M. Just $8.3M was spent on buybacks.
- Total units +92% Y/Y to 88M. Active customers +24% to 52.7M. Active deals rose by ~60K Q/Q to 300K. Mobile continues to account for over half of all transactions.
- GRPN -0.5% AH. Results/guidance, PR.
Oct. 30, 2014, 4:12 PM
Oct. 29, 2014, 5:35 PM
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Oct. 10, 2014, 9:01 AM
- Groupon (NASDAQ:GRPN) -3% premarket after Evercore Partners downgrades shares to Sell from Equalweight.
- Firm is skeptical GRPN will meet its adjusted EBITDA guidance for 2014 (at least $270M).
- Upside in shares may be capped until GRPN sees material inflection in positioning with consumers/merchants.
Sep. 2, 2014, 9:19 AM
- With shares down 43% YTD and 24% since he downgraded them to Underperform on Feb. 21 (following weak Q1 guidance), RBC's Mark Mahaney has upgraded Groupon (NASDAQ:GRPN) to Sector Perform.
- Mahaney cites the selloff, as well as major cuts to Street estimates, signs of operational progress, and positive takeaways from recent management talks. "The point for us is that the bar has been lowered, and we see forward EPS catalysts as now equally weighted positive and negative."
- Following Mahaney's move, Groupon has 15 neutral sell-side ratings to go with 6 bullish ratings and a single bearish one (per Thomson/First Call). Shares go for just 1.25x 2015E sales; they were clobbered a month ago following a revenue miss and soft guidance.
Aug. 6, 2014, 12:45 PM
Aug. 6, 2014, 9:14 AM
Aug. 5, 2014, 5:37 PM
Aug. 5, 2014, 4:22 PM
- Groupon (NASDAQ:GRPN) expects Q3 revenue of $720M-$770M and EPS of $0.00-$0.02, unfavorable to a consensus of $760.6M and $0.03. In addition, due to heavy marketing spend, full-year adjusted EBITDA guidance has been lowered to $270M+ from $300M+.
- The company has entered into a 3-year, $250M credit facility. It has "no immediate plans" to draw on it. $106M was spent on buybacks in Q2.
- Gross billings rose 28.7% Y/Y in Q2 (nearly even with Q1's 29.1%) to $1.82B. However, revenue growth slipped to 23.5% from 26% (implies a lower take rate). North American revenue +12.4% to $423.9M, EMEA +42.3% to $228M, rest of world +39.6% to $100M.
- Local revenue (daily deals-focused, higher margin) -9% Y/Y to $303.7M, Goods (e-commerce-focused) +67% to $402.6M, Travel +44% to $240.3M.
- Gross profit as a % of billings fell to 21.4% from 27.2%. GAAP marketing spend +16% to $64.3M, SG&A spend +10% to $332.8M.
- Q2 results, PR, slides
Aug. 5, 2014, 4:09 PM
Aug. 4, 2014, 5:35 PM
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Aug. 4, 2014, 12:44 PM
- Groupon (NASDAQ:GRPN) is posting big gains ahead of Tuesday's Q2 report. With over 1/5 of the float shorted as of July 15, and shares down 45% YTD going into today, short-covering is likely playing a big role.
- Groupon crashed in May following its Q1 report, as investors registered disappointment with soft Q2 EPS guidance caused in part by surging marketing spend. A mix shift towards lower-margin Goods sales has also been pressuring Groupon's bottom line.
- "Investors will be looking for signs of improvement on three key metrics; revenue growth in local, improvement in goods gross margins and, progress in international operations," says Sterne Agee's Arvind Bhatia in advance of the Q2 report. Shares now only go for 1.5x 2014E sales.
Jul. 9, 2014, 6:33 PM
- A Groupon (GRPN) spokesman tells GeekWire his company and Expedia (EXPE) are no longer co-branding discounted travel deals. The companies had been offering co-branded deals as part of an alliance formed in 2011.
- The news comes as Expedia launches its own daily deals product on its site. Nonetheless, Groupon says Expedia "remains an important supply partner" for its Getaways travel deals product.
- Groupon's travel revenue fell 3% Y/Y in Q1 to $41.3M. Travel gross billings amounted to $221.3M.
Jul. 8, 2014, 9:11 AM
Jul. 8, 2014, 8:41 AM
- "Our upgrade rests a lot on management delivering on their promise, which we feel is achievable based on our sensitivity analysis," says B. Riley analyst Sameet Sinha, boosting Groupon (GRPN) to a Buy with price target raised to $9.50 from $6.
- Several management initiatives - including increased marketing, more efficient fulfillment, and technology deployment - should be getting traction, he says. The company is also entering a period of easier year-over-year comps.
- Shares +5.9% premarket
Jun. 24, 2014, 10:46 AM
- Groupon (GRPN +7.8%) has bought SnapSaves, the Canadian developer of a grocery coupon app. Terms are undisclosed.
- SnapSaves, which claims 2M+ Canadian users, will now expand its reach to the U.S. Its apps allow shoppers to receive cash back on select items after uploading grocery receipt pictures. Retail partners include Target, Costco, Whole Foods, and Safeway.
- The purchase puts Groupon into competition with Coupons.com (COUP), which handled 1.3B+ transactions in 2013 and has a healthy mobile presence. Groupon has long asserted it wants to be an end-to-end provider of local commerce services for merchants.
- Shares are adding to the big gains they saw yesterday following a bullish Piper note. 15% of the float was shorted as of May 30.
GRPN vs. ETF Alternatives
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.
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