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Groupon, Inc. (GRPN)

- NASDAQ
  • Fri, Aug. 7, 9:37 AM
    • In addition to missing Q2 estimates, Groupon (NASDAQ:GRPN) is guiding for Q3 revenue of $700M-$750M and EPS of $0.00-$0.02, below a consensus of $755.9M and $0.03.
    • Full-year sales guidance of $3.15B-$3.3B is reiterated (consensus is at $3.21B), but adjusted EBITDA guidance has been cut to $290M from "greater than" $315M. Forex is now expected to have a 600 bps impact on 2015 revenue growth vs. a prior forecast of 700 bps.
    • Billings: Gross billings rose 2% Y/Y in Q2 to $1.53B (+10% exc. forex), on par with Q1's growth rate and slightly below revenue growth of 3%. North American billings +12.2% to $896.3M; revenue +13.5%. EMEA -10.3% to $433.5M (+8.7% exc. forex); revenue -10.4%. Rest of World -9.4% to $199.2M (+5.6% exc. forex); revenue -17.8%. The figure imply a moderate increase in North American take rates, and a large drop in Rest of World take rates.
    • Segment performance: Local billings (daily deals-driven) -0.4% to $798.3M. Goods billings (e-commerce-driven) +4.8% to $536.9M, with a 15.7% increase in direct billings offsetting a 17.4% drop in 3rd-party billings. Travel billings +2.9% to $193.7M. With local revenue (higher-margin) dropping 7% to $276.5M in spite of nearly flat billings, local take rates remained under pressure. On the other hand, Goods revenue rose 11% to $420.5M, implying a higher take rate. Travel revenue rose 3% to $41.4M.
    • Metrics: Units rose 7% Y/Y to 53M; North America +9%, EMEA +10%; Rest of World (affected by the TMON sale) -3%. Active deals rose by ~85K Q/Q to nearly 510K, thanks to the addition of 75K coupons. Active customers +6% Y/Y to 48.6M. Trailing 12 month customer spend fell $2 Q/Q and $3 Y/Y to $133.
    • Financials: Cost controls helped EPS stay positive: Operating expenses were fell 5% Y/Y at $346.2M. Also helping: $122.7M was spent to buy back 19.3M shares. Free cash flow for the trailing 12 months is $266.8M. Groupon ended Q2 with $1.1B in cash/equivalents, and no debt.
    • Shares have made new 52-week lows.
    • Q2 results, PR
    | Fri, Aug. 7, 9:37 AM | 16 Comments
  • Fri, Aug. 7, 7:35 AM
    • Groupon (NASDAQ:GRPN): Q2 EPS of $0.02 misses by $0.01.
    • Revenue of $738.4M (+3.1% Y/Y) misses by $1.85M.
    • Press Release
    | Fri, Aug. 7, 7:35 AM | 9 Comments
  • Thu, Aug. 6, 5:30 PM
  • Wed, May 6, 3:59 PM
    • The difference between Groupon's (NASDAQ:GRPN) Q1 North American Local (deals) billings growth (+12% Y/Y to $512.6M) and revenue growth (+2% to $180.8M) is receiving much scrutiny as shares fall to new 2015 lows post-earnings.
    • Morgan Stanley (Equal-weight) observes commission rate concessions to merchants and customer couponing are hurting NA Local take rates. At the same time, it adds management is still aiming for 20%+ Y/Y NA Local billings growth.
    • Credit Suisse (Neutral) notes take rates were hurt by order discounts meant to drive traffic/sales growth. The firm could become more positive on Groupon if it sees a greater "focus on improved demand generation against the supply base it has already assembled: 1) greater traction in the local segment through mobile offerings and Page product, 2) greater consumer engagement and adoption as company's Pull initiatives gain traction, 3) margin expansion in the goods business through logistics optimization."
    • On the CC (transcript), CFO Jason Child defending Groupon's discounting. "While dilutive to margin in the short-term order discounts are an important means of driving traffic, awareness and at the end of the day transactions. Our goal is to ultimately maximize gross profit dollars ... take rates are likely to remain around the 35% level as we make continued investments in quality and growth but if we need to trade up margin at times to accelerate growth we may do so."
    • CEO Eric Lefkofsky reiterated Groupon's commitment to growing search-derived traffic. He also declared the company is now focused on growing e-mail-driven revenue after stabilizing traffic (previously hurt by Google's creation of a Gmail Promotions tab).
    • Q1 results, details
    | Wed, May 6, 3:59 PM | 15 Comments
  • Tue, May 5, 6:02 PM
    • With Groupon (NASDAQ:GRPN) receiving 42% of its gross billings from outside of North America, a strong dollar had a big impact in Q1: Revenue was up 3% Y/Y in actual dollars, and 10% excluding forex. Likewise, billings rose 2% in actual dollars to $1.55B, and 10% excluding forex.  Forex is expected to have 700 bps impact on 2015 sales growth.
    • In addition to offering light Q2 guidance, Groupon is forecasting full-year revenue of $3.15B-$3.3B, below a $3.51B consensus. However, both outlooks exclude Ticket Monster, which Groupon is set to sell a controlling stake in. Though missing consensus, Q1 sales of $750.4M met a revised guidance range (set on April 20) of $720M-$770M provided with the Ticket Monster announcement.
    • Local billings (daily deals-driven) -0.2% Y/Y to $829.9M. Goods billings +4.4% to $527.4M. Travel billings +6.1% to $194.7M.
    • The continuing mix shift towards goods led gross margin to fall 390 bps Y/Y to 46.3%. Lifting EPS: GAAP operating expenses fell 9% Y/Y to $342.1M. $18.5M was spent on buybacks.
    • Geographic performance: North American billings +14% to $894M; revenue +11% to $479.9M. EMEA billings -11% to $459.2M (+7% exc. forex); revenue -6% to $216.2M. Rest of World billings -12% to $198.8M (-1% exc. forex); revenue -18% to $54.3M.
    • Other stats: Units sold +6% Y/Y to 54M. Active deals rose to 425K from 370K in Q4, thanks to the addition of nearly 60K coupons. Active customers +7% Y/Y to 48.1M. Trailing 12 month billings per active customer fell to $135 from $155 as of Q4. 27% of North American transactions were search-related. Groupon ended Q1 with $975.5M in cash.
    • Shares have fallen to $6.70 AH.
    • Q1 results, PR
    | Tue, May 5, 6:02 PM | 7 Comments
  • Tue, May 5, 4:12 PM
    • Groupon (NASDAQ:GRPN): Q1 EPS of $0.03 beats by $0.02.
    • Revenue of $750.4M misses by $61.79M.
    • Expects Q2 revenue of $700M-$750M and EPS of $0.01-$0.03, mostly below a consensus of $826.7M and $0.03.
    • Shares -0.4% AH.
    • Press Release
    • Update: Though officially missing consensus, Q1 revenue was in-line with a revised guidance range of $720M-$770M provided by Groupon on April 20. The revised guidance and official results exclude Ticket Monster, which Groupon is about to sell a controlling stake in, as does Groupon's Q2/2015 revenue guidance.
    | Tue, May 5, 4:12 PM | 27 Comments
  • Mon, May 4, 5:35 PM
  • 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, 5:17 PM | 13 Comments
  • 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, 4:24 PM | 2 Comments
  • 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
    | Thu, Feb. 12, 4:08 PM | 11 Comments
  • Wed, Feb. 11, 5:35 PM
  • Nov. 11, 2014, 1:01 PM
    • Groupon (NASDAQ:GRPN) has used its 2014 analyst day to guide for 15%+ 2015 revenue growth (above a 13.7% consensus) and 25%+ adjusted EBITDA growth.
    • The company also says it's looking to achieve 20%+ revenue growth and 25% adjusted EBITDA growth by 2017.
    • Shares +28% since Groupon's Oct. 30 Q3 beat.
    • Analyst day slides (.pdf)
    | Nov. 11, 2014, 1:01 PM | Comment!
  • 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, 4:47 PM | Comment!
  • Oct. 30, 2014, 4:12 PM
    • Groupon (NASDAQ:GRPN): Q3 EPS of $0.03 beats by $0.02.
    • Revenue of $757.1M (+27% Y/Y) beats by $8.3M.
    • Expects Q4 revenue of $875M-$925M and EPS of $0.02-$0.04, below a consensus of $926.3M and $0.07.
    • Shares -2% AH.
    • Press Release
    | Oct. 30, 2014, 4:12 PM | Comment!
  • Oct. 29, 2014, 5:35 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, 4:22 PM | 1 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.