From Nasdaq: 2024-11-13 11:14:00

Groupon (GRPN) reported adjusted earnings of 33 cents per share in Q3 2024, beating estimates by 232%. Revenues of $114.5 million missed estimates by 3.8%, with a 9% decrease YoY. North America revenues declined 9% due to increased Local voucher redemption rates, while International revenues decreased 13% due to exiting business in Italy.

In Q3, Groupon’s gross profit was $102.9 million, down 7% YoY. Selling, general and administrative expenses fell 10.8%, while marketing expenses rose 25.4%. The company reported a GAAP operating loss of $5.6 million. Groupon exited the quarter with cash and cash equivalents of $159.7 million.

For Q4 2024, Groupon expects revenues between $124-$131 million, a 10-5% YoY decline, with adjusted EBITDA expected to be between $14-$19 million. For 2024, revenues are expected to be between $486-$493 million, indicating a YoY change of (6)-(4%). Groupon expects a positive free cash flow for both periods.

Groupon currently carries a Zacks Rank #3 (Hold). Investors interested in the retail-wholesale sector can consider better-ranked stocks like Booking Holdings (BKNG), Amazon (AMZN) and Travelzoo (TZOO), each with a Zacks Rank #2 (Buy). BKNG has gained 41.6% YTD, AMZN 38.1%, and TZOO 100.7%.



Read more at Nasdaq: Groupon Q3 Earnings Beat Estimates, Revenues Decrease Y/Y