Groupon Q1 Earnings Surpass Estimates, Revenues Decrease Y/Y

Groupon GRPN reported earnings of 18 cents per share in the first quarter of 2025, which beat the Zacks Consensus Estimate by 190%. The company had incurred a loss of 33 cents per share in the year-ago quarter.The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering a negative average surprise of 394.50%.See the Zacks Earnings Calendar to stay ahead of market-making news.Revenues of $117.2 million beat the consensus estimate by 1.46%. The figure decreased 4.8% on a year-over-year basis. Region-wise, North America’s revenues of $91.11 million beat the consensus mark by 2% and declined 3.2% year over year. International revenues of $26.07 million missed the consensus mark by 3.09% and decreased 9.9% year over year (7.9% excluding the foreign exchange effect).Groupon, Inc. Price, Consensus and EPS Surprise Groupon, Inc. price-consensus-eps-surprise-chart | Groupon, Inc. QuoteGRPN’s Quarterly DetailsLocal revenues of $108.4 million beat the Zacks Consensus Estimate by 3.28% and declined 2.6% year over year. North America Local revenues decreased 0.6%, while International Local revenues declined 9.4% year over year.Consolidated Travel revenues of $5.05 million missed the consensus mark by 21.57% and decreased 20.5% year over year. North America Travel revenues decreased 20.4% year over year. International Travel revenues declined 20.7% in the reported quarter (17.4% excluding the foreign exchange effect).On a consolidated basis, Goods revenues of $3.78 million missed the consensus mark by 10.33% and declined 31.6% year over year. North America Goods revenues declined 50.9% and International Goods revenues decreased 4.7%, excluding the foreign exchange effect, on a year-over-year basis.GRPN’s Customer MetricsAt the end of the first quarter, Groupon had approximately 15.5 million active customers compared with 16.1 million at the end of the year-ago quarter. However, the metric beat the Zacks Consensus Estimate by 5.66%.The company had approximately 10.5 million active customers based in North America, beating the consensus mark by 6.38%. GRPN had 5 million active international customers, beating the consensus mark by 4.17%.Operating Details of GRPNIn the first quarter, Groupon’s consolidated gross profit fell 3.9% from the year-ago period’s levels to $106.3 million. North America gross profit fell 1.5% and International gross profit declined 9.4%, excluding the foreign exchange effect, on a year-over-year basis.Gross margin expanded 90 basis points to 90.7%.Selling, general and administrative expenses fell 6% year over year to $69.84 million. Marketing expenses increased 19.5% year over year to $34.4 million.The company reported a GAAP operating profit of $1.88 million compared with a profit of $7.37 million in the year-ago quarter. Also, adjusted EBITDA declined 21.5% to $15.3 million.GRPN’s Balance Sheet & Cash FlowGroupon exited the quarter with cash and cash equivalents of $226.8 million, down from $228.8 million as of Dec. 31, 2024.In the first quarter, the operating cash inflow was the same as the cash inflow of $67 million in the prior quarter.Groupon reported a free cash outflow of $3.8 million against $63.2 million of free cash inflow reported in the previous quarter.GRPN’s GuidanceFor the second quarter of 2025, the company expects revenues in the band of $121-$123 million, indicating a 3-1% year-over-year decline. The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $121.39 million, indicating a 2.59% year-over-year decline.Adjusted EBITDA is expected to be between $14 million and $17 million.Groupon expects a flat free cash flow for the second quarter.For 2025, the company expects revenues between $493 million and $500 million, indicating a year-over-year growth of 0-2%.Adjusted EBITDA is expected to be between $70 million and $75 million.Groupon expects a positive free cash flow of at least $41 million for 2025.Zacks Rank and Stocks to ConsiderCurrently, GRPN carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are Alibaba BABA, Costco Wholesale COST and Canada Goose GOOS, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shares of Alibaba have gained 48.4% year to date. It is set to report fourth-quarter fiscal 2025 results on May 15.Shares of COST have gained 10% year to date. It is slated to report third-quarter fiscal 2025 results on May 29.Shares of GOOS have lost 14% year to date. It is set to report fourth-quarter fiscal 2025 results on May 21.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Costco Wholesale Corporation (COST): Free Stock Analysis Report Groupon, Inc. (GRPN): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks