Groupon Makes and Impressive Turnaround

Groupon (NASDAQ:GRPN) is the most popular daily deals website across America and worldwide. Offering amazing deals on everything from dining out, to consumer goods and travel deals. With the COVID-19 pandemic the daily deals site was unable to offer travel and local experiences as it had planned to move away from the goods category. But the goods category saved the day when shoppers flocked to low cost items they could get shipped due to state lock down orders and stores being closed. We see the goods category remaining extraordinarily strong moving forward.

Groupon  (NASDAQ: GRPN)  posted revenue of $396 million, down 26% from a year ago.  Wall Street was expecting $200 million GRPN reported a loss of 93 cents a share, smaller than the street’s forecasted  loss forecast of $2.75 a share.  Groupon ends the quarter with $800 million in cash and $70 million of positive free cash flow.

“Despite the continuing challenges created by COVID-19, we have made meaningful progress toward stabilizing our business with the goal of returning Groupon to growth,” said Aaron Cooper, Interim CEO of Groupon. “In the past four months, we have created significant operating leverage by taking substantial costs out of our business, leaned into categories to drive sales and free cash flow and steadied the company during the pandemic. We have a growth strategy and execution plan to win in the trillion-dollar Local market. With a resilient business model, nimble organization, and a relentless focus on executing our growth strategy, we are well positioned for the future.”

Second quarter revenue of $396 million and gross profit of $137 million

  • Second quarter loss from continuing operations of $73 million
  • Second quarter Adjusted EBITDA of $1 million
  • Second quarter GAAP net loss per diluted share of $2.53
  • Second quarter non-GAAP net loss per diluted share of $0.93
  • Ended the second quarter with $785 million in cash

Revenue was $395.6 million in the second quarter 2020, down 26% (25% FX-neutral)compared with the second quarter 2019.Gross profit was $137.2 million in the second quarter 2020, down 53% (53% FX-neutral)compared with the second quarter 2019.

Image Source: Groupon

 (NASDAQ: GRPN)  CWEB Analysts view the stock as a long term growth and a great addition to your investment portfolio with an upward momentum of  $60-$100 by 2021 with direct competition to Amazon and Etsy.


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