Groupon ( NASDAQ: GRPN) reported third-quarter 2020 non-GAAP earnings of 15 cents per share, versus the Zacks Consensus Estimate of a loss of 52 cents. The company had reported non-GAAP earnings of 27 cents in the prior-year quarter.
Groupon Revenue of $304 million beat the Zacks Consensus Estimate by 0.9%. The figure, however, declined 38.7% on a year-over-year basis.
Service revenues (51% of revenues) were down 42.2% year over year to $155.1 million. Product revenues (49% of revenues) deteriorated 34.5% to $149 million.
Local revenues of $135.1 million declined 43.8% from the year-ago quarter. North America Local revenues declined 43.7% and International Local revenues fell 47.2%, excluding foreign exchange effect.
Goods revenues declined 31% year over year to $161 million. North America Goods revenues declined 32.9%. International Goods revenues also deteriorated 33.2%, excluding foreign exchange effect.
Travel revenues fell 63.6% year over year to $7.89 million. North America Travel revenues plunged 65.3%. International Travel revenues declined 63.2%, excluding foreign exchange effect.
In the third quarter, gross billings were $597.1 million, down 46.6%, excluding foreign exchange effect.
Groupon North America billings were $362.3 million, down 49.4% year over year. International billings were $234.8 million, down 41.4% excluding foreign exchange effect.
North America Local and Travel gross billings declined 54.9% and 67.1%, respectively, while Goods gross billings decreased 18.5% on a year-over-year basis.
International Local and Travel gross billings declined 47.7% and 44.8%, respectively while Goods gross billings decreased 30.2% on a year-over-year basis, excluding foreign exchange effect.
Owing to the coronavirus crisis-induced negative impact on demand, global units sold during the reported quarter declined 40% year over year to 21 million.
Region wise, North America units were down 13% in Goods and 50% in Local categories. International units were down 20% in Goods and 49% in Local categories.
GRPN appears to be consolidating within a longer-term uptrend. Shares are presently above the 200-day moving average, which is rising along with the 10-day moving average. However, the Average Directional Index, or ADX, is below 20, indicating that shares have exhibited sideways movement recently. Comparative Relative Strength analysis shows that this issue is lagging the S&P 500. Source: Charles Schwab.
Momentum and Volume
Momentum for GRPN is strongly bullish. The 14-period Slow Stochastic Oscillator is rising, as investors pay higher prices for shares. The On Balance Volume indicator (OBV) is bullish. The slope of the indicator is positive and suggests that buyers are presently more active than sellers. Source: Charles Schwab.
CWEB Analysts view the stock Groupon (NASDAQ:GRPN) as a long term growth and a great addition to your investment portfolio with an upward momentum of $60-$150 by 2021 with direct competition to Amazon and Etsy.