Why Should You Buy Groupon Q1 2021 Earnings. Beats by $0.99 and Projects $990 Million in Revenue

 

Groupon, Inc. (NASDAQ: GRPN) today announced its financial results for the quarter ended March 31, 2021 and provided details on its recent operating progress. The company filed its Form 10-Q with the Securities and Exchange Commission and posted an updated presentation on its investor relations website (investr.groupon.com). 

 

First Quarter 2021 Summary 

 

Consolidated 

  • Revenue was $263.8 million in the first quarter 2021, down 29% (32% FX-neutral) compared with the first quarter 2020. 
    • Operating cash flow was $126.4 million for the trailing twelve month period, and free cash flow, a non-GAAP financial measure, was $76.3 million for the trailing twelve month period. 
    • Cash and cash equivalents as of March 31, 2021 were $676.8 million. In the first quarter 2021, we repaid $100.0 million of outstanding borrowings under our revolving credit facility. As of March 31, 2021, we had $100.0 million of outstanding borrowings under our revolving credit facility. 
    • In March 2021, we issued $200.0 million aggregate principal amount of new convertible senior notes due 2026. As of March 31, 2021, $169.8 million of the net proceeds from this offering is presented as restricted cash. We intend to use the remaining net proceeds from the offering (including additional proceeds from the over-allotment option exercised 
      • Gross profit was $167.0 million in the first quarter 2021, down 17% (19% FX-neutral) compared with the first quarter 2020. 
      • SG&A was $127.1 million in the first quarter 2021 compared with $207.1 million in the first quarter 2020, primarily driven by lower payroll-related expenses due to restructuring actions and lower non-payroll expenses. 
      • Marketing expense declined by 44% to $33.7 million in the first quarter 2021 due to accelerated year-over-year traffic declines, significantly shortened payback thresholds, and lower investment in offline marketing and brand in light of COVID-19. 
      • Restructuring charges were $7.4 million in the first quarter 2021 and were related to our multi-phase restructuring plan announced in April 2020. 
      • Other income, net was $18.1 million in the first quarter 2021, compared with expense of 

      $19.0 million in the first quarter 2020, which was primarily driven by a $32.2 million cumulative foreign currency translation adjustment gain that was reclassified into earnings in the first quarter 2021 as a result of the substantial liquidation of our subsidiary in Japan as part of our restructuring actions. 

      • Net income from continuing operations was $14.4 million in the first quarter 2021 compared with a net loss of $210.9 million in the first quarter 2020, driven primarily by impairment charges in the first quarter 2020, lower SG&A and marketing expenses in the current period, and a cumulative foreign currency translation adjustment gain. This was partially offset by the decrease in gross profit. 
      • Net income attributable to common stockholders was $14.6 million, or $0.48 per diluted share, in the first quarter 2021, compared with a net loss attributable to common stockholders of $213.5 million, or $7.53 per diluted share, in the first quarter 2020. Non- GAAP net income attributable to common stockholders was $7.5 million, or $0.25 per diluted share, in the first quarter 2021, compared with non-GAAP net loss attributable to common stockholders plus assumed conversions of $46.2 million, or $1.63 per diluted share, in the first quarter 2020. 
      • Adjusted EBITDA, a non-GAAP financial measure, was $30.4 million in the first quarter 2021, compared with Adjusted EBITDA loss of $22.5 million in the first quarter 2020. 
      • Global units sold were down 40% to 18 million in the first quarter 2021 largely driven by the impact of COVID-19 on demand. In the first quarter 2021, North America units were down 42% in Local and down 18% in Goods. International units were down 69% in Local and down 8% in Goods.  in April 2021), together with cash on hand, to repurchase our convertible notes due April 2022 during the second quarter 2021. 
  •  North America 
    • North America gross profit in the first quarter 2021 decreased 9% to $130.4 million, primarily driven by the impacts of COVID-19 on volume. Local gross profit in the first quarter 2021 decreased 9% to $112.4 million. Goods gross profit decreased 17% to $13.2 million. Travel gross profit increased 19% to $4.7 million. 
    • North America active customers were 15.2 million as of March 31, 2021. International 
    • International gross profit in the first quarter 2021 decreased 36% to $36.6 million (42% FX-neutral), primarily driven by the impacts of COVID-19 on volume. Local gross profit in the first quarter 2021 decreased 52% to $21.4 million (56% FX-neutral). Goods gross profit increased 42% to $14.5 million (29% FX-neutral). Travel gross profit decreased 74% to $0.7 million (78% FX-neutral). 
    • International active customers were 10.6 million as of March 31, 2021. 

     

    Definitions and reconciliations of all non-GAAP financial measures and additional information regarding operating measures are included below in the section titled “Non-GAAP Financial Measures and Operating Metrics” and in the accompanying tables. All comparisons in this press release are year-over-year unless otherwise provided

  • CWEB Analyst’s have initiated a STRONG BUY Rating for   (NASDAQ: GRPN) and potential upside of $199 in 2021. The fundamentals of the company are to strong and even after the hard hit post pandemic recovery. We believe Q2 will beat expectations due to the solid cash base numbers coming in.  Groupon is projection close to 1 Billion in revenue this year. Things are looking really good for Groupon since they are operating e commerce online and retail with post covid recovery.

 


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