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Jun 30, 2020
Groupon Q2 2020 Earnings Report
Groupon's business was stabilized with a focus on returning to growth.
Key Takeaways
Groupon reported a decrease in revenue and gross profit compared to the previous year, but saw positive trends in adjusted EBITDA and free cash flow due to cost-cutting measures and better-than-expected gross profit performance.
Second quarter revenue was $396 million and gross profit was $137 million.
Second quarter loss from continuing operations was $73 million.
Second quarter Adjusted EBITDA was $1 million.
Ended the second quarter with $785 million in cash.
Groupon
Groupon
Groupon Revenue by Segment
Groupon Revenue by Geographic Location
Revenue by Segment
Local Revenue
CapyFin.comGoods Revenue
CapyFin.comTravel Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Groupon expects to realize approximately $140 million in savings from the combination of multi-phase restructuring actions and furloughs in 2020, and approximately $200 million in savings from restructuring actions in 2021. The multi-phase restructuring plan is expected to deliver approximately $225 million in annualized fixed cost savings once fully implemented.
Positive Outlook
- Expand inventory
- Modernize the marketplace by improving the merchant and customer experiences
- Launching a new inventory product, Offers, and updating Deals and Market Rate inventory products
- Provide merchants with a modern experience, including tools they need to scale, grow, and manage their businesses no matter where they are in their growth cycles.
- Groupon will also continue its efforts to create a more modern experience for customers
Challenges Ahead
- Our ability to execute, and achieve the expected benefits of our go-forward strategy
- Execution of the phase down of the Goods category
- Volatility in our operating results
- Effects of pandemics or disease outbreaks, including COVID-19, on our business
- Execution of our business and marketing strategies
Revenue & Expenses
Visualization of income flow from segment revenue to net income