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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.
Revenue by Segment
Revenue by Geographic Location
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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