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Sep 30, 2020

Groupon Q3 2020 Earnings Report

Groupon's performance was marked by adjusted EBITDA exceeding expectations and sequential growth in local revenue, amidst ongoing efforts to return the company to growth.

Key Takeaways

Groupon reported Q3 2020 revenue of $304 million and a net loss of $16.3 million, but adjusted EBITDA was $31 million, exceeding company expectations. The company focused on expanding inventory and modernizing the marketplace, leading to sequential growth in local revenue compared to Q2. Groupon is restructuring to reduce costs and is focusing on long-term growth.

Revenue reached $304 million, with a gross profit of $160 million.

Loss from continuing operations was $17 million.

Adjusted EBITDA was $31 million.

Ended the quarter with $779 million in cash.

Total Revenue
$304M
Previous year: $496M
-38.7%
EPS
$0.15
Previous year: $0.2
-25.0%
Gross Profit
$160M
Previous year: $278M
-42.4%
Cash and Equivalents
$779M
Previous year: $567M
+37.3%
Free Cash Flow
-$6.95M
Previous year: $891K
-880.4%
Total Assets
$1.35B
Previous year: $1.37B
-1.5%

Groupon

Groupon

Groupon Revenue by Segment

Groupon Revenue by Geographic Location

Forward Guidance

Groupon expects to realize approximately $140 million in savings from restructuring actions and furloughs for 2020 and approximately $200 million in savings from restructuring actions for 2021. The multi-phase restructuring plan is expected to deliver approximately $225 million in annualized fixed cost savings once fully implemented.

Revenue & Expenses

Visualization of income flow from segment revenue to net income