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Sep 30, 2022

Groupon Q3 2022 Earnings Report

Reported third quarter results, making progress on turnaround strategy with local category stable and expanded food & dining inventory.

Key Takeaways

Groupon's Q3 2022 results show progress in their turnaround strategy, with a stable local category and expansion in food & dining inventory. The company is on track to reduce its cost structure by $150 million and expects to generate free cash flow in Q4.

Global revenue reached $144.4 million.

Global billings amounted to $433.9 million.

Net loss was $55.5 million.

Adjusted EBITDA was negative $8.6 million.

Total Revenue
$144M
Previous year: $214M
-32.6%
EPS
-$0.68
Previous year: $0.38
-278.9%
Active Customers
20.2M
Gross Profit
$126M
Previous year: $181M
-30.7%
Cash and Equivalents
$308M
Previous year: $477M
-35.4%
Free Cash Flow
-$51.8M
Previous year: -$87.6M
-40.8%
Total Assets
$889M
Previous year: $1.09B
-18.3%

Groupon

Groupon

Groupon Revenue by Geographic Location

Forward Guidance

Groupon is reiterating its targets for 2023, including $100 million in annual free cash flow and a 15-20% Adjusted EBITDA margin. They also expect to generate positive free cash flow every quarter, starting in the fourth quarter of 2022.

Positive Outlook

  • Targeting $100 million in annual free cash flow in 2023.
  • Aiming for 15-20% Adjusted EBITDA margin in full year 2023.
  • Creating a business model to generate positive free cash flow every quarter, starting in the fourth quarter of 2022.
  • Assuming Global Local Billings are 60% of 2019 Billings for Full Year 2023.
  • On track to reduce cost structure by $150 million annually

Revenue & Expenses

Visualization of income flow from segment revenue to net income