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Sep 30, 2023
Groupon Q3 2023 Earnings Report
Reported sequential improvement in Adjusted EBITDA and free cash outflow. Local Billings Year-over-Year Growth was achieved and a plan to strengthen liquidity position by approximately $100 million was announced.
Key Takeaways
Groupon's Q3 2023 results showed a global revenue of $126.5 million and a net loss of $40.8 million, with adjusted EBITDA at $18.2 million. The company is shifting focus from cost-cutting to topline growth, targeting projects in product, engineering, sales, marketing, and revenue management.
Sequential improvement in Adjusted EBITDA and Free Cash outflow.
Returned to Local Billings Year-over-Year Growth.
Announced plan to strengthen liquidity position by approximately $100 million.
Focus shifting to topline growth and marketplace reinvigoration.
Revenue by Geographic Location
Forward Guidance
Groupon plans to raise approximately $100 million through an equity rights offering and non-core asset sales to strengthen its liquidity.
Positive Outlook
- Board of Directors has approved an $80.0 million fully backstopped rights offering.
- Pale Fire Capital SICAV a.s. has entered into a binding commitment to backstop the entire offering.
- Agreement to sell a portion of its investment in SumUp for $8.8 million was entered on October 6th.
- Agreement to sell a portion of its investment in SumUp for approximately $10 million was entered on November 9th.
- New management team and the announcement of today's financing strategy, Groupon is on the right track to become the ultimate destination for experiences and services.
Challenges Ahead
- Did not make as much progress on key projects as expected.
- Business continues to be challenged.
- Global economic uncertainty, including as a result of inflationary pressures, ongoing impacts from the COVID-19 pandemic and labor and supply chain challenges.
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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