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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.
Groupon
Groupon
Groupon Revenue by Geographic Location
Revenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com 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.
- Volatility in operating results.
- Challenges arising from international operations, including fluctuations in currency exchange rates, legal and regulatory developments in the jurisdictions in which we operate and geopolitical instability resulting from the conflicts in Ukraine and the Middle East
Revenue & Expenses
Visualization of income flow from segment revenue to net income