Will Groupon Ever Turn Itself Around?
Groupon released disappointing second-quarter financial results before the markets opened on Friday.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Groupon Inc. (NASDAQ: GRPN) released its second-quarter financial results before the markets opened on Friday. The company said that it had $0.02 in earnings per share (EPS) and $617.4 million in revenue. That compares with consensus estimates of $0.03 in EPS and $632.46 million in revenue, as well as the $0.02 per share and $662.62 million posted in the same period of last year.
North America active customers totaled 32.2 million in the latest period, and international active customers totaled 17.1 million.
The company reported Services revenues of $295.65 million, a decrease of 6.4% year over year. Product revenues decreased 7.2% to $321.74 million.
Looking ahead to the 2018 full year, the company expects to see adjusted EBITDA between $280 million and $290 million. Also excluding any amounts that might be paid related to the IBM litigation, Groupon anticipates generating free cash flow of approximately $200 million. Consensus estimates call for $0.24 in EPS and $2.65 billion in revenue for the year.
[nativounit]
Groupon CEO Rich Williams commented:
In the second quarter, we continued our progress and invested in the key things necessary to make Groupon the daily habit in local commerce. With strong Adjusted EBITDA and free cash flow, as well as improvement in International and continued operational efficiency, we enter the second half of 2018 well positioned for success.
Shares of Groupon were last seen down 9% at $4.30 on Friday, with a consensus analyst price target of $5.57 and a 52-week trading range of $3.80 to $5.99.
[recirclink id=483244]
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
