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Groupon Inc - Stock Quote GRPN

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Morningstar's Groupon Inc Stock Analysis

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Groupon Badly Disappoints on Q1 Results and Lowers Full-Year Adj. EBITDA Guidance; FVE Cut to $38

Ali Mogharabi Senior Equity Analyst

Analyst Note

| Ali Mogharabi |

Groupon reported miserable first-quarter 2022 results, widely missing the top- and bottom-line FactSet consensus estimates. The firm also provided very disappointing guidance for the current quarter and full year. Surprisingly, what appeared to be an ongoing healthy recovery in local and travel revenue came to an abrupt halt due to lower merchant demand, as many merchants have been enjoying high direct consumer demand accompanied by a likely improvement in inventory management, both of which lessen current need for Groupon’s discount provider platform. While we were pleased with management’s strategy to offer merchants more than just a marketplace for low-demand and/or discounted services, management has stated similar goals in the past. However, at the same time, we still expect improvement in customer monetization as Groupon continues to provide another marketing channel for merchants to target the firm’s 16 million customers and 100 million users accessing the app and website monthly.

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Groupon Inc's Company Profile

Business Description

Groupon acts as the middleman between consumers and merchants, offering a variety of products and services at discounts via its online store. It offers consumers daily deals (in the form of online vouchers) from local merchants. Groupon also sells products directly to consumers. It generates revenue from the take rate on the purchase and/or usage of the vouchers (40% of total revenue) and from direct sales (60% of total revenue). More than 65% of Groupon’s revenue comes from North America.

600 West Chicago Avenue, Suite 400
Chicago, IL, 60654
T +1 312 334-1579
Sector Communication Services
Industry Internet Content & Information
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type Slow Growth
Employees 3,675

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