Groupon, Inc. GRPN shares are trading higher after the company said it expects fourth-quarter 2023 revenue to be close to or above the high end of its guidance of $127.5 million-$137.5 million (consensus $133.67 million).
The company also expects fourth-quarter adjusted EBITDA to be close to, or above, the high end of the company’s guidance.
The company said it ended the year with approximately $141 million in cash & cash equivalents and about $26 million in restricted cash.
During the fourth quarter, the company paid down $3.9 million of borrowings under revolving credit agreement and received $18.9 million in proceeds from previously disclosed sales of portions of investment in SumUp.
GRPN reaffirmed the preliminary 2024 outlook. The company continues to expect revenue growth of -5% to 0% compared to 2023, with adjusted EBITDA between $80 million and $100 million and positive free cash flow for the entire year.
The company said it expects free cash flow in the first quarter of 2024 to be negative, given the seasonality timing of the Accrued Merchant Payables as the company exits the fourth quarter holiday season.
The company’s net cash used in operating activities came in at $(13.9) million in the third quarter, and cash and cash equivalents stood at $101.33 million as of September 30, 2023.
Price Action: GRPN shares are trading higher by 5.15% to $13.43 on the last check Friday.
Photo by Seth Anderson via Flickr
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