Pandemic Hits Groupon's Revenue But It Contains Costs, Beats Wall Street Consensus - Groupon (NASDAQ:GRPN)

Groupon Inc GRPN reported a first-quarter FY21 revenue decline of 29.5% year-on-year to $263.8 million, beating the analyst consensus of $225 million.
Revenue from Local declined 22.4% Y/Y to $148.6 million, Revenue from Travel declined 30% Y/Y to $6.8 million, and Revenue from Goods declined 37.3% Y/Y to $108.4 million.
Global units sold declined 40% Y/Y to 18 million due to the pandemic. North America units declined 42% in Local and 18% in Goods, International units declined 69% in Local and 8% in Goods.
Local Gross Billings fell36.2% Y/Y to $350.97 million, Goods Gross Billings fell 14.2% at $168.08 million, and Total Gross Billings fell 31.3% Y/Y at $553.97 million.
The company reported a non-GAAP net income of $7.5 million against a $46.2 million loss in the year-ago period.
Non-GAAP EPS of $0.25 was not comparable to the consensus of $0.58 loss.
Adjusted EBITDA rose 35.1% Y/Y to $30.4 million.
Groupon generated $126.4 million in operating cash flow and held $676.8 million in cash and equivalents. It also raised $200 million from a convertible debt offering in March.
Guidance: Groupon sees FY21 revenue of $950 million - $990 million, compared to the analyst consensus of $966.26 million and Adjusted EBITDA outlook of $110 million - $120 million.
Groupon continued to execute on the plan to significantly reduce cost structure this year, which positioned it to deliver substantial Adjusted EBITDA if the business returned to just 80% of 2019 gross profit levels and made notable progress executing on growth strategy, including the recent launch of new customer experience, CEO Aaron Cooper said.
Price action: GRPN shares closed lower by 3.59% at $48.94 on Thursday.
Image Courtesy: Wikimedia

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