GROUPON Reports Q2 Earnings with Total Revenue Down 15.7% Y/Y
August 21, 2023
🌥️Earnings Overview
For the second quarter of FY2023, ending June 30 2023, GROUPON ($NASDAQ:GRPN) reported a total revenue of USD 129.1 million, a 15.7% decrease from the previous year. Net income was reported at USD -12.6 million, a marked improvement on the -91.2 million seen in the same period of the prior fiscal year.
Analysis
GoodWhale has conducted an analysis of GROUPON‘s wellbeing, and based on the Risk Rating, it appears to be a medium risk investment in terms of financial and business aspects. GoodWhale has detected one risk warning in the income sheet, which can be accessed by becoming a registered user. This risk warning suggests potential areas of improvement for GROUPON to consider in order to enhance their wellbeing. In addition to this warning, GoodWhale has also identified several areas of strength that GROUPON could draw upon to further their success. These include the company’s strong customer base, innovative product range and high market acceptance. GROUPON appears to be a healthy investment, although there is still some work to be done in order to ensure their long-term prosperity. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Groupon. More…
| Total Revenues | Net Income | Net Margin |
| 543.27 | -153.28 | -26.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Groupon. More…
| Operations | Investing | Financing |
| -146.26 | -26.65 | -20.24 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Groupon. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 587.23 | 612.06 | -0.8 |
Key Ratios Snapshot
Some of the financial key ratios for Groupon are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -33.9% | -11.6% | -15.6% |
| FCF Margin | ROE | ROA |
| -32.1% | 213.1% | -9.0% |
Peers
Its competitors are Match Group Inc, Perion Network Ltd, Snap Inc. Each company has its own strengths and weaknesses, but Groupon Inc has proven to be a tough competitor.
– Match Group Inc ($NASDAQ:MTCH)
Match Group Inc is a company that operates a portfolio of dating products, including Tinder, Hinge, PlentyOfFish, and OkCupid. As of 2022, it has a market cap of 12.36B and a ROE of -41.93%. The company’s products are designed to help people connect with each other and form relationships.
– Perion Network Ltd ($NASDAQ:PERI)
Perion Network Ltd is a technology company that provides software platforms for digital marketing. The company’s platforms are designed to help businesses grow online by driving traffic, engagement, and conversions. Perion’s flagship product is its Search and Discovery platform, which helps businesses drive traffic to their websites and apps from search engines and other sources. The company also offers a suite of tools for managing digital advertising campaigns, as well as a data management platform that helps businesses track, analyze, and optimize their marketing efforts.
– Snap Inc ($NYSE:SNAP)
As of 2022, Snap Inc has a market cap of 16.26B and a Return on Equity of -20.9%. The company operates in the social media industry and provides a platform for users to share photos and videos.
Summary
Investors should take note of Groupon‘s second quarter FY2023 financial results, which showed total revenue of USD 129.1 million, a decrease of 15.7% year over year. Despite the decline in revenue, the company reported a net income of -12.6 million, significantly better than the -91.2 million reported in the same quarter of the previous fiscal year. While the stock price moved down on the news, investors should consider the company’s long-term potential and its ability to control costs and profitability. With its strong brand recognition, Groupon is well-positioned for future growth and long-term success.
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