Groupon (GRPN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 3–3.5% year-over-year to $124.6 million, but North America Local revenue grew 7%, marking the second consecutive quarter of growth in this segment.

• Adjusted EBITDA improved to $16.5 million, with trailing twelve months Adjusted EBITDA at $81 million.

• Free cash flow was $10.8–$11 million for Q2, with trailing twelve months free cash flow at $30 million, a turnaround from prior negative cash flow.

• Net loss narrowed to $9.4–$10 million, an improvement from the prior year.

• Site performance issues in July and ongoing transformation efforts are expected to impact future guidance.

Financial highlights

• Global billings were $373.6–$374 million, down 5% year-over-year; revenue was $124.6–$125 million, down 3–3.5% year-over-year.

• Gross profit was $112.7 million, flat year-over-year, with gross profit margin at 90–90.4%.

• Adjusted EBITDA was $16–$16.5 million for Q2; operating cash flow was $15–$15.3 million.

• Free cash flow was $10.8–$11 million, a significant improvement year-over-year.

• Ended Q2 with $178–$178.1 million in cash and cash equivalents.

Outlook and guidance

• Q3 2024 revenue guidance: $114–$120 million, a year-over-year decline of 5–10%.

• Q3 Adjusted EBITDA expected between $6–$11 million, with negative free cash flow.

• Full-year 2024 revenue guidance: $495–$515 million, or a 0–4% year-over-year decline; Adjusted EBITDA guidance lowered to $65–$80 million.

• Full-year 2024 free cash flow expected to remain positive.

• Revenue inflection now expected to be back-end loaded toward Q4, dependent on new front end project delivery.