Groupon GRPN reported a non-GAAP loss of 12 cents per share in third-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 16 cents. The company reported a non-GAAP loss of 68 cents per share in the year-ago quarter.

Revenues of $126.5 million beat the Zacks Consensus Estimate by 0.39%. The figure declined 12.4% on a year-over-year basis (down 13.8%, excluding the foreign exchange effect).

Region-wise, North America revenues of $94.9 million beat the consensus mark by 0.45% but slumped 12% year over year. International revenues of $31.5 million missed the consensus mark by 7.51% and fell 13.6% year over year (down 19.3%, excluding the foreign exchange effect).

Groupon, Inc. Price, Consensus and EPS Surprise

Groupon, Inc. price-consensus-eps-surprise-chart | Groupon, Inc. Quote

Quarterly Details

Local revenues of $115.5 million beat the Zacks Consensus Estimate by 2.74% but declined 9.8% year over year (down 11.1% excluding the foreign exchange effect). North America Local revenues declined 9.5%, while International Local revenues fell 10.6% year over year.

Consolidated Travel revenues of $4.16 million missed the consensus mark by 31.22% and decreased 30.9% year over year. North America Travel revenues fell 36.6% year over year. International Travel revenues declined 19% in the reported quarter.

On a consolidated basis, Goods revenues of $6.86 million missed the consensus mark by 14.74% and declined 34.3% year over year. North America Goods revenues declined 36.4%, while International Goods revenues fell 36.6%, excluding the foreign exchange effect, on a year-over-year basis.

Customer Metrics

At the end of the third quarter, Groupon had approximately 17 million active customers compared with 20.2 million at the end of the prior-year quarter. The metric beat the Zacks Consensus Estimate by 1.86%.

At the end of the third quarter, the company had approximately 10.4 million active customers based in North America, beating the consensus mark by 6.7%, and 6.6 million active international customers, missing the consensus mark by 4.9%.

Operating Details

In the third quarter, gross profit came in at $110.7 million, down 12% year over year.

Selling, general and administrative expenses fell 32.9% year over year to $80 million in the reported quarter. Marketing expenses declined 23.7% to $28.9 million.

The company reported a GAAP operating loss of $464,000 compared with a loss of $36.3 million in the year-ago quarter.

Balance Sheet & Cash Flow

Groupon exited the quarter with cash and cash equivalents of $86.1 million, down from $118.1 million as of Jun 30, 2023.

In the third quarter, the company generated $13.85 million in operating cash outflow against the operating cash outflow of $42.3 million generated in the prior quarter.

Groupon reported a free cash outflow of $17.97 million against $44.6 million of free cash flow reported in the previous quarter.