Groupon (GRPN) Reports Q1 EPS of $0.03, Beats on Revenues; Boosts FY18 EBITDA Outlooks

May 9, 2018 8:32 AM EDT

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Groupon (NASDAQ: GRPN) reported Q1 EPS of $0.03. Revenue for the quarter came in at $626.5 million versus the consensus estimate of $603.79 million.

Consolidated

  • Revenue was $626.5 million in the first quarter 2018, down 7% (11% FX-neutral) reflecting our continued focus on revenue generation that maximizes gross profit.
  • Gross profit was $324.9 million in the first quarter 2018, up 5% (1% FX-neutral), led by growth in International.
  • SG&A declined 4% to $222.1 million in the first quarter 2018 as we continue to focus on operational efficiency.
  • Marketing expense was $99.2 million in the first quarter 2018, up 15%.
  • Net loss from continuing operations was $2.8 million in the first quarter 2018 compared to a net loss of $20.9 million in the first quarter 2017.
  • Net loss attributable to common stockholders was $6.9 million, or $0.01 per diluted share, compared to $24.4 million, or $0.04 per diluted share, in the first quarter 2017. Non-GAAP net income attributable to common stockholders was $16.2 million, or $0.03 per diluted share, compared to $5.2 million, or $0.01 per diluted share, in the first quarter 2017.
  • Adjusted EBITDA, a non-GAAP financial measure, was $52.6 million in the first quarter 2018, up 17% from $44.8 million in the first quarter 2017.
  • Global units sold declined 7% to 42.4 million in the first quarter 2018 as we continued to manage our business to maximize gross profit, which in some instances, resulted in fewer units. Units in North America were down 11% with a significant portion of that decline due to our focus on long-term gross profit optimization in Goods as well as our continued scaling of Groupon+ and the sale of certain OrderUp assets that occurred in the second half of 2017.
  • Operating cash flow was $148.9 million for the trailing twelve month period as of the first quarter 2018, and free cash flow, a non-GAAP financial measure, was $83.7 million for the trailing twelve month period.
  • Cash and cash equivalents as of March 31, 2018 were $725.9 million, and we had no outstanding borrowings under our $250 million revolving credit facility.
  • In May 2018, the Board of Directors approved a $300 million share repurchase authorization, which replaces the recently expired authorization. The timing and amount of share repurchases, if any, will be determined based on market conditions, limitations under our Amended and Restated Credit Agreement, share price and other factors, and the program may be terminated at any time.

Outlook

Groupon is raising its outlook for 2018, which reflects current foreign exchange rates and the Vouchercloud acquisition, which we expect to contribute $5 to $6 million to Adjusted EBITDA in 2018. For the full year 2018, Groupon now expects Adjusted EBITDA to be between $280 million and $290 million, an increase from the previously provided range of $260 million and $270 million.

For earnings history and earnings-related data on Groupon (GRPN) click here.



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