Groupon Cl A Down 35.97% To $8.68 After Earnings Miss

Groupon Inc Common Stock (GRPN) missed earnings projections on 11/9/2023 for Q3 2023.

Groupon Cl A's earnings came in at an EPS loss of $0.12 per share, 209% lower than estimates for an EPS of $0.11 per share. The firm's loss per share narrowed by 82% since reporting a loss of $0.68 per share a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $129.6 million. The Communication Services company missed on those expectations for its third quarter with revenue of $126.5 million, a negative revenue surprise of $3.2 million (2%). The firm managed negative 12% growth year-over-year due to Groupon Cl A reporting quarterly revenue of $144.4 million in its year-ago quarter. Groupon Cl A achieved a higher earnings growth rate than revenue, signaling that the business has improved its profit margin.

The stock is down 35.97% to $8.68 after the report.

Groupon Cl A's profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Hold on the stock prior to the report.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 59. Meanwhile, the average Wall Street analyst rated the stock a Hold.

Groupon acts as the middleman between consumers and merchants, offering a variety of products and services at discounts via its online store. It offers consumers daily deals (in the form of online vouchers) from local merchants. Groupon also sells products directly to consumers. It generates revenue from the take rate on the purchase and/or usage of the vouchers (40% of total revenue) and from direct sales (60% of total revenue). More than 65% of Groupon's revenue comes from North America.