Groupon's 30% Q3 Revenue Decline Was Led By Lower Demand

Groupon Inc GRPN reported a third-quarter FY21 revenue decline of 30% year-on-year to $214.2 million, beating the consensus of $213.1 million. Service revenue grew 28.3% Y/Y to $198.98 million.
Lower demand for the Goods category and the transition from a first-party to a third-party marketplace model drove the decline.
Global units sold were 15.7 million, down 26% Y/Y driven by lower consumer demand in the Goods category.
Non-GAAP EPS of $0.38 beat the consensus of $0.07.
Groupon held $476.8 million in cash and equivalents and used $74.2 million in operating cash flow.
During the third quarter, we grew our high value, active Local customer base, drove unit growth for customers who engaged with our restriction-free Deals, and demonstrated our ability to impact customer demand, interim CEO Aaron Cooper said.
The company said the new Square partnership allows local merchants to create Groupon campaigns directly from Square App Marketplace
Groupon generated $553 million in global billings, of which approximately 76% were Local billings, $214 million in revenue, and $35 million of adjusted EBITDA.
Groupon sees an FY21 outlook of $950 million - $975 million below the consensus of $984.3 million.
Price Action: GRPN shares traded higher by 4.76% at $24 premarket on the last check Thursday.

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