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Groupon GRPN reported earnings of 18 cents per share in the first quarter of 2025, which beat the Zacks Consensus Estimate by 190%. The company had incurred a loss of 33 cents per share in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering a negative average surprise of 394.50%.
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Revenues of $117.2 million beat the consensus estimate by 1.46%. The figure decreased 4.8% on a year-over-year basis.
Region-wise, North America’s revenues of $91.11 million beat the consensus mark by 2% and declined 3.2% year over year. International revenues of $26.07 million missed the consensus mark by 3.09% and decreased 9.9% year over year (7.9% excluding the foreign exchange effect).
Groupon, Inc. Price, Consensus and EPS Surprise
Groupon, Inc. price-consensus-eps-surprise-chart | Groupon, Inc. Quote
GRPN’s Quarterly Details
Local revenues of $108.4 million beat the Zacks Consensus Estimate by 3.28% and declined 2.6% year over year. North America Local revenues decreased 0.6%, while International Local revenues declined 9.4% year over year.
Consolidated Travel revenues of $5.05 million missed the consensus mark by 21.57% and decreased 20.5% year over year. North America Travel revenues decreased 20.4% year over year. International Travel revenues declined 20.7% in the reported quarter (17.4% excluding the foreign exchange effect).
On a consolidated basis, Goods revenues of $3.78 million missed the consensus mark by 10.33% and declined 31.6% year over year. North America Goods revenues declined 50.9% and International Goods revenues decreased 4.7%, excluding the foreign exchange effect, on a year-over-year basis.
GRPN’s Customer Metrics
At the end of the first quarter, Groupon had approximately 15.5 million active customers compared with 16.1 million at the end of the year-ago quarter. However, the metric beat the Zacks Consensus Estimate by 5.66%.
The company had approximately 10.5 million active customers based in North America, beating the consensus mark by 6.38%. GRPN had 5 million active international customers, beating the consensus mark by 4.17%.
Operating Details of GRPN
In the first quarter, Groupon’s consolidated gross profit fell 3.9% from the year-ago period’s levels to $106.3 million. North America gross profit fell 1.5% and International gross profit declined 9.4%, excluding the foreign exchange effect, on a year-over-year basis.
Gross margin expanded 90 basis points to 90.7%.
Selling, general and administrative expenses fell 6% year over year to $69.84 million. Marketing expenses increased 19.5% year over year to $34.4 million.
The company reported a GAAP operating profit of $1.88 million compared with a profit of $7.37 million in the year-ago quarter. Also, adjusted EBITDA declined 21.5% to $15.3 million.