=Groupon (GRPN) reported earnings on Tue 18 Feb 20 (a/h)
- The online coupon service's stock fell below $2 for the first time since it went public in 2011. The company says it plans to cut $125 million in costs.
Groupon also appoints Melissa Thomas as CFO on a permanent basis, effective immediately
Ms. Thomas joined Groupon in 2017 as VP of Commercial Finance and currently also serves as Chief Accounting Officer and Treasurer. She has served as interim CFO since August 2019.
Groupon misses by $0.08, misses on revs; to exit Goods business and announces proposal for reverse stock split
Reports Q4 (Dec) earnings of $0.07 per share, excluding non-recurring items, $0.08 worse than the S&P Capital IQ Consensus of $0.15; revenues fell 23.5% year/year to $612.3 mln vs the $704.87 mln S&P Capital IQ Consensus.
"Following a comprehensive review of opportunities and strategic alternatives, we determined that a plan to exit the Goods category and focus on our local experiences marketplace best positions us for long-term and sustained growth... We believe that focusing on rapidly growing our local experiences marketplace will allow us to bend our growth curve and deliver value for all of our stakeholders... In order to maintain and extend our competitive advantage, we believe we must act with urgency and plan to exit our Goods category in North America by the third quarter and globally by the end of the year."
By 2022, company expects unit growth % to be high single digits, gross billings % growth to be high single digits, revenue growth % to be mid single digits, and adjusted EBITDA margin to be high teens.
Groupon also announced that its Board of Directors has approved, and will submit to Groupon's stockholders at the June 2020 Annual Meeting, a proposal to effect a reverse stock split of Groupon common stock at a ratio of between 1-for-10 and 1-for-12.
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