Groupon Inc ( GRPN ) reported fourth-quarter fiscal 2023 revenue of $137.7 million, beating the consensus of $136.7 million, and declining by 7% year-on-year.

Adjusted EPS of $0.30 beat the consensus of $0.12. The stock price climbed after the results, only to give up gains later.

North America revenue decreased 6% Y/Y to $99.9 million, driven by a decline in demand for its Goods categories. 

International revenue fell 10% Y/Y (15% Y/Y FX-neutral basis) to $37.8 million owing to lower demand for the Goods category and an overall decrease in demand. 

Global billings decreased by 6.8% Y/Y to $436.3 million on lower Goods and Travel business billings. Global units sold in the quarter were 11.2 million, down 18% Y/Y.

Adjusted EBITDA stood at $26.9 million vs a loss of $(5.3) million a year ago.

Net cash generated in operating activities came in at $54.5 million in the quarter, and cash and cash equivalents stood at $141.6 million as of December 31, 2023.

“Significant improvement in our North America local and travel categories is a positive indicator that our transformation plan is working. In addition, our improved financial performance and increased liquidity resolves our going concern issue,” said Dusan Senkypl, Interim CEO of Groupon ( GRPN ).

Investors can gain exposure to the stock via Global X E-Commerce ETF ( EBIZ ) and Global X Social Media ETF ( SOCL ) .

GRPN Stock Prediction For 2024

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Groupon ( GRPN ) have an average 1-year price target of $7.5, representing an expected downside of 59.02%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. 1 analysts have bearish recommendations on Groupon ( GRPN ), while No analysts have bullish ratings. The street high price target from Goldman Sachs is $7.5, while the street low from Goldman Sachs is $7.5.

Price Action: GRPN shares traded lower by 3.85% at $17.47 premarket on the last check Friday.