Backtested performance is not an indicator of future actual results. Meanwhile, analysts’ average price target of $7.38 indicates 85.89% upside potential.ĭisclaimer: The TipRanks Smart Score performance is based on backtested results. It has one Buy, one Hold, and two Sell recommendations for a Hold consensus rating. Given the slowdown in its business, analysts remain sidelined on GRPN stock. Further, the company does not expect to generate positive adjusted EBITDA in 2023. Thereafter, the rate of decline is expected to moderate. Management expects its Q2 revenue to decline at a similar pace compared to Q1.
While the company focuses on transforming its business, short-term challenges could continue to hurt its financials. Senkypl expects Groupon’s local billings to increase by early 2024 as the company’s transformation strategy takes hold.
Nonetheless, Senkypl sees 2023 as the year of transformation that will eventually pave the path for long-term success. Groupon’s interim CEO, Dusan Senkypl, termed Q1 “disappointing” and acknowledged that the company is facing significant challenges. Further, it compared favorably to the loss per share of $0.80 in the prior-year period. It delivered a net loss of $0.65 a share compared to the analysts’ estimate of a loss of $0.94 a share. While its top line missed Street’s estimate, its bottom line came in better than what analysts forecasted. At the same time, billings decreased by 14%. The company’s total revenue fell 21% year-over-year to $121.6 million and missed analysts’ sales forecast of $134.9 million. Groupon announced weak first-quarter results, wherein its billings and revenue continued to decline. Moreover, its recent quarterly earnings reveal that its problems are unlikely to end soon, thus curbing the chances of recovery in its stock. The online marketplace that connects consumers and merchants through marketing campaigns to offer local experiences and services is struggling to drive revenues. Further, it has lost about 75% of its value in one year. Groupon’s ( NASDAQ:GRPN) stock is down about 54% year-to-date.
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