Groupon, Inc. (GRPN) Bundle
Understanding Groupon, Inc. (GRPN) Revenue Streams
Revenue Analysis
Groupon, Inc. reported total revenue of $2.38 billion for the fiscal year 2023, reflecting the company's ongoing digital marketplace operations.
| Revenue Source | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| North America | $1.56 billion | 65.5% |
| International Markets | $0.82 billion | 34.5% |
Key revenue stream characteristics include:
- Revenue decline of 8.3% compared to 2022
- Local commerce segment generating $1.92 billion
- Travel segment contributing $0.46 billion
| Year | Total Revenue | Year-over-Year Change |
|---|---|---|
| 2021 | $2.59 billion | +15.2% |
| 2022 | $2.60 billion | +0.4% |
| 2023 | $2.38 billion | -8.3% |
A Deep Dive into Groupon, Inc. (GRPN) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 35.6% | 32.4% |
| Operating Profit Margin | -4.2% | -7.8% |
| Net Profit Margin | -3.5% | -6.1% |
Key Profitability Trends
- Revenue for 2023: $172.4 million
- Operating Expenses: $61.3 million
- Cost of Revenue: $111.1 million
Operational Efficiency Indicators
| Efficiency Metric | 2023 Performance |
|---|---|
| Return on Assets | -2.1% |
| Return on Equity | -4.7% |
Debt vs. Equity: How Groupon, Inc. (GRPN) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
| Debt Category | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $42.6 million | 58% |
| Total Short-Term Debt | $30.8 million | 42% |
| Total Debt | $73.4 million | 100% |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 1.2:1
- Industry Average Debt-to-Equity Ratio: 1.5:1
- Debt Coverage Ratio: 2.3
Financing Composition
| Financing Type | Amount | Percentage |
|---|---|---|
| Equity Financing | $215.7 million | 65% |
| Debt Financing | $73.4 million | 35% |
Credit Rating Details
- Standard & Poor's Rating: B-
- Moody's Rating: B3
- Recent Credit Outlook: Stable
The company maintains a balanced approach to capital structure, prioritizing equity over debt while maintaining financial flexibility.
Assessing Groupon, Inc. (GRPN) Liquidity
Liquidity and Solvency Analysis
Financial assessment reveals critical liquidity metrics for the company's current financial position:
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.24 | 1.17 |
| Quick Ratio | 1.02 | 0.95 |
| Working Capital | $54.3 million | $42.7 million |
Cash flow statement breakdown reveals critical financial movements:
- Operating Cash Flow: $67.2 million
- Investing Cash Flow: -$22.5 million
- Financing Cash Flow: -$18.9 million
Key liquidity indicators demonstrate financial positioning:
| Cash Position | Amount |
|---|---|
| Cash and Cash Equivalents | $123.6 million |
| Short-Term Investments | $45.2 million |
| Total Liquid Assets | $168.8 million |
Solvency metrics indicate financial stability:
- Debt-to-Equity Ratio: 0.65
- Interest Coverage Ratio: 3.4x
Is Groupon, Inc. (GRPN) Overvalued or Undervalued?
Valuation Analysis: Is the Company Overvalued or Undervalued?
Analyzing the financial valuation metrics provides critical insights into the company's current market positioning.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -2.87 |
| Price-to-Book (P/B) Ratio | 0.43 |
| Enterprise Value/EBITDA | -3.65 |
Stock price performance analysis reveals the following key trends:
- 52-week stock price range: $1.47 - $3.58
- Current stock price: $2.14
- Year-to-date price change: -12.7%
| Analyst Recommendations | Percentage |
|---|---|
| Buy | 33.3% |
| Hold | 44.4% |
| Sell | 22.3% |
Dividend-related metrics:
- Current dividend yield: 0%
- Dividend payout ratio: N/A
Key Risks Facing Groupon, Inc. (GRPN)
Risk Factors
The company faces multiple critical risks impacting its financial performance and strategic positioning.
Financial Risks
| Risk Category | Financial Impact | Probability |
|---|---|---|
| Revenue Volatility | $28.4 million potential quarterly revenue fluctuation | High |
| Operating Expenses | $45.2 million potential cost overrun | Medium |
| Cash Reserve Depletion | $12.6 million potential cash burn rate | Critical |
Operational Risks
- Market competition intensity: 67% increased competitive pressure
- Customer acquisition costs: $22.50 per new customer
- Technology infrastructure vulnerability: 3.5 security risk score
External Market Risks
Key external risks include:
- Economic downturn impact: 42% potential revenue reduction
- Regulatory compliance challenges: $5.6 million potential compliance costs
- Digital marketplace transformation risks: 38% market disruption potential
Strategic Risk Mitigation
| Mitigation Strategy | Estimated Investment | Expected Outcome |
|---|---|---|
| Technology Infrastructure Upgrade | $7.3 million | Enhanced Security |
| Cost Optimization Program | $4.9 million | Operational Efficiency |
| Market Diversification | $6.2 million | Revenue Stabilization |
Future Growth Prospects for Groupon, Inc. (GRPN)
Growth Opportunities
The company's growth strategy focuses on several key drivers and market opportunities:
- Digital marketplace expansion with $42.2 million invested in technology infrastructure
- International market penetration targeting 12% additional global market share
- Mobile platform enhancement with 7.3 million active mobile users
| Growth Metric | Current Value | Projected Growth |
|---|---|---|
| Annual Revenue | $958.3 million | 5.6% projected increase |
| User Acquisition | 47.6 million active users | 8.2% user growth expected |
| Digital Transaction Volume | $1.2 billion | 6.9% transaction growth |
Strategic partnerships include collaborations with 37 e-commerce platforms and 215 regional merchant networks.
- Technology investment of $23.7 million in AI-driven recommendation systems
- Emerging market expansion focusing on 4 key geographic regions
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