Groupon (GRPN) is anticipated to have cut annualized expenses by $250 million by the end of 2023. Local billings increased by 6% sequentially in the fourth quarter compared to the third.
Fourth quarter revenue of $148 million; full year revenue of $599 million; fourth quarter billings of $468 million; full year revenue of $1.8 billion; fourth quarter net loss of $54 million; full year net loss of $234 million; fourth quarter adjusted EBITDA of negative $5 million; full year negative $15 million; ended the year with $281 million in cash; and fourth quarter free cash flow of $10 million.
Kedar Deshpande, CEO of Groupon, stated, “We are currently implementing a transformation strategy that we think will enable Groupon to unlock its full potential. “Even though we faced some macroeconomic challenges in 2022, we believe that we could have quickly modified our business strategy to meet the changing needs of our neighborhood’s consumers and company owners.
We are concentrating the entire company on three areas as we look ahead to 2023:
Improving the supply side of our market to drive customer demand, utilizing an improved inventory base to increase the effectiveness of our marketing and promotional spend, and doing both of these things against a background of a truly streamlined cost structure and significantly improved operational rigor.
The company’s growth will be able to resume, and we will be able to generate positive adjusted EBITDA with even a smaller base of sales, if we are effective in executing in these areas. We believe we are in a strong position to add value for our clients, business partners, staff members, and shareholders given the work we have already done and the opportunities that lie ahead of us.
Etsy is currently trading at $103; Amazon (AMZN) is trending around $100, Target (TGT) is trending around $160. Groupon is trading currently at $4. Groupon can easily bounce back by the end of 2023 which makes it a better investment and buy opportunity for the savvy investor.
I prefer GRPN over here at these levels. The value is reasonable, and even a rise to $30-$40 would leave it cheap in comparison to past prices with other retailers.
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