Groupon slumps 30% after Q4 results

Groupon (GRPN.US) is one of the worst performing US stock today, dropping almost 30%. Slump comes in response to release of Q4 2023 earnings report. The report was not that bad, with the company beating expectations on most metrics. However, revenue, gross billings as well as number of active customers were all lower year-over-year. Nevertheless, the results showed company's turnaround gaining pace in the final quarter of 2023 and today's pullback can be to some extent seen as profit taking following around-140% between mid-November 2023 and mid-March 2024.

Groupon Q4 2023 earnings

• Revenue: $137.7 million vs $136.7 million expected (-7% YoY)
  • North America: $99.9 million (-5.8% YoY)
  • International: $37.8 million (-10% YoY)
• Gross billings: $436.3 million (-6.8% YoY)
  • North America: $300.3 million (-4% YoY)
  • International: $136.1 million (-13% YoY)
• Number of active customers: 16.5 million (-12% YoY)
  • North America: 10.3 million (-8.8% YoY)
  • International: 6.2 million (-17% YoY)
• Adjusted EBITDA: $26.9 million vs $25.4 million expected (-$5.29 million a year ago)
• Operating profit: $17.7 million vs $10.2 million expected (-$32.8 million a year ago)
• Marketing expenses: $34.5 million vs $34.6 million expected (-18.9% YoY)
• Capital expenditures: $3.4 million vs $15 million expected (-40.6% YoY)
• Adjusted EPS: $0.30 vs $0.12 expected (-$0.38 a year ago)

Taking a look at Groupon chart (GRPN.US) at D1 interval, we can see that today's slump is truly massive. Stock dropped to the lowest level since late-January, erasing around half of the rally that occurred since mid-November 2023. Stock is currently testing the upward trendline slightly below $13.00 mark. Should we see a break below this hurdle, the next support to watch can be found in the $11.25 area, and is marked with previous price reaction, 200-session moving average (purple line) and the lower limit of the Overbalance structure.

Source: xStation5