Groupon,  Inc.  (NASDAQ:  GRPN)  today  announced  its  financial  results for the quarter ended March 31, 2021 and provided details on its recent operating  progress. The company filed its Form 10-Q with the Securities and Exchange Commission and  posted  an  updated  presentation  on  its  investor  relations  website  (investr.groupon.com).  

First  Quarter  2021  Summary  

Consolidated  

• Revenue  was  $263.8  million  in  the  first  quarter  2021,  down  29%  (32%  FX-neutral)  compared  with the  first quarter  2020.  
  • Operating cash flow was $126.4 million for the trailing  twelve month  period, and free cash  flow, a non-GAAP financial measure, was $76.3 million for the trailing  twelve month  period.  
  • Cash and cash equivalents as of March 31, 2021 were $676.8 million. In the first quarter  2021, we repaid $100.0 million of outstanding borrowings under our revolving credit  facility. As of March 31, 2021, we had $100.0 million of outstanding borrowings under our  revolving  credit facility.  
  • In March 2021, we issued $200.0 million aggregate principal amount of new convertible  senior  notes  due  2026.  As  of  March  31,  2021,  $169.8  million  of  the  net  proceeds  from  this  offering is presented as restricted cash. We intend to use the remaining net proceeds  from  the  offering  (including  additional  proceeds  from  the  over-allotment  option  exercised  
    • Gross profit was $167.0 million in the first quarter 2021, down 17% (19% FX-neutral)  compared  with the  first quarter  2020.  
    • SG&A was $127.1 million in the first quarter 2021 compared with $207.1 million in the first  quarter 2020, primarily driven by lower payroll-related expenses due to restructuring  actions  and  lower non-payroll  expenses.  
    • Marketing expense declined by 44% to $33.7 million in the first quarter 2021 due to  accelerated year-over-year traffic declines, significantly shortened payback thresholds,  and  lower  investment  in  offline  marketing  and  brand  in  light  of  COVID-19.  
    • Restructuring charges were $7.4 million in the first quarter 2021 and were related to our  multi-phase  restructuring plan  announced in  April 2020.  
    • Other  income,  net  was  $18.1  million  in  the  first  quarter  2021,  compared  with  expense  of  

    $19.0 million in the first quarter 2020, which was primarily driven by a $32.2 million  cumulative foreign currency translation adjustment gain that was reclassified into earnings  in the first quarter 2021 as a result of the substantial liquidation of our subsidiary in Japan  as  part of our restructuring actions.  

    • Net  income  from  continuing  operations  was  $14.4  million  in  the  first  quarter  2021  compared with a net loss of $210.9 million in the first quarter 2020, driven primarily by  impairment charges in the first quarter 2020, lower SG&A and marketing expenses in the  current period, and a cumulative foreign currency translation adjustment gain. This was  partially  offset by the  decrease in gross  profit.  
    • Net income attributable to common stockholders was $14.6 million, or $0.48 per diluted  share,  in  the  first  quarter  2021,  compared  with  a  net  loss  attributable  to  common  stockholders of $213.5 million, or $7.53 per diluted share, in the first quarter 2020. Non-  GAAP net income attributable to common stockholders was $7.5 million, or $0.25 per  diluted share, in the first quarter 2021, compared with non-GAAP net loss attributable to  common stockholders plus assumed conversions of $46.2 million, or $1.63 per diluted  share,  in the  first quarter  2020.  
    • Adjusted EBITDA, a non-GAAP financial measure, was $30.4 million in the first quarter  2021,  compared  with  Adjusted  EBITDA  loss  of  $22.5  million  in  the  first  quarter  2020.  
    • Global units sold were down 40% to 18 million in the first quarter 2021 largely driven by  the impact of COVID-19 on demand. In the first quarter 2021, North America units were  down 42% in Local and down 18% in Goods. International units were down 69% in Local  and  down  8%  in Goods.  in  April  2021),  together  with  cash  on  hand,  to  repurchase  our  convertible  notes  due  April  2022  during the second quarter  2021.  
•  North  America  
  • North America gross profit in the first quarter 2021 decreased 9% to $130.4 million,  primarily driven by the impacts of COVID-19 on volume. Local gross profit in the first  quarter 2021 decreased 9% to $112.4 million. Goods gross profit decreased 17% to $13.2  million.  Travel  gross profit  increased  19%  to  $4.7 million.  
  • North  America  active  customers  were  15.2  million  as  of  March  31,  2021.  International  
  • International gross profit in the first quarter 2021 decreased 36% to $36.6 million (42%  FX-neutral), primarily driven by the impacts of COVID-19 on volume. Local gross profit in  the first quarter 2021 decreased 52% to $21.4 million (56% FX-neutral). Goods gross  profit  increased  42%  to  $14.5  million  (29%  FX-neutral).  Travel  gross  profit  decreased  74%  to  $0.7 million  (78%  FX-neutral).  
  • International  active  customers  were  10.6  million  as  of  March  31,  2021.  

   

  Definitions and reconciliations of all non-GAAP financial measures and additional information  regarding operating measures are included below in the section titled “Non-GAAP Financial  Measures and Operating Metrics” and in the accompanying tables. All comparisons in this press  release  are year-over-year  unless otherwise provided

• CWEB Analyst’s have initiated a STRONG BUY Rating for    (NASDAQ:  GRPN) and potential upside of $199 in 2021. The fundamentals of the company are to strong and even after the hard hit post pandemic recovery. We believe Q2 will beat expectations due to the solid cash base numbers coming in.   Groupon is projection close to 1 Billion in revenue this year. Things are looking really good for Groupon since they are operating e commerce online and retail with post covid recovery.