Benzinga | Nov 5, 2021 09:45AM EDT

Groupon's 30% Q3 Revenue Decline Was Led By Lower Demand

* Groupon Inc (NASDAQ:GRPN) reported a third-quarter FY21 revenue decline of 30% year-on-year to $214.2 million, beating the consensus of $213.1 million. Service revenue grew 28.3% Y/Y to $198.98 million.

* Lower demand for the Goods category and the transition from a first-party to a third-party marketplace model drove the decline.

* Global units sold were 15.7 million, down 26% Y/Y driven by lower consumer demand in the Goods category.

* Non-GAAP EPS of $0.38 beat the consensus of $0.07.

* Groupon held $476.8 million in cash and equivalents and used $74.2 million in operating cash flow.

* During the third quarter, we grew our high value, active Local customer base, drove unit growth for customers who engaged with our restriction-free Deals, and demonstrated our ability to impact customer demand, interim CEO Aaron Cooper said.

* The company said the new Square partnership allows local merchants to create Groupon campaigns directly from Square App Marketplace

* Groupon generated $553 million in global billings, of which approximately 76% were Local billings, $214 million in revenue, and $35 million of adjusted EBITDA.

* Groupon sees an FY21 outlook of $950 million - $975 million below the consensus of $984.3 million.

* Price Action: GRPN shares traded higher by 4.76% at $24 premarket on the last check Thursday.