Groupon ( NASDAQ: GRPN ) has fallen 4.4% postmarket after missing expectations on top and bottom lines with its third-quarter earnings report .
Revenue fell 33% to $144.4M (down 30% on a currency-neutral basis). Local revenue fell 27% to $127.9M (down 24% FX-neutral).
Gross profit fell 31% to $125.7M, and the company swung to a net loss of $55.5M from a year-ago gain of $78.7M. Similarly, adjusted EBITDA fell to -$8.6M from a year-ago $34.6M.
In operating metrics, global units sold fell 22% to 12.3M, "primarily driven by a decline in engagement on our platform and a de-emphasis on our Goods category." North America units were down 26% and 39% in Local and Goods year-over-year; International units were up 6% in Local and down 41% in Goods.
Groupon is guiding to $100M in annual free cash flow in 2023, as well as adjusted EBITDA margin of 15-20%.
"In addition, we are creating a business model that should position the company to generate positive free cash flow every quarter, starting in the fourth quarter of 2022," the company said.
Operating cash flow for the trailing 12 months was an outflow of $120.9M, and free cash flow was an outflow of $163.1M. Liquidity as of quarter-end was $308M, with $110M in outstanding borrowings under its revolving credit.
The company is cutting its North American sales force as part of a turnaround strategy and says "We are well on our way to achieve our phase one goal to reduce our cost structure by $150M annually, and expect to hit this run-rate by the end of 2023." It also is targeting an additional $50M in savings and related cost actions by the end of 2023.
Conference call to come at 5 p.m. ET .
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Groupon dips 4% as revenues slip, earnings miss targets