Shares of Groupon surge as company anticipates surpassing previous guidance for Q4
Groupon, the popular local-deals marketplace, has seen a rise in its stock by 4.5% to $13.35 during morning trading. The company is currently performing positively year-to-date and shows significant growth compared to its valuation of $8.21 at this time last year.
Groupon attributes this upward trend to a successful holiday season. The company announced on Friday that it expects its fourth-quarter revenue to reach or exceed the high-end of its forecast range, which is estimated to be between $127.5 million and $137.5 million. Furthermore, Groupon foresees positive cash flow for the same period.
Notably, during the quarter, Groupon managed to pay off $3.9 million in borrowings from its revolving credit agreement. Additionally, the company generated $18.9 million in proceeds from previously disclosed sales of portions of its investment in SumUp.
As the year concluded, Groupon had approximately $141 million in cash and cash equivalents. However, $26 million of this amount was restricted cash. Looking ahead, Groupon reaffirms its preliminary outlook for either flat sales or a slight decline of 5% in top-line revenue for the year 2024.
In summary, Groupon's optimistic performance in the fourth quarter indicates a prosperous future for the company.
Dean Seal - Copywriter