Groupon Inc (NASDAQ:GRPN) disappointed investors with its third quarter 2023 financial results and plans raise about $100 million through a fully backstopped equity rights offering and non-core asset sales.
For 3Q, the consumer site for discounted local services saw its revenue fall 12% year over year to $126.5 million, missing the $127.41 million consensus forecast.
Its loss per share for the period of $1.31, meanwhile, was an improvement from the $1.86 loss a year earlier but fell far short of the $0.03 per share deficit expected by Wall Street.
Groupon stock dropped 26% in Thursday’s after-hours session.
"While we did not make as much progress on key projects as I expected and our business continues to be challenged, I am pleased to see sequential improvement in our financial performance, Local Billings return to growth, and our plan to strengthen our liquidity position," Groupon interim CEO Dusan Senkypl said in a statement.
The company also revealed that it agreed to sell a portion of its investment in SumUp in two separate deals totaling $18.8 million.
As well, Groupon's board approved an $80.0 million fully backstopped rights offering, with Pale Fire Capital SICAV a.s. making a binding commitment to backstop the entire offering.
Groupon ended the quarter with $86.1 million in cash as of September 30, 2023.
Contact Sean at sean@proactiveinvestors.com