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What to Expect from Groupon’s Revenue and Earnings Growth

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Groupon’s sales are expected to rise 8.2% in 2019

Groupon’s (GRPN) sales have been falling over the last few years, as the company has exited unprofitable international markets. Groupon reported sales of $3.19 billion in 2014 and revenue fell to $3.14 billion in 2016, $2.84 billion in 2017, and $2.63 billion in 2018.

As we can see in the chart below, analysts expect Groupon’s revenue to fall 8.2% YoY to $2.42 billion in 2019 compared to $2.64 billion in 2018. Its sales are then expected to rise 2.1% to $2.47 billion in 2020 and 1.5% to $2.5 billion in 2021.

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In comparison, its non-GAAP (generally accepted accounting principles) EPS are expected to rise 11.1% in 2019 to $0.20 from $0.18 in 2018. The company’s EPS are then expected to rise 25% to $0.25 in 2020.

Analysts expect Groupon’s EPS to rise at a compound annual growth rate of 22.8% over the next five years, which is way higher than the EPS growth of 5.3% in the last five years.

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Net margin set to double over the next two years

Driven by earnings growth, Groupon’s EBITDA is expected to rise from $268 million in 2019 to $298 million in 2020 and $314 million in 2021.

Its operating profit might also improve from $128 million in 2019 to $152 million in 2020 and $182 million in 2021. The company’s operating margin is expected to expand from 5.3% in 2018 to 6.1% in 2020 and 7.3% in 2021.

Similarly, the company’s net margin is expected to improve from 1.7% in 2019 to 3% in 2020 and 4.7% in 2021.

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