Groupon has entered into partnerships with several companies and this enables it to serve all types of customers in various markets. Looking ahead, the company expects its products and services to help drive growth. The Groupon + service has received positive responses from users and its momentum is expected to continue in the third quarter.
Groupon’s second quarter results were hurt by a charge related to the IBM lawsuit. The lawsuit is expected to impact the company’s third quarter margins as well. The ongoing revenue declines are a dampener for the company, whose business model has received criticism from market insiders.
For the full year of 2018, Groupon expects adjusted EBITDA to be $280 million to $290 million. Free cash flow is expected to be approx. $200 million, after the payment of the IBM litigation expenses.
Groupon’s stock is down 35% so far this year and looking at the past one month, the stock is down 12%. If the company beats expectations for the third quarter, the stock is likely to get a lift.