Groupon Badly Disappoints on Q1 Results and Lowers Full-Year Adj. EBITDA Guidance; FVE Down to $38

As a first mover in the local-market daily deals space, Groupon has captured a leadership position, but robust profitability has not followed. While there have been some indications of improvements thanks to the firm's restructuring plan, we are skeptical about Groupon's ability to accelerate top-line growth and expand margins over the long run.