Groupon (NASDAQ: GRPN) stock surged 22% in pre-market trading on Wednesday following the release of its fourth-quarter financial results. The online deals platform delivered a revenue beat that caught Wall Street’s attention.
The company posted fourth-quarter revenue of $130.38 million, topping analyst estimates of $127.74 million, though it marked a 4% decline compared to the same quarter last year.
On the earnings front, Groupon reported a loss of $1.20 per share, wider than the expected loss of $0.04. The miss on earnings didn’t dampen investor enthusiasm sparked by the revenue upside.
Gross billings reached $430.1 million, down 1% year-over-year. Unit sales hit 10.3 million, an 8% decline from last year but an 18% jump from the prior quarter. Active customers totaled 15.4 million as of December 31, down 6% from a year ago.
Cash flow was a bright spot. Groupon generated $67 million in operating cash flow and $63.2 million in free cash flow. The company closed the quarter with $228.8 million in cash and cash equivalents.
“In 2024, we successfully executed our transformation strategy, returning North America Local to growth and generating positive free cash flow for the first time since exiting the pandemic,” said Dusan Senkypl, CEO of Groupon.
“After a bumpy third quarter, we rebounded nicely in the fourth quarter, with North America Local Billings growing 8%. We enter 2025 with momentum and a stronger foundation to accelerate growth.”
Groupon (NASDAQ: GRPN) noted that the positive momentum from the end of 2024 has carried into the start of 2025. The company outlined its focus for the year, including winning in key markets, prioritizing high-impact categories, enhancing customer retention, boosting merchant success, and completing technical migrations for its mobile-first platform.
For Q1, Groupon expects revenue between $114 million and $117 million. It forecasts first-quarter billings to decline by 2.5% to 5% year-over-year.
For FY 2025, the company projects billings growth of 2% to 4%, with revenue expected to be flat or increase by up to 2%.
