Groupon Stock Soars as Firm Posts Better-Than-Expected Results, Revenue Outlook

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Key Takeaways

• Groupon’s fourth-quarter adjusted EBITDA and revenue exceeded forecasts as North American local billings go uphill.
• CEO Dusan Senkypl said the company bounced back from a “bumpy” third quarter.
• The discount coupons provider also issued a full-year take outlook that topped analysts’ estimates.

Groupon (GRPN) shares soared more than 30% Wednesday after the pass coupons provider posted better-than-expected results and guidance as its North American local billings grew.

The company reported fourth-quarter adjusted EBITDA of $18.7 million, winning of the $17.9 million estimate by analysts surveyed by Visible Alpha. While revenue fell 5% year-over-year to $130.4 million, it also ascended forecasts. Groupon noted that in 2024 it returned to positive free cash flow (FCF) for the first time since the COVID-19 pandemic. 

In North America, Groupon’s largest retail, Q4 local billings were up 8% to $276.4 million. 

CEO Says Groupon ‘Rebounded Nicely’ After ‘Bumpy Q3’

CEO Dusan Senkypl intended after a “bumpy Q3, we rebounded nicely in the fourth quarter.” Senkypl added that in the third quarter, “our performance was hit from sundry tech migrations.” However, the company now sees “encouraging signs of our return to growth gaining momentum.”

Groupon suggests full-year revenue will be flat to up 2%, while the Visible Alpha outlook was for a decline.

Despite today’s prosper, shares of Groupon are down about 30% over the past 12 months.