Groupon reports wider than expected loss and decreased revenues

From Nasdaq.: 2025-03-12 10:16:00

Groupon (GRPN) reported a loss of $1.20 per share in Q4 2024, wider than expected. Earnings were 76 cents per share in the year-ago quarter. Revenues of $130.4 million beat estimates by 1.13% but decreased by 5.3% year over year. North America revenues beat estimates, while International revenues declined.

In Q4, Groupon’s local revenues beat estimates but decreased year over year. Consolidated travel and goods revenues missed estimates and declined significantly. The company had 15.4 million active customers, beating estimates. Gross profit fell, operating profit decreased, and adjusted EBITDA declined due to increased marketing spend.

Groupon’s cash and cash equivalents increased to $228.8 million. Operating cash inflow was $67 million, and free cash inflow was $63.2 million in Q4. For Q1 2025, the company expects revenues to decline year over year and negative free cash flow. Full-year 2025 revenue guidance is flat to slightly up, with positive free cash flow expected.

Groupon is a Zacks Rank #3 (Hold) stock. Other better-ranked stocks in the Retail-Wholesale sector include Alibaba (BABA), BJ’s Restaurants (BJRI), and Boot Barn (BOOT). BABA, BJRI, and BOOT have strong buy ratings. Analysts have revised earnings estimates for these stocks, with varying growth rates and stock performance in the past year.



Read more at Nasdaq.: Groupon Q4 Earnings Miss Estimates, Revenues Decrease Y/Y