GRPN
Groupon, INC
NASDAQ
8-K: Groupon Reports Mixed Q4 and Fiscal Year 2024 Results; North America Local Billings Show Promise
Sentiment:
Earnings Release
11 March 2025 4:13 PM
Groupon's Q4 2024 results show mixed performance with a net loss, but North America Local billings grew by 8% and the company generated positive free cash flow for the year.
Worse than expected
While North America Local billings showed positive growth, overall revenue, gross billings, and unit sales decreased year-over-year, and the company reported a net loss for both the quarter and the full year.
Summary
- Groupon announced its Q4 and full-year 2024 financial results on March 11, 2025.
- Full-year revenue was $492.6 million, a 4% decrease compared to 2023.
- Full-year gross billings totaled $1.6 billion, down 5% from the previous year.
- Unit sales for the year reached 36.6 million, an 11% decrease year-over-year.
- The company reported a net loss of $56.5 million for the full year.
- Adjusted EBITDA for the year was $69.3 million, an increase from $55.5 million in 2023.
- Groupon generated positive operating cash flow of $55.9 million and free cash flow of $40.6 million for the full year.
- Q4 revenue was $130.4 million, a 5% decrease compared to the prior year.
- Q4 gross billings were $430.1 million, down 1% year-over-year.
- Unit sales in Q4 were 10.3 million, down 8% compared to the prior year.
- The company had 15.4 million active customers as of December 31, 2024.
- Q4 net loss was $50.1 million, compared to a net income of $28.5 million in the prior year.
- Adjusted EBITDA for Q4 was $18.7 million, compared to $26.9 million in the prior year.
- North America Local billings increased by 8% in Q4.
- The company exited Q4 with $228.8 million in cash.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While there are positive aspects like North America Local growth and positive free cash flow, the overall financial results show declines in revenue, gross billings, and a net loss. The company's future outlook is dependent on its ability to sustain growth in key areas and manage costs effectively.
Positives
- North America Local billings showed strong growth in Q4, increasing by 8%.
- The company achieved positive free cash flow for the full year 2024, amounting to $40.6 million.
- Adjusted EBITDA increased year-over-year, reaching $69.3 million for the full year.
- Groupon's cash position remains healthy at $228.8 million at the end of Q4.
Negatives
- Full-year revenue decreased by 4% to $492.6 million compared to 2023.
- Gross billings for the full year decreased by 5% to $1.6 billion.
- Unit sales for the full year decreased by 11% to 36.6 million.
- The company reported a net loss of $56.5 million for the full year.
- Q4 net loss was $50.1 million, a significant decrease compared to a net income of $28.5 million in the prior year.
- International revenue decreased by 11% in Q4.
Risks
- The company faces challenges in maintaining and growing its customer base, as active customers decreased year-over-year.
- Groupon's international segment is experiencing revenue declines, particularly due to the exit from the Local business in Italy.
- Increased marketing expenses as a percentage of gross profit could impact profitability.
- The company's reliance on email, internet search engines, and mobile application marketplaces to drive traffic poses a risk if these channels become less effective or more costly.
Future Outlook
The company's outlook is detailed in the earnings commentary and slides available on the investor relations website.
Management Comments
- Dusan Senkypl, Chief Executive Officer of Groupon, stated that the company successfully executed its transformation strategy in 2024, returning North America Local to growth and generating positive free cash flow.
- He also mentioned that after a difficult Q3, the company rebounded in Q4, with North America Local Billings growing 8%, and that they enter 2025 with momentum.
Industry Context
Groupon operates in the highly competitive online marketplace and deals industry, facing competition from companies like LivingSocial (now defunct), Amazon Local, and daily deal sites run by local media companies. The focus on North America Local growth suggests a strategy to capitalize on local market trends and consumer preferences.
Comparison to Industry Standards
- Comparing Groupon's performance to other e-commerce and marketplace companies is challenging due to its unique business model.
- Companies like Etsy or eBay have different revenue models and target different customer segments.
- However, assessing Groupon's growth in North America Local against the growth of local advertising spend and the performance of other local deal providers could provide valuable insights.
- For example, comparing Groupon's adjusted EBITDA margin to that of other marketplace companies can help assess its operational efficiency.
Stakeholder Impact
- Shareholders may be concerned about the net loss and declining revenue, but encouraged by the growth in North America Local and positive free cash flow.
- Employees may be affected by restructuring efforts and the company's focus on efficiency.
- Merchants may benefit from the increased focus on North America Local and the company's efforts to drive more business to their establishments.
- Customers may see changes in the types of deals and offerings available as the company focuses on its core markets.
Next Steps
- Investors are encouraged to review the earnings commentary and slides on Groupon's investor relations website.
- A conference call will be held on March 12, 2025, to discuss the results and outlook.
Key Dates
- December 31, 2024: End of fiscal year and fourth quarter
- March 11, 2025: Earnings press release date
- March 12, 2025: Conference call webcast at 7:00 a.m. CT / 8:00 a.m. ET
Keywords
GRPN
Groupon, INC
NASDAQ
Sector: Communication Services
Filings with Classifications
Capital raise
18 June 2025 7:29 AM
Financing Transaction Announcement
- The company is issuing $244,071,000 aggregate principal amount of new 4.875% Convertible Senior Notes due 2030 in exchange for existing notes. While it's an exchange and not a cash raise, it is a form of capital restructuring that impacts the company's debt capital.
Delay expected
17 June 2025 3:40 PM
Insider Transaction Report
- The Form 4 was filed late due to an inadvertent administrative oversight.
Delay expected
17 June 2025 3:39 PM
Insider Transaction Report
- The Form 4 filing was submitted late due to an inadvertent administrative oversight.
Delay expected
17 June 2025 3:39 PM
Insider Transaction Report
- The Form 4 was filed late due to an inadvertent administrative oversight.
Delay expected
16 June 2025 3:48 PM
Insider Transaction Report
- The Form 4 filing was submitted late due to an "inadvertent administrative oversight."
Delay expected
5 June 2025 1:29 PM
Insider Transaction Report
- The Form 4 filing itself was delayed, submitted late due to an inadvertent administrative oversight.
Worse than expected
5 June 2025 1:29 PM
Insider Transaction Report
- The Form 4 was filed late, indicating a lapse in regulatory compliance due to an inadvertent administrative oversight.
Delay expected
4 June 2025 5:36 PM
Insider Transaction Report
- The Form 4 filing was submitted late due to an inadvertent administrative oversight, as stated in the filing.
Better than expected
27 May 2025 1:31 PM
Insider Transaction Report Amendment
- The vesting of 109,250 Performance Share Units indicates that Groupon successfully met a pre-established stock price hurdle, which is a positive performance indicator for the company's stock.
Worse than expected
7 May 2025 4:11 PM
Earnings Press Release
- Global revenue decreased by 5% year-over-year, indicating a decline in overall sales performance.
- Adjusted EBITDA decreased from $19.5 million to $15.3 million, suggesting a decrease in profitability.
Worse than expected
7 May 2025 4:11 PM
Quarterly Report
- Revenue decreased from $123.08 million to $117.19 million, indicating a worse than expected performance.
- Adjusted EBITDA decreased from $19.52 million to $15.33 million, indicating a worse than expected performance.
Worse than expected
28 April 2025 4:07 PM
Proxy Statement
- The company reported a net loss of $57 million in 2024.
- The adjusted EBITDA goal for the 2024 Annual Bonus Plan remained below threshold.
Worse than expected
11 March 2025 4:13 PM
Earnings Release
- While North America Local billings showed positive growth, overall revenue, gross billings, and unit sales decreased year-over-year, and the company reported a net loss for both the quarter and the full year.
Worse than expected
11 March 2025 4:12 PM
Annual Results
- Gross billings, units, revenue, and gross profit all decreased year-over-year, indicating a decline in overall business activity.
Capital raise
19 November 2024 4:10 PM
Debt Issuance Announcement
- The document details a capital raise of $20 million through the issuance of convertible senior secured notes.
- The total issuance was $197.26 million, with the majority being an exchange of existing debt.
Worse than expected
12 November 2024 4:51 PM
Quarterly Report
- The company's revenue, gross profit, and adjusted EBITDA all decreased compared to the same period last year, indicating worse than expected results.
Capital raise
12 November 2024 4:51 PM
Quarterly Report
- The company completed an $80 million fully backstopped rights offering in January 2024.
- The company entered into exchange and subscription agreements for $197.3 million of new convertible senior secured notes due 2027.
Delay expected
12 November 2024 4:51 PM
SEC Form 4 Filing
- The Form 4 filing was submitted late due to an inadvertent administrative oversight.
Capital raise
12 November 2024 4:50 PM
Financing Announcement
- Groupon is raising $20 million in gross cash proceeds through the issuance of new 2027 convertible secured notes.
- The company is also exchanging $176.26 million of existing 2026 notes for new 2027 notes, which is a form of capital restructuring.
Better than expected
30 July 2024 4:19 PM
Quarterly Report
- The company reported a smaller net loss compared to the same quarter last year.
- The company achieved positive operating and free cash flow.
- North America local revenue grew by 7% year-over-year.
Worse than expected
30 July 2024 4:18 PM
Quarterly Report
- The company's revenue decreased slightly year-over-year, indicating a worse performance than expected in terms of top-line growth.
Better than expected
9 May 2024 4:09 PM
Quarterly Report
- The company's results were better than expected as they exceeded the high end of guidance.
- The company achieved its first consolidated revenue growth since 2016.
- Adjusted EBITDA turned positive, a significant improvement from the previous year.
Worse than expected
9 May 2024 4:06 PM
Quarterly Report
- While the net loss improved, the company still reported a loss and gross billings decreased, indicating worse than expected performance.
Capital raise
9 May 2024 4:06 PM
Quarterly Report
- The company completed an $80 million fully backstopped rights offering in January 2024.
- The rights offering was fully backstopped by Pale Fire Capital SICAV a.s.
Capital raise
7 May 2024 9:26 AM
Executive Appointment and Compensation Announcement
- The company is seeking stockholder approval to increase the number of shares available under the 2011 Incentive Plan by 7,000,000 shares.
- This increase is necessary to cover the PSU awards granted to the CEO and CFO, as well as future awards to other employees.
Capital raise
29 April 2024 5:25 PM
Proxy Statement
- The Pale Fire Parties amended and restated the Standstill Agreement to (a) modify the termination date from the earlier to occur of forty-five days following the date on which Mr.
- Senkypl shall cease to serve for any reason as Interim Chief Executive Officer or Chief Executive Officer of the Company to December 31, 2024; and (b) exclude any and all shares of common stock purchased by the Pale Fire Parties in connection with (i) their exercise of basic subscription rights prior to the expiration of the Rights Offering, (ii) fully purchasing any and all unsubscribed shares in the Rights Offering following its expiration, and (iii) the exercise of their over-subscription privileges, if applicable, from the Pale Fire Parties existing 25% beneficial ownership limitation.
Capital raise
15 March 2024 7:05 AM
Quarterly Report
- In January 2024, Groupon closed a fully backstopped Rights Offering that was oversubscribed and raised $80.0 million.
Better than expected
15 March 2024 7:05 AM
Quarterly Report
- The company's Q4 results were better than expected, with positive net income and adjusted EBITDA, which is a significant improvement from previous quarters.
- The company also resolved its going concern issue, which was a major concern in previous periods.
Worse than expected
15 March 2024 6:58 AM
Annual Results
- The document outlines numerous risks and challenges, suggesting that the company's future performance may be worse than expected.
Capital raise
14 February 2024 7:29 PM
Debt Repayment Announcement
- Groupon conducted an $80 million fully backstopped rights offering.
- The rights offering was made available to all holders of record of the company's common stock.
- The proceeds from the rights offering were used to repay debt and for general corporate purposes.
Capital raise
22 January 2024 8:30 AM
Capital Raise Announcement
- Groupon completed an $80 million rights offering.
- The offering was fully backstopped and significantly oversubscribed.
- The company issued 7,079,646 shares at $11.30 per share.
Better than expected
12 January 2024 8:41 AM
Business Update
- The company expects Q4 2023 results to be at or above the high end of guidance, indicating better than expected performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.