Groupon (GRPN) Q4 2024 earnings summary

Executive summary

• 2024 marked a pivotal year with operational and financial improvements, including major technical migrations and a strategic shift to quality supply.

• Achieved $1.6B in annual billings (-5% YoY), $492.6M in revenue (-4% YoY), and returned to positive free cash flow for the first time since the pandemic.

• North America Local billings grew 8% YoY in Q4 and 3% for the full year, with double-digit growth in top metros and key verticals.

• Ended 2024 with $228.8M in cash and 15.4M active customers.

• Exited Q4 with strong momentum and entered 2025 with a focus on retention and high-impact categories.

Financial highlights

• 2024 gross billings were $1.56B (-5% YoY), revenue $492.6M (-4% YoY), gross profit $444.3M (-1% YoY), and adjusted EBITDA $69.3M.

• Q4 billings were $430.1M (-1% YoY), revenue $130.4M (-5% YoY), gross profit $118.2M (-3% YoY), and adjusted EBITDA $18.7M.

• Free cash flow for 2024 was $41M, with Q4 free cash flow at $63M.

• Gross margin for 2024 was approximately 90%, and adjusted EBITDA margin was 14.1%.

• Ended 2024 with $228.8M in cash and equivalents.

Outlook and guidance

• 2025 guidance: billings $1.6B–$1.67B (+2% to +4% YoY), revenue $493M–$500M (0% to +2% YoY), adjusted EBITDA $70M–$75M, and free cash flow at least $41M.

• Q1 2025 outlook: billings $410M–$420M (-5% to -2.5% YoY), revenue $114M–$117M (-7.5% to -5% YoY), adjusted EBITDA $7M–$10M, negative free cash flow.

• Strategy focuses on city-by-city growth, high-impact categories, and customer retention.

• Forex expected to have a 100 basis point impact; Italy exit in Q2 2024 will affect year-over-year comparisons.