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Shares of Groupon (NASDAQ:GRPN) soared 41.86% to $13.86 as of 14:13 ET on Wednesday after the company beat Q4 revenue estimates and provided an upbeat 2025 outlook.
The company expects 2025 revenue between $493 million and $500 million and adjusted EBITDA of $70 million to $75 million, both topping Bloomberg's consensus estimates of $491.3 million in revenue and $74.8 million in EBITDA. Groupon also projects at least $41 million in free cash flow for the year.
CEO Dusan Senkypl highlighted the company's return to growth in North America and its first positive free cash flow since the pandemic. He noted that after a challenging Q3, North America Local Billings rebounded by 8% in Q4, setting a strong foundation for 2025.
Q4 results showed North America gross billings up 3%, while International billings declined 11%. Active customers stood at 15.4 million, flat sequentially but down 6% year-over-year. Groupon ended the quarter with $228.8 million in cash and equivalents.
Despite these positive trends, Groupon reported a net loss of $50.6 million ($1.20 per share), compared to a profit of $27.7 million ($0.76 per share) a year ago. The loss was driven by declining revenue, rising operating costs, and a $44.4 million other expense.
Revenue fell 5.3% to $130.4 million but still beat analyst expectations of $127.7 million.
This article first appeared on GuruFocus.