Groupon Reports $492.6 Million Revenue for Fiscal Year 2024, Faces Net Loss and Decline in Active Customers

Groupon, Inc. reported a revenue of $492.6 million for the fiscal year ending December 31, 2024, a decrease of 4.3% from $514.9 million in 2023. The company experienced a net loss of $56.5 million, compared to a loss of $52.9 million in the previous year. The decline in revenue was attributed to a decrease in gross billings, which fell to $1.6 billion from $1.6 billion in 2023, alongside a reduction in active customers, which dropped to 15.4 million from 16.5 million. The company noted that the decline in customer engagement and gross billings was particularly pronounced in its Goods and Travel categories, which saw significant reductions in both revenue and unit sales.

In terms of operational changes, Groupon has been implementing a multi-phase restructuring plan initiated in August 2022, aimed at reducing costs and aligning its operations with its strategic objectives. This plan has included workforce reductions and a focus on enhancing its Local category, which saw a slight increase in gross billings. The company also exited its Local business in Italy, which contributed to the overall decline in international revenue. As of December 31, 2024, Groupon's employee headcount stood at 2,079, down from 2,079 in the previous year, reflecting the impact of its restructuring efforts.

Groupon's marketing expenses increased significantly, rising by 30.5% to $144.2 million, primarily due to heightened investments in performance marketing campaigns. Despite the increase in marketing costs, the contribution profit decreased to $300.1 million from $340.2 million in 2023, indicating challenges in converting marketing investments into profitable revenue. The company reported an adjusted EBITDA of $69.3 million, up from $55.5 million in the prior year, suggesting some operational efficiencies were achieved despite the overall revenue decline.

Looking ahead, Groupon has expressed a commitment to enhancing its technology infrastructure and improving customer experience as part of its long-term strategy. The company has also completed a successful $80 million rights offering, which it plans to use for general corporate purposes, including debt repayment. However, Groupon faces ongoing challenges, including a material weakness in internal controls over financial reporting, which it is actively working to remediate. The company remains cautious about macroeconomic conditions that could impact consumer spending and merchant engagement in the future.