How did Groupon's revenue and expenses trend in Q4 2024?

Groupon's revenue and expenses in Q4 2024 showed a decline in revenue and a decrease in expenses compared to the same period the previous year, resulting in improved profitability.

1. Revenue Trend: Groupon's revenue for Q4 2024 was $130.38 million, which represents a 5.3% decrease from the $137.97 million reported in Q4 2023. This decline in revenue was primarily due to a 9% decrease in Local revenues, which include North America Local revenues that decreased by 8% and International Local revenues that declined by 2% year-over-year. However, Consolidated Travel revenues increased by 3.4% year-over-year, with North America Travel revenues increasing by 13.3% year-over-year, partially offsetting the decline in Local revenues.
2. Expense Trend: Groupon's net income for Q4 2024 was -$50.65 million, which indicates a loss for the quarter. However, this compares favorably to the net loss of $41.4 million reported in Q4 2023. The improved net income was driven by lower expenses, as the company reported a quarterly adjusted loss of $1.20 per share in Q4 2024, which is lower than the $1.31 per share loss reported in Q4 2023. This reduction in expenses contributed to the company's move towards profitability, with a reported profit margin of 12% in Q4 2024, up from a net loss in Q4 2023.
3. Profitability: Groupon's adjusted EBITDA for Q4 2024 was expected to be between $14 million and $19 million, indicating improved cash flow generation capabilities. The company also anticipated a positive free cash flow for the fourth quarter, which is a positive sign for its financial health and its ability to invest in growth opportunities.

In conclusion, Groupon's revenue and expenses in Q4 2024 showed a decline in revenue but a significant decrease in expenses, resulting in improved profitability and a positive free cash flow.