Why Groupon Stock Exploded Higher This Week

Core Insights - Groupon's shares surged 37% following a better-than-expected earnings report and progress in its turnaround strategy [1] Financial Performance - Groupon reported a fourth-quarter net loss per share of $1.20 on total revenue of$130.4 million, exceeding analyst expectations [2] - Adjusted earnings were $18.7 million, which was$800,000 higher than estimates [2] - North America Local Billings grew by 8% in the fourth quarter, marking a recovery after a challenging third quarter [2] Future Outlook - Management anticipates full-year revenue for 2025 to be flat to 2% higher, surpassing estimates [3] - Expected adjusted earnings for 2025 are projected to be between $70 million and$75 million, with free cash flow of at least $41 million [3] Strategic Transformation - Under CEO Dusan Senkypl, Groupon has streamlined its operations and is focused on returning to growth after recent struggles [4] - The stock is trading at approximately 13 times forward earnings, indicating it is not overly expensive despite recent gains [4]