Groupon Q4 2011 Results: Revenue of $506.5 million Up By 194% YOY

Posted on Feb 9 2012 - 10:27am by Editorial Staff

Groupon, a deal-of-the-day website, announced its financial results for its fourth quarter ended December 31, 2011. Revenue increased 194% to $506.5 million in the fourth quarter 2011, compared to $172.2 million in the fourth quarter 2010. Gross billings, which reflects the gross amounts collected from customers for Groupons sold, excluding any applicable taxes and net of estimated refunds, increased 201% to $1.25 billion in the fourth quarter 2011, compared with $415.3 million in the fourth quarter 2010.

Operating income was $15.0 million in the fourth quarter 2011, compared with a loss from operations of $336.1 million in the fourth quarter 2010 – marks the company’s first quarter of operating profitability since Groupon began its international operations in the second quarter of 2010. Fourth quarter 2011 operating results included losses of over $40 million principally from less mature markets within the international segment.

“Groupon had a strong fourth quarter and we finished 2011 having helped 250,000 local merchants across 47 countries grow their businesses while saving Groupon customers billions of dollars,” said Andrew Mason, CEO and Co-Founder of Groupon. “We will continue to invest in new services and tools that help our merchant partners be more successful and drive local commerce around the world.”

Fourth quarter 2011 net loss attributable to common stockholders decreased by 89% to $42.7 million, or a loss of $0.08 per share, from a net loss attributable to stockholders of $378.6 million, or a loss of $1.08 per share, in fourth quarter 2010. Pro-forma net income attributable to common stockholders for the fourth quarter improved to a loss of $9.8 million, or a pro-forma loss of $0.02 per share, from a prior year pro-forma net loss attributable to common stockholders of $185.8 million, or a pro-forma loss per share of $0.53.

Revenue increased 419% to $1.6 billion in 2011, compared with $312.9 million in revenue in 2010. The favorable impact on revenue from year-over-year changes in foreign exchange rates throughout the year was $43.4 million. Gross billings increased 437% to $4.0 billion in 2011, compared with $745.3 million in gross billings in 2010.

Full year 2011 loss from operations was $203.4 million, compared with the loss from operations of $420.3 million in 2010. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the year was $9.8 million. Consolidated segment operating losses improved to a loss of $114.3 million in 2011 from a loss of $181.0 million in 2010.

Operating cash flow increased 234% to $290.5 million in 2011, compared with $86.9 million in 2010. Free cash flow increased 242% to $246.6 million for the twelve months ended December 31, 2011, compared with $72.2 million for the twelve months ended December 31, 2010.

Financial Highlights:

  • Revenue of $506.5 million, up 194% year-over-year
  • Free Cash Flow of $155.1 million, up 258% year-over-year
  • Operating Income of $15.0 million, up from $336.1 million loss
  • Non-GAAP EPS of negative $0.02, including $0.07 of tax from international operations, up from negative $0.53
  • Active customers increase to over 33 million, up over 275% year-over-year
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Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.