Groupon Inc (NASDAQ:GRPN) reported weaker-than-expected earnings for its fourth quarter on Tuesday.
North America gross profit in the fourth quarter 2018 decreased 7% to $247.6 million. In Local, gross profit decreased 9% to $179.9 million, primarily from lower email and SEO traffic. Goods gross profit increased 2% year-over-year at $55.8 million. Gross profit in Travel decreased 13% to $11.8 million.
Revenue was $799.9 million in the fourth quarter 2018, down 8% (7% FX-neutral) reflecting lower customer traffic and a focus on revenue generation that maximizes long-term gross profit.
CEO Rich Williams said, "In 2018, we took critical steps to transform Groupon into a daily habit for consumers. Despite a challenging operating environment, I’m pleased with the progress we made on our strategic initiatives
"In 2019, we plan to make bolder bets, and have clear priorities in place to help us do so. We believe focusing on convenience, our marketplace, International and continued operational rigor are the right strategies to position Groupon for long-term success."
For the full year 2019, Groupon expects Adjusted EBITDA of approximately $270 million.
Groupon, says its website, "is building the daily habit in local commerce, offering a vast mobile and online marketplace where people discover and save on amazing things to do, see, eat and buy."
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