Groupon, Inc. (NASDAQ: GRPN) announced its financial results for the fourth quarter and full-year 2016.
For the fourth quarter of 2016, revenue increased from $917.2 million in 2015 to $934.9 million, beating estimates of $913 million. The company reported a loss of $0.09 per share, which missed the estimates of $0.02 per share. However, non-GAAP earnings, excluding one-time items, was $0.07 per share, which also surpassed expectations of $0.03 per share.
For the full-year 2016, revenue reached $3.14 billion, increasing from the $3.12 billion in 2015. Gross profit rose to $1.36 billion, compared with $1.39 billion in 2015. In addition, adjusted EBITDA increased from $256.8 million in 2015 to $178.1 million in 2016, which surpassed guidance of $150 million to $165 million.
“In 2016, our concentrated focus on key strategic initiatives provided a strong foundation for Groupon going forward and resulted in a streamlined global operation, a healthier Goods business, improved customer service and strong customer acquisitions after a successful online and offline marketing strategy,” Rich Williams, the CEO of Groupon, said in the announcement.
“We look forward to continuing to invest in the Groupon brand and unlocking the true potential of our business as we make Groupon the daily habit in local commerce,” he added.
Based on the financial results of 2016, the company expected that in 2017, gross profit will be between $1.30 billion and $1.35 billion, which increased $40 to $90 million from that of 2016. As for adjusted EBITDA, the company expected the number to be between $200 million and $240 million, which rose $16 to $56 million from 2016.
After the company reported earnings, shares of Groupon increased 14% on Wednesday.