What happened Shares of Groupon (NASDAQ: GRPN) tumbled on Wednesday after the company reported abysmal fourth-quarter results and announced that it would exit the goods category to focus on its local-experience marketplace. The stock was down about 41% at 2:05 p.m. EST. So what Groupon reported fourth-quarter revenue of $612.3 million, down 23% year over year and about $92.6 million below the average analyst estimate. Global units sold were down 16% to 42.6 million, driven by fewer customers and lower traffic. In North America, units were down 11% in the local business and down 32% in the goods business. Image source: Getty Images. Non-GAAP (adjusted) earnings per share came in at $0.07, down from $0.10 in the prior-year period and $0.08 below analyst expectations. While revenue plunged, gross profit was down just 15%, and the company managed to slash marketing spending by 25%. Following a review of strategic alternatives, Groupon has decided the exit the goods business entirely. The focus going forward will be the local-experiences market, which the company pegs at $1 trillion. The market is fragmented, with Groupon having less than 1% market share. Groupon also announced a reverse stock split, at a ratio between 1-for-10 and 1-for-12. The proposal will be submitted for shareholder approval at the annual meeting in June. Now what For 2020, Groupon expects to launch a new mobile app, relaunch its brand, and grow North America local units starting in the second half. By 2022, the company expects high-single-digit percentage unit growth, mid-single-digit percentage revenue growth, and adjusted EBITDA margin in the high teens. It's not surprising Groupon's plan landed with a thud -- even the North American local-business segment suffered a steep decline in units sold during the quarter. With the small-cap stock plummeting, the market doesn't appear optimistic about a turnaround. 10 stocks we like better than GrouponWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Groupon wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Timothy Green has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source