Groupon Surges On Smaller 1st 2013 Quarter Losses: Earnings Highlights:
Groupon, the largest daily deals provider, posted a smaller than expected loss that sent shares soaring in the after-hours session. Groupon reported improved sales as well as mobile growth and the news got Wall Street analysts excited about the company’s prospects after several quarters of large losses. The company’s outlook was less exciting but shares surged 13 percent as general sentiment changed in the short term after the ousting of Groupon founder Andrew Mason.
Groupon Earnings Highlights First Quarter 2013:
- Groupon grew its active user base by 13 percent
- Mobile usage is almost half of Groupon’s business at 45%
- Revenue rose 8% to $601.4 million vs %559.3 million a year ago.
- International revenue declined by 18 percent
- Customer spend fell from $138 to $144 last quarter.
Increased users in North America does help Groupon in the long run but the rate of growth may not be what analysts were expecting a few years ago. It’s a good sign that Groupon is monetizing mobile and revenue is rising but the company needs to focus on the extended global network spillover effects to gain more traction. Customers are spending less so Groupon needs to grow faster.