GROUPON JUST BLEW AWAY EARNINGS DUE TO - GUESS WHAT?.......YUP, MOBILE APPS
MM EARNINGS ARE GONNA BE HUGE - SHORTS COVERING FOR SURE!!!!!!
SAN FRANCISCO (Reuters) - Groupon Inc on Wednesday reported quarterly revenue of $608.7 million, a stronger-than-expected result that lends credence to the deals site's new mobile-centric strategy.
With its core, daily deals business model in steep decline over the past year, the Chicago-based company in recent months has re-invented itself as a more traditional e-commerce business that sells long-term deals through its smartphone app. Shares of the company have risen roughly 80 percent since January 1.
Groupon Surges On North American Growth, Mobile Usage
Overall, Groupon reported 7% growth in revenue, bolstered by a 45% increase in North American sales and greater-than-20% declines in international sales. The company also said 50% of North American sales were made on a mobile device.
"We significantly exceeded our operating income expectations, and delivered our strongest quarter ever in North America, due in part to accelerated billings growth of 30%," Eric Lefkofsky, CEO of Groupon, said in a statement. "We continue to gain traction in mobile, with nearly 50% of our North American transactions coming from mobile in June. To date, more than 50 million people have downloaded Groupon apps worldwide."