Groupon Soars After A Strong Earnings Report

Business Insider

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Eric Lefkofsky

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Groupon's earnings are out, and the market likes what it sees.

The stock jumped 12% in immediate reaction to the news.

Here's the key numbers:

  • Revenue: $601.4 million versus expectations of $588.92 million.
  • EPS: $0.03 which is exactly what analysts were expecting.
  • Q2 guidance: $575-$625 million versus $616.14 million expected.

In the earnings release, Groupon reported that its International business continues to be weak, but its North American business is offsetting that weakness.

Here's some data points from Groupon:

  • Revenue increased 8% to $601.4 million in the first quarter 2013, compared with $559.3 million in the first quarter 2012. North America revenue growth of 42% was offset by a decline of 18% in the International segment on a year-over-year basis.
  • "We had record mobile performance as 45% of our North American transactions came from mobile in March, and more than 7 million people downloaded our apps in the quarter."
  • Operating income was $21.2 million in the first quarter 2013, compared with $39.6 million in the first quarter 2012. Operating income increased $34.0 million compared with fourth quarter 2012.
  • Operating cash flow for the trailing twelve months ended March 31, 2013 was $191.9 million. Free cash flow, a non-GAAP financial measure, was negative $5.7 million in the first quarter 2013, bringing free cash flow for the trailing twelve months ended March 31, 2013 to $94.7 million.
  • Customer spend: Trailing twelve month billings per average active customer decreased to $138 from $144 in the fourth quarter 2012, related primarily to seasonal strength in the fourth quarter holiday period.
  • Active customers: Active customers, or customers that have purchased a Groupon within the last twelve months, grew 13% year-over-year, to 41.7 million as of March 31, 2013, comprising 18.2 million in North America, and 23.5 million in International.


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