After the bell today, Groupon reported its first quarter financial performance. The company, best known for its discount coupons to local businesses, earned an adjusted $0.03 per share on $750.4 million during the period. Those figures compare to street expectations of a $0.01 per-share profit, and revenue of $812.19 million.
Down around three percent in regular trading, Groupon is now mostly flat in after-hours trading following its mixed earnings report.
Groupon was recently in the news for selling a majority stake in its Korean ticket sales service Ticket Monster. The service, as TechCrunch noted during Groupon’s fourth quarter report, helped the company grow its international revenue, but was a drag on profitability. Rumored last year, the $360 million sale was stapled to a promise that the Chicago-based deals company would initiate a share repurchase program.
The company posted a slim gross billings increase on a year-over-year basis, with total product of $1.55 billion moving through its service during the quarter, up from $1.52 billion in the year-ago quarter.
Despite missing street estimates on revenue, Groupon’s profit beat appears to enough to keep its shares afloat. The company’s GAAP loss, before non-traditional adjustments came to a $0.02 share loss, or a net loss of around $14 million.
The company’s profit miss, while disappointing to investors, grew from the year-ago period. The company’s $750.4 million top line in the period grew 3 percent from $728.4 million in the first quarter of 2014. However, Groupon notes, as every other tech firm has as well, the strong dollar is problematic — Groupon wrote in its earnings report that its revenue “grew 10%, excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter.”
Adjusting for constant-currency, Groupon grew its North American revenue by 11 percent, its EMEA revenue by 13 percent. Groupon’s ‘Rest of World’ revenue declined 8 percent.
Units, or units sold, is an important metric for Groupon: The company’s unit count grew by 6 percent in the period, driven by an 8 percent uptick in North American, and a 10 percent bump in EMEA areas. Groupon’s active customer count picked up 7 percent during the quarter.
For the current quarter, Groupon expects revenue of between $700 and $750 million. The company expects to earn a similar, sequential $0.01 to $0.03 on an adjusted basis.
Groupon’s big fourth quarter was not replicated. Groupon’s challenge remains as it always has been: That it can show material profit while also growing its revenue.
from TechCrunch http://feedproxy.google.com/~r/Techcrunch/~3/tFjuGB4vRls/
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