Groupon Fails to Offer Investors an Attractive Deal With 3Q Earnings


Groupon (NASDAQ:GRPN) closed Thursday’s regular session down 5.05 percent at $9.50 per share and fell as much as 10.8 percent further in post-market trading after announcing third-quarter results that fell short of expectations. Groupon reported that revenue increased 5 percent on the year to $595.1 million, falling short of the mean analyst estimate of $615.69 million. The Internet commerce platform reported a net loss attributable to common shareholders of $2.6 million, or 0 cents per share, which was short of expectations for earnings of 1 cent per share.

Gross profit fell 7 percent on the year to $359.6 million, while operating income fell 45.7 percent to $13.8 million. Adjusted (non-GAAP) operating cash flow for the year ended September 30 was $105.9 million, while adjusted free cash flow was 22.3 million. Groupon held $1.1 billion in cash and cash equivalents at the end of the quarter.

Thus, the financials were somewhat of a flop. Operational measures were somewhat positive, but not overwhelmingly exciting. Active customers increased 10.1 percent on the year to 43.5 million, 46 percent of which are in North America. Unit sales increased 9 percent on the year overall, with 19 percent growth in North America. Average spend per active customer decreased by $1 on the year to $137.