Groupon CEO: IPO Earnings Call Hypes the Future

Groupon (NASDAQ:GRPN) CEO Andrew Mason said in his first post-IPO earnings call, “We believe we are on the cusp of a sea change” in behavior, he noted. “We’re about to see what technology can do for local commerce.”

Don’t Miss: Groupon Shocks Shareholders with Q4 Loss.

He did stumble during the call trying to find the right word for “the opposite of ‘only.’” Luckily he recovered by saying according to a Lionsgate survey of 93 people who used a Groupon Deal to see a movie, only 7 percent would have gone without the deal. He also said three quarters of Groupon users bring a friend and “9 out of 10 spend more than the value of the Groupon.” He also joked that the biggest request from Groupon users was “stop sending me pole-dancing deals.”

Mason also talked about Groupon’s latest goal. “We are transforming our relationships from a one-and-done deal event to something that is longer term,” he said.

Earnings Disappoint

Groupon’s loss was 2 cents a share, excluding certain costs, compared to a loss of 53 cents in the same period a year ago. Analysts had expected a profit of 3 cents a share on revenues of $472.6 million. Actual revenue came in at $506.5 million, up from $172.2 million in the previous year.

One of the major causes for the loss was a $34.8 million tax bill that arose after the company set up a new international headquarters in Switzerland. Marketing expenses were $156.5 million compared to $200.9 million last year.

However, revenues grew at a fast clip – though North America doubled to $188.5 million from $88.4 million, overseas revenues more than tripled from $83.9 million to $318 million. The company forecasts revenues for the first quarter at $510 million to $550 million, whereas analysts had expected about $500.8 million.

Here’s how Groupon shares are trading now:

Groupon Inc (NASDAQ:GRPN): GRPN shares recently traded at $21.24, down $3.34, or 13.59%. They have traded in a 52-week range of $14.85 to $31.14. Volume today was 5,848,336 shares versus a 3-month average volume of 2,293,400 shares. The company’s trailing earnings are $-2.17 per share.

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