Groupon Inc Earnings: Everything You Must Know Now

Groupon Inc (NASDAQ:GRPN) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 19%.

Groupon Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 75% to $0.02 in the quarter versus EPS of $0.08 in the year-earlier quarter.

Revenue: Rose 7.1% to $608.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Groupon Inc reported adjusted EPS income of $0.02 per share. By that measure, the company missed the mean analyst estimate of $0.02. It beat the average revenue estimate of $606.23 million.

Quoting Management: “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%,” said Eric Lefkofsky, CEO of Groupon. “With two quarters on the job, I’m pleased with the progress we’ve made in such a short time. 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.”

Groupon also announced today that its Board of Directors has appointed Eric Lefkofsky as CEO, and Ted Leonsis as Chairman of the Board. “The Board is encouraged by Groupon’s performance under Eric’s leadership, and we’re pleased that he has agreed to lead the company through this important stage of its evolution,” said Ted Leonsis, Chairman of Groupon.

Key Stats (on next page)…

Revenue increased 1.21% from $601.4 million in the previous quarter. EPS decreased 33.33% from $0.03 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.05 and has not changed. For the current year, the average estimate has moved down from a profit of $0.18 to a profit of $0.17 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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