Groupon Inc. (GRPN: Quote) said Monday after the markets closed that it swung to a second quarter profit, helped by higher revenue and improved marketing efficiencies.
The company's quarterly earnings per share, excluding items, also came in above analysts' expectations, but its quarterly revenue fell short of analysts' forecast.
At the same time, the company gave a third quarter revenue forecast range, the mid-point of which is below analysts' current consensus estimate.
Groupon shares are currently losing 19.87% in after hours trading after closing the day's regular trading session at $7.55, up 11 cents or 1.48%. Groupon's stock has been trending down since it went public in November.
Groupon's revenue growth has slowed down over the past few quarters amid tough competition from rivals such as LivingSocial.
The world's largest daily deal Website reported net income for the second quarter of $28.4 million or $0.04 per share, compared to a net loss of $107.4 million or $0.35 per share for the year-ago quarter.
Excluding items, adjusted net income for the second quarter was $53.8 million or $0.08 per share, compared to an adjusted net loss of $68.7 million or $0.23 per share in the prior year quarter.
On average, 21 analysts polled by Thomson Reuters expected the company to earn $0.03 per share for the second quarter. Analysts' estimates typically exclude special items.
Revenue for the second quarter rose 45% to $568.34 million from $392.58 million in the same quarter last year. Excluding unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, revenue growth would have been 53%. Twenty-one analysts had a consensus revenue estimate of $573.13 million for the second quarter.
In May, the company had forecast second quarter revenue of $550 million to $590 million.
The company's North America revenue for the second quarter surged 65.5% to $260.2 million, while its international revenue rose 31% to $308.2 million.
The second quarter 2012 was the first quarter that direct revenue, or the amount earned from the sale of products for which the company is the merchant of record, was material to Groupon's overall performance.
Gross billings increased 38% to $1.29 billion in the second quarter. As of June 30, Groupon had 38.0 million active customers, up 65% from a year earlier.
The company was able to cut its marketing expenses by 58% in the second quarter to $88.4 million from $212.7 million last year, as customer acquisition costs improved 43%.
Looking forward, the company forecast third quarter revenue of $580 million to $620 million, representing a year-over-year increase of 35% to 44%. Analysts currently expect the company to post revenue of $604.49 million for the third quarter.
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by RTT Staff Writer
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