Groupon, Inc. Beats On Earnings, Misses Sales

Groupon, Inc. (NASDAQ:GRPN) released the earnings results from its first fiscal quarter after closing bell tonight, posting non-GAAP earnings of 3 cents per share on $750.4 million in revenue. Analysts had been expecting earnings of 1 cent per share on $822.8 million in revenue for the quarter. In last year’s first quarter, the daily deals giant posted $728.4 million in revenue.

Key metrics from Groupon’s earnings report

Groupon reported $1.6 billion in gross billings, marking a 10% global increase, excluding negative currency impacts, and $72.4 million in adjusted EBITDA, a 58% year over year growth rate. GAAP losses per share were 2 cents. The company generated $222 million in free cash flow for the trailing 12-month period.

The company’s North America business recorded double digit growth for the third quarter in a row in all three categories. Billings in the region increased 14%. On a currency neutral basis, billings in Europe, the Middle East, and Africa increased 7%, while the Rest of the World fell 1%.

Groupon units on the rise

Groupon reported that global units increased 6% to 54 million in the March quarter. North America units rose 8%, while Europe, the Middle East, and Africa units rose 10% and units from the Rest of the World fell 7%. As of the end of the first quarter, Groupon had an average of 425,000 active deals, including more than 200,000 in North America.

The company recorded a 7% increase in active customers, which rose to 48.1 million, including 24.6 million in North America. Billings per active customer were slightly lower at $135, compared to $136 in the same quarter last year.

About 105 million people have downloaded Groupon’s mobile apps. The company also recorded more than 160 million global monthly unique users on both web and mobile devices. About 27% of Groupon’s total North America transactions were search-related, compared to 20% in last year’s first quarter.

Groupon provides guidance

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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