Groupon’s Stock Tumbles As Net Loss Triples
Groupon (NASDAQ:GRPN) reported mixed first quarter earnings Thursday, with revenue beating market expectations but its net loss tripling over the prior year quarter. Groupon reported a 1% year-over-year (y-o-y) decline in revenue to $732 million, against market estimates of $718 million, driven by growth in North America. The company’s gross billings, revenues and profits declined in international markets owing to its strategy to focus on the North American market and move away from certain low-margin goods businesses.
North America contributed over two-thirds of total revenues and over 60% of both gross billings and gross profits in the first quarter. In full year 2016, Groupon expects revenue of $2.75-$3.05 billion and adjusted EBITDA to range between $85-$135 million (revised from $80-$130 million). Owing to the rapid rise in Groupon’s net loss and fall in gross billings, Groupon’s stock tumbled over 10% following the earnings announcement.
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