Groupon Posts Upbeat Q1 Earnings, But Sales Miss Views

reported better-than-expected earnings for the first quarter, but the company's sales missed analysts' estimates. However, the company also issued a weak sales forecast. For the second quarter, Groupon expects a profit of $0.01 to $0.03 per share, on revenue of $700 million to $750 million. Analysts had projected earnings of $0.03 per share on revenue of $826.7 million. For the year, the company projects revenue of $3.15 billion to $3.3 billion, versus analysts' estimates of $3.54 billion. The Chicago, Illinois-based company reported a quarterly loss of $14.3 million, or $0.02 per share, versus a year-ago loss of $37.8 million, or $0.06 per share. Excluding items, the company earned $0.03 per share. Its revenue gained 3 percent to $750.4 million. However, analysts were expecting earnings of $0.01 per share on revenue of $812.19 million. The average estimate among 52 Estimize users was for earnings of $0.02 per share and revenue of $793.26 million. On this F/X neutral basis, the company's revenue in North America rose 11 percent, while EMEA revenue climbed 13 percent. Gross profit slipped to $347.4 million in the first quarter, from $365.5 million in the year-ago quarter. Active customers increased 7 percent year-over-year to 48.1 million as of March 31, 2015. Gross billings climbed to $1.6 billion versus $1.5 billion. "Q1 was a strong quarter, despite significant headwinds from foreign exchange rates, as we delivered 58% year-over-year growth in Adjusted EBITDA," said Eric Lefkofsky, CEO of Groupon. "Our North America business saw its third-straight quarter of double digit billings increases in all three categories, and we made continued progress in our mission to connect local commerce through our predominantly mobile marketplace." Groupon shares fell 1.32 percent to $6.75 in the after-hours trading session.