Groupon Shares Tumble Following Q2 Results

Shares of

dipped more than 7 percent in pre-market trading after the company reported results for the second quarter. The Chicago, Illinois-based company posted a quarterly net profit of $109.1 million, or $0.16 per share, versus a year-ago loss of $22.9 million, or $0.03 per share. Its adjusted earnings came in at $0.02 per share. Its revenue climbed to $738.4 million from $716.2 million. However, analysts were expecting earnings of $0.03 per share on revenue of $740.25 million. The average estimate among 89 Estimize users was for earnings of $0.03 per share and revenue of $756.80 million. On this F/X neutral basis, Groupon's North America revenue climbed 14 percent in the quarter, while EMEA revenue surged 9 percent. Gross profit slipped to $337.0 million from $366.4 million, while adjusted EBITDA rose to $61.1 million from $59.7 million. Gross billings surged to $1.53 billion from $1.50 billion. Global units rose 7 percent year-over-year to 53 million in the quarter. As of June 30, 2015, active customers climbed 6 percent year-over-year to 48.6 million. During the second quarter, the company repurchased 19,334,744 shares of its Class A common stock for an aggregate purchase price of $122.7 million. At the end of the quarter, the company had $1.1 billion in cash and cash equivalents. "Our marketplace transition continues to gain steam as we delivered another solid quarter," said Groupon CEO Eric Lefkofsky. "Adjusting for currency, all of our businesses in North America and abroad are now growing. Groupon remains an indispensable platform for small businesses while becoming more and more of a daily habit for customers." Groupon now projects Q3 revenue of $700 million to $750 million, versus analysts' estimates of $755.9 million. The company also expects FY15 revenue of $3.15 billion to $3.3 billion, versus analysts' expectations of $3.21 billion. During pre-market trading, Groupon shares fell 7.05 percent to $4.35 at 8:10 a.m., the time of this writing.