Groupon's Bounce-Back Quarter
Shares of Groupon Inc (NASDAQ: GRPN) soared higher by more than 13 percent early Wednesday morning after the company reported its fourth-quarter results, which may have reassured investors.
Groupon said that it earned $0.07 per share in the fourth quarter on revenue of $934.9 million — good for a top- and bottom-line beat as analysts were expecting the e-commerce marketplace company to earn $0.02 per share on revenue of $912.8 million.
Groupon's earnings report marks a complete turnaround from its third-quarter results which initially sent the stock lower by 6 percent but traded lower by around 20 percent throughout the trading session.
Q4 In Review
Here is a breakdown of Groupon's fourth-quarter report:
- Gross billings fell slightly from a year ago to $1.70 billion from $1.71 billion.
- Total revenue of $934.9 million rose from $917.2 million a year ago.
- Gross profit fell slightly to $369.9 million from $371.7 million a year ago.
- Net loss from continuing operation rose to $50.2 million from $32.6 million a year ago.
- Global units sold fell 0.4 percent year-over-year to 62.0 million units.
- Cash and cash equivalents at the end of 2016 totaled $891.8 million and the company had no outstanding borrowings under its $250 million revolving credit facility.
"In 2016, our concentrated focus on key strategic initiatives provided a strong foundation for Groupon going forward and resulted in a streamlined global operation, a healthier Goods business, improved customer service and strong customer acquisitions after a successful online and offline marketing strategy," said CEO Rich Williams. "We look forward to continuing to invest in the Groupon brand and unlocking the true potential of our business as we make Groupon the daily habit in local commerce."
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.