Groupon Inc. delivered financial results in the second quarter that were in
line with its own expectations yet investors remain concerned about the
ongoing popularity of online coupons.
The Chicago-based daily-deal website posted second-quarter net income of
$28.4 million, or 4 cents a share, on revenue of $568.3 million.
A year ago, it lost $107.4 million on revenue of $392.5 million.
Second-quarter revenue, which grew 45 percent, hit Groupon's previously
disclosed target of $550 million to $590 million. But they were softer than
analysts' average estimate of $573 million, according to Thomson Reuters
I/B/E/S.
Groupon said unfavorable foreign exchange rates hurt revenue by $32.4
million.
The company beat analysts' earnings estimate by a penny.
Concerns about revenue drove Groupon's stock down in after-hours trading.
Shares closed at $7.55, up 11 cents, on Nasdaq trading.
Amid questions about its accounting, Groupon for the first time broke out
revenue in a division that sells discounted products. Groupon Goods had
revenues of $65.3 million, up from $19.2 million in the first quarter.
Groupon said its good-selling business didn't become material to its
overall performance until the second quarter.
Wall Street analysts applaud the growth in Groupon Goods but are
concerned that it is masking weakness in the company's North American online
coupon business.
