EmailStory Stocks®
Archive
Last Update: 09-May-13 07:52 ET
Groupon shares soar 11% following beat on revenues
Groupon (GRPN $6.25 +0.66) reported first quarter earnings of $0.03 per share, excluding non-recurring items, in-line with the Capital IQ consensus of $0.03, while revenues rose 7.5% year/year to $601.4 million versus the $592.31 million consensus. The company issued in-line guidance for the second quarter with revenues of $575-625 million versus the $619.23 million Capital IQ consensus. Groupon reaffirmed its guidance that FY13 2013 GAAP operating income will exceed $100 million. Key Metrics: Gross billings, which reflect the total dollar value of customer purchases of goods and services, excluding any applicable taxes and net of estimated refunds, increased 4% to $1.41 billion in the first quarter 2013, compared with $1.35 billion in the first quarter 2012. Global units: Consolidated units, defined as vouchers and products ordered before cancellations and refunds, increased 4% year-over-year to 45 million. North America units increased 37%, and International units decreased 18%. Active deals: As of March 31, 2013, the number of active deals in North America increased to nearly 40,000, compared with nearly 37,000 at the end of the fourth quarter 2012. Active customers: Active customers, or customers that have purchased a Groupon within the last twelve months, grew 13% year-over-year, to 41.7 million as of March 31, 2013, comprising 18.2 million in North America, and 23.5 million in International. Mobile: In March 2013, 45% of North American transactions were completed on mobile devices, compared with nearly 30% in March 2012. In the first quarter 2013, more than 7 million people downloaded Groupon mobile apps worldwide. Marketplace: The rollout of Groupon's marketplace continued to gain momentum, as email accounted for less than 45% of North American transactions in the first quarter 2013. Outlook Details: Groupon anticipates incremental investments of between $15 million and $30 million in customer incentives and marketing in the second quarter 2013. As a result, for the second quarter 2013, revenue is expected to be between $575 million and $625 million, and operating income excluding stock compensation and acquisition-related expenses is expected to be between $20 million and $40 million. Stock compensation is expected to be ~$30 million, and tax expense is expected to be ~$25 million. This outlook assumes no acquisitions or investments, or material changes in foreign exchange rates.
