Daily-deals site Groupon Inc. (NASDAQ: GRPN) handed better-than-expected fiscal first quarter revenue late last evening and provided upbeat guidance on the current quarter, fanning hopes that the beleaguered company has seen its worst, sending shares soaring 11% in extended-trading hours.
Groupon’s daily-deals business in the North American region showed strong growth; however, its international operation is still cause for a concern.
For the fiscal first quarter, the Chicago Il based Company reported net loss of $4 million or penny a share down from net loss of $11.7 million or 2 cents a share, in the same quarter of last year. Excluding onetime items, adjusted earnings stood at 3 cents a share, which was in-line with Street’s estimates.
Revenue during the quarter soared 7.5% to $601.4 million from $559.3 million, in the year-earlier quarter. Analysts polled by Thomson Reuters were expecting revenue of $590 million.
Consolidated segment operating income, a key gauge on Groupon Inc’s profitability, stood at $51.2 million, which was almost double of analysts at RBC Capital Markets had expected.
Revenue in North America soared 42% while revenue from international market slumped 18%.
While marketing costs fell 58%, total operating expenses were down 11%.
Groupon, which was among several high profile internet companies that made IPOs in the recent past, fired its Chief Executive Andrew Mason last February as the Company under his leadership failed to live up to the expectation. Industry analysts said that Mason lacked expertise to run a public company amid intensifying competition in the discount deals business.
During Mason’ tenure, Groupon lost about three quarters of its market value. The Company, which has seen several other top executives departing, is now looking for Mason’s replacement.
Groupon Inc’s interim Co-chief executive, Ted Leonsis said on Wednesday that a special committee has already started to search for a permanent CEO.
For the fiscal second quarter, Groupon expects revenue to be in the range of $575 million to $625 million while analysts surveyed by Thomson Reuters were expecting $616 million.
Groupon also backed its guidance on full-year operating income, which is expected to exceed $100 million.
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