Business

Groupon stock surges 10% on strong earnings, company says it’s ‘still a toddler’

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Daily deals business Groupon has had a tough past few months, with CEO Andrew Mason being sacked in late February. But on the bright side, the company’s just-released Q1 2013 earnings beat expectations, shooting the company’s stock up 10 percent in after-hours trading.

The company reported $601.4 million in revenue compared to $559.3 million in the year-ago quarter. Wall Street expected Groupon would report $588.92 million revenue for quarter. Its earnings per share came in at $0.03.

Another important metric is the number of active customers using Groupon. The company said that last quarter, 41.7 million used the service. That’s a 13 percent increase year-over-year, but just a hair over the 41 million customers reported last quarter.

Groupon chairman and co-CEO Eric Lefkofsky said on today’s earnings call that the company had suffered “growing pains” but it had “vast” opportunities in front of it.

“We’re still a toddler, despite our size and scale,” Lefkofsky said. “With unprecedented growth comes unprecedented volatility.”

Co-CEO Ted Leonsis said the company is still looking for a chief executive to fill Mason’s old role. “The board has started the process,” Leonsis said. “We don’t expect this to be a simple search.”

As of this writing, Groupon’s stock is trading at $6.14 per share, nearly 10 percent over its closing price of $5.59 per share.

Smart child via Shutterstock


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