Europe’s economic weakness takes toll on Groupon’s Q2 financial results
Revenue for daily deals site Groupon shot up 45pc year-over-year to US$568.3m in the second quarter of 2012, compared with US$392.6m in the same period last year, however, the company’s shares lost a fifth of their value after Groupon reported its financial results yesterday, missing estimates.
Economic weakness in Europe curbed online coupon sales and results for the Chicago-based company fell short of the average analyst estimate of US$575.3m, according to data compiled by Bloomberg.
International revenue rose 31pc to US$308.2m in Q2, Groupon said. Growth would have been 45pc without the impact of foreign exchange rates, the company said.
Groupon also reported operating income of US$46.5m versus operating loss of US$101.0m in Q2 2011 for the quarter ended 30 June 2012.
Gross billings, which reflects the total amount collected from customers, excluding any applicable taxes and net of estimated refunds, increased 38pc year-over-year to US$1.29bn in the second quarter 2012, compared with US$929.2m in Q2 2011.
"We had a solid quarter despite challenges in Europe and continued investment in technology and infrastructure," said Andrew Mason, CEO of Groupon.
"We've deepened our relationships with a growing base of merchants and customers worldwide, demonstrating progress as we work to unlock the opportunity in local commerce."
Operating cash flow increased 93pc year-over-year to US$75.3m, compared with US$39.0m in the year-ago period.
At the end of the quarter, Groupon had US$1.2bn in cash and cash equivalents and no long-term debt.
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