Groupon, Inc. operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount worldwide. It also offers deals on products for which it acts as the merchant of record. The company offers deals in various categories, including food and drink, events and activities, beauty and spa, health and fitness, home and garden, and automotive; deals on various product lines comprising electronics, sporting goods, jewelry, toys, home, and apparel; features travel offers that include hotels, airfare, and package deals, which covers domestic and international travel; and tools, such as payments and credit card payment processing service, as well a...
600 West Chicago Avenue
Chicago, IL 60654
Founded in 2008
Groupon, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Earnings Guidance for the Third Quarter of Fiscal Year 2014; Revises Earnings Guidance for the Full Year 2014
Aug 5 14
Groupon, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, total revenue was $751,576,000 against $608,747,000 a year ago. Loss from operations was $7,854,000 against profit from operations of $27,412,000 a year ago. Loss before provision from income taxes was $8,877,000 against profit before provision from income taxes $21,833,000 a year ago. Net loss attributable to the company was $22,875,000 or 0.03 per basic and diluted share against $7,574,000 or 0.01 per basic and diluted share a year ago. Adjusted EBITDA was $59,056, 000 against $80,511,000 a year ago, primarily due to an approximately $30 million increase in SG&A related to TMON and ideeli. Non-GAAP earnings per share were $0.01. Net cash used in operating activities was $22,747,000 against net cash generated from operating activities of $43,302,000 a year ago. Negative free cash flow was $53,800,000 against free cash flow of $29,260,000 a year ago. Free cash flow in the quarter was impacted by payment timing, as well as a few key strategic investments, including the shutdown of Groupon Korea. The company reported a bigger loss in its second quarter, weighed down by acquisition-related costs and other one-time expenses.
For the six months, total revenue was $1,509,213,000 against $1,210,149,000 a year ago. Loss from operations was $27,807,000 against profit from operations of $48,590,000 a year ago. Loss before provision from income taxes was $29,670,000 against profit before provision from income taxes $37,928,000 a year ago. Net loss attributable to the company was $60,670,000 or 0.09 per basic and diluted share against $11,566,000 or 0.02 per basic and diluted share a year ago. Net cash used in operating activities was $43,464,000 against net cash generated from operating activities of $52,062,000 a year ago.
For the third quarter 2014, the company expects revenue of between $720 million and $770 million, Adjusted EBITDA of between $50 million and $70 million, and non-GAAP earnings per share excluding stock compensation, amortization of acquired intangible assets, and acquisition-related expenses, net of tax, of between $0.00 and $0.02.
The company revised its full year outlook, and now expects Adjusted EBITDA to exceed $270 million. Although the company has the opportunity to reduce marketing spend over the remainder of the year to achieve a higher target, given recent returns on those investments, it believes it is important to maintain flexibility for investment in long-term growth.