Published On: Wed, Jul 27th, 2016

Groupon reports better-than-expected revenue, still not profitable


Deal site Groupon saw a shares rising today in after-hours trading, following a better-than-expected second entertain gain report.

Analysts expected the Chicago-based association to news disastrous gain per share of $0.02 on income on a non-GAAP basis, and $713.8 million in revenue, according to Estimize data.

But Groupon beat Wall Street income expectations with second quarter revenue of $756 million. And it posted a better-than-expected net detriment of $6.8 million on a non-GAAP basis, or $0.01 detriment per share.

In a phone interview, Groupon CEO Rich Williams said that a reasons a company did not make increase in a final entertain are radically two: Groupon is still investing in selling and other efforts to attract new customers, and they face other costs compared with association restructuring.

Williams was promoted to CEO final November.

To urge patron experience, Williams pronounced that patron support staff now answers calls faster, since a association softened collection that employees have. The Groupon mobile app also saw changes, by creation a presentation complement some-more targeted and location-based, Williams said.

In a initial half of 2016, Groupon income looked improved than it did over a same duration final year. But a association is not looking utterly as clever as it did in a initial half of 2015 in terms of profitability.

Last year, by a finish of June, Groupon had a net distinction on a GAAP-basis of $94.8 million, or 14 cents per share. This year, during a initial half of a year, Groupon had a net detriment of $104 million, or 18 cents per share.

Groupon revenue in a initial half of 2016 reached $1.49 billion.

In Nasdaq trade today, Groupon shares sealed during $3.78. In a past year, Groupon batch had been down 71 percent. Last year on Nov 2, a day before Groupon’s stream CEO was appointed, shares in a company were trade during $3.83.

Featured Image: Mike Mozart/Flickr UNDER A CC BY 2.0 LICENSE

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