Will Mobile Save Groupon?

Michael Teague |

Will Mobile Save Groupon?Groupon’s (GRPN) numbers for the first quarter of 2013 showed that if the company was indeed near the brink, for the time being it has survived and bought itself some breathing room in the process.

For Q1, Groupon lost $4 million, or $0.01 per share on revenue of $601.4 million, versus the prior year period during which the company lost $11.7 million, or $0.02 per share on revenue of $559.3 million. Adjusted earnings, excluding the cost of stock compensation, were $0.03 cents per share, which matched analysts’ expectations, while revenue came in well ahead of the expected $588.92 million.

Furthermore, the company forecasted earnings for the current quarter of between $575 and $625 million, against expectations of $614 million.

Late trading saw shares rocket upwards around 11 percent before pulling back slightly to just under 10 percent, to $6.14, after a regular trading session that saw the company advance 3.7 percent to $5.59.

It wasn’t just earnings and revenue figures that investors liked. Groupon said that the number of active customers of its service had grown 13 percent during the first quarter, to 41.7 million. Perhaps more significantly, the company said the for the month of March, 45 percent of all North American transactions took place via mobile devices, up from just shy of 30 percent during March of 2012.

Though there was a certain amount of caution leading up to the report, the afterhours reaction can be seen as a vindication of interim-CEOs Eric Lefkofsky and Ted Leonsis’s attempts to salvage the company from what was indeed a near-death situation not even a year ago, which involves increased focus on mobile, and a slimming-down and simplification of operations.

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Companies

Symbol Name Price Change % Volume
GRPN Groupon Inc. 5.10 -0.16 -3.04 5,628,713
GYC Corporate Asset Backed Corp CABCOoration CABCO Ser 23.90 -0.16 -0.67 3,037

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