Groupon Inc (NASDAQ:GRPN) yesterday announced its financial results for the 3Q2016, posting a revenue of $720.5 million, $6.9 million higher than the preceding year. The company noted that foreign exchange rates had a negative impact on earnings. However, despite having a gross profit of $314.1 million, GRPN had a net loss of $35.8 million. The gross profit and net loss for the 3Q2015 were $328.9 million and $24.6 million, respectively.
GRPN noted that even though it was experiencing growth in North America, its income from EMEA and the rest of the world was in decline. The company stated that this was mainly due to country exits and ongoing restructuring efforts in international business segments. One of the positive aspects, highlighted in the 3Q2016 report, was that the company had no outstanding borrowings under its revolving credit facility, which currently stood at $250 million. Moreover, GRPN also has a cash position of $689.7 million, as of September 30, 2016.
In efforts to streamline its country footprint, Groupon has decided to go-forward in just 15 countries, instead of 27 from its portfolio, at the end of the 2Q2016. The management noted that it plans to further exit several more countries, as they enter into the FY2017. Providing an update of subsequent events, Groupon stated that it had decided to acquire LivingSocial Inc, as announced on October 24, 2016. The company expects to acquire all of the outstanding shares of LivingSocial’s common stock, by early November 2016.
The company also reminded shareholders that it had conducted a share repurchase program, during the 3Q2016. As such, GRPM has repurchased over 5.21 million shares of its common stock, at an aggregate price of $24.6 million. Proving an update on its outlook for the FY2016, the company raised its revenue guidance to $3.075-$3.15 billion, with an EBITDA of $150-$165 million, for the FY2016.
Groupon Inc (NASDAQ:GRPN) closed at a share price of $4.10, after a trade volume of 43.65 million, at the end of the October 27 trading session, 22.05% below the previous close.