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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.

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Steve Kanaval
Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.