SHARE

Groupon Inc (NASDAQ:GRPN) released financial report for the quarter closed September 30, 2017. Rich Williams, the CEO, expressed that that they delivered another robust quarter while continuing to invest in the development and growth of company’s local marketplace. They continued to see robust demand in its core local business and scale their voucherless offerings like Groupon+.”

The highlights

North America gross profit in the Q3 2017 came at $207.9 million compared to $201.7 million in the Q3 2016 led by strength in July, which was partly offset by softer spending in markets impacted by the hurricanes in August and September. In Local, gross profit surged 7% to $162.9 million as unit growth grew for the fourth successive quarter to the low teens.

Groupon reported that gross profit in Goods came at $30.9 million compared to $31.5 million in the Q3 2016, while Travel came at $14.1 million against $17.3 million in the Q3 2016. Strength in the Local segment was led by a jump in active consumers and expanded supply through premier national brands and third party partners. In addition, the company continued to make improvements to the consumer experience. Currently, Groupon+ is live in 23 markets.

Groupon prime focus is to increasing gross profit, including an increasing move toward offerings in higher margin, more distinguished Local segment, from company’s Goods category. In the Q3 2017, North America revenue dropped 14% led by a 30% drop in Goods direct revenue deals, which are recorded on a gross basis. Additionally, the company project that the hurricanes had a negative impact of $4 million on gross profit and $5 million on revenue in the Q3 2017.

North America active consumers reached 32.5 million as of the close of September 30, 2017, adding 600,000 net new active consumers during Q3 2017. Active customers exhibit unique user accounts that have done a purchase during the trailing 12-months either through one of Groupon’s web marketplaces or right away with a merchant for which the company earned a commission.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of journaltranscript.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:

https://www.journaltranscript.com/disclaimer

SHARE
Previous articleGroupon Inc (NASDAQ:GRPN) Elects Deborah Wahl To Company’s Board
Next articleZynga Inc (NASDAQ:ZNGA) Appoints Jeff Ryan As Chief People Officer
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.

LEAVE A REPLY