Groupon on Thursday has released its Q3 earnings and reported total revenues of $595.1 million with EPS of $0.02, missing on sales but beating on EPS estimates. Revenue increased 5% to $595.1 million in the third quarter 2013, compared with $568.6 million in the third quarter 2012.
According to Eric Lefkofsky, CEO of Groupon, Mobile adoption continued to increase in Q3 and the company has managed to jump its 9 million app downloads mark. Groupon has witnessed a gross billing of USD 1.34 bn.
In the fourth quarter 2013, Groupon anticipates that holiday season will boost sales, and expects the total revenues for the company to stay between $690 million and $740 million, operating income excluding stock compensation and acquisition-related expenses of between $40 million and $60 million. Stock compensation is expected to be approximately $30 million, or approximately $20 million net of tax.
Speaking of its Active customers (or customers that have purchased) numbers Groupon said that within the last twelve months, that number has grown by 10% year-over-year, to 43.5 million as of September 30, 2013, comprising 19.9 million in North America, 14.0 million in EMEA, and 9.6 million in Rest of World. Average Customer spend in third quarter 2013 stayed at $137, compared with $138 in the second quarter 2013.
Moreover the company has announced the acquisition of Ticket Monster, a Korean based eCommerce company for $260 million. The idea is to strengthen Groupon’s mobile commerce operations in Asia through event ticketing and other commerce services.
“Ticket Monster is a perfect fit for Groupon as we continue to transition our business globally from a flash sale email model to a mobile commerce marketplace,” said Groupon CEO Eric Lefkofsky.
Ticket Monster had been owned by Groupon competitor Living Social and as per the terms of the agreement, Groupon said that it will also be acquiring LivingSocial Korea. Any non-Korean assets currently owned by LivingSocial Korea will be divested prior to close. The agreement is for at least $100 million in cash, and up to $160 million in Groupon Class A common stock, with the final cash and stock allocation to be determined upon close.
To contact author, email email@example.comCategory Ecommerce News