Groupon shares spiked over 10% and the dropped into the red after the company published its Q4 financial results.
Adjusted for nonrecurring items, the company earned $US0.04 per share. This was stronger than the $US0.02 expected by analysts.
Revenue of $US768.4 million smashed expectations for $US718.0 million.
“Our record performance in the quarter was led by strength in Goods, as shoppers increasingly looked to Groupon to fill their holiday needs,” said CEO Eric Lefkofsky. “Our mobile business continued to gain momentum as our worldwide mobile transaction mix increased more than 10% in the quarter, to nearly 50% in December. With another 9 million downloads this quarter, we now have nearly 70 million app downloads to date.”
Management’s guidance was mixed. It forecasts Q1 revenue of $US710-$760 million, which is much higher than the $US685.4 million estimated by analysts. However, that’s expected to come with an adjusted net loss of $US0.02-$0.04 cents per share.
For the full year, management expects adjusted earnings before interest, tax, depreciation and amortization (EBITDA) to be above 2013 levels.
Some Q4 highlights from the earnings release:
- Units:Global units, defined as vouchers and products sold before cancellations and refunds, increased 11% year-over-year to 56 million in the fourth quarter 2013. North America units increased 17%, EMEA units increased 9%, and Rest of World units decreased 1% year-over-year.
- Active customers: Active customers, or customers that have purchased a voucher or product within the last twelve months, grew 9% year-over-year, to 44.9 million as of December 31, 2013, comprising 20.8 million in North America, 14.2 million in EMEA, and 9.9 million in Rest of World.
- Customer spend: Fourth quarter 2013trailing twelve month billings per average active customer was $US134, compared with $US137 in the third quarter 2013.
- Mobile: In December 2013, nearly 50% of global transactions were completed on mobile devices. Nearly 70 million people have now downloaded Groupon mobile apps worldwide, with approximately 9 million people downloading them in the fourth quarter alone.
The company also noted that it had repurchased 3,661,900 shares of stock under its current buyback plan at an average price of $US10.26 per share.
Here’s a snapshot of the after-hours swing via MarketWatch.com.