Groupon Posts Quarterly Profit
Surprising to some, Groupon just posted its first quarterly profit. The good news follows a bad year for the public company, during which it lost half its value on concern about waning demand for its daily deals and persistent accounting problems. At the end of March, the company revised fourth-quarter results, admitting to "material weakness" in its financial statements and triggering a stock price slide. How did Groupon do it? “By reining in marketing spending and signing up more customers and merchants,” according to Reuters.
"Revenue growth was impressive and they also had material margin expansion," The Benchmark Company analyst Clayton Moran tells Reuters. "There are no signs of competitive pressure in this report. The take rate of 41% is very encouraging.” On a Monday conference call, CEO Andrew Mason told analysts that the company was focused on expanding its mobile business, while using rewards programs and other technology to attract and retain merchants and customers overseas.
Notes Reuters: “He said the company will release new mobile application software in coming months, now that about a third of North American transactions happen on smartphones and other mobile devices.”
Recent Around the Net In Online Marketing Articles
-
Google Glass Apps Adding Up May 17, 11:47 a.m.
In what has become a necessary step for any successful operating system, Google Glass is starting ... -
Groupon Drags Out CEO Search May 17, 11:46 a.m.
Speaking of Groupon, the deal site says it’s unlikely to name a permanent new CEO until ... -
Andrew Mason Plotting Next Company May 17, 11:44 a.m.
What’s Andrew Mason been up to since being booted from the top spot at Groupon? Well, ... -
Yahoo Kicking Tumblr's Tires May 17, 11:44 a.m.
Yahoo is reportedly considering partnering with, investing in, or buying Tumblr. “Sources said the talks were ... -
Google, NASA To Study A.I. With "Quantum Computer" May 16, 12:01 p.m.
Google and NASA are creating a laboratory to study artificial intelligence. Their focus, as The New ... -
Skift Closes $1 Seed Round May 16, noon
Skift -- the travel intelligence and news startup founded by Rafat Ali -- has closed $1.1 ... -
USA Network Vies For Social Media Control May 16, 11:59 a.m.
USA Network on Thursday is expected to debut a new Web and mobile platform that, as ... -
Microsoft, Google At Odds Over App Ads May 16, 11:58 a.m.
After Microsoft updated its own YouTube application for Windows Phone the other week, Google sent the ... -
Larry Page Explains Soft-Spokenness May 15, 10:30 a.m.
More than personal quirk or mere curiosity, Larry Page’s soft-spokenness has led some analysts to question ... -
Brightcove Bows Mobile Live-Streaming Tool May 15, 10:29 a.m.
Video distribution platform Brightcove is introducing a new module that is designed to help customers run ...
Be the first to comment on "Groupon Posts Quarterly Profit"
Leave a Comment