Groupon's first quarter of marketing spending declines mobile-end trading exerting force

Tencent Science and Technology (Mowgli) Beijing time May 15 news, according to foreign media reports, the International business growth is strong, the decline in marketing spending and mobile-end trading force, such as the impetus of many factors, the United States first group purchase site Groupon's first-quarter performance exceeded market expectations.

Groupon's earnings showed that excluding specific spending (not in accordance with US GAAP), the company's first-quarter net profit amounted to $16.3 million trillion, a share of $0.02. Groupon's first-quarter revenue was $559.3 million, up 89% from a year earlier. Analysts had previously predicted that Groupon's first-quarter revenue would be $0.01 per share, not under U.S. GAAP, according to Bloomberg statistics. The news boosted Groupon's share price, which surged 18% in Monday after trading.

International Business surges

Groupon's share price has fallen more than 40% since its initial public offering last November, and the company is trying to reshape investor confidence. Groupon became one of the worst-performing internet stocks since the dotcom bust. Groupon's international revenue grew more than one in the first quarter, reaching $320.7 million trillion. Clayton Moran, an investment agency benchmark Co analyst Creton Morgan, said Groupon's sharp rise in international revenues in the first quarter showed that the company's business was not affected by economic turmoil overseas.

"Groupon's international business shows that the recession in Europe has not had any impact on corporate performance," said Morgan. Overall, Groupon's business is still growing steadily. ”

Groupon's share price jumped to $13.80 in a Monday intraday deal, up 19% from the 11.74-dollar closing price of the day. Groupon expects the company's second-quarter revenue to be 550 million to $590 million trillion. Market analysts currently expect the company's second-quarter revenue to be $558.7 million trillion.

Declining marketing spending

Groupon's first-quarter marketing spending accounted for 21% of the company's total revenue, down from 32% in the previous quarter and 78% in the same period last year. Jason Child, Groupon's chief financial officer, says Groupon is already able to add new e-mail subscribers to lower revenue Jensen Charde. "We use a lot of regulation to cut marketing spending," says Childs. Our paid marketing has become more efficient, and our customers ' organic growth continues to remain strong. ”

Groupon's operating profit in the first quarter reached $39.6 million trillion, better than its operating loss of $117.1 million a year earlier.

Groupon's shares have fallen by 48% per cent in just 6 months of the IPO, from last November to May 3 this year. Since 2001, only 4 of the new US-listed internet companies have underperformed Groupon.

Mobile End Transaction Exerting force

Groupon's revenue from outside the US market in the first quarter reached 57% of its total revenue. In a letter sent to shareholders last week, Andrewmeisen, the company's chief executive, said nearly 30% of Groupon's U.S. business This April was done through the handset business, up from 25% over 4 months ago.

Groupon's net loss in the first quarter shrank to $11.7 million trillion, with a loss of $0.02 per share. The performance was better than a year earlier. In the first quarter of 2011, Groupon's net loss was $146.5 million trillion, a loss of $0.48 per share.

Groupon said last month that Howard Schultz, chief executive of Starbucks, had Schultz out of the company's board. Meanwhile, Daniel Henry, chief financial officer of American Express, and vice chairman of Deloitte Robert Basse, Robert Bass, will join the company's board of Directors (Daniel Henry).