Groupon keeps soaring; North American, mobile growth in focus


Groupon (GRPN +25.9%) is at levels last seen in June '12 after beating Q2 revenue estimates on the back of strong North American growth, announcing a $300M buyback and the end of its CEO search, and compelling two analysts to belatedly upgrade shares to neutral.

Evercore was ahead of the curve here, and Wunderlich and Deutsche moreso.

Deutsche's Ross Sandler: "Just about every segment in GRPN's NA and EMEA operations accelerated or experienced 'less negative' growth, a result of traction in mobile and pull." He's also pleased with Q/Q op. margin growth.

In its earnings slides, Groupon notes its apps have been downloaded by 50M people, with 7.5M downloads coming in Q2.

On the CC, Groupon admitted "take rate investments" have pressured EMEA margins, and stated it's evaluating its investments in underperforming markets in the "rest of world" segment.

The company also noted it has migrated to a "unified sales force platform" in 14 countries (its sales execution has been frequently criticized), and that its disparate NA and European tech platforms are set to be "largely integrated over the next several quarters."

New full-time CEO Eric Lefkofsky didn't lack for confidence during his CNBC talk (video). "Groupon should be one of the great e-commerce companies in the world."

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