Groupon's margins under pressure, shares now -4% AH

With the recent Ideeli and Ticket Monster acquisitions expected to add $50M to sales, Groupon (GRPN) expects Q1 revenue of $710M-$760M, above a $668.6M consensus. But EPS, due to be pressured by additional spending on "marketing and other growth initiatives," is expected to be in a range of -$0.04 to -$0.02, below a $0.06 consensus.

Q4 gross billings (expected to be soft) +5% Y/Y vs. +10% in Q3. North American billings growth fell to 10% from Q3's 24%, but EMEA saw a big turnaround, growing 6% after declining 21% in Q3. Rest of world -11% vs. -4%.

Units +11% Y/Y to 56M, active customers +9% to 44.9M.

Thanks to an ongoing shift towards Goods/e-commerce sales, gross margin fell to 49.2% from 60.4% in Q3 and 55.7% a year ago. $37.6M was spent on buybacks.

Q4 results, PR

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Comments (4)
  • Richard0623
    , contributor
    Comments (178) | Send Message
    Pretty funny to see people cheering and celebrating on Twitter that they were so smart and made a ton of money betting on GRPN. Bet they closed their eyes for a second and their 15% gain disappeared
    20 Feb 2014, 04:33 PM Reply Like
  • Black Gold
    , contributor
    Comments (793) | Send Message
    Hmm down 13% premarket...
    21 Feb 2014, 09:01 AM Reply Like
  • leopardtrader
    , contributor
    Comments (3802) | Send Message
    Anyone betting Earning Release of any company is worse than a drunken sailor
    20 Feb 2014, 04:36 PM Reply Like
  • Kmoney01
    , contributor
    Comments (60) | Send Message
    Watch for oversold computer trading from after hours trading at the open tomorrow. Could hit 10.50 or higher. I will grab as much as I can before the elevator cruises to 10th and 11th floors. Options expiration guys. It's a shakeout on volatility. They spooked the calls now it's the puts turn. This is the end for the double top formed over a month ago. If you aren't long you just don't get it.
    20 Feb 2014, 10:28 PM Reply Like
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