Groupon -13.9% AH on revenue miss, guidance, daily deals weakness

|By:, SA News Editor

Groupon (NASDAQ:GRPN) expects Q3 revenue of $720M-$770M and EPS of $0.00-$0.02, unfavorable to a consensus of $760.6M and $0.03. In addition, due to heavy marketing spend, full-year adjusted EBITDA guidance has been lowered to $270M+ from $300M+.

The company has entered into a 3-year, $250M credit facility. It has "no immediate plans" to draw on it. $106M was spent on buybacks in Q2.

Gross billings rose 28.7% Y/Y in Q2 (nearly even with Q1's 29.1%) to $1.82B. However, revenue growth slipped to 23.5% from 26% (implies a lower take rate). North American revenue +12.4% to $423.9M, EMEA +42.3% to $228M, rest of world +39.6% to $100M.

Local revenue (daily deals-focused, higher margin) -9% Y/Y to $303.7M, Goods (e-commerce-focused) +67% to $402.6M, Travel +44% to $240.3M.

Gross profit as a % of billings fell to 21.4% from 27.2%. GAAP marketing spend +16% to $64.3M, SG&A spend +10% to $332.8M.

Q2 results, PR, slides