Groupon, the daily deals platform that has been restructuring itself and trying to shift into more profitable areas of e-commerce, today reported its Q4 earnings. They were mixed. The company beat on sales of $934.9 million but with a net loss of $50.2 million, working out to a non-GAAP EPS of $0.07. Analysts were expecting revenues of $912.8 million, and non-GAAP earnings per share of $0.02.
The company reported 31.2 million customers in North America and 52.7 million globally.
Groupon has been on a long road to trying to fix its business, after once being feted as a hot startup, blasting off in a hot IPO, and then crashing and burning as the reality of the its business set in: that daily deals are not nearly as constant and strong a market as many thought they would be.
Last quarter, the company punctuated its earnings two significant announcements that both point to the ongoing consolidation in that market: Groupon announced yet more closures of global offices where business was costing it too much and not giving enough returns, and it acquired LivingSocial.
Both of these are having a negative impart at least In the short term. ” Gross billings were impacted by dispositions and country exits in connection with Groupon’s restructuring efforts, partially offset by the addition of LivingSocial. On a same-country, FX-neutral basis, gross billings,” it noted.
Once a huge competitor but more recently, if anything, even more crippled by the daily deals doldrums than Groupon itself, LivingSocial in its life as a startup raised $928 million from a range of backers that included top-shelf VCs as well as Amazon, all of whom essentially wrote off their investments as the startup wentthrough severalrounds ofrestructuring andpivoting.
(One of its divestments, in fact, had been to Groupon, which acquiredTicketMonsterfrom it in Korea in a bold Asia play, only tosell it off againjust over a year later.)
Today we’ll be listening to the call to hear about how the integration of the two businesses is going, or if there was another motivation for this acquisition.
Full year revenue was $3.14 billion in 2016, compared with $3.12 billion in 2015.
More to come.