Groupon Inc (NASDAQ:GRPN) reported revenues of $609mm (vs. analysts estimate of $600mm and Street est of $606mm), for 7% YoY growth, on gross bookings of $1.4b (vs. analysts est of $1.4b). CSOI came in at $59mm (vs. analysts est of $39.6mm and Street est of $34mm). 3P sales were $419mm (vs. analysts est of $436mm), while 1P sales were $190mm (vs. analysts est of $164mm). The company named Eric Lefkofsky as permanent CEO, and also authorized a $300mm share buyback over the next 24 months.
Before the earnings report of Groupon Inc (NASDAQ:GRPN), Sternee Agee analysts raised their price target for the stock from $9 to $12 per share.
Groupon Q3 Guidance: Below Street (at midpoint) on Revenue & CSOI:
Groupon Inc (NASDAQ:GRPN) guided revenue for Q3 2013 to a range of $585mm-$635mm (vs. UBS est of $614mm and Street est of $622mm). Non-GAAP operating income is expected to be between $20mm-40mm (vs. UBS est of $48mm and Street est of $57mm). Groupon Inc (NASDAQ:GRPN) again reaffirmed FY 2013 guidance for GAAP op income, stating that this figure would exceed $100mm for the year (vs. UBS analysts est of $75mm).
Groupon Quarterly Earnings Conference Call at 5:00pm:
Key questions for the conference call: 1) Update on mobile and “pull” traction within NA & International; 2) Any thoughts on the timing/potential for cost savings within the International business; 3) Status of fulfilment & warehousing partnerships outside NA; and 4) Thoughts on any potential impact from Gmail inbox changes. Analysts at UBS will be reviewing their ests after the company’s earnings call.
Groupon Inc (GRPN) Valuation:
UBS’ $6.00 PT is based on their weighted average approach (EV/Sales, EV/EBITDA, EV/FCF).
