Groupon Inc. (NASDAQ: GRPN) reported its second-quarter financial results before the markets opened on Wednesday. The company said that it had $0.02 in earnings per share (EPS) and $662.6 million in revenue, which compares with consensus estimates that called for breakeven earnings and $669.5 million in revenue. The same period from last year had a $0.03 in EPS and $723.8 million in revenue.
Gross profit in the North America segment increased 8% to $233.9 million from $217.2 million in the second quarter of 2016, as strength in Local was partially offset by declines in Goods. In Local, gross profit increased 13% to $179.6 million, driven by double-digit growth in units.
International gross profit declined 4% (only 1% on a FX-neutral basis) to $94.2 million as the firm is continuing to work to turn around the business following short-term disruption relating to its country exits.
In terms of the outlook for the 2017 full year, Groupon expects to see gross profit in the range of $1.30 billion to $1.35 billion and adjusted EBITDA between $215 million and $240 million. The consensus estimates are $0.11 in EPS and $2.9 billion in revenue for the full year.
On the books, Groupon cash and cash equivalents totaled $618.6 million at the end of the quarter, down from with $863.0 million at the end of the previous fiscal year.
Rich Williams, CEO of Groupon, commented:
Local commerce continues to be a vast opportunity, and we made great progress as a leader in the space with double-digit unit and gross profit growth in North America Local. As we continue to build an amazing and voucherless customer experience and invest in our customers and merchants, we are excited about the growing strength of our local marketplace.
Shares of Groupon were last seen up 5.7% at $4.09, with a 52-week trading range of $2.90 to $5.94 and a consensus analyst price target of $4.19.