* Third-qtr revenue $595.1 mln vs est $615.7 mln
* Adj earnings/share $0.02 vs est $0.01
* North America revenue up 24 pct
* Sees Q4 revenue $690 mln-$740 mln vs est $723.7 mln
* Shares rise about 9 pct in extended trade
(Adds details on Ticket Monster deal)
By Soham Chatterjee
Nov 7 Daily coupon website Groupon Inc's
third-quarter profit beat analysts' estimates as strong
growth in North America helped offset a decline in international
Groupon shares were up nearly 8 percent in extended trading
after sliding more than 10 percent.
Revenue from North America, Groupon's fastest growing
region, grew 24 percent, while revenue from EMEA (Europe, Middle
East and Africa) fell 21 percent in the three months ended Sept.
Gross billings - a key metric that reflects the gross
amounts collected from customers - increased 10 percent to $1.34
billion in the quarter.
More than half of Groupon's transactions in North America
and more than 40 percent of global transactions were from mobile
devices, the company said.
The company said that more than 60 million people have
installed Groupon's application on their mobile devices by the
end of third quarter. Active customers grew 10 percent
year-over-year to 43.5 million.
With its core, emailed daily deals business model in steep
decline over the past year, the Chicago-based company in recent
months has re-invented itself as a more traditional e-commerce
business that sells long-term deals through its smartphone app.
Co-founder and Chief Executive Eric Lefkofsky, who was
formally appointed CEO in August, has focused on a
mobile-centric strategy since he was named interim chief
executive after the February ouster of former CEO Andrew Mason.
Groupon has also been building an online deal marketplace
called Pull that lets people search for and buy deals in their
The Chicago-based company also said it agreed to buy rival
e-commerce company LivingSocial Inc's South Korean unit, Ticket
Monster, for $260 million in cash and stock.
"Ticket Monster has been successful building a mobile
commerce business in one of the largest markets in the world. It
will serve as the cornerstone of our Asian business, bringing
scale and ecommerce expertise to that region," Lefkofsky said in
Ticket Monster's marketplace relies on traffic from mobile
devices with email accounting for less than 10 percent of sales.
The deal is expected to close in the first half of 2014.
"We intend to begin making investments again in Asia and
Latin America in an effort to position those markets for
growth...Our primary objective given how young those markets are
is not to maximize profits but instead to drive sustainable
growth there," Lefkofsky said in a conference call.
Revenue from Europe was down as the company invested more to
expand the number of merchants the company partners with, Chief
Financial Officer Jason Child told Reuters.
Child said he expects revenue from Europe to turn positive
in the coming quarters.
Europe has been a particular problem for Groupon, partly
because the sovereign debt crisis has dented demand for
Groupon has been trying to revive a sluggish European
business, while juggling the fast-rising cost of ensnaring new
customers, and merchants to partner on Internet coupons for
everything from spa treatments to fine dining.
The company forecast fourth-quarter revenue of $690 million
to $740 million, largely lower than analysts' expectations for
The company said its revenue was hurt by a fall in open
rates of its daily emails after Google introduced a promotions
tab in its GMail service, which filters and displays promotions
in a tab separate from the user's primary email inbox.
Groupon expects to report either a break even in the fourth
quarter or a profit of 2 cents per share. Analysts had expected
a profit of 6 cents per share.
Third-quarter loss narrowed to $2.6 million, or break even
per share, from a loss of $3 million, or break even, a year
Excluding items, the company - which competes against
LivingSocial, Amazon.com, eBay and Google
in a crowded and fiercely competitive e-commerce
marketplace - earned 2 cents per share.
Revenue rose 5 percent to $595.1 million. Analysts had
expected $615.69 million, according to Thomson Reuters I/B/E/S.
Shares of the company closed down 5 percent at $9.50 on
Thursday on Nasdaq. They are up 93 percent so far this year.
(Reporting by Soham Chatterjee; Editing by Joyjeet Das and Bob