Groupon revenue beats Wall Street estimates but the loss widens
The e-commerce company Groupon (NASDAQ: GRPN) released its first-quarter 2020 results on Tuesday after market close. The company reported revenues of $374.15 million for the last quarter which is 35% lower than the $578.41 million reported during the same period of the year prior. While the results surpassed Wall Street expectations.
- Earnings per share (EPS) $-1.63 vs. $-1.91 expected
- Revenue $374.2 million vs. $369 million expected
“COVID-19 has had a major impact on our business and we have moved quickly to position Groupon to weather the pandemic and to help our merchants face these unprecedented challenges. At the same time, during the first half of 2020, we created a more agile organization that is focused on improving the long-term health of our marketplace,” said Aaron Cooper, interim CEO of Groupon,
“These were tough but necessary decisions that we expect to provide us with the financial flexibility we need to navigate the impact of COVID-19,” said Melissa Thomas, Groupon CFO.
$GRPN stock climbed 4% higher during Tuesday’s after-hours session. Groupon shares have declined 43% since the beginning of the year. The stock dropped 26% on June-11 after the Chicago based company announced the reverse stock split.