The daily coupon company, Groupon, posted its Q3 2013 earnings, which suggested that growth in North America helped the company to balance a decline in its international revenue.
On Thursday, November 7, Groupon announced its financial results for the quarter ended September 30 and posted revenue of $595.1 million, an increase of 5 percent when compared to the revenue of $568.6 million in Q3 2012. The company revealed that revenue for North America grew 24 percent, which offset a 21 percent revenue decline in Europe, Middle East and Africa (EMEA). The company also announced a 4 percent decline in Rest of World.
Gross billings increased 10 percent globally to $1.34 billion in Q3 2013 when compared to $1.22 billion gross billings in Q3 2012. A growth of 20 percent in North America and 12 percent in EMEA offset a 13 percent decline in Rest of World.
Gross profit for the company was $359.6 million in Q3 2013, which is an increase when compared with $386.8 million in the same quarter of 2012.
The company announced operating income of $13.8 million for the quarter, compared to $25.4 million in Q3 2012. The operating income also decreased $13.6 million when compared to Q2 2013.
"Our Local business showed continued strength in the quarter, particularly in North America," said Eric Lefkofsky, CEO of Groupon. "Mobile adoption continued to increase in Q3, reflected in our record 9 million app downloads. We're pleased with our progress, but we still have work to do as we transform the business from our daily deal email roots to a full ecommerce marketplace."
The company also took the opportunity to announce the acquisition of Ticket Monster, which is one of the prominent e-commerce companies in Korea. Ticket Monster has been successful in building an e-commerce business in Korea, which is currently one of the largest markets in the world. The acquisition will enable Groupon to expand and increase its business reach in Asian countries.
Groupon shares slid more than 10 percent then bounced back up nearly 8 percent in extended trading. Groupon shares closed at $9.50 on November 7 on Nasdaq. On Friday, the shares closed up 6.43 percent at $10.11.
