Groupon Inc (NASDAQ:GRPN) posted third quarter results last week with earnings per share  above the estimates and revenue  near the midpoint of guidance. The company is reflecting an impressive transition from flash sales to mobile commerce platform, and “is execution” on its four core strategic pillars: mobile, local, pull, and one playbook, according to a report from Barrington Research by analyst Jeff Houston.Groupon

Q3 numbers from Groupon

For the quarter, revenue increased 5% year on year to $595.1 million, which was in line with the guidance of $585-635 million, but lower than the Street’s estimates of $615.7 million. Groupon Inc (NASDAQ:GRPN) posted non-GAAP EBIT of $39.2 million, which was on the high end of guidance. Adjusted EPS came in at $0.02, above analysts’ and the Street’s estimate of $0.01. Free cash flow was recorded at ($27.0) million and cash balance was $1.1 billion.

Domestic Gross Billings surged 20% locally, which was less than the previous quarter’s 30%, “due in part stronger than expected headwinds from seasonality and email.” Local billings were up 13% compared to 9% in the second quarter of 2013. Goods gained 28%, compared to a drop of 112% in the second quarter. According to analysts, 3Q is the “first quarter that Goods was fully ramped up.”

International expansion

In the third quarter, around 40% of total completed deals all over the world were contributed by mobile devices, whereas domestic deals increased 50% for the second consecutive quarter. Groupon Inc (NASDAQ:GRPN) is expecting to purchase Korean commerce provider TMON for $260 million.

International losses are contracting steadily as the company expands operations. Gross billing for the latest quarter increased 12% in EMEA, an increase from 4% in the second quarter of 2013. However, it declined 13% in the rest of the world.

Q4 guidance, estimates

For the last quarter of 2013, the company has given guidance for revenue in the range of $690-740 million, which is 8%-16% year over year growth. Analysts are expecting to revenue of $721.3 million while the Street estimates $723.7 million. Management at Groupon Inc (NASDAQ:GRPN) has guided non-GAAP EBIT in the range of $40-60 million, an increase from the fourth quarter 2012 EBIT of $13.7 million, while analysts expect EBIT of $50.0 million.

Groupon Inc (NASDAQ:GRPN) has been assigned an Outperform rating with a price target of $14.