Groupon Inc (NASDAQ:GRPN) released the earnings results from its most recently completed quarter after closing bell tonight, posting non-GAAP earnings of 3 cents per share on $757.1 million in revenue, a 27% year over year improvement. Analysts had been hoping for earnings of 1 cent per share on $749 million in revenue. In the same quarter last year, the daily deals company reported earnings of 2 cents per share on $595.1 million in revenue.
Key metrics from Groupon’s earnings report
GAAP losses were 3 cents per share, while adjusted EBITDA was $67 million. Gross profits were 380.1 million, compared to $359.6 million in the same quarter a year ago.
Gross billings rose 39% to $1.86 billion for the third quarter, compared to $1.34 billion in the same quarter last year. In North America, gross billings rose by 16%, while Europe, the Middle East and Africa saw billings rise 10%, and the Rest of the World saw a 155% increase due to the Ticket Monster acquisition.
Revenue from North America rose 16%, while revenue from Europe, the Middle East and Africa improved by 56% and the Rest of the World saw a 26% improvement in revenue.
“We had another record quarter, with worldwide billings increasing 39 percent and reaching their highest level ever,” said Eric Lefkofsky, CEO of Groupon. “We also made significant progress in our strategy to become the leading mobile commerce destination, with double-digit growth in our North American Local business, double-digit gross margins in North American Goods and positive Adjusted EBITDA in every segment for the first time in over a year.”
Breaking down Groupon’s earnings
Groupon reported a 92% year over year increase in global units, which rose to 88 million. As of the end of the quarter, the company had about 300,000 active deals and 52.7 million active customers, a 24% improvement. Spend per average customer was $149, compared to $141 in the previous quarter.
Mobile mix was still more than half of Groupon’s mix, with more than 100 million people having downloaded the company’s mobile apps. About 10% of North American traffic searched for deals as Goupon’s Pull strategy continued to gain traction. Those who searched spent “significantly more” than those who didn’t.
During the third quarter, Groupon repurchased about 1.35 million shares of Class A common stock for an average price of $6.16 per share.