Groupon Inc Soars After Earnings Beat, Pandora Media Inc Plunges

Groupon Inc Soars After Earnings Beat, Pandora Media Inc Plunges
By GrouponRUS (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Groupon and Pandora Media released their latest quarterly earnings reports after closing bell tonight. Groupon posted adjusted earnings of 4 cents per share, compared to the expectation of breakeven, on revenue of $917.2 million, against the consensus of $854.9 million.

Pandora reported adjusted earnings of 4 cents per share, against the consensus of 7 cents per share, and $336.2 million in revenue, compared to the consensus of $331.8 million.

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Groupon posts strong results

Groupon’s reported losses were 8 cents per share, compared to last year’s profit of 1 cent per share. Gross billings were $1.7 billion for the fourth quarter, representing a 1% decline but 4% increase excluding currency headwinds, while adjusted EBITDA was $67 million.

The daily deals giant said global units were about flat year over year in the fourth quarter at 62 million, including a 12% increase in North America units and a 3% decline in Europe, the Middle East, and Africa. Groupon had about 650,000 active deals at the end of the quarter, including almost 350,000 in the U.S. The number of active customers, or those who made a purchase on the site in the last 12 months, climbed 3% to 48.9 million. Customer spend edged lower year over year to $137.

Management continues to expect full-year revenue of $2.75 billion to $3.05 billion and raised their full-year adjusted EBITDA guide to between $80 million and $130 million. Groupon shares soared in after-hours trading, climbing by as much as 20.54% to $2.70 per share.

Pandora Media’s ad revenue rises

Pandora saw a 22% increase in ad revenue to $269 million, while subscription and other revenue climbed 19% year over year to $57 million. Ticketing service revenue amounted to $10.2 million for the two months ending De. 31. Listener hours climbed 3% to 5.37 billion in the fourth quarter, while active listeners edged lower from 81.5 million in the year-ago quarter to 81.1 million in the fourth quarter of 2015.

Management expects first quarter revenue of $280 million to $290 million, which is about in line with the consensus at $284 million, and full-year revenue of between $1.4 billion and $1.42 billion, which is a bit light against the consensus of $1.42 billion.

Shares of Pandora Media slumped by as much as 6.04% to $8.56 per share in after-hours trades.

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