The Groupon Q3 2017 earnings results were released before opening bell this morning. The company reported non-GAAP earnings of 1 cent per share on $634.5 million in revenue. Groupon broke even on a GAAP basis. Wall Street had been expecting a breakeven result on $643.6 million in revenue. In last year’s third quarter, Groupon posted $686.6 million in revenue.
Groupon Q3 2017 earnings
Groupon reported adjusted EBITDA of $46.6 million, a 43% year-over-year increase, and gross billings of $1.34 billion, a 1% increase year over year. Net income from continuing operations amounted to $3.8 million, compared to $34.4 million in net losses in the year-ago quarter. This year’s third-quarter result included a gain of $17.1 million from an asset sale and restructuring charges amounting to $11.5 million. Global units sold fell 1% to 44.1 million. North America units were flat with low teens growth in Local offset by declines in Goodes. International units fell 1% year over year.
In North America, gross profits rose 3% year over year to $207.9 million on the back of strong results in July, although markets affected by the hurricanes in August and September returned strong results that partially offset the July strength. North America local profits rose 7% to $162.9 million on the back of another acceleration in unit growth. Goods gross profits declined to $30.9 million from $31.5 million last year, while Travel gross profits fell to $14.1 million from $17.3 million last year.
The company said its Local segment saw an increase in active customers and expanded third-party and national brand supplies. The number of active customers in North America rose to 32.5 million, an increase of 600,000 year over year.
Groupon’s international gross profit rose 11% year over year to $101.5 million. Local gross profits grew 15%. While International Goods gross profits increased 24% although Travel gross profit fell 28% year over year. The company observed early traction from its international supply, marketing and product initiatives during the quarter. It added 200,000 international active customers, bringing the user base to 16.6 million as of the end of September.
Groupon boosts profit outlook
Along with the Groupon Q3 2017 earnings release, the company also increased its outlook for gross profits. The provided range now stands at $1.305 billion to $1.355 billion for the full year 2017. The company also raised its adjusted EBITDA guidance to $225 million to $245 million. Groupon repurchased about 2.38 million shares for $9.2 million during the third quarter.
Following the Groupon Q3 2017 earnings release, the company’s stock surged in premarket trading, climbing by as much as 5.24% to $5.03