Daily-deal company Groupon Inc. this week reported a 26 percent increase in first-quarter revenue. But the company still experienced a $20 million net loss in operations during the period, due largely to marketing and other costs.
Total revenues for the period ended March 31 were $757.6 million, up from $601.4 million a year earlier. The net loss for the quarter compared with a $21.2 million loss a year ago. The net loss attributable to Groupon Inc. was $37.8 million, which compared with a $4 million net loss a year earlier, according to the company’s earnings announcement.
During a conference call with analysts, Eric Lefkosky, Groupon CEO and director, noted that the quarter represented another record for demand. “Strategically, the company has never been in a better place,” he said.
Goals this year, he said, include reaccelerating local growth in North America and abroad, improving the gross margins and operating efficiency of the goods business, and continuing to achieve stability in international operations and reduce losses in the Rest of World segment, he said. “We believe we are on course to achieve all three objectives by the end of 2014 and have raised our full-year guidance accordingly,” he said.
Regionally, North American revenues totaled $431.1 million during the quarter, up 26.9 percent from $339.6 million. Europe Middle East and Africa revenues rose 25.6 percent, to $230. 9 million from $183.8 million, while Rest of World revenues totaled $95.7 million, up 22.5 percent from $78.1 million.
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