Groupon Inc.(NASDAQ: GRPN) reported better-than-expected revenue and raising its full-year revenue forecast, pushing the stock price up as much as 28 percent.
The discount deals company also reported smaller-than-expected loss of $54.9 million, or 10 cents a share, compared with profit of $109.1 million, or 16 cents a share a year earlier. Excluding charges and items, the company lost a penny a share, compared with profit of 2 cents a share.
Revenue rose 2.4 percent to $756 million, topping analysts’ estimates of $711.2 million. The better-than-expected result is driven by strong customer growth in North America. The company said about 1.1 million new active customers from North America were added last quarter.
“We’re a leader in the space. There’s a ton of room for innovation in local that we’re pursuing and that we think has significant long term yet to be realized,” Williams said.
Groupon was launched in 2008 and went public in 2011. But the company has been under pressure from accounting issues and management changes. The stock has lost about 80 percent of its value in the past five years.
The company is trying cut its operation oversea and focusing on U.S. and Canada again. It raised its full-year guidance to $3 billion to $3.1 billion in revenue from previous estimates of $2.75 billion to $3.05 billion.
“We are obviously pretty happy with how it shaped up. It’s a sign of steady execution on our key priorities: driving customer growth and new customer additions,” Williams said in an interview. “You are starting to see those early signs of progress.”