Shares of Groupon Inc. were up more than 16% in after-hours trading Thursday after the company easily exceeded earnings expectations.
The company, which runs a platform for locating deals, reported a second-quarter net loss of $3.38 million, or 12 cents a share, compared with a loss of $72.12 million, or $2.53 a share, a year earlier. On an adjusted basis, the company earned 33 cents a share, whereas it posted an adjusted loss per share of 93 cents a year prior. Analysts tracked by FactSet were projecting 22 cents in adjusted earnings.
posted revenue of $266.0 million, down from $395.6 million a year ago but ahead of the FactSet consensus, which called for $244.7 million.
“We are steadily scaling our initiatives to expand inventory and modernize
our marketplace, and believe we are executing the right strategy to transform Groupon into a destination for local experiences and build a foundation for growth,” the company’s interim chief executive, Aaron Cooper, said in a release.
The company expanded its amount of repeatable deal inventory by more than 70% as part of an effort to remove restrictions on deals. Groupon has also been working to build out its self-service platform so that merchants can list deals themselves on the platform, and almost 50% of North America deal launches during the quarter were done through self-service tools.
Shares of Groupon have dropped 30% over the past three months as the S&P 500
has risen about 6%.