Groupon skyrockets 36% after earnings report beats Wall Street expectations
- Groupon on Thursday reported quarterly earnings that beat Wall Street's expectations.
- Shares of Groupon surged as much as 36% in premarket trading Friday.
- The company also said that it plans to start a second round of layoffs and furloughs in August.
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Shares of Groupon surged as much as 36% in premarket trading Friday after the company on Thursday reported quarterly earnings that beat Wall Street's expectations.
Here are the key numbers:
- Adjusted loss per share: $2.53 reported, versus $2.75 (expected)
- Revenue: $395.6 million reported, versus $183.3 million (expected)
"Despite the continuing challenges created by COVID-19, we have made meaningful progress toward stabilizing our business with the goal of returning Groupon to growth," said Aaron Cooper, interim CEO of Groupon, in a statement.
He continued: "In the past four months, we have created significant operating leverage by taking substantial costs out of our business, leaned into categories to drive sales and free cash flow, and steadied the company during the pandemic."
Still, the company suffered in the second quarter. Revenue was down 26% from a year ago, and gross profit of $17.3 million was 53% lower than in the same quarter last year.
In North America, gross profit decreased 49% on the year to $101.7 million in the second quarter, "primarily driven by the impacts of COVID-19 on volume," the company said in a press release.
The company also said that it plans to start a second round of layoffs and furloughs in August, which will save approximately $140 million in 2020 combined with the company's other restructuring plans. In April, Groupon said it would furlough or lay off 44% of its workforce by July 2021 due to the coronavirus pandemic.
Groupon has shed roughly 66% year-to-date through Thursday's close.
