Looks like Groupon is getting its second wind.
On Monday, the company released its earnings report, and boy is it a humdinger. Groupon posted a smaller net loss and a higher revenue for its first quarter. But what's really interesting is the second quarter outlook: "Revenue for the second quarter 2012 is expected to be between $550 million and $590 million, an increase of between 40% and 50% compared with the second quarter 2011.”
That 50 percent growth is markedly lower than the 89 percent growth reported in the same document for 1Q. So, again, there's a change in Groupon's tone. Certainly its expectations are more modest this time around than it has been historically. Are they just being modest, though? Or are they planning something big like they always are and just don't want to get expectations out of whack?
Regardless, Groupon's stock is beginning to recover, albeit meekly, to a respectable $13.77, as of press time. For Groupon to really rebound, though, it will need to shoot back above the $20 mark it started at not so long ago.
Reuters was on the conference call with CEO Andrew Mason and other key Groupon execs to discuss the meaning of the 1Q earnings report. Mason indicated that "he wanted to expand Groupon's mobile business, while using rewards programs and other technology to attract and retain merchants and customers overseas… the company will release new mobile application software in the coming months."
So maybe Groupon's way up is going back to basics? That certainly would be a lot more viable than Clicky, Groupon's Facebook thing.
David Wolinsky is a freelance writer and a lifelong Chicagoan. In addition to currently serving as an interviewer-writer for Adult Swim, he's also a columnist for EGM. He was the Chicago city editor for The Onion A.V. Club where he provided in-depth daily coverage of this city's bustling arts/entertainment scene for half a decade. When not playing video games for work he's thinking of dashing out to Chicago Diner, Pizano's, or Yummy Yummy. His first career aspirations were to be a game-show host.