Groupon officially appoints Eric Lefkofsky as CEO amid Q2 earnings report

Groupon shares were up by more than 12 percent initially in after-hours trading with news of more steady leadership.


News about more stable leadership trumped Groupon's mixed earnings report after the bell on Wednesday.

Groupon's Board of Directors has officially appointed Eric Lefkofsky as CEO and Ted Leonsis as Chairman of the Board.

See also: Earnings roundup: Marin Software, Fusion-io, SGI all mixed up on results

After the Q2 report hit the wires on Wednesday, Groupon shares were up by more than 12 percent initially in after-hours trading.

Previously executive chairman at Groupon, Lefkofsky was originally appointed interim CEO back in February after founder and former CEO Andrew Mason was fired from the Chicago-headquartered company.

In a statement at the time, Mason took full responsibility for the downward spiral the daily deal business had taken since it first declared a $750 million initial public offering in 2011.

In Wednesday's Q2 report, Lefkosky attempted to keep the focus on the last three months:

We significantly exceeded our operating income expectations, and delivered our strongest quarter ever in North America, due in part to accelerated billings growth of 30%. With two quarters on the job, I'm pleased with the progress we've made in such a short time. We continue to gain traction in mobile, with nearly 50% of our North American transactions coming from mobile in June. To date, more than 50 million people have downloaded Groupon apps worldwide.

Groupon reported a second quarter net loss of $7.6 million, or one cent per share (statement).

The non-GAAP loss was also one cent per share on a revenue of $608.7 million, up by seven percent year-over-year.

Wall Street was looking for earnings of two cents per share with revenue of at least $606.23 million.

For the third quarter, Wall Street is expecting Groupon to deliver $621.59 million in revenue with non-GAAP earnings of five cents per share.

Groupon is promising Q3 revenue of between $585 million and $635 million.

One interesting shift continuing to take place at Groupon: mobile continues to surpass email as the biggest revenue origin.

In June 2013, nearly 50 percent of North American transactions were completed on mobile devices, compared with about 30 percent in June 2012.

Direct email accounted for less than 40 percent of North American transactions during Q2 overall.

Image via Groupon Investor Relations

Show Comments