eCommerce marketplace Groupon reported more than 0.51 million active deals at the end of Q2FY15

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Groupon reported more than 0.51 million active deals globally for the quarter ended June 30, 2015 (Q2FY15), up from 0.24 million in the same quarter last year. Of this, North America region accounted for more than 0.24 million deals (240,000 deals) for the quarter.

Units Sold: Vouchers and products sold before cancellations and refunds increased 7% year-on-year (YoY) to 53 million during the quarter. North America units increased by 9% YoY, while EMEA (Europe, Middle East and Africa) units increased by 10% YoY and Rest of World units which includes India declined by 3% YoY.

Active Customers: Groupon reported 8.2 million active customers in the rest of the world region, down from 16.1 million customers in the same quarter last year. Active customers are customers who have purchased a voucher or product in the last 12 months.

Globally, Groupon reported 48.6 million active customers, down from 53.2 million in the same quarter last year. North America is the biggest market with 24.9 million active customers for the quarter.

Customer Spend: The average customer spend, i.e. gross billing per active customer was at $133 for the rest of the world region, down $119 in the same quarter last year.

Interestingly, the average customer spend has been continuously declining in its strongest market North America. It was at $148 for the quarter, down from $155 in the previous quarter and up from $143 in the same quarter last year.Globally, the average customer spend was at $133 for the quarter, down from $136 in the same quarter last year.

Operational highlights:

– In May, Groupon completed the sale of a controlling stake in Ticket Monster, its South Korean e-commerce business to a partnership formed by KKR and Hong Kong based Anchor Equity Partners, for $360 million, including $285 million in cash received by Groupon. Second quarter results include a $202.2 million pretax gain on the sale.

– During the second quarter 2015, Groupon repurchased 19,334,744 shares of its Class A common stock at an average price of $6.34 per share, for an aggregate purchase price of $122.7 million. Groupon’s original share repurchase authorization has now been completed, and it has commenced repurchases under its recently announced $500 million share repurchase program. Up to $461.0 million of Class A common stock remains available for repurchase under this program, through August 2017.

Financials:

Groupon reported revenues of $738.4 million, up 3% YoY from $716.2 million in the same quarter last year. Gross profit was $337.0 million in the second quarter 2015, compared with $366.4 million in the second quarter 2014.

Gross billings, which reflect the total dollar value of customer purchases of goods and services, increased to $1.53 billion in the second quarter 2015, compared with $1.50 billion in the second quarter 2014. Gross billings grew 2% globally. 52% of the company’s gross billings came from the local category, with 35% coming from goods and travel accounting for 13% of the billings.

Groupon India:

In March, Groupon India raised ‘external funding’ of $20 million led by Sequoia Capital. In August, the company raised another round of funding from Sequoia following which the investor would have a majority voting interest in the couponing platform. The company was also rebranded to Nearbuy.

In June, the platform partnered with search and discovery platform Xploree to offer users real time deals on dining, wellness, shopping and travel segments from Groupon on the Xploree platform.

Groupon was formed in India after it bought the Indian platform SoSasta in early 2011. SoSasta founders Ananya and Udayan Bubna joined Groupon post the acquisition. Groupon was not immediately able to shift to the “groupon.co.in” domain because of domain squatting issues. The company was called Crazeal before it was renamed to Groupon in late 2012.


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