Groupon Inc (NASDAQ:GRPN) released financial report for the quarter closed September 30, 2017. Rich Williams, the CEO, expressed that that they delivered another robust quarter while continuing to invest in the development and growth of company’s local marketplace. They continued to see robust demand in its core local business and scale their voucherless offerings like Groupon+.”
The highlights
North America gross profit in the Q3 2017 came at $207.9 million compared to $201.7 million in the Q3 2016 led by strength in July, which was partly offset by softer spending in markets impacted by the hurricanes in August and September. In Local, gross profit surged 7% to $162.9 million as unit growth grew for the fourth successive quarter to the low teens.
Groupon reported that gross profit in Goods came at $30.9 million compared to $31.5 million in the Q3 2016, while Travel came at $14.1 million against $17.3 million in the Q3 2016. Strength in the Local segment was led by a jump in active consumers and expanded supply through premier national brands and third party partners. In addition, the company continued to make improvements to the consumer experience. Currently, Groupon+ is live in 23 markets.
Groupon prime focus is to increasing gross profit, including an increasing move toward offerings in higher margin, more distinguished Local segment, from company’s Goods category. In the Q3 2017, North America revenue dropped 14% led by a 30% drop in Goods direct revenue deals, which are recorded on a gross basis. Additionally, the company project that the hurricanes had a negative impact of $4 million on gross profit and $5 million on revenue in the Q3 2017.
North America active consumers reached 32.5 million as of the close of September 30, 2017, adding 600,000 net new active consumers during Q3 2017. Active customers exhibit unique user accounts that have done a purchase during the trailing 12-months either through one of Groupon’s web marketplaces or right away with a merchant for which the company earned a commission.
