Groupon shares jump 20 percent on record quarter, new CEO
Shares soar after troubled daily-deals site announces 7 percent jump in revenue and installs Eric Lefkofsky as permanent chief.
Groupon shares rose more than 20 percent Wednesday as the daily-deals site reported a record quarter and named a new chief executive officer.
The company on Wednesday posted a better-than-expected 7.1 percent jump in revenue of $608.7 million and a smaller-than-projected net loss of $7.57 million, or 1 cent a share, compared with a year ago profit of $28.4 million, or 4 cents a share.
The troubled-daily deals provider also announced that cofounder Eric Lefkofsky, who had been serving as interim co-chief executive officer since Andrew Mason's ouster in February, has been named the permanent replacement. The other interim co-CEO, Ted Leonsis, was named as the company's chairman.
Under Mason's watch, the Groupon's stock price fell below $5 from its $20 IPO in 2011.
The company's share price rose $1.83, or 20.9 percent, to $10.55 in after-hours trading Wednesday, its highest level since July 2012. Groupon's share price is up more than 100 percent since the beginning of the year.
The company's gross earnings -- the total collected from customers -- rose 9.9 percent to $1.41 billion. Much of Groupon's recent success has been fueled by an increased focus on mobile devices, which accounted for nearly 50 percent of North America transactions in June compared with 30 percent a year earlier, the company said.
The company also announced plans to repurchase $300 million in stock during the next two years.