Groupon, Inc. (GRPN) saw its loss narrow to $24.41 million, or $0.04 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $49.12 million, or $0.08 a share. On an adjusted basis, the company has earned $5.17 million, or $0.01 a share for the quarter.
Revenue during the quarter dropped 3.55 percent to $673.63 million from $698.44 million in the previous year period. Gross margin for the quarter expanded 11 basis points over the previous year period to 45.94 percent. Operating margin for the quarter stood at negative 1.73 percent as compared to a negative 6.46 percent for the previous year period.
Operating loss for the quarter was $11.68 million, compared with an operating loss of $45.15 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $44.78 million compared with $31.54 million in the prior year period. At the same time, adjusted EBITDA margin improved 213 basis points in the quarter to 6.65 percent from 4.52 percent in the last year period.
"In the first quarter, we continued to make solid progress in our mission to be the daily habit in local commerce," said chief executive officer Rich Williams. "Our focus on growing customers in our marketplace, significantly improving the customer experience and continuing to streamline and simplify our business helped drive a 42 percent year-over-year increase in Adjusted EBITDA and gross profit of $309 million for the quarter."
Operating cash flow remains negative
Groupon, Inc. has spent $137.33 million cash to meet operating activities during the quarter as against cash outgo of $76.72 million in the last year period.
The company has spent $21.57 million cash to meet investing activities during the quarter as against cash outgo of $20.78 million in the last year period.
The company has spent $45.73 million cash to carry out financing activities during the quarter as against cash outgo of $78.02 million in the last year period.
Cash and cash equivalents stood at $690.98 million as on Mar. 31, 2017, up 5.42 percent or $35.51 million from $655.46 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Groupon, Inc. was negative $148.81 million on Mar. 31, 2017 compared with negative $205.89 million on Mar. 31, 2016. Current ratio was at 0.85 as on Mar. 31, 2017, up from 0.81 on Mar. 31, 2016.
Days sales outstanding were almost stable at 9 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding was almost stable at 5 days for the quarter, when compared with the previous year period.
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