Groupon, Inc. (GRPN) saw its loss widen to $52.59 million, or $0.09 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $46.53 million, or $0.08 a share. On the other hand, adjusted net income for the quarter stood at $42.47 million, or $0.07 a share compared with $23.29 million or $0.04 a share, a year ago.
Revenue during the quarter went up marginally by 1.93 percent to $934.88 million from $917.17 million in the previous year period. Gross margin for the quarter contracted 97 basis points over the previous year period to 39.56 percent. Operating margin for the quarter period stood at positive 0.79 percent as compared to a negative 0.59 percent for the previous year period.
Operating income for the quarter was $7.42 million, compared with an operating loss of $5.42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $80.65 million compared with $67.01 million in the prior year period. At the same time, adjusted EBITDA margin improved 132 basis points in the quarter to 8.63 percent from 7.31 percent in the last year period.
"In 2016, our concentrated focus on key strategic initiatives provided a strong foundation for Groupon going forward and resulted in a streamlined global operation, a healthier Goods business, improved customer service and strong customer acquisitions after a successful online and offline marketing strategy," said chief executive officer Rich Williams. "We look forward to continuing to invest in the Groupon brand and unlocking the true potential of our business as we make Groupon the daily habit in local commerce."
Operating cash flow drops significantly
Groupon, Inc. has generated cash of $117.10 million from operating activities during the year, down 55.39 percent or $145.39 million, when compared with the last year.
The company has spent $57.49 million cash to meet investing activities during the year as against cash inflow of $67.22 million in the last year.
The company has spent $14.66 million cash to carry out financing activities during the year as against cash outgo of $515.78 million in the last year period.
Cash and cash equivalents stood at $891.85 million as on Dec. 31, 2016, up 4.51 percent or $38.48 million from $853.36 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Groupon, Inc. was negative $121.12 million on Dec. 31, 2016 compared with negative $128.28 million on Dec. 31, 2015. Current ratio was at 0.90 as on Dec. 31, 2016, up from 0.89 on Dec. 31, 2015.
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