Groupon, Inc. (GRPN) saw its loss widen to $37.98 million, or $0.07 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $27.62 million, or $0.04 a share. On an adjusted basis, loss per share was at $0.01 for the quarter. Revenue during the quarter went up marginally by 0.96 percent to $720.47 million from $713.60 million in the previous year period. Gross margin for the quarter contracted 249 basis points over the previous year period to 43.60 percent. Operating margin for the quarter stood at negative 3.70 percent as compared to a negative 9.87 percent for the previous year period.
Operating loss for the quarter was $26.68 million, compared with an operating loss of $70.42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $32.13 million compared with $56.33 million in the prior year period. At the same time, adjusted EBITDA margin contracted 343 basis points in the quarter to 4.46 percent from 7.89 percent in the last year period.
"Our strategy continues to deliver results with double-digit growth in North America local billings and our highest quarter for customer acquisition in over three years," said Groupon chief executive officer Rich Williams. "We are looking forward to a strong finish to the year and further progress on our mission to make Groupon a daily habit for consumers."
Groupon forecasts revenue to be in the range of $3,075 million to $3,150 million for fiscal year 2016.
Operating cash flow turns negativeGroupon has spent $171.56 million cash to meet operating activities during the nine month period as against cash inflow of $12.71 million in the last year period. The company has spent $51.72 million cash to meet investing activities during the nine month period as against cash inflow of $98.46 million in the last year period
Cash flow from financing activities was $52.87 million for the nine month period as against cash outgo of $192.19 million in the last year period.
Cash and cash equivalents stood at $689.75 million as on Sep. 30, 2016, down 28.42 percent or $273.81 million from $963.56 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Groupon has turned negative to $75.39 million on Sep. 30, 2016 from positive $0.09 million on Sep. 30, 2015. Current ratio was at 0.92 as on Sep. 30, 2016, down from 1 on Sep. 30, 2015.
Days sales outstanding were almost stable at 11 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding was almost stable at 4 days for the quarter, when compared with the previous year period.
Debt comes down
Groupon has recorded a decline in total debt over the last one year. It stood at $176.47 million as on Sep. 30, 2016, down 9.50 percent or $18.53 million from $195 million on Sep. 30, 2015. Long-term debt stood at $176.47 million as on Sep. 30, 2016. Total debt was 10.94 percent of total assets as on Sep. 30, 2016, compared with 9.60 percent on Sep. 30, 2015. Debt to equity ratio was at 0.53 as on Sep. 30, 2016, up from 0.32 as on Sep. 30, 2015.
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