Groupon Q1 Earnings Highlights: Company Revenue Down, CEO Vows To Create Ways To 'Unlock Shareholder Value'

E-commerce marketplace company Groupon Inc GRPN hit new 52-week lows on Monday and is seeing shares trade down after market close. Here’s a look at the company’s first-quarter earnings results.

What Happened: Groupon reported first-quarter revenue of $153.3 million, missing a Street estimate of $165.8 million, according to data from Benzinga Pro.

The company reported a loss of 80 cents per share in the first quarter, missing a Street estimate of a loss of 52 cents per share for the quarter.

“Since joining Groupon as CEO in December, I’ve spent the majority of my time building an understanding of why we have not been able to successfully translate the significant assets we have — scale, data and customers — into a sustainable growth engine,” Groupon CEO Kedar Deshpande said.

Deshpande said merchants did not need to discount as much in the first quarter as expected.

North America segment revenue was $110.2 million in the first quarter, down 25% year-over-year. International revenue of $43.2 million in the first quarter was down 63% year-over-year.

The company reported 12.7 million units sold in the first quarter, a decline of 29% year-over-year.

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What’s Next: The Groupon CEO highlighted two key priorities that could unlock shareholder value.

“We intend to make bold moves that we believe will create a fundamentally better marketplace experience for our customers and merchant partners. We will primarily focus on addressing two key areas — reducing our expense structure and growing our marketplace by offering more differentiated inventory,” Deshpande said.

Once known for offering discounts for retailers and experiences, Groupon is seeking to create exclusive collections that will “deliver the wow factor customers want.” This includes launching a new beauty and wellness marketplace.

Groupon said it expects to have revenue of $155 million to $165 million in the second quarter. For the full fiscal year, Groupon expects to hit revenue of $670 million to $700 million.

GRPN Price Action: Groupon shares are down 13.15% to $13.60 in after-hours trading Monday. Shares closed down 4.80% to $15.66 during the regular trading session.

Photo: Courtesy Groupon