By Brenda León
Groupon, the Chicago-based e-commerce company, revealed a narrower second-quarter loss due to reduced operating expenses. Although sales continued to decline at a double-digit rate, the company remains optimistic about its ongoing transformation.
Financial Results
For the quarter ending June 30, Groupon reported a loss of $12.6 million or 41 cents per share. This is an improvement compared to the loss of $91.2 million or $3.04 per share during the same quarter last year. Despite this positive development, revenue experienced a 16% decline, falling from $153.2 million to $129.1 million. This decline was observed in both North America (15%) and international markets (19%).
Additionally, active customer numbers saw a decrease of 19% in North America and 14% internationally compared to the previous year.
Reduced Expenses
Groupon managed to lower its total operating expenses from $200.5 million to $117.8 million by implementing cost-saving measures such as reducing marketing costs and payroll expenses through earlier staff layoffs.
CEO’s Perspective
Dusan Senkypl, who assumed the role of interim chief executive in March, provided insight into the company’s future outlook. He indicates that Groupon anticipates year-over-year revenue declines throughout 2023; however, the magnitude of the decline has improved earlier than expected in the second quarter.
Senkypl also expressed confidence in Groupon’s transformation, stating, “After completing the first quarter as interim CEO, I have better visibility into how much work is waiting ahead and, at the same time, I can see that we are on the right path towards a successful transformation of the company.”
