A discussion draft of the Online Sales Tax Simplification Act of 2016 is expected to be introduced in Congress soon.
The daily deal operator posts a Q1 operating income of nearly $40 million.
For the first time ever, Groupon Inc.’s operations didn’t cause the daily deal operator to post a quarterly operating loss. The daily deal operator today announced it had a $39.6 million operating income in the first quarter.
For the first quarter ended March 31, Groupon reported:
- Revenue increased 89.3% to $559.3 million, compared with $295.5 million in 2011.
- North American revenue of $238.6 million, a 74.7% jump from $136.6 million a year earlier.
- International sales of $320.7 million, a 101.8% increase from $158.9 million in 2011.
- Operating income of $39.6 million, compared with an operating loss of $117.1 million in 2011.
- A net loss attributable to common stockholders of $11.7 million, compared with a year-ago net loss of $146.5 million
- Gross billings, which reflects the gross amount collected from Groupon customers for Groupon vouchers sold, excluding applicable taxes and refunds, were $1.35 billion, a 102.0% spike from $668.2 million in 2010.
“We are pleased to report a record quarter that demonstrates our progress in unlocking the opportunity in local commerce for merchants and customers worldwide," says Andrew Mason, the company’s CEO.
Groupon’s operating profit comes at an opportune time, as the daily deal operator has seen its stock price plummet, while also facing scrutiny domestically and abroad. Groupon was forced to restate its fourth quarter earnings after the company’s auditors, Ernst & Young LLP, found that the company had a material weakness in its internal controls, which means the internal controls Groupon has in place to prevent financial statement irregularities are ineffective. Groupon also recently came under fire from the U.K.’s Office of Fair Trading, a regulatory agency, which claimed that Groupon U.K. subsidiary MyCityDeal Ltd. offered deals that were misleading and breached consumer protection regulations.