The retailer continues to evolve from a daily-deal provider to a more traditional e-commerce merchant that sells physical goods.
Groupon Inc. wants shoppers to think of Groupon as an online retailer and marketplace, and not just a supplier of discount vouchers. And consumers are responding.
The retailer, No. 44 in the Internet Retailer 2014 Top 500 Guide, reported today that its revenue rose 23.5% in the second quarter while sales of physical products through its Groupon Goods division soared 66.5% from the second quarter of 2013. Groupon Goods generated $402.6 million in sales during the quarter, accounting for 53.6% of company-wide revenue.
“Our marketplace continues to gain traction and add to our growth,” says Eric Lefkofsky, Groupon’s CEO. “We believe we’re making great strides in connecting local commerce.”
More than 92 million consumers have downloaded Groupon mobile apps worldwide, the company says. And more than half of the retailer’s transactions take place on mobile devices.
For the second quarter ended July 30, Groupon reported:
• Revenue increased 23.5% to $751.6 million, compared with $608.7 million in 2013.
• North American revenue of $423.9 million, up 12.4% from $377.2 million a year earlier.
• International sales of $327.7 million, a 41.5% gain from $231.6 million in 2013.
• Revenue for Groupon Goods of $402.6 million, up 66.5% compared with $241.8 million a year earlier.
• Operating loss, which excludes stock compensation and acquisition-related costs, of $7.9 million compared to a $27.4 million gain in 2013.
• A net loss of $22.9 million, compared with a loss of $7.6 million a year earlier.
• Gross billings, which reflects the total amount consumers paid for Groupon vouchers, excluding applicable taxes and refunds, stood at $1.819 billion, a 28.7% increase from $1.414 billion in 2012.
Groupon says the average amount a customer spent in the second quarter rose 3.8% to $137 from $132 a year earlier.
For the first half of the year, Groupon reported:
• Revenue increased 24.7% to $1.509 billion, compared with $1.210 billion in the same period in 2013.
• North American revenue of approximately $855.0 million, a 19.3% jump from $716.7 million a year earlier.
• International sales of $654.2 million, a 32.6% increase from $493.4 million in 2013.
• Groupon Goods revenue of $788.8 million, up from $471.2 million in 2013, a 67.4% increase.
• Operating loss of $27.8 million, compared to a $48.6 million profit in 2013.
• A net loss of $60.7 million, compared with a year-ago loss of $11.6 million.
• Gross billings stood at $3.636 billion, a 28.8% increase from $2.822 billion in 2013.