Groupon numbers are out and I have been all over this one like a wet blanket! There was a massive short covering rally today sending GRPN shares up $1.84 or 18.5%. Share volume traded a crazy 12.8 million shares 522% above normal daily volume. Unless there is something I haven’t seen yet, there should be an excellent follow thru day tomorrow (at least at the opening) on the plus side.
Revenue surged 89% to $559.3 million in the first quarter 2012, compared with $295.5 million in the first quarter 2011. Gross billings were HUGE. These reflect the gross amounts collected from customers for Groupons sold, excluding any applicable taxes and net of estimated refunds, increased 103% to $1.35 billion in the first quarter 2012, compared with $668.2 million in the first quarter 2011.
Operating income was $39.6 million in the first quarter 2012, which includes an expense of $28.0 million related to non-cash stock-based compensation. This compares with a loss from operations of $117.1 million in the first quarter 2011, which included stock-based expense of $18.9 million.
“We are pleased to report a record quarter that demonstrates our progress in unlocking the opportunity in local commerce for merchants and customers worldwide,” said Andrew Mason, CEO of Groupon. Andrew, you should be pleased. Kudos on an excellent quarter.
Operating cash flow increased 367% to $83.7 million, compared with $17.9 million for the prior-year quarter. Free cash flow, a non-GAAP financial measure, was $70.6 million for the first quarter 2012. At the end of the quarter, Groupon had $1.2 billion in cash and cash equivalents and no long-term debt.
First quarter 2012 net loss attributable to common stockholders improved to $11.7 million, or a loss of $0.02 per share, from a net loss attributable to common stockholders of $146.5 million, or a loss of $0.48 per share, in the first quarter 2011. The net loss in the first quarter 2012 included $34.6 million in tax expense, or $0.05 per share. Non-GAAP earnings per share attributable to common stockholders for the first quarter 2012 improved to $0.02 versus a non-GAAP loss per share attributable to common stockholders of $0.41 for the first quarter 2011.
Second Quarter 2012 Outlook – forward looking statements
Revenue for the second quarter 2012 is expected to be between $550 million and $590 million, an increase of between 40% and 50% compared with the second quarter 2011.
Income from operations for the second quarter 2012 is expected to be between $25 million and $45 million, compared with a loss from operations of $101.0 million in the second quarter 2011. This outlook includes approximately $35 million of stock-based compensation. Our outlook further assumes no acquisitions or investments, or material changes in foreign exchange rates.
Closing, all I can say is YEE HAWW. I have already seen printed trades go thru in the after market in excess of $13.20 per share. The after market is a weird entity. There is absolutely NO guarantee that GRPN will continue higher tomorrow morning, but as of this writing, it looks highly probably.
For those curious about that derivative position I mentioned in an earlier post, that MAY 10 call option closed UP 141% from Friday’s close. The loud thumping sound you may be hearing is me kicking myself as that position may have a shot at a 300% to 400% gain in the first hour of trading tomorrow.
*Disclaimer – Stock comments presented on DailyDealMedia.com are solely those of me and experts quoted. They do not represent the opinions of DailyDealMedia.com on whether to buy, sell or hold shares of a particular stock.
Investors should be cautious about any and all stock recommendations and should consider the source of any advice on stock selection. Various factors, including personal or corporate ownership, may influence or factor into an expert’s stock analysis or opinion.
All investors are advised to conduct their own independent research into individual stocks before making a purchase decision. In addition, investors are advised that past stock performance is no guarantee of future price appreciation.
SOURCE: Press release Groupon, Inc. On Monday May 14, 2012, 4:06 pm (EDT)