Groupon reports first quarterly profit

groupon reports first quarterly profitCongratulations, Groupon: Your insistence on making the world a cheaper place finally seems to be paying off with the news that the company has reported its first quarterly profit thanks to tightening spending and growing both its merchant and customer base. Maybe this daily deals thing will catch on, after all…

Groupon’s operating profit margin in the first quarter of 2012 was 7 percent, higher than the 6.5 percent expected by analysts. That number capped off an impressive report that included a 33 percent growth in business from the previous quarter, its largest growth in a year. The company’s first-quarter pro-forma net income, excluding option expenses, was 2 cents per share, significantly up from a net loss of 41 cents a share in the same period last year, with revenue at $559.3 million against $295.5 million in Q1 2011. “Revenue came in much higher than expected and margins were higher,” according to financial analyst Sameet Sinha, adding that “The domestic side of Groupon’s business did well. They may be doing a better job of marketing or their new businesses may be gaining traction.”

Overall, the company reported that it has an estimated 36.9 million active customers, and dealt with more than 100,000 unique merchants during the quarter, a new record for the company. According to CFO Jason Child, the rise in revenue not only relates to those numbers, but also a decrease in marketing spending, down to $117 million compared with $230 million in the same period last year. Child says that the company is simply more efficient in terms of marketing now, keeping up customer growth rate despite the lower amount of spending.

Interestingly enough, the rise in unique merchants – and, less surprisingly, revenue – coincided with a rise in Groupon’s “take rate,” the amount of money it keeps from each transaction; the growth of competition in the daily deals space had pushed the company down from its Q1 2011 peak of 44 percent take rate, but last quarter saw the company slowly push it back from Q4 2011’s 40 percent to 41.3 percent. Presumably, this can be tracked back to the relative decrease in the number of daily deal start-ups from last year, as well as merchants seeing the results of their efforts, but it’ll be interesting to see whether or not Groupon can continue to inch their take up slowly over the next few quarters.

The news boosted trading for Groupon, with stock rising more than 18 percent to $13.21 on the Nasdaq index after the results were announced, its largest single-day gain since the company went public last November.


Apple’s iPhone battery offer was reportedly way more popular than expected

As many as 11 million iPhone owners reportedly made use of Apple's cheaper battery replacement offer that launched in 2018 in response to the iPhone throttling debacle — some 10 times more than the company had apparently expected.

Snooze soundly anywhere you lay your head with the best sleeping bags

A proper sleeping bag has the ability to make or break a camping or backpacking trip. Here are our picks for the best sleeping bags on the market to help you choose the correct bag for any type of outdoor adventure.
Home Theater

The best movies on Netflix in December, from 'Buster Scruggs’ to 'Roma'

Save yourself from hours wasted scrolling through Netflix's massive library by checking out our picks for the streamer's best movies available right now, whether you're into explosive action, witty humor, or anything else.
Movies & TV

The best shows on Netflix, from 'Haunting of Hill House’ to ‘Norsemen’

Looking for a new show to binge? Lucky for you, we've curated a list of the best shows on Netflix, whether you're a fan of outlandish anime, dramatic period pieces, or shows that leave you questioning what lies beyond.
Social Media

Looking to share some content? Here's how to repost on Instagram

Ever seen a cool picture on Instagram that you wanted to share? There's no official means of reposting content on Instagram, but there are a few workarounds. We break down the two most logical choices for getting the job done.

Japanese billionaire splashes the cash to break retweet record

Japanese billionaire entrepreneur Yusaku Maezawa has proved again he has a knack for self-publicity after launching a cash-prize contest to break the retweet record. Maezawa is the same man who is hoping to go to the moon with SpaceX.

Photoshop fail gives Aussie leader two left feet in official portrait

The Aussie prime minister doesn't have two left feet, despite an official photograph of the leader and his family suggesting otherwise. It was, of course, a Photoshop fail, and the embarrassing snafu was soon trending on Twitter.

Make a GIF of your favorite YouTube video with these great tools

Making a GIF from a YouTube video is easier today than ever, but choosing the right tool for the job isn't always so simple. In this guide, we'll teach you how to make a GIF from a YouTube video with our two favorite online tools.
Social Media

Instagram now lets you post to multiple accounts in one tap

Instagram for iPhone now lets you post to multiple accounts at the same time. It's not the regram feature that many users have been asking for, but it could prove useful for some users who manage more than one profile.
Social Media

No yolk! A photo of an egg has become the most-liked post on Instagram

Until this weekend, the most-liked post on Instagram was of Kylie Jenner's baby daughter, which has around 18 million likes. It's now been knocked off the top spot not by a stunning sunset or even a cute cat, but by an egg.
Social Media

Invite your friends — Facebook Events can now be shared to Stories

Facebook is testing a way to make plans with friends to attend an event -- through Stories. By sharing an event in Facebook Stories, users can message other friends interested in the event to make plans to attend together.
Social Media

A quick swipe will soon let you keep bingeing YouTube on mobile devices

The YouTube mobile app has a new, faster way to browse: Swiping. Once the update rolls out, users can swipe to go to the next (or previous) video in the recommended list, even while viewing in full screen.

Switch up your Reddit routine with these interesting, inspiring, and zany subs

So you've just joined the wonderful world of Reddit and want to explore it. With so many subreddits, however, navigating the "front page of the internet" can be daunting. Here are some of the best subreddits to get you started.