Groupon (GRPN) - Get Report shares surged after the the online marketplace reported a narrower-than-expected second-quarter net loss and a revenue figure that was more than double the analysts' estimate.
For the pandemic-hammered quarter, the Chicago company reported a GAAP net loss of $2.53 a share, widened from $1.42 a share in the year-earlier quarter.
Revenue declined 26% to $395.6 million from $532.6 million.
A survey of analysts by FactSet produced consensus estimates of a net loss of $4.14 a share on revenue of $183 million.
"Despite the continuing challenges created by covid-19, we have made meaningful progress toward stabilizing our business with the goal of returning Groupon to growth," interim Chief Executive Aaron Cooper said in a statement.
Cooper, who has held Groupon positions including head of the North America operations and chief marketing officer, was named to the CEO's post in mid-March, succeeding Rich Williams.
He particularly noted that the company has cut substantial costs. Selling, general and administrative expense dropped nearly a third to $143.6 million, driven by job cuts and furloughs that the company initiated in April. And the company slashed marketing expenses 72% to $25.2 million.
Gross profit was $137.2 million in the second quarter, down 26% from a year earlier.
Going forward, Groupon said it would expand its inventory and improve the online experience for both merchants and customers. And it will continue to cut costs.
Chief Financial Officer Melissa Thomas said in the company statement that Groupon has strengthened its balance sheet.
She said the company reached adjusted earnings before interest, taxes, depreciation and amortization faster than it had expected. That figure was $1 million for the second quarter.
At last check, Groupon shares were 34% higher at $22. That puts the stock at more than double its 52-week low of $9.60, set in mid-March.
But it is trading at only about a third of its 52-week high above $63, set in early February. The stock dropped 44%, to $34 from $61, on Feb. 19, the day after Groupon reported fourth-quarter and full-year results.