Groupon Surprises With a First-Quarter Revenue Beat

(Bloomberg) -- Hedge Fund managers are cheering as Groupon Inc. reported a robust EPS and revenue beat after the market closed Tuesday. The coupon company boasts 23 percent of its shares held by hedge fund managers according to data compiled by Bloomberg -- up from 10 percent a year ago.

Groupon posted first-quarter adjusted EPS of 3 cents, better than the consensus estimate of break even, revenue of $578.4 million -- beating the highest estimate by $18.4 million, according to Bloomberg data. Shares in Chicago-based Groupon rose 8.5 percent intraday Wednesday, extending Tuesday’s post-market gains. Trading volume is more than 4 times the 20-day average for this time of day.

Figures on active customers were muted, however, with Cowen analyst Thomas Champion saying in a note that year-over-year losses came to 1.1 million, worse than Cowen’s estimated 700,000 loss. Cowen wants to understand “the source of the beat and how these gains will be re-invested.”

Groupon’s conference call began at 10 a.m. ET.

Groupon Surprises With a First-Quarter Revenue Beat

“We’re not happy with the traffic headwinds we’re facing, but we understand them -- in fact we believe many of the headwinds we’re facing are part and parcel of the traditional voucher business from which we’re moving away,” said CEO Rich Williams.

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