GROUPON NEW CEO
Groupon (NASDAQ: GRPN) plunged to fresh lows on November after the company reported mixed third quarter earnings, bleak fourth quarter guidance, and a CEO change.
The 3rd. quarter 2015, Groupon’s revenue slipped 6% annually to $713.6 million and missed estimates by $19.1 milion. Gross billings slid 2% to $1.47 billion (up 6% on a constant currency basis), compared to a 2% gain in the previous quarter. Local and travel billings and revenue declined, although the goods segment reported positive single-digit growth in both.
For the 4th quarter, the company expects to report revenues between $815 million to $865 million, which would represent a 6.5% to 12% decline from a year ago. Analysts, on average, were expecting a revenue to rise 3% to $956.8 million.
Groupon appears to be getting marginalized by the larger players in the industry.
After reporting those results, Groupon announced that COO Rich Williams will replace Eric Lefkofsky as its new CEO.
Rich Williams declared that he will focus on three top priorities
1) acquiring new customers;
2) streamlining its international operations;
3) shifting its goods category away from lower-margin products.
This objectives indicate that Groupon will cut more jobs after laying off 1,100 employees in September.
Even with this measures , it’s not clear if Groupon can reverse the process, return to growth and profits.
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