Groupon Shares Surge on Higher Sales Forecast for Rest of Yearby
Groupon Inc. soared 26 percent in late trading after raising its full-year revenue forecast, citing recent customer gains after revamping its marketing programs.
Sales will reach as much as $3.1 billion this year, Groupon said in a statement Wednesday, compared with an earlier forecast for as much as $3.05 billion.
Chief Executive Officer Rich Williams has been transforming the company from a daily deal e-mail provider to an online destination for people looking for bargains. About 1.1 million new active customers from North America used the site last quarter, bringing the total to 27.9 million.
“We are obviously pretty happy with how it shaped up. It’s a sign of steady execution on our key priorities: driving customer growth and new customer additions,” Williams said in an interview. “You are starting to see those early signs of progress.”
Groupon, based in Chicago, rose as much as $1 to $4.78 in late trading after earnings were released. The shares had climbed 23 percent this year through Wednesday’s official close.