Groupon Soars Most Since February on Higher 2016 Sales Forecastby
Revenue to climb as high as $3.1 billion on customer gains
Starting to see ‘early signs of progress,’ CEO Williams says
Groupon Inc. soared the most in more than five months after raising its full-year revenue forecast, citing recent customer gains after revamping its marketing programs.
The shares jumped as much as 35 percent to $5.12, the biggest intraday gain since Feb. 16, and traded at $4.92 at 9:59 a.m. in New York. The stock had already climbed 23 percent this year through Wednesday.
Sales will reach as high 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.”