Shares of Groupon (NASDAQ:GRPN) plunged today, down by 14% as of 1:30 p.m. EDT, after the company reported first-quarter earnings results that fell short of expectations.
Revenue in the first quarter fell 4% to $673.6 million, and gross billings were down 1% at $1.36 billion. That top-line result is well below the $722 million in sales that analysts were modeling for. The daily deals specialist was able to squeeze out non-GAAP earnings per share of $0.01, which was slightly better than the adjusted net loss of $0.01 that the Street was expecting.
Gross profit was $309.5 million with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $44.8 million. The company has completed the previously announced dispositions of operations in 11 countries.
In a statement, CEO Rich Williams said Groupon remains focusing on growing active customers in its marketplace and has improved the customer experience. Active customers in the core North American market totaled 31.6 million during the quarter, a modest increase of 500,000. The company continues to focus on shifting toward more profitable business segments such as its local category. Groupon repurchased $26 million worth of stock during the quarter. Groupon is reiterating its full-year 2017 outlook, which calls for gross profit of $1.3 billion to $1.35 billion and adjusted EBITDA of $200 million to $240 million.