Groupon Earnings Match Forecasts

Groupon, the online coupon service reported new quarterly earnings that matched expectations and at the same time named its new permanent CEO.

Groupon, which gives consumers the opportunity to prepay for goods and services that are discounted, reported its earnings of 2 cents per share. That equaled estimates.

Including every charge, the company took a net loss of one penny per share, which also matched Wall Street expectations.

At the same time, the company announced that Eric Lefkofsky was its new CEO and Ted Leonsis who was its co Interim CEO moved to chairman.

Lefkofsky had been the other co-interim CEO, and his appointment comes months after Andrew Mason, the original CEO of Groupon resigned.

Lefkofsky is 44 and an entrepreneur who also took part in helping with the creation of Groupon.

Shares of Groupon were up by 20% on the earnings report in trading afterhours.

Analysts were watching the revenue at the company closely looking for any signs of new growth. During the quarter, revenue was up just over 7% to end the quarter at $609.7 million. That topped the estimate of $606.2 million.

Groupon for the most part is finding big success with is marketplace business, where it offers discounted merchandise on its website to consumers. In addition, the company reports that it gets 50% of its transactions in North America on mobile devices, which is up from just 30% in June of last year.

Investors are still concerned where the company will find its profitable growth when looking to expand. There is also much more competition for discount to users of mobile devices. Results during the first quarter also matched expectations, but outlook for the year’s second quarter had been below expectation.

Since the start of 2013, Groupon shares have jumped 77% and on Wednesday closed at $8.63 down just 7 cents per share.

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