Groupon Will Be More Focused on Local Businesses, Lefkofsky Promises

By Cameron Scott 

groupon, daily deals, mobile apps

In his first call as acting co-CEO, Eric Lefkofsky promised the company would be more focused, emphasizing its ability to deliver local business deals in a variety of markets.

“At times as an organization, we’ve spread ourselves too thin,” he said, reflecting on Groupon’s initial horizontal expansion beyond daily deals.

Groupon reported consolidated revenue of $601 million in the first quarter of 2013, up 7 percent over the first quarter of last year.

Although it reported a net loss of $3.2 million, it shrunk its solvency gap 10 percent in a year-over-year comparison, and managed to deliver an adjusted earnings per share of $0.03 after a loss last quarter.

The company’s share price rose slightly after hours.

Lefkofsky pointed to the company’s renewed focus to account for its quarterly improvement.

“By Q4, the overall mix [of offerings] shifted toward newer categories. In 2013, they rebalanced as local billings rose. We are a local company; at our core,” he said.

The focus on local business sales makes sense given that local and travel billings rose over the quarter, while goods billings fell far enough to hand the company an overall setback.

In North America, 45 percent of March transactions came from mobile devices. Mobile customers on average buy more than 50 percent more, the company said.

Executives declined to give more information about the search for a permanent CEO, but said that a search committee had been formed.

This post was corrected after it was first published.