Groupon Inc.’s (GRPN) shares fell 11% in aftermarket hours on Tuesday after the company missed earnings estimates for the fourth quarter of 2018. Revenues, despite a decline, came in ahead of expectations.
Total revenues fell 8% year-over-year to $799.9 million, reflecting lower customer traffic and the company’s continued focus on revenue generation that maximizes long-term gross profit.
Net income attributable to common stockholders was $46.2 million, or $0.08 per share, compared to $47.7 million, or $0.08 per share, in the prior-year quarter. Adjusted net income was $60 million, or $0.10 per share.
Global units sold dropped 8% to 50.5 million mainly due to lower traffic and Groupon’s focus on maximizing long-term gross profit, which resulted in fewer units. In North America, units were down 13% while internationally, they were up 3%.
In the North America segment, revenues dropped 12.2% year-over-year while total gross billings fell 12.5%. In the International segment, revenues inched down slightly by 1.1% while total gross billings declined 4%.
At the end of the quarter, Groupon had 48.2 million total active customers, with 30.6 million active customers in North America and 17.6 million International customers.
For the full year of 2019, the company expects adjusted EBITDA of approx. $270 million.