Shares of Groupon rose on Friday following strong earnings, as reported by Motley Fool. Although the stock has struggled, it is up 20% since last week, although it is down 37% for the year. Groupon CEO Eric Lefkofsky discussed the reversal of its pattern of slow growth with an acceleration of billings from 1.8% to 10%. Its goods business, which is a separate segment from its coupons, is stable with gross margins on target at 10%.
Last year, Groupon bought Korean based Ticket Monster, and its billings rose 60% year over year. Groupon is considering a partial spinoff of Ticket Monster. Lefkofsky said Groupon will continue to develop its mobile strategy since, in some parts of the world 65% of orders are made on mobile and mobile customers tend to spend more money on each purchase. Groupon has developed Pages, a program that gives businesses and merchants dedicated landing pages on Groupon’s site. To date, there are 7 million Pages on Groupon with millions of ratings and reviews.
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