Groupon plans $300 million share buyback; revenue exceeds estimates
Groupon Inc announced a $300 million share repurchase program and tapped interim chief executive Eric Lefkofsky to lead on a permanent basis. .
The Chicago-based company, which has struggled with management turmoil and a rapidly crumbling business, reported quarterly revenue that rose to $608.7 million, a stronger-than-expected result that also lends credence to its new mobile-centric strategy.
Billings in North America jumped 30 percent for the quarter, a record for the company.
Shares rose 11 percent to $9.72 after the bell.
With its core daily deals business model in steep decline over the past year, Groupon in recent months has re-invented itself as a more traditional e-commerce business that sells long-term deals through its smartphone app. Shares of the company have risen roughly 80 percent since January 1.
Analysts on average expected $606.2 million in revenue, according to Thomson Reuters I/B/E/S.
(Reporting by Gerry Shih; Editing by Steve Orlofsky and Carol Bishopric)