Gross billings were $1.34 billion for a gain of 10%. North America growth of 20% and EMEA growth of 12% was offset by a 13% decline in Rest of World.
North America revenue growth of 24% was offset by a 21% drop in EMEA and a 4% decline in the areas considered as the rest of world. Gross profit was $359.6 million in the third quarter versus $386.8 million a year ago.
The company pointed to strength in local businesses and said that mobile adoption continued to increase. It reached a record 9 million app downloads and is still looking to transform itself from its daily deal email roots to a full ecommerce marketplace. Groupon also announced that it has signed an agreement to acquire Ticket Monster as a ecommerce company in Korea.
What is going to be a concern here is that Groupon’s operating income was $13.8 million in the third quarter, and that is lower than the $25.4 million in the same period a year ago. Another issue is that the operating income was down by $13.6 million when compared to second quarter 2013.
Groupon shares closed down 5% at $9.50 and the stock is down another 8.8% to $8.45 in the after-hours reaction. Groupon’s shares have traded in a range of $2.60 to $12.76 in the last 52-weeks.
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