Today the folks at Groupon have let it be known that compared to last year, they're doing fabulously, with this financial second quarter for them bringing a net income of $28.4 million USD. Compared to last year at this time, that number is fabulous, with last year's result for this quarter being a net loss of $107.4 million. Revenue also went up 45 percent up $568.3 million, this falling slightly short of a survey by Thomson Reuters which had analysts aiming for $573 million.
These numbers are headed upward if what Groupon projects ends up being true, with a revenue for the current quarter being $580 to $620 million. That's just a 2 to 9 percent increase between quarters, but a massive 35 to 44 percent increase compared tot he same quarter a year ago. Aside from sales, there were some concerns shared by investors over recent controversy surrounding Groupon Goods.
With the merchandise sales known as Groupon Goods, Groupon records the total amount of cash payed for the transaction no matter what the transaction may be. When one investor expressed concern over Groupon's way of recording its revenue here, Groupon's chief financial officer let it be known that there's really no other way they can do it. Child noted that if the company only reported its share of sales, competitors would learn too much about its business costs.
Child also said that if just Groupon's share were counted here, revenue growth in the second quarter would have been just 30 percent, not 45. Not one whole heck of a lot was said on the barrage of competition Groupon now faces with Google, Amazon, and Apple's oncoming selection of deals that are made to compete directly with their company's model. Stay tuned as Groupon continues to make strides for growth.