According to an eMarketer report published earlier this year, 55% of US Internet users aged 18 and above will redeem digital coupons at least once this year. The number of digital coupon users is expected to grow 8% this year. Within digital coupons, mobile coupons are rising sharply with more than 70% of US adult digital coupon users expected to redeem a digital coupon on a mobile device. The report predicts that number to grow to 83% by the year 2016.
Mountain View, California-based Coupons.com (NYSE: COUP) saw second quarter revenues grew 32% over the year to $51.7 million. But the market was disappointed with the loss per share of $0.09, which was significantly higher than the anticipated loss of $0.05 per share for the quarter.
During the quarter, revenues from digital promotion contributed 74% share compared with 79% a year ago. Display advertisements revenues brought in the remaining 26% of total revenues. Transaction volume in the quarter grew 22% to 384 million.
Coupons.com expects to end the current quarter with revenues of $52 million-$54 million and an adjusted EBITDA of $2 million-$3 million. They projected the year’s revenues at $217 million-$223 million with an adjusted EBITDA of $12 million-$17 million.
As part of their expansion efforts, Coupons.com recently announced the acquisition of Eckim, a performance marketing firm, for an undisclosed sum. Los Angeles-based Eckim was founded in 2012 and has now become an award winning provider of award winning performance marketing services. Eckim partners with global retailers to help them improve the capability of their promotional websites to acquire customers. Through the acquisition, Coupons.com hopes to expand their platform capabilities by being able to reach out to a broader range of partners and clients. Coupons.com is also looking to improve their Search Engine Marketing (SEM) capabilities through the acquisition.
Recently, Coupons.com extended their Grocery iQ to Retailer iQ, a digital coupon, targeting and analytics platform. Retailer iQ is able to integrate personalized recommendations for products and coupons with shopping lists and e-receipts for consumers along with real-time reporting for retailers. The platform integrates into the retailer’s point-of-sale system and is able to manage the digital couponing process end-to-end. It includes the stages of creation, issuance, activation, redemption, validation, and clearing of coupons. Since its release in April this year, the company has signed up nine retailers on this platform.
Additionally, they also implemented the ability of card-linked offers that lets consumers of specialty retailers such as Petsmart, Gap, and Lord & Taylor add digital coupons directly to payment cards including Visa, MasterCard, and American Express.
Their stock is trading at $13.36 with a market capitalization of $1.04 billion. It touched a 52-week high of $33 in March this year soon after it listed at $16 apiece. The stock has recovered from the 52-week low of $11.61 it had touched in April this year.