Sales at Coupons.com surged 32% in the second quarter, but the digital coupon provider reported an increased loss as stock-based compensation expenses ate into profits.
Total revenue increased 32% to $51.7 compared to $39.1 million while the company reported a loss of $6.9 million, $6.7 million of which was related to stock-based compensation, compared to a prior year loss of $2.9 million. On an adjusted basis, the company said profits increased to $3.7 million from a $100,000 profit the prior year.
"We had strong performance across all areas of our business in the second quarter," said Steven Boal, president and CEO of Coupons.com. "Our results reflect the continued shift toward digital couponing, and specifically to Coupons.com. Our broad platform, consisting of over 700 CPGs, and 2,000 brands and retailers representing over 58,000 stores, enables CPGs and retailers to connect with each other to run promotional and media campaigns in a seamless, cost-effective manner.”
The company also noted that it continues to see growth from its Retailer iQ targeting and analytics platform and also recently acquired Eckim, a performance marketing firm based in Los Angeles. The deal is expected to expand Coupons.com capabilities to provide a broader reach and scale for its products. Retailer iQ is focused on combining personalized recommendations for products and coupons with integrated shopping lists, e-receipts, and real-time reporting for retailers and CPGs. Four of the nation’s top 10 grocers now use the service, according to the company.