WASHINGTON, April 25 – LivingSocial, the local marketplace to buy and share the best things to do in your city, today reported preliminary financial results for the quarter ended March 31, 2014.
Net income for Q1 2014 was $177 million, as compared to a net loss of $45 million for Q1 2013. These results reflect the sale of LivingSocial’s Korean business Ticket Monster (TMON), which closed in January 2014. Revenue for Q1 2014 was $77 million, and operating expenses were $98 million, as compared to revenue of $108 million, and operating expenses of $107 million for Q1 2013.
The sale of Ticket Monster, and the improvement of the LivingSocial cost base, reflects ongoing strategic corporate initiatives designed to refocus the company on becoming the preferred marketing partner for merchants of all sizes.
“In September 2013, LivingSocial announced a strategic refocusing to emphasize marketplace innovation, product development, and marketing in the U.S. and other regions in which we operate,” said John Bax, CFO of LivingSocial. “In Q1 2014 we took a number of significant steps forward in this effort, including a first wave of extended merchant and consumer flexibility, the transition of our live events business, significant improvement in our mobile apps, and the sale of our businesses in Southeast Asia which closed just as we entered the second quarter.”
In Q1 2014, LivingSocial began rolling out the first of many revisions as part of its refocusing efforts including:
- Enriching the mobile experience — LivingSocial’s new mobile apps for iPhone, iPad, and Android include simplified navigation, geolocation services, improved maps, and enhanced search function. Vouchers are purchased, stored and redeemable via the app, doing away with paper vouchers.
- Boosting consumer confidence with the Good Deal Guarantee – Q1 was the first full quarter of LivingSocial’s Good Deal Guarantee, designed to help consumers shop with confidence. With the Good Deal Guarantee consumers have ample time to receive refunds if they change their mind about a purchase. By clicking “Ask for a Refund” on the ‘My Vouchers’ page, consumers receive an automatic refund on unredeemed, unscheduled vouchers. This benefit for customers has resulted in increased customer satisfaction scores with the overall LivingSocial shopping experience.
- Enhancing organization with a focus on end-to-end revenue — LivingSocial named Doug Miller as Chief Revenue Officer. In his new role, Miller will focus on helping create demand for local merchants, travel, event partners, national brands, and driving overall engagement.