Eric Lefkofsky, a Groupon co-founder who ousted Andrew Mason as chief executive officer in February to take the job on an interim basis, was made permanent CEO, the Chicago-based company said in a statement today.
Groupon also reported second-quarter revenue that topped analysts estimates as the largest daily- deal website sold more discounts via smartphones and tablet computers. The shares rose as much as 16 percent.
Sales rose 7.1 percent to $608.7 million, while the company swung to a net loss of $7.57 million, or 1 cent a share, from a profit a year earlier.
Groupon, which lost 87 percent of its value in the year after going public in November 2011, has rallied this year as Lefkofsky and Ted Leonsis, who was co-CEO and is now chairman, seek new areas of growth, including deals sold on mobile applications. The company is benefiting from a move away from daily discounts sent via e-mail, and toward offers delivered to users via mobile devices, according to Tom Forte, an analyst at Telsey Advisory Group in New York.
The consumer, instead of being able to choose one a day, can choose 40,000, Forte said in an interview before todays results.
Analysts on average projected a second-quarter net loss of 3 cents a share on revenue of $606.1 million, according to estimates compiled by Bloomberg.
Groupon rose in extended trading to $10.08. The shares advanced less than 1 percent to $8.72 at the close in New York, leaving them up 79 percent this year.
Revenue in the current quarter will be $585 million to $635 million, Groupon said. That compares with an average analyst estimate of $621.5 million.
The company makes money by offering discounts -- known as Groupons -- from businesses such as restaurants and nail salons. It then shares the revenue with the businesses.
The company introduced Groupon Reserve, an online restaurant-booking service, last month, challenging existing services offered by OpenTable Inc. and other startups. The reservation service is debuting in 10 cities including New York, Los Angeles, San Francisco and Washington, and will expand in the U.S. and overseas by the end of 2013.