Dive Brief:

• Groupon reported a mixed first quarter, with lower Q1 loss per share and higher revenue than analysts had expected as it regroups to focus on its North American operations. Shoppers didn’t keep Groupon quite as busy in Q1, buying some $1.47 billion in goods and services, down 5% from $1.55 billion in the first quarter of 2015.

• Groupon posted Q1 revenue of $732 million, past expectations reported by the Chicago Tribune of $718 million, but still down 3% year over year. Q1 gross profit was $339 million, down from $347 million a year ago. Groupon's Q1 loss of 1 cent per share beat analyst expectations of a 2-cent per share loss. 

• Groupon also named Mike Randolfi, formerly chief financial officer of online travel service Orbitz, as its new CFO. He begins work there today.

Dive Insight:

Groupon has been working to shift from its foundation and identity from a daily deals site to a marketplace. Last year it launched Groupon Stores, storefronts run by other brands that promise to offer their goods through Groupon at a minimum 5% discount compared to anywhere else online. The company's also seeing more of its growth come from its Groupon Goods consumer goods business.

In a Thursday conference call with analysts, CEO Richard Williams noted that the company took a hit as it exited some countries to focus on its North American operations, but emphasized its domestic achievements. 

“[O]ur goal with our broader international business remains stability,” Williams said on the call. “Once stable, we can get back to bridging the gap in maturity between our international and North American marketplaces.”

Williams also noted that increased marketing efforts in North America are paying off. “As marketing spend has ramped, so have our active customers,” he said. “On an incremental $39 million in the quarter, all in North America, we added 1 million incremental new customers as our spending mix shifted to acquisition, from our historical transactional tactics.”

One area that could be an advantage for Groupon’s marketplace is its focus on local merchants, an approach that often resonates with shoppers. Independent retailers these days have been able to exploit their natural advantage even further thanks to a “buy local” movement that makes shopping close to home a virtuous act on the part of consumers. 

Marketplaces are an increasing focus for other retailers, too, as they try to position themselves against Amazon. In addition to eBay’s moves toward greater strength after its spinoff of PayPal, Wal-Mart earlier this month hired a former eBay executive as it plans to bring in more sellers to its own online marketplace. 

Groupon earlier this month announced a $250 million investment from Atairos, a private company that invests in growth-oriented businesses in various industries. Atairos Chairman and CEO Michael Angelakis also joined Groupon’s board of directors.