Groupon CFO Jason Child Quits, Rich Williams To Be COO
Groupon, Inc. (GRPN - Analyst Report) announced the reshuffling of its management recently. The online-discount provider’s Chief Financial Officer (CFO) - Jason Child has decided to quit effective Jul 2015.
Child, who held the position at Groupon since 2010-end, will now be joining San Francisco-based Jawbone as its CFO. The company has proffered the role of interim CFO to Brian Kayman, Vice President of Tax and Treasury with immediate effect, while the search for a permanent candidate is on.
Additionally, the company announced another key change in its management with Rich Williams (at present Groupon’s President of North America) taking charge as the Chief Operating Officer along with his current responsibilities. Apart from North America, Williams will also be in charge of the other regional teams including EMEA, Rest of World and Global Operations.
The company also increased its existing $300 million share repurchase program by another $200 million through Aug 2017.
Following the news, Groupon’s shares dipped 3.8% in the pre-market session to $5.80. However, shares recovered once markets opened, increasing nearly 2% to $6.15.
Jason Child has led Groupon in its most important growth phase. The company’s sales increased to $3.2 billion in fiscal 2014, compared with just $760 million in fiscal 2010. Moreover, the period also witnessed maximum international expansion of the business. We believe that while Child’s absence can weigh on Groupon’s business, the company might have gained enough traction to continue on the growth path. Along with this announcement, the company also reaffirmed its guidance for the second quarter and 2015.
On the other hand, Rich Williams’ exposure and leadership can be beneficial for Groupon’s growth. Williams joined the company in 2011 with over 20 years of experience in the domain. He held key positions at companies like Amazon.com Inc. (AMZN - Analyst Report) and Experian before joining Groupon. We believe that Williams’ expertise can help Groupon to further drive its international business. The company has already seen strong growth in its North American business.
Groupon has a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include PetMed Express, Inc. (PETS - Analyst Report) and Orbitz Worldwide, Inc. (OWW - Snapshot Report), each carrying a Zack Rank #2 (Buy).
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