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Groupon shares surge 22 percent after strong quarterly results

Rich Williams, CEO of Groupon
Ashlee Espinal | CNBC
Rich Williams, CEO of Groupon

Groupon shares surged more than 22 percent on Wednesday on the heels of reporting a strong quarter.

The company posted revenue of $934.9 million during its latest quarterly earnings on Wednesday, beating a Thompson Reuters consensus estimate of $912.8 million. The report showed a marked increase year-over-year, when revenue was reported at $917.2 million. Earnings per share were reported at $0.07, also beating the estimate of $0.02.

Despite increases in global revenue and boosts in North American gross profit and net customers, the company reported a net loss from continuing operation of $50.2 million compared to $32.6 million the year prior.

"In 2016, our concentrated focus on key strategic initiatives provided a strong foundation for Groupon going forward and resulted in a streamlined global operation, a healthier Goods business, improved customer service and strong customer acquisitions after a successful online and offline marketing strategy," CEO Rich Williams said in a statement.

Groupon had investors wary, especially when the company announced in October it had acquired competitor Living Social for an undisclosed amount causing the stock to drop 22 percent. However, it got renewed interest after Alibaba purchased a 5.7 percent passive stake in the company in December 2016.