Groupon Shares Hit on Revenue Miss, Down 85 Percent Since IPO

Andrew Klips |

Groupon Shares Hit on Revenue Miss, Down 85 Percent Since IPOGroupon Inc. (GRPN) is taking a lumping in Friday morning trading as the daily deals company came up short of its own revenue forecast in the third quarter, citing weakness in debt-riddled European.  The Chicago, Illinois-based company reported that revenue increased 32 percent to $568.6 million, compared to $430.2 million in the year prior quarter, but shy of its prior guidance between $580 million to $620 million.  Excluding a $26.0 million impact from unfavorable currency exchange rates, revenue was 38 percent higher than Q3 2011.

For the quarter, Groupon posted a net loss of $2.98 million, or nil per share, compared to a net loss of $54.2 million, or 18 cents per share in the year prior period.  Analysts were expecting earnings of 3 cents per share and revenue of $591 million.

Revenue from North America leapt from $161.5 million in the quarter ended September 30, 2011 to $291.6 million in this year’s quarter.  International revenue, which is primarily derived from Europe, only edged up by three percent to $276.9 million.

Direct revenue, which includes the Groupon Goods business arm to sell products directly to consumers, rose sharply to $145 million.  Gross billings increased 5 percent to $1.22 billion in Q3 2012 from $1.16 billion last year.  The company also said that about one-third of North American transactions in October were completed on mobile devices, a 30-percent increase over October 2011.

“Our solid performance in North America was offset by continued challenges in Europe,” said Andrew Mason, CEO of Groupon. “Groupon Goods has evolved into a second major category that our customers clearly love.”

For the fourth quarter, Groupon expects revenue to fall in between $625 million and $675 million, in line with analyst predictions of $635 million.  Income from operations for Q4 is expected to be between $0 and $20 million, as opposed to the $15 loss that was recorded in the fourth quarter of 2011.

The company has only posted one profitable quarter (second quarter this year) since it went public at $20 per share in November 2011.  Shares have plummeted 85 percent since, including a 24 percent nosedive in early Friday trading to all-time lows $2.95.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
ASR:CA Alacer Gold Corp. 2.22 -0.03 -1.33 2,964,914
GRPN Groupon Inc. 3.88 -0.03 -0.77 3,161,483 Trade


Emerging Growth

CMX Gold & Silver Corp.

CMX Gold & Silver Corp is an exploration stage company. The Company is engaged in the acquisition, exploration and development of silver and copper/gold properties in the USA.

Private Markets

Cross Campus

With over 500 members and operating 80,000 square feet by summer 2016, Cross Campus is one of the country’s top ten shared, collaborative office or "coworking" operators in the US.…


Trustify provides trust and safety in both the digital and physical worlds through our vast network of on-demand Private Investigators.By removing the large retainers and high hourly rates that traditional…