![]() It forecast first-quarter revenue of $560 million to $610 million, sharply below the $650 million average estimate of analysts polled by Thomson Reuters I/B/E/S.Ĭhief Financial Officer Jason Child told Reuters that Groupon began sharing more money from its deals with merchants early in the fourth quarter, to persuade them to come onboard and run an offer for the first time, or work on another. But it slid into the red with a 1 cent per share loss excluding items, versus expectations for a slim profit of 3 cents a share. Groupon reported fourth-quarter revenue rose 30 percent to $638.3 million from $492.2 million in the year-ago period. In 2012, analysts speculated that Chief Executive Andrew Mason, known for a quirky sense of humour, may have fallen out of favour with the board.Ī company spokesman said Mason remained in charge and the CEO addressed analysts on Wednesday’s post-results call. Within a year, Groupon had run into problems dealing with European merchants and sustaining interest among users as deals fever receded. Groupon is among a group of consumer-focused Internet startups that went public to much fanfare in 2011 - before losing massive chunks of market value as investors realized they had over-rated their prospects. “This raises questions about how these guys are going to be able to scale the business,” said Tom White, an analyst at Macquarie. Overall, the company has shed more than three-quarters of its value since debuting at $20 in November of 2011. The stream of bad numbers, which included a surprise loss in the fourth quarter, drove Groupon’s stock down 26 percent to $4.43 in after hours trade. And a sharper-than-expected post-holiday slowdown in its new e-commerce business contributed to a disappointing first-quarter sales forecast. The cut in its “take rate”, which some analysts had said was needed to revive flagging interest among merchants in its Internet offers, was a blow to fourth-quarter results. SAN FRANCISCO (Reuters) - Groupon Inc lost a quarter of its market value on Wednesday after the company revealed it began to take a smaller cut of revenue on daily deals during the holidays, sacrificing revenue and profits to attract and keep merchants.
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