Groupon Q3 results lower than expected
Groupon Q3 2012 results
Groupon has announced its Q3 2012 results, which are much lower than analysts expected.
The daily deals site has reported a net loss of $2.98 million (£1.86 million) and zero cents a share on $568.6 million (£356.5 million) in revenue. However, analysts had expected that there would be a profit of around three cents on revenue of $591 million (£370.5 million).
Following the Groupon Q3 2012 results, shares in the company dropped by 15 percent to $3.30 (£2.07) in afterhours trading. Last week, it was also announced that Groupon shares had dropped to $4 one year after its IPO. This fall was caused by concerns that there would be less demand for daily deals in industries and areas affected by Hurricane Sandy.
Groupon report highlights
While Groupon earnings were below analysts’ expectations, the company still saw a growth in revenue, showing that consumers are still interested in the daily deals business model. Also, there was rapid growth in Groupon Goods, achieving $500 million (£313.6 million) in revenue in its first year.
Groupon CEO Andrew Mason has said: “Groupon Goods has evolved into a second major category that our customers clearly love. With deals on everything from designer sunglasses to big-screen televisions to most-wanted toys, we think it will be a great gifting destination this holiday season.”
Daniel Nolan, managing director at theEword, said: “While the Q3 results are lower than expected, Groupon Goods shows real potential followings its revenue growth over the last year. It will be interesting to see how Groupon develops this area over the next quarter.”