Groupon Inc(NASDAQ:GRPN)’s third quarter earnings were in line with what the Street had expected but revenues lagged estimates, sending its shares down more than 16 percent in after-market trades.
The company reported a net loss of $3 million and broke even on a per-share basis, compared to a net loss of $54.2 million and a loss of 18 cents per share in the year-earlier period.
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This loss included stock-based compensation and acquisition-related expenses of $25.1 million.
Excluding these charges, Groupon said its earnings were 3 cents a share. Revenue rose 32 percent to $568.6 million from $430.2 million in the year-ago quarter.
Analysts had forecast earnings at 3 cents a share and revenues at $590 million.
Groupon, which offers daily discounted deals online on spas and restaurant services, has estimated current quarter's revenues at $625 million to $675 million.
The company, which went public last year at $20 a share, has lost favour with investors who are concerned that its business model my not be sustainable in the long term.
Its shares have depreciated about 80 percent since its IPO and the results of the third quarter will not be infusing any enthusiasm into the Street.
On Thursday, Groupon also announced that it was laying off about 80 members from its sales team.
Groupon has been seeing slowing sales in the Eurozone which is currently in the grip of a debt crisis and the company has been trying out other methods to shore revenues such as the launch of Groupon Goods and Groupon Payments.
Shares in Groupon slumped 18% in the pre-open session and trading below its all time low of $3.77.