Online daily deals site Groupon failed to enthuse
investors with its third quarter results with revenues missing expectations.
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.
This loss included stock-based compensation and
acquisition-related expenses of $25.1 million.
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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.
On Thursday the company's shares spiralled down more
than 16 percent to $3.29 a share taking its total depreciation to about 80
percent since its debut in November last year.
A day later the company's shares had fallen about 30
percent to a record low of $2.76 each.
Once a darling of investors and a poster-boy for the
second generation Internet companies, it is now being shunned by investors who
have raised questions about the business model, while the Eurozone debt crisis
has been blamed for denting consumer demand for some of Groupon's deal.
Groupon offers coupons to its subscribers, which give
them discount deals that are available that day only on anything from restaurant
meals to spa treatments.
Adding to the difficulties, the US Securities and
Exchange Commission has been looking into Groupon's accounting and disclosures
to the stock market.
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