Groupon Reports 4Q Loss, Higher Revenue


Salon Staff
February 9, 2012 2:45AM (UTC)

NEW YORK (AP) — Online deals site Groupon Inc., reporting for the first time as a public company, said Wednesday that its fourth-quarter revenue rose sharply, but it lost money, and its shares fell sharply after hours.

Groupon's net loss totaled $42.7 million, or 8 cents per share, for the final three months of 2011. A year earlier, as a private company, it booked a larger loss of $378.6 million, which would have amounted to $1.08 per share.

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The company said its adjusted loss was 2 cents per share in the latest quarter, while analysts were expecting an adjusted profit of 3 cents per share, according to FactSet.

Groupon said an unusually high international tax rate hurt the quarter's adjusted results.

Its stock fell $2.29, or 9.3 percent, to $22.29 in after-hours trading.

Groupon's revenue was $506.5 million, nearly triple the $172.2 million it reported for last year's fourth quarter. Analysts, on average, had expected $473.1 million, according to FactSet.

Groupon, which went public in November, makes money by taking a cut from the online deals it offers on a variety of goods and services such as restaurant meals and weekend getaways.

The quarter's gross billings were $1.25 billion. That's how much customers paid for all the Groupons the company sold. It doesn't include taxes or account for the money the company paid to merchants.

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For the current quarter Groupon expects revenue of $510 million to $550 million. Analysts are forecasting $501 million on average.


Salon Staff

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