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Groupon Shares Sink on Q4 Results (GRPN)

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groupon ipoShares of Groupon Inc. (NASDAQ: GRPN), a Chicago, Illinois-based local e-commerce marketplace that connects merchants to consumers by offering goods and services at a discount, are sinking in trading today after the company reported its fourth-quarter financial results. The results were the first since Groupon completed its IPO.

Groupon shares fell to an intra-day low of $21.26 today, and at last check, the stock was down 11.25% to $21.82 on above average volume of 3.58 million.


For the fourth quarter of 2011, Groupon reported a loss of $9.8 million on an adjusted basis. The company’s revenue for the quarter rose 194% to $506.5 million, beating analysts’ estimate.

The company claims to have 33 million active users worldwide, representing an increase of 20% over the same period in the previous year.

Jason Child, CFO of Groupon, said that the company’s results show that its model is just starting to demonstrate leverage and that the company is the clear leader in its space.

However, Groupon gave a cautious outlook for the first quarter. The company expects first-quarter revenue to come in between $510 million and $550 million. Andrew Mason, CEO and co-founder of Groupon, said that while the company is still investing aggressively in growth, its paid marketing continues to become more efficient.

Mason also said that the company had a strong fourth quarter and finished 2011 having helped 250,000 local merchants across 47 countries growth their businesses while saving Groupon customers billions of dollars.

 

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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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