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Groupon shares dive after revenues disappoint Groupon shares dive 25% after revenues disappoint
(about 7 hours later)
Shares in US voucher firm Groupon have fallen 17% in after-hours trading after its third quarter revenues fell short of analysts' forecasts. Shares in US online voucher firm Groupon have fallen more than 25% after its third quarter revenues fell short of analysts' forecasts.
Revenues for the July-to-September period were $569m (£356m), up 32% from a year earlier, but still below Wall Street expectations of about $590m.Revenues for the July-to-September period were $569m (£356m), up 32% from a year earlier, but still below Wall Street expectations of about $590m.
The company reported a net loss of $3m (£1.9m) for the quarter.The company reported a net loss of $3m (£1.9m) for the quarter.
"Our solid performance in North America was offset by continued challenges in Europe," said chief Andrew Mason."Our solid performance in North America was offset by continued challenges in Europe," said chief Andrew Mason.
After Groupon's results were released, the firm's shares fell to a record low of $3.25 in after-hours trading, having closed at $3.92 on Thursday. Shares in Groupon were 25.2% down in morning trading on Wall Street, hitting a record low of $2.92 each.
The company was launched on the stock market last November at $20-a-share, one of a series of dotcom flotations during 2011.
But since then, questions have been raised 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.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.
The company's shares started trading at $20 when it listed on the stock market in November last year. Revenues from international operations, including Europe but excluding North America, rose 3% to $277m. That compared with an 80% surge in North American revenue to $292m.
However, the shares have fallen sharply as analysts have expressed concern over the firm's business model. "Europe is taking it on the chin," said Sameet Sinha, an analyst at B Riley & Co.
However, Mr Mason remained optimistic about the future, saying in a statement that the forthcoming holiday season would be great for business.
The company also said on Thursday that it was cutting about 80 jobs, mainly in sales, as part of an effort to automate and streamline the way its daily deals are sourced and distributed.
Adding to the difficulties, the US Securities and Exchange Commission has been looking into Groupon's accounting and disclosures to the stock market.