Groupon stock tumbles on disappointing year's end
Groupon booked a net loss of $81.1 million at the end of 2012, sending Groupon stock falling in after-hours trading.
Charles Rex Arbogast/AP/File
Online deals company¬†Groupon¬†Inc. posted a larger fourth-quarter net loss on Wednesday, and its weaker than-expected revenue outlook sent its shares down 24 percent after-hours.
The guidance fueled investor worry that people are tiring of the myriad of online restaurant, spa and Botox deals that¬†Groupon¬†built its business on, and that the company's efforts to broaden into an e-commerce powerhouse haven't been paying off.
The Chicago-based company booked a net loss of $81.1 million, or 12 cents per share, in the October-December period. That compares with a loss of $65.4 million, also 12 cents per share, in the same period a year earlier when it had fewer shares outstanding.
Analysts were expecting a loss of 2 cents a share, according to FactSet.
Revenue rose 30 percent to $638.3 million from $492.2 million. Wall Street had expected revenue of $639.8 million.
Gross billings, a closely watched figure that shows the total amount that customers spent on¬†Groupon's¬†deals, increased 24 percent in the quarter to $1.52 billion from $1.23 billion a year earlier.
"Record billings growth this quarter is a clear signal that customers love¬†Groupons," said CEO Andrew Mason in a statement. "We will continue to invest in growth through 2013 as we see new opportunities to give our customers what they want."
For the current quarter,¬†Groupon¬†is expecting revenue of $560 million and $610 million, which translates to a range of flat to 9 percent higher than in the first quarter of 2012. Analysts are expecting higher revenue of $646.8 million.
Groupon's¬†stock fell $1.46 to $4.52 in after-hours trading. Earlier, the stock had closed up 43 cents at $5.98 prior to the release of the earnings report.