Groupon Q4 Earnings Report: $81.1 Million Net Loss

Groupon Q4 2012 Earnings Report

Social shopping website Groupon has posted its fourth quarter earnings report and its not promising. The company posted a new loss of 12 cents per share, well below street expectations of a two cent per share gain.

Groupon posted revenues of $638.8 million with a net loss of $81.1 million. In comparison the company lost six cents per share on revenue of $492 million during the same period 2011.

Following news of Groupon’s horrendous quarter the company’s shares dropped by $1.28 to $4.70, a 21.4 percent decline in valuation.

Groupon did witness an expansion in its direct revenue, earning $225.2 million. The increase is an improvement over Q3 in which Groupon reported $145 million. Groupon’s cost of direct revenue was $218.6 million, leaving just $6.6 million in profit.

The company’s report also showcases the growing importance of mobile advertising as 40 percent of Groupon’s customers completed their transactions on mobile devices. Groupon reported less than 33 percent mobile acquisition in Q3 2012.

Hurting Groupon’s financials were international earnings. The social shopping platform earned $263 million overseas, down from $312.5 million year-over-year. North American revenue in the meantime climbed to $375.4 million, up from $179.6 million.

Groupon also announced a drop in operating cash flow by 61 percent year-over-year to $65.7 million.

Groupon is expecting Q1 2013 revenue to reach between $560 million and $610 million. Operating income is expected to post between a $10 million loss and a $10 million gain.

James Kosur

James Kosur has worked in the new media space for the last 10 years, helping many publications build their audiences to millions of monthly readers. He currently serves as the Director of Business Development at and the CEO of Aven Enterprises LLC.


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