Groupon Posts $42.8M Loss
First results since IPO disappoint investors
By Rob Quinn, Newser Staff
Posted Feb 9, 2012 3:57 AM CST
Updated Feb 9, 2012 4:05 AM CST
"We are still investing aggressively in growth," Groupon's CFO told reporters.   (AP Photo/Charles Rex Arbogast, File)

(Newser) – Groupon's first earnings release as a public company may leave those who flocked to buy shares after its IPO with buyer's remorse. The daily deals site posted a fourth-quarter net loss of $42.7 million, sending its shares tumbling 13% and surprising analysts who had predicted a modest profit, reports the Chicago Tribune.

Groupon blamed the loss on tax bills related to its expansion to 47 countries and the cost of setting up its new headquarters in Switzerland. Analysts, however, say investors should be concerned by lower-than-expected growth figures and revenue forecasts. "That suggests there are fewer newer customers, consumer fatigue, and the impact from lower marketing spending," an analyst tells Reuters. "That means not enough people are buying Groupons."

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Showing 3 of 11 comments
Yourself
Feb 9, 2012 11:15 AM CST
it's not that people aren't buying enough of them, it's the simple fact that they grew WAY too fast for a company that had yet to prove itself as even remotely profitable. it's a great concept, but it's trying to grow way too fast, that's all!
UtahTex
Feb 9, 2012 10:05 AM CST
I have purchased and used around 10 Groupons in the past year. I have had NO bad experiences from either Groupon or the merchants. Most of mine have been for restaurants but I have bought other types too. I don't think I would have actually gone Parasailing if I hadn't seen and bought a Groupon for it. And I took a friend who paid full price. I am about to use a Groupon for a trip to Costa Rica (it's a damned good price) and I haven't seen any problems with it yet. And I have not run across any "Scams" in my use of Groupons. Maybe the Groupon business won't be around much longer, but while it is I will continue to take advantage of the opportunities. Incidently, I don't own any Groupon stock.
Observer
Feb 9, 2012 9:32 AM CST
Groupon will fade faster than Santorum's nomination. The daily deal fad has already faded.