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." (Read more Groupon stories.)

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