Daily deals site Groupon saw its share value fall by more than a quarter after disappointing results for the fourth quarter. The company’s share price fell 26pc to US$4.43 in after-hours trading.
Although revenue increased 30pc year-over-year to US$638.3m, compared with US$492.2m in the fourth quarter 2011, Groupon reported an operating loss of US$12.9m in the fourth quarter 2012. Net losses amounted to US$81.1m.
However, the results failed to ignite sentiment on Wall Street and the company saw its share price fall by 26pc as investors and analysts came to the conclusion that Groupon sacrificed revenue and profit opportunities to increase the take rate for merchants and to keep the punters coming.
Groupon gross billings, which reflect the total dollar value of customer purchases of goods and services, increased 24pc year-over-year to US$1.52bn in the fourth quarter 2012, compared with US$1.23bn in the fourth quarter 2011.
“Record billings growth this quarter is a clear signal that customers love Groupon,” said Andrew Mason, CEO of Groupon.
“We will continue to invest in growth through 2013 as we see new opportunities to give our customers what they want,” Mason said.