Groupon Reports $586.6 Million In Q3 2012 Revenues
Groupon has announced their Q3 2012 results today. The company has reported revenues of $586.6 million and earnings per share at $0.00. Groupon lost $3 million during the quarter including “stock-based compensation and acquisition-related expenses.” This totaled around $25.1 million, which is a bit more favorable to their Q3 2011 loss of $54.2 million. The revenue figure is up 32% year-over-year and the North American revenue for the company is up 81% year-over-year. Some good news for the company is that they surpassed the 200 million subscriber mark this quarter.
“Our solid performance in North America was offset by continued challenges in Europe,” stated Groupon CEO Andrew Mason. “Groupon Goods has evolved into a second major category that our customers clearly love. With deals on everything from designer sunglasses to big-screen televisions to most-wanted toys, we think it will be a great gifting destination this holiday season.”
The expected revenues from analysts was around $591 million and an EPS of $0.03. Groupon missed those expectations and their market value dropped around 10% shortly after the announcement. Groupon recently fired 80 of their sales staff employees as part of a plan to increase automation.
The customer acquisition costs had improved 55% year-over-year and they were able to reduce marketing spend by 58% compared with the third quarter 2011.
In the coming quarter, Groupon is expecting revenues to fall between $625 million and $675 million.