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Last Update: 09-Nov-12 08:44 ET
Groupon misses revenue estimates; investors discount its shares by 20%
Groupon (GRPN $3.10 -0.82) reported third quarter net GAAP of breakeven, $0.01 better than the Capital IQ consensus of ($0.01), while revenues rose 32.2% year/year to $568.6 million versus the $592.06 mln consensus. The company issued in-line guidance for the fourth quarter revenues of $625-675 million versus the $633.21 million consensus. North American revenues grew 81% year-over-year, driven by growth in direct revenue, or the amount earned from the sale of products for which Groupon is the merchant of record. Groupon Goods. Groupon Goods reached an annual run rate of nearly $1.5 billion in global billings and nearly $500 million in revenues shortly after its one-year anniversary. Customer acquisition costs improved 55% year-over-year, enabling the reduction of marketing spend by 58% compared with the third quarter 2011. In the third quarter 2012, the Company surpassed the 200 million subscriber mark. As of September 30, 2012, Groupon had 39.5 million active customers, an increase of 37% year-over-year. For the third straight quarter, Groupon featured more than 100,000 unique merchants, with the number of active deals increasing by nearly thirteen times year-over-year to more than 27,000 as of the end of the third quarter. In October 2012, about one third of North American transactions were completed on mobile devices, an increase of nearly 30% compared with October 2011. Further expansion of merchant tool suite.
