Feeds

Hold onto your hats, world: Groupon actually made a PROFIT

Shares plummet by a fifth

Beginner's guide to SSL certificates

Voucher bazaar Groupon managed to bag a profit for the first time ever in the second quarter of this year - but it wasn't enough to convince investors it's a good place to leave their money.

The coupon company's revenue missed analysts' expectations, sending shares sliding down more than 18 per cent in after-hours trading.

Groupon reported net profit of $28.4m instead of the net loss of $107.5m it posted in the same quarter last year, and revenue of $568.3m versus last year's $392.6m. But analysts polled by Thomson Reuters I/B/E/S were expecting revenue of $573m.

Shares stayed steady yesterday, but dropped 18.68 per cent in pre-market trading to $6.14.

The daily deals website is the latest internet darling to disappoint investors, who seem to be starting to wonder what all the fuss was about with the likes of Groupon, Zynga and Facebook. Groupon blamed Europe's weak economy and currency fluctuations for its less-than-impressive results, but investors are hearing the same story at other internet startups - companies that are relying on a single stream of unsure revenue.

Groupon has been trying to remedy that by moving into product sales and merchant services, but these sources of dosh are still relatively untried and probably won't give the firm a repeat of the rapid growth spurt brought on by daily deals.

Gross billings, the total amount the firm got from customers after taxes and refunds, was up 38 per cent from the same quarter last year to $1.29bn, but down slightly on the first quarter of this year, when billings were $1.35bn.

The website isn't expecting things to be too much better in the third quarter either: it anticipates revenue lying between $580m and $620m with net income between $15m and $35m. ®

Internet Security Threat Report 2014

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.