Feeds

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

Shares plummet by a fifth

Providing a secure and efficient Helpdesk

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.