Feeds

Groupon redundancy special offer tips, shares plunge

Hordes of employees storm the exits

Protecting users from Firesheep and other Sidejacking attacks with SSL

Groupon has disappointed expectations once again, driving its shares down nearly 17 per cent to an all-time low.

The daily deals bazaar posted revenues for the third quarter amounting less than its own estimates and well short of Wall Street’s already quite cautious expectations, despite getting a bump from a bunch of unused coupons.

The firm’s stock fell 17 per cent at one stage in after-hours trading following the results announcement, dropping to an all-time low of $3.25. It’s now sitting at $3.36, 14.29 per cent under yesterday’s close.

Groupon posted a net loss of $2.98m for the quarter, a lot less than the $54.2m it lost in the same quarter last year. Revenue was $568.6m - up 32 per cent from last year, but below the company forecast of $580m to $620m.

The company also announced a massive reduction in headcount, down to 11,866 from 12,820 in the previous quarter. Jason Child, Groupon’s chief financial officer, told the Wall Street Journal that the big cut in employees was down to the firm’s ability to automate some processes and workers resigning or retiring without being replaced. He said the majority of the losses were in Europe.

A number of top sales execs have left Groupon in the last few months, which doesn't look good for the firm.

Chief exec Andrew Mason said that a “solid performance in North America” didn’t help “continued challenges in Europe”.

However, he said that Groupon Goods was a second source of revenue for the firm that “customers clearly love”.

Groupon Goods is a service that sells discounted products like TVs and jewelry, putting it into direct competition with big etailers like Amazon.

Investors are likely worried that Groupon’s main business of selling coupons could be unsustainable and are worried that the new Goods product makes the firm a small new fish in a very big pond. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.