Groupon Inc. (GRPN: Quote) announced a revision of its reported financial results for its fourth quarter and year ended December 31, 2011. Groupon also affirmed its guidance for the first quarter of 2012.
The revisions resulted in a reduction to fourth quarter 2011 revenue of $14.3 million. The revisions also resulted in an increase to fourth quarter operating expenses that reduced operating income by $30.0 million, net income by $22.6 million, and earnings per share by $0.04. Financial results for prior periods, including as of and for the nine months ended September 30, 2011, were not affected by the revisions, the company said.
The company stated that the revisions are primarily related to an increase to the Company's refund reserve accrual to reflect a shift in the Company's fourth quarter deal mix and higher price point offers, which have higher refund rates. The revisions have an impact on both revenue and cost of revenue.
Groupon affirmed its first-quarter revenue guidance in a range of $510 million to $550 million and income from operations guidance of $15 million to $35 million. Analysts polled by Thomson Reuters expect the company to report revenues of $533.79 million for the quarter. Analysts' estimates typically exclude special items.
 | | To receive FREE breaking news email alerts for Groupon, Inc. and others in your portfolio |
|
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Business News