Groupon Inc. (GRPN), reporting for the first time since going public, Wednesday posted a loss for the fourth quarter, while analysts and investors expected a profit. Following the announcement, Groupon stock plummeted over 15 percent in extended hours.
Groupon's loss for the quarter narrowed significantly from last year, driven mainly by revenues that almost tripled with lower marketing expenses. The company detailed its first-quarter revenue outlook above current analysts' expectations.
The Chicago-based daily-deal site's net loss to common shareholders narrowed to $42.7 million or $0.08 per share from $378.6 million or $1.08 per share last year.
Excluding special items, loss for the quarter narrowed to $0.02 per share from $0.53 per share last year. On average, 18 analysts polled by Thomson Reuters expected earnings of $0.03 per share for the quarter. Analysts' estimates typically exclude one-time items.
The loss was due mainly to higher tax expenses for the quarter. Groupon recorded tax expense of $34.8 million compared to a benefit of $2.2 million last year, due mainly to profitability in certain international countries as well as additional income tax related to the establishment of the company's international headquarters in Switzerland.
Groupon's fourth-quarter revenues surged to $506.5 million from $172.2 million last year. Wall Street analysts on a consensus estimated revenues of $475.15 million for the quarter.
Gross billings, which reflects the gross amounts collected from customers for Groupons sold, increased 201 percent to $1.25 billion from last year.
For the quarter, Groupon's worldwide active customer base grew over 275% to about 33 million. Sequentially, the growth was more than 20 percent.
Marketing expenses dropped to $156.5 million from $200.9 million last year.
"Groupon had a strong fourth quarter and we finished 2011 having helped 250,000 local merchants across 47 countries grow their businesses while saving Groupon customers billions of dollars," said Andrew Mason, CEO and Co-Founder of Groupon. "We will continue to invest in new services and tools that help our merchant partners be more successful and drive local commerce around the world."
Looking forward to the first quarter, Groupon expects revenues in a range of $510 million to $550 million. Analysts currently expect revenues of $500.89 million for the quarter.
GRPN closed Wednesday's trading at $24.58, up $0.39 or 1.61%. The stock, however, lost $3.83 or 15.58%. Trading volume for the day was 8.7 million shares, above the three-month average volume of 2.2 million shares.
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