A little while ago Groupon announced Q3 earnings and missed analyst expectations. The stock is down in after hours trading and, remarkably, down more than 80% below its IPO price (a year ago).
Here are the top-line Groupon numbers:
- Revenue: increased 32% year-over-year to $568.6 million in the third quarter 2012, compared with $430.2 million in the third quarter 2011
- Gross billings: increased 5% year-over-year to $1.22 billion, compared with $1.16 billion in the third quarter 2011.
- Operating cash flow: decreased 35% year-over-year to $42.1 million, compared with $64.4 million in the third quarter 2011.
- Operating income: $25.4 million in the third quarter 2012
CEO Andrew Mason said that North American growth was offset by European market weakness.
Here are some additional numbers:
- North American revenues grew 81% year-over-year
- Groupon Goods reached an annual run rate of nearly $1.5 billion in global billings and nearly $500 million in revenues
- Groupon surpassed the 200 million subscriber mark
- Groupon had 39.5 million active customers, an increase of 37% YoY
- Groupon featured more than 100,000 unique merchants, with 27,000 active deals
- One third of North American transactions were completed on mobile devices
While many of these numbers aren’t bad they are below what financial analysts had expected. And some are characterizing Groupon’s Q3 as a “blown” quarter.
Groupon is currently (and quickly) trying to diversify its revenues into payments, POS tools for SMBs and online scheduling. My guess is that it will push further into SMB marketing services before it’s done.
Amazingly Groupon’s market capitalization is now $2.6 billion, which is about half of what Google offered for the company before it went public.
What do you think is going to happen to Groupon? Will the stock decline further? Will the company be able to execute its diversification plan?