Groupon Fails to Meet Expectations, Shares Drop 4.4%

    Author Caroline HarrisPosted on Categories Online Media, TechTags , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
    Groupon

    On August 2, in pre-market trade, Groupon Inc. (NASDAQ:$GRPN) shares dropped 4.4%. Why? It all started after the Chicago, Illinois-based company reported another loss for its second quarter, as revenue did not meet expectations.

    According to the coupon company, Groupon Inc. had a net loss of $9.3 million (2 cents a share) in the quarter, which is much narrower than the $54.9 million loss (10 cents a share) reported in the 2016 period.

    In terms of a non-GAAP basis, the company announced that it had per-share earnings of 2 cents, which compared with a FactSet consensus of “breakeven”. Further, revenue dropped from $723.8 million to $662.6 million, which is below the FactSet forecast of $669 million. 

    In regards to the company’s outlook for the year, Groupon still forecasts a gross profit between $1.30 billion to $1.35 billion.

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    Author Caroline Harris
    About the author: Caroline Harris is a third-year student at Capilano University in North Vancouver, Canada. Having already completed an Associates Degree in Psychology, Caroline is now finishing her Bachelor's degree in Communications. In preparation for working in the advertisement sector, Caroline is writing financial content and analysis. On a daily basis, Caroline works on articles regarding the following topics: finance, cryptocurrency, technology, and politics.