By Sarah Shearman, marketingmagazine.co.uk, Friday, 09 November 2012 10:45AM
Groupon’s share price to plummeted by 17% in after hours trading to reach a record low of $3.23, down sharply from its initial public offering price of $28 when it listed in November last year.
The four year old daily deals site's revenue for the quarter ended 30 September was up 32% year-on-year to $568.6m (£356.5m), compared with $430.2m for the same period a year ago.
Andrew Mason, chief executive of the four-year old business, said it was experiencing "continued challenges" in Europe, which offset its growth in North America.
It does not break out revenue for Europe, but international revenue, grew 3% to $277m for the quarter. By comparison North American revenue surged 80% to $292 million.
It narrowed its net loss to $3m, compared with a $54m loss the same quarter last year, as it cut its marketing costs by 58% to $70.9m.
The results showed that it has grown its customer base by 36.7% year on year, reaching 39.5 million.
Previously, Groupon has flagged the debt crisis in Europe as a challenge to the business, making it harder for it to sell high-ticket deals in the region, such as laser hair removal.
The results suggest that consumers’ appetite for daily deals could be waning, particularly as the market becomes more crowded.
This article was first published on marketingmagazine.co.uk