Groupon tumbles after weak revenue guidance
Thomson Reuters
In its earnings results Thursday, Groupon said it expects 2016 sales of $2.75 billion to $3.05 billion. That fell short of the average estimate for $3.01 billion. The low end of the forecast was less than the weakest analyst estimate of $2.09 billion, according to Bloomberg.
Groupon also reported a first-quarter loss of $49.1 million, or $0.08 per share - four times the loss it recorded a year ago.
The company replaced its CEO in November as it figured out ways to keep people interested in its daily deals and visit its site. It announced plans to increase marketing spending by up to $200 million this year, and cautioned about weaker-than-expected fourth-quarter earnings.
After that announcement, the company's shares fell 30%.
But the bigger marketing budget may be producing some fruit. Groupon said it added 955,000 active customers in North America, the biggest quarterly increase in two years.
The drop in shares on Friday was the biggest intra-day decline in six months.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Audi to hike vehicle prices by up to 2% from June
- Kotak Mahindra Bank shares tank 13%; mcap erodes by ₹37,721 crore post RBI action
- Rupee falls 6 paise to 83.39 against US dollar in early trade
- Markets decline in early trade; Kotak Mahindra Bank tanks over 12%
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema