Groupon (GRPN) Shares Get Discounted Following Q4 Release

February 8, 2012 5:01 PM EST
Shares of Groupon, Inc. (NASDAQ: GRPN) are trading down more than 8 percent in Wednesday's after-hours session of trading following a surprise fourth-quarter loss. The stock last traded at $22.20.

Revenue increased 194 percent year over year to $506.5 million, topping the Street’s consensus of $475.15. The company earned $318 million in international revenue and $188 million in the North American segment.

Operating income was $15.0 million in the quarter, compared with a loss from operations of $336.1 million in the fourth quarter of 2010.

Net loss attributable to common stockholders totaled $42.73 million, a substantial move in the right direction from the $378.6 million loss reported during last year's fourth quarter. The loss on a per share basis came in at $0.08 on a GAAP basis and $0.02 on a non-GAAP basis. This was well below the Street’s consensus of a $0.03 increase.

“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.”

Operating cash flow increased 226 percent year over year to $169.1 million, while free cash flow grew 258 percent to $155.1 million.

For the first quarter of 2012, revenue is expected to be between $510 million and $550 million, while income from operations is expected to be between $15 million and $35 million. The Street is calling for $500.89 million in sales.

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