February 21, 2014 Last Updated 9:07 am

Groupon beats revenue expectations on strong growth, but guidance disappoints investors

The digital deals company Groupon reported earnings today, reporting good full-year revenue growth. But the company continues to report a loss for shareholders, leading the stock to slide in early trading.

Groupon’s revenue grew 20 percent in Q4 to $768.4 million, compared with $638.3 million in Q4 of 2012. Operating income was $13.4 million in the quarter, as well – compared to a loss in 2012.

“Our record performance in the quarter was led by strength in Goods, as shoppers increasingly looked to Groupon to fill their holiday needs,” said Eric Lefkofsky, CEO of Groupon. “Our mobile business continued to gain momentum as our worldwide mobile transaction mix increased more than 10% in the quarter, to nearly 50% in December. With another 9 million downloads this quarter, we now have nearly 70 million app downloads to date.”

But the company reported a net loss attributable to common stockholders of $81.2 million, or $0.12 per share. The loss was due to the impairment of a minority investment in China. Also, guidance going forward points to slower growth and only slightly improved EBITDA.


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