Groupon company lost a quarter, the company said on Wednesday, in the holiday began to cut out the smaller the daily trading income, sacrifice income and profits, in order to attract and retain customers, the market value.
"Rate", some analysts have said that, to revitalize the flagging interest, the businessman in the Internet provide, cut in the fourth quarter of the result is a blow. In its new e-commerce business than expected slowdown in more clear after a disappointing first quarter sales forecast.
Flow wrong Numbers, in the fourth quarter loss, including a surprise, make Groupon stock in after-hours trading to $4.43 fell 26%. Overall, the company has cut more than three quarters of its value in twenty dollars, since November 2011 appeared for the first time.
White, Macquarie analysts ", "said Tom, it puts forward the problems, these people will be able to expand business. "Prediction is impressive."
Groupon is one of a group of the consumer Internet startups in 2011 loudly listed - former lost large chunks of market value, as investors realize that they have more than rated prospects.
In one year, Groupon met problems dealing with European merchants and user transaction between heating aside for interest. In 2012, analysts speculate that the chief executive Andrew Mason (Andrew Mason), an odd sense of humor, may be declined, and the board of directors to.
A spokesman for the company said, mason keep responsible and solve the CEO analysts call on Wednesday after the performance.
Groupon report, the fourth quarter sales revenue increased by 30% from the same period last year of 492200000 dollars and 638300000 dollars. But it slip into red loss per share 1 cents regardless of the special projects, and expectations, the slender than 3 cents a share of the profits.
It is expected the first quarter revenue of $560 million to $610 million, significantly lower than townsend Reuters I/B/E/S survey of analysts the average forecast of $650 million.
The financial director Jason children told Reuters, Groupon with merchants trading beginning in the fourth quarter share more money, persuade them to the ship and the operation of the quotation for the first time, or in another job.
It is selectively in the United States and Europe, he added.
Historically, Groupon has will be about 40% of the daily transactions have money. In the fourth quarter, down about 35%. So Groupon "fine-tuning" said after rate, the company is expected in this quarter and children's profitability improved results.
"We focus on promoting economic growth," he told reporters. "We will do everything we think we need to optimize earnings growth and business investment.
European goods
Clients have complained that the Groupon too large, cut service online.
Groupon executives forecast, long term usage rate 30% to 40% of the daily trading business, with analysts in a conference call. One of the reasons for the Groupon decrease, the price is the local market, November last year launched a new business to create more daily transactions.
Groupon has mainly concentrated in the daily mail sent provide coupons activities in their area. The dependence of the local market, but not for people looking for things, do or nearby purchase, such as oil change or massage. The end of the year, in the third quarter before the launch, Groupon has accumulated more than 27000 new market trading online store.
Analysts said the move has the potential to, because Groupon deal may be more likely to appear in the Google search. To the end of 2012, the requirements of the Groupon in North America nearly 37000 active trading, many people in the local market more long-term preferential.
At present, Groupon goods, the company's discount sales business, produced a large number of the fourth quarter revenue growth, although its seasonal variation, and result in lower profit margins than daily transactions.
The Groupon limp recovery prospects to worry about its business model may be at risk. They concern the main electronic commerce is increasingly fierce competition, troubled European division bash recession have.
Researchers warn turn efforts, also need a certain amount of time, and suggest that cut costs for the company's international business.
Groupon is trying to repair it by reducing the transaction have discount size and test faster pay higher quality businessman. Technology for the American business automation and sales efforts, launched in Europe.
Carl Raman spectrum, chief operating officer, said to deal with and processing of the international division of labor trade than in the United States, more than two times as many people.
A Groupon spokesman said, have "clear" international jobs plan, but also has the United States in the workers, the company automation.
"This is a great opportunity, the organization Groupon business is more effective," Raman told analysts in a conference call.
 



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