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Groupon revenue growth slows in 3Q, stock down

Associated Press Modified: November 8, 2012 at 5:45 pm •  Published: November 8, 2012

Groupon pioneered the online daily deals market, which offers subscribers deep discounts on everything from spa sessions to restaurant meals to toe fungus treatments. The model sparked a flood of copycats such as LivingSocial and Amazon Local. Together, deals flood online mailboxes multiple times a day.

To expand its business, Groupon has been trying to establish itself as a local e-commerce company, transforming the market the way Inc. transformed online retail. It launched a payments service in September that lets businesses accept credit card payments using their iPhone or iPod Touch. The company has also expanded to selling physical goods such as electronic gadgets, housewares and clothes.

Groupon had 39.5 million active customers as of the end of September, up 37 percent from a year earlier.

For the current quarter, Groupon is forecasting revenue of $625 million to $675 million. The midpoint of this, $650 million, is higher than the $634.9 million that analysts had expected.

Groupon's stock fell 62 cents, or nearly 16 percent, to $3.30 in after-hours trading Thursday. Groupon's stock made its public debut last November at a price of $20, but it has fallen sharply since amid concerns about the long-term viability of its business model and its ability to grow. The stock ended Thursday's regular-trading session at $3.92 and hit an all-time low of $3.68 a week ago, on Nov. 1.