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Groupon Keeps 'Em Guessing
Groupon, in its widely anticipated fourth-quarter financials, surprised analysts in two ways Wednesday: One, it reported a loss when many were expecting a profit; and two, it reported that revenues were up more than expected.
Excluding certain costs, the company reported a loss of 2 cents a share, compared with a loss of 53 cents a year earlier, Groupon said yesterday in a statement. Revenue rose 194 percent, to $506.5 million from $172.2 million.
The Chicago-based daily deal leader, which went public November 4, 2011 and now boasts 33 million active users, is growing faster overseas than it is in North America. It has expanded to 47 countries and set up a new international headquarters in Switzerland, a move that contributed to a higher-than-expected $34.8 million in taxes, but such overseas taxes are expected to go down over time, the company said, according to Bloomberg Businessweek.
While the company has whittled down its marketing expenses to $156.5 million from $200.9 million a year ago, it plans to spend on technology to bring the company in line with Silicon Valley-based businesses, chief executive officer Andrew Mason said in a call with analysts.
The company has already been on a buying spree for talent, with its latest acquisition, Adku, announced earlier this week.
Teresa Novellino writes for Portfolio.com
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