Groupon, Inc. (NASDAQ:GRPN) closed at 5.98 0.43(7.79%) today. After hours, the bottom fell out. After Hours? 4.43 1.55 (25.95%).
Welcome back to the penny stock world Groupon. While some of their Fourth Quarter and FY2012 report was hopeful, other parts proved to be worrisome for investors. Below is a brief look:
Damage Control Assessment: A Marketwatch report summed up the chaos: "Groupon on Wednesday reported a fourth-quarter loss of $81.1 million, or 12 cents a share, on revenue of $638.3 million, compared with a loss of $65.4 million, or 12 cents a share, on $492 million in sales in the same period a year ago..."
Highlights from the Fourth Quarter and Fiscal Year 2012 results included:
- Growing merchant selection and quality. As of the end of the fourth quarter, the number of active deals in North America increased almost 300% year-over-year to nearly 37,000.
- Continued customer acquisition efficiencies. As of December 31, 2012, Groupon had 41.0 million active customers, an increase of 22% year-over-year, with gross customer additions partially offset by higher customer inactivations.
- Substantial growth in mobile transaction activity. In January 2013, nearly 40% of North American transactions were completed on mobile devices, an increase of 44% compared with January 2012. This compares with about one third of transactions completed on mobile devices in October 2012.
What we knew already: Groupon's stock price has been sliding since March 30, 2012, when it was priced at $18.38 a share. Since then, it's only seen peaks. An example is when it was priced at $9.90 a share May 12, 2012. Four days later, it spiked at $13.05 a share. At the end of the year, Groupon stock was priced at $4.89 a share.
Quotable from the report: “Record billings growth this quarter is a clear signal that customers love Groupons,” said Andrew Mason, CEO of Groupon. “We will continue to invest in growth through 2013 as we see new opportunities to give our customers what they want.”
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