Groupon, Inc. (GRPN) revised its previously reported fourth-quarter results late Friday, reducing revenue reported by $14.3 million and earnings per share by 4 cents. The move sent shares tumbling more than 10% in electronic trading after the bell.
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The daily-deal site also confirmed its first-quarter outlook for revenue between $510 and $550 million and income from continuing operations between $15 million and $35 million, and noted that it continues to “augment its staffing.”
After the reductions, fourth-quarter adjusted results came to a loss of 6 cents on revenue of $492.2 million. When the company originally reported results on Feb. 8, it reported an adjusted loss of 2 cents a share on revenue of $506.5 million. The Street had anticipated positive earnings of 3 cents a share on revenue of $475 million.
Groupon tied the revisions to an increase in its “refund reserve accrual,” which reflects a shift in the company's business mix, as it has begun offering more high-priced deals to its customers, necessitating a larger refund reserve.
"We remain confident in the fundamentals of our business, as our performance continues to highlight the value that we provide to customers and merchants," said Jason Child, Groupon CFO, in a release.
Shares of Groupon rose 68 cents or 3.84% on Friday, closing the session at $18.38 a share. That’s below the company’s November IPO price of $20 a share. The stock was down $1.56 or 8.5% in after-hours trading.