Shares in the controversial discount voucher firm Groupon have plunged 30% after its third quarter revenues fell short of analysts’ forecasts.Revenues for the July to September quarter were $569 million (£356 million), up 32% from a year earlier, but still below Wall Street expectations of about $590 million.
The company even reported a net loss of $3 million (£1.9 million) for the quarter.
“Our solid performance in North America was offset by continued challenges in Europe,” said chief Andrew Mason.
The 30% fall in Groupon’s shares left them at a record low of $2.76 each.
The company was launched on the stock market last November at $20 a share- one of a series of dotcom flotations during 2011.
But since then, questions have been raised about the business model, while the eurozone debt crisis has been blamed for denting consumer demand for some of Groupon’s deal.
Groupon offers coupons to its subscribers- which give them discount deals that are available only for that day which are available for anything from restaurant meals to spa treatments.
Revenues from international operations, including Europe but excluding North America, rose 3% to $277 million. That compared with an 80% surge in North American revenue to $292 million.
However, Mr Mason remained optimistic about the future, saying in a statement that the forthcoming holiday season would be great for business.
Adding to the difficulties, the US Securities and Exchange Commission has been looking into Groupon’s accounting and disclosures to the stock market.