Shares in the company fell to an all-time low of $6.05 (£3.86) in after hours trading last night (13 August) as Groupon reported revenues of $568.3m (£363.2m) in the three months to June. This marked a 45 per cent increase year on year but was below the average analyst estimate of $575.3m (£366.7m) for the period.
Groupon said “macro headwinds” and currency weakness in Europe reduced its international revenue growth, which includes income from the UK. International revenue was up 31 per cent to $308.2m (£196.4m), but it would have been 45 per cent without the impact of foreign exchange rates, Groupon said.
The company did, however, swing into profit. Net income was $28.4m (£18.1m) in the period, compared with a loss of $107.4m (£68.5m) last year.
Marketing costs continued to decrease following the company’s strategy to switch focus from acquisition to retention. Costs related to marketing were down 58 per cent to $88.4m (£56.3m) in the period, while the cost related to acquiring new customers improved 43 per cent year on year.
The site now has 38 million active customers, which is an increase of 65 per cent year on year.
Groupon shares are currently valued at $7.55 (£4.81), far below their IPO price of $20 (£12.75) per share in November last year.
In the UK, Groupon vowed earlier this year to change its marketing practises following a probe from the Office of Fair Trading (OFT), which found the daily deals site had breached consumer protection regulations.
Complaints to the Advertising Standards Authority related to Groupon decreased 40 per cent in the three months to June, three months after the site signed the OFT’s undertakings .