Group Selling In Groupon After Hours

Tyler Durden's picture

At last check, one of the final remnants of the second coming of the dot com bubble was trading down 15% after hours following its Q2 earnings report which while beating on the bottom line at $0.08/share (including a one time $0.04 gain) on expectations of $0.03, missed the top line forecast of $575 MM, instead reporting $568.3 MM in revenues. Also spooking the market is the company's Q3 revenue forecast of $580MM - $620MM vs estimates of $607.4 MM. Company also adds that "income from operations for the third quarter 2012 is expected to be between $15 million and $35 million, compared with a loss from operations of $0.2 million in the third quarter 2011." Considering the market cap is just shy of $5 billion one may be excused to ask just how the company will grow its net income to anything remotely resembling a rational valuation, even when taking that company's $1.2 billion cash, all of its as a result of fundraising. Finally, what would a GRPN release be without the now traditional recasting, adjusting, and otherwise proformaing of some historical core line times. Sure enough: "The second quarter 2012 marked the first time that direct revenue was material to the Company’s consolidated performance. As a result, beginning in the second quarter 2012, third party and other and direct revenue are presented separately. Third party revenue is related to the sales for which the company acts as an agent for the merchant. This revenue is recorded on a net basis. Direct revenue is related to the sale of products for which the Company is the merchant of record. These revenues are accounted for on a gross basis, with the cost of inventory recorded in cost of revenue." Uh... Ok. Have fun with that.

Elsewhere, the Groupon Groupon is in need of a new Groupon.