Groupon Misses Their Mark Q3

Groupon,Chicago startup,Groupon third quarter, net loss, wall street, startup newsGroupon’s stock has fallen nearly 16 percent in after hours trading after they released their third quarter earnings earlier today when the market closed.

Groupon took a small loss when higher revenue failed to compensate for stock compensation and other expenses. Groupon’s revenue grew by a third but still failed to meet Wall Street’s expectations.

The net loss for the quarter ending in September 2012 was $3 million dollars, basically a breakeven per share. That’s sharply down from the $54.2 million dollar loss or 18 cents per share the same quarter last year.  Adjusted earnings of 3 cents per share matched Wall Street’s expectations.

Total revenue was up at $569 million but fell short of Wall Street’s $591 million expectation. Groupon is forecasting revenue between $625 million and $675 million in the fourth quarter. If they come in at the median point of $650 million they will beat analyst’s expectations of $634.9 million.

Analysts and investors are concerned over the long term viability of Groupon’s business model. Many are concerned about “daily deals” as a whole.

There have been wide spread reports across many websites and technology journals, about mom and pop businesses who’ve taken major losses in trying to use Groupon to gain more customers. The general consensus is that small businesses take a loss on their initial Groupon deal and then the customers never come back.

Other entrepreneurs, startup founders, and investors are looking to the loyalty and rewards space, over the daily deals space to increase revenue and keep customers coming back.

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Startup Quick Byte: twiDAQ

For todays Startup Quick Byte we take a look at twiDAQ a site that mixes both Wall Street and Twitter into one. Located in Bath, United Kingdom this company takes Twitter to another level that even has me interested. After having raiser $48,000 in funding so far, twiDAQ  is using peoples love affair for Twitter and wanting to do more with it to a whole another level.

While some sites like Klout mask and try and hide how things are rated, twiDAQ holds no such qualms as they clearly post it on their site Here

There are two principal models for setting the share price; performance & demand.  What we’re all seeing at this early stage in the market is the dominance of performance over demand which is allowing small stocks to rise in price.

Currently, only on the Web and iOS and free on both markets. So if you are into Twitter and just want more. Make sure to check it out. No words yet on an Android application yet.

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