NEW YORK (AP) -- Groupon Inc., the No. 1 online deals service, failed to show investors on Thursday that its business is growing as quickly as they would like, as it was hurt by what it called "continued challenges" from the economic weakness in Europe.
The company booked a small loss in the third quarter as higher revenue failed to make up for stock compensation and other expenses. Though revenue grew by nearly a third, it was below Wall Street's expectations. The Chicago-based company's stock fell sharply in after-hours trading following the announcement.
Net loss was $3 million, or a breakeven per share, in the July-September period. A year ago it lost $54.2 million, or 18 cents per share. Groupon said adjusted earnings were 3 cents per share in the latest quarter, matching Wall Street's expectations.
Revenue grew 32 percent to $569 million, below Wall Street's expectations of $591 million as surveyed by FactSet. Groupon said ongoing economic weakness in Europe weighed on the quarter's results.
For the current quarter, Groupon is forecasting revenue of $625 million to $675 million. The midpoint of this, $650 million, is higher than the $634.9 million that analysts had expected
Groupon's stock fell 62 cents, or nearly 16 percent, to $3.30 in after-hours trading. Groupon's stock made its public debut last November at a price of $20, but it has fallen sharply since amid concerns about the long-term viability of its business model and its ability to grow.