Groupon Inc. signage is displayed at company headquarters in Chicago, Illinois
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Shares of Groupon dropped 25% during extended trading Tuesday after the company reported fourth-quarter financial results that missed analyst expectations for the top and bottom line.
The e-commerce company reported fourth-quarter earnings of 7 cents per share excluding some items, while analysts had expected earnings of 15 cents per share, according to Refinitiv.
Groupon reported $612 million in revenue for the fourth quarter, which came in well short of the $709 million that analysts were expecting, according to Refinitiv.
“We did not deliver the financial performance we expected during the fourth quarter and we recognize we must move swiftly to put Groupon back on a growth trajectory,” Groupon CEO Rich Williams said in the earnings report.
Williams said the company’s plan to ditch goods to focus on experiences will allow “a stronger Groupon emerge” in 2020.
Groupon has a market cap of $1.7 billion and shares are up 27% so far this year.
The company also announced a leadership move Tuesday.
Interim CFO Melissa Thomas will permanently takeover in that position, and Valerie Mosley and Helen Vaid have been added to the Board of Directors, according to a release.