Groupon Stock Tumbles on Surprise Q2 Loss

Groupon (GRPN) shares tumbled successful premarket trading Wednesday, a time aft nan institution reported an unexpected loss.

The e-commerce level reported a net loss of $9.4 cardinal for nan 2nd quarter, smaller than nan $12 cardinal nonaccomplishment Groupon reported a twelvemonth ago. However, analysts had expected nan institution to commencement consistently producing profitable quarters starting pinch a projected $2 cardinal profit successful Q2, according to statement estimates compiled by Visible Alpha.

Revenue of $124.6 cardinal hit estimates but fell 3% year-over-year.

Road Ahead Has 'Numerous Challenges'

"While our translator still faces galore challenges, including tract reliability, I americium assured we tin restart nan engines of maturation and recognize our ngo to go nan eventual destination for section experiences and services," Groupon Chief Executive Officer (CEO) Dusan Senkypl said.

Senkypl said successful Tuesday's net telephone that nan institution has had tract reliability issues aggregate times truthful acold this year, including this period owed to a "cloud migration project."

Groupon shares were down 17% to $12.99 2 hours earlier nan opening bell. An opening value beneath $13 would put Groupon shares backmost astir wherever they started nan year.