What: Shares of deals marketplace Groupon (GRPN 7.10%) are getting crushed today, down by 13% as of 12:14 p.m. ET, after the company reported first-quarter earnings and losses significantly widened.
So what: Revenue in the first quarter was $732 million, which translated into an adjusted net loss of $4.6 million, or $0.01 per share. Both figures beat consensus estimates of $708 million in sales and an adjusted net loss of $0.03 per share. However, on a GAAP basis, Groupon's net loss more than tripled to $49.1 million, or $0.08 per share. Adjusted EBITDA also fell by more than half to $31.3 million.
Now what: Investors were also disappointed with the company's outlook. Groupon's 2016 outlook calls for full-year sales of $2.75 billion to $3.05 billion, which should result in adjusted EBITDA of $85 million to $135 million. The midpoint of revenue guidance is below the $3 billion that the Street was expecting. The company noted that it sold its billionth unit during the quarter. Groupon is attempting to focus its efforts in a smaller number of geographical markets as well.