Shares from leading online deal website Groupon experienced a sharp fall of over 14 per cent following the company posting news of a rather unexpected loss of over $42.7 million.
The company has attributed the loss to a surprising high tax payout amounting to USD 34.9 million and expansions into new markets. However, Groupon has managed to sharply increase its revenue figures to $506.5 million in the last three months of 2011 and its executives seem to be rather upbeat about the company's market outlook.
Commenting on the future initiatives of the firm, PC Mag reported Groupon CEO Andrew Mason as saying: "We will continue to invest in new services and tools that help our merchant partners be more successful and drive local commerce around the world."
Many analysts believe that the online deals website will find it difficult to maintain its scomtrong revenue growth figures which it has often gained through expensive promotional campaigns. With the market for online deals maturing, it seems that it would be under pressure from a number of factors ranging from fierce competitors to merchants looking to get a better cut. The company will desperately need to tap into new markets and expand its offerings in order to maintain its standing as a leading provider of the latest deals and offers.