Online voucher firm Groupon has seen its shares fall 30% after its third quarter revenues fell short of analysts’ forecasts. The company, which launched on the stock market back in November 2011, has reached a record share low amid doubts about its business model and a slowing demand for its discounts.
The company also said that it was cutting about 80 jobs, mainly in sales, as part of an effort to automate and streamline the way its daily deals are sourced and distributed.
Groupon offers coupons to its subscribers, which give them discount deals that are available that day only on anything from restaurant meals to spa treatments.
Revenues for the July-to-September period were $569m (£356m), up 32% from a year earlier, but still below Wall Street expectations of about $590m.
The company reported a net loss of $3m (£1.9m) for the quarter.
“Our solid performance in North America was offset by continued challenges in Europe,” said chief Andrew Mason.
The 30% fall in Groupon’s shares left them at a record low of $2.76 each.
The company was launched on the stock market last November at $20-a-share, one of a series of dotcom flotations during 2011.
Revenues from international operations, including Europe but excluding North America, rose 3% to $277m. That compared with an 80% surge in North American revenue to $292m.
However, Mason remained optimistic about the future, saying in a statement that the forthcoming holiday season would be great for business.