Groupon missed earnings estimates for last quarter and t its outlook for the next quarter was also lower than analysts expected, sending the stock down as much as 27% in after-hours trading.
The company announced Wednesday that revenues for the first quarter would be between $560 million and $610 million, which was short of the $650 million -- the consensus estimate from Thomson Reuters. For its fourth quarter, Groupon posted revenues of $638.3 million, which was up 30% year-over-year, but short of the expected $640 million. The company lost 12 cents a share for the quarter vs. an expected net loss of 2 cents a share.
The lower revenue outlook comes after Groupon's chief rival in the daily deals space, LivingSocial, laid off 400 employees -- 10% of its workforce -- during the holidays and posted a net loss of $650 million for the year. Nevertheless, LivingSocial snagged $110 million in funding from investors this month.
