Groupon (NASDAQ:GRPN) shares fell sharply in premarket trading on Wednesday following the company’s report of an unforeseen loss. The e-commerce platform recorded a net loss of $9.4 million for the second quarter, which was smaller than the $12 million loss reported in the same period last year. Analysts had anticipated that Groupon would start generating profits this quarter, with consensus estimates forecasting a $2 million profit, according to Visible Alpha.
The company’s revenue of $124.6 million exceeded estimates but marked a 3% decline year-over-year.
Groupon ‘Numerous Challenges’
Despite ongoing transformation efforts, Groupon’s Chief Executive Officer (CEO) Dusan Senkypl acknowledged that the company continues to face significant challenges, including issues with site reliability. Senkypl expressed confidence that Groupon can overcome these obstacles and achieve its goal of becoming the leading platform for local experiences and services.
During Tuesday’s earnings call, Senkypl noted that site reliability problems, exacerbated by a recent “cloud migration project,” have impacted the company several times this year.
Groupon shares were down 17% to $12.99 two hours before the market opened. An opening price below $13 would bring Groupon’s stock back to levels seen at the beginning of the year.
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Author Faith Yakubu 
