USA TODAY reported that there have been several additional accounting missteps at Groupon. What follows is an excerpt from the article that appeared earlier in USA TODAY:
Groupon keeps rolling out daily deals, but skepticism is growing about the young company’s ability to manage its growing pains and competitors. And those concerns are taking a toll on its stock price.
Groupon shares plummeted 17% Monday to close at $15.28. That’s well below the $20-a-share price it commanded in its initial public offering and about half its 52-week high of $31.44.
The deals giant on Friday revised lower its fourth-quarter earnings, saying it hadn’t set aside enough money for customer refunds. The company has increased offers on Lasik eye surgery and laser hair removal, which carry higher prices and refunds.
Despite investor misgivings, Groupon remains “confident in the fundamentals” of its business, says CFO Jason Child.
More information about Groupon: A few months ago, I was interviewed on CNN about the Groupon IPO. I’m not a financial manager and don’t provide financial advice to anybody, but after having done some research on Groupon, I came away with the conclusion that the company was doing some non-standard things with some of their reporting.
(This conclusion wasn’t hard to come by since the SEC has twice asked them to address some of their non-standard accounting practices.)
If you want to see the the interview on CNN about Groupon, you can watch it on the 60 Second Marketer YouTube channel, or watch it below.
Posted by Jamie Turner, Founder of the 60 Second Marketer and co-author of “How to Make Money with Social Media” and “Go Mobile.” He is also a popular marketing speaker at events, trade shows and corporations around the globe.