Online deals company Groupon Inc(NASDAQ:GRPN) has announced its results for the quarter. While its net income was in line with analysts’ expectations, revenue fell short of Street estimates.
The company made a net loss of $3 million which works out to break-even on a per share basis. In the same period last year, the company had incurred a loss of $54.2 million or 18 cents a share. Groupon was a private company then.
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The loss in the latest quarter includes stock related compensation payment and also acquisition expenses totaling $25.1 million. Without these items, the earnings per share is 3 cents, matching analysts’ calculations.
Revenue rose 32 percent to $568.6 million from $432 million in the year ago. Analysts had expected revenue of $590 million.
For the current quarter, Groupon expects revenues between $625 million and $675 million, while analysts are modeling $634 million.
On reporting of the results, the stock tanked more than 21 percent in pre-market trading.
Meanwhile, there is some acquisition news in the online travel space. Priceline.com Inc(NASDAQ:PCLN) has announced its plans to acquire the online travel research company Kayak Software Corp(NASDAQ:KYAK) Software Corp for $1.8 billion as part of its expansion plans. Also, the latter has reported its results for the latest quarter.
Priceline will pay $500 million in cash and $1.3 billion in stock and assumed options. Kayak has been valued at $40 a share, 29 percent higher than the stock’s closing price on Thursday.
The deal now needs to be approved by Kayak shareholders. The company will continue to operate independently.
Kayak also announced its results for the last quarter yesterday. It earned a net income of $7.2 million or 19 cents a share, higher than last year’s $4 million or 18 cents a share. Revenue rose 29 percent from $77.4 million in the prior year period to $78.6 million.
Kayak shares rose 26.2 percent to $39.18, and the Priceline stock dropped 2.1 percent to $615 in the pre-open session.