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Coupons.com Hits New 52-Week Low On Weak Guidance, Earnings Miss

Coupons.com Hits New 52-Week Low On Weak Guidance, Earnings Miss
By: Bill Ashton
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Coupons.com Inc (COUP) reported a GAAP net loss of $6.9 million in the second quarter of its 2014 fiscal year, of which $6.2 million was attributable to stock compensation expense the company made to its employees. The company’s adjusted loss per share for the quarter was $0.09, falling short of analysts’ estimate of $0.05. Revenues for the company came in at $51.7 million for the quarter, which also missed analysts’ estimate of $52.25 million.

Guidance

Coupons.com is expecting third-quarter revenues to come in between $52 million and $54 million, while analysts forecast it at $55.3 million. For the full year, the company has guided revenues in the range of $217 million to $223 million, which is also short of analysts’ expectation of $227.5 million. The stock is among the biggest losers during trading today, having lost over 23% of its value as of 2:56 PM EDT.

Though revenue numbers and guidance fell short of expectations, the company did manage to post year-over-year growth in revenues, of 32%. Revenue growth was primarily driven by higher spending on advertising and digital promotion. The company’s transaction volumes surged over 22% YoY to $384 million as well.

Coupons.com notified in its press release that its digital couponing business is picking up; its Retailer iQ platform saw three new retailers sign up, putting the total count to nine. The company also highlighted that four of the nine retailers are some of the largest grocery chains in the US. Moreover, during the quarter, the company completed acquisition of marketing firm, Eckim, and also successfully launched its Card Linked Offers. Card Linked Offers allows customers to directly add coupons to their payment cards.

With the weak guidance, the company hit a new 52-week low of $14.90. At 3:07PM EDT, the stock is trading at $14.98.

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