Dive Brief:

• Chicago-based Groupon Inc. reported Q4 revenues of $768.4 million, handily beating Wall Street expectations of $718 million and up 20% over Q4 2012.

• That may have led to the company’s stock flying up before it took a dive, losing 10.5%, to $9.20 per share, likely thanks to further details that the company finished Q4 with a net loss of $81.2 million due to investments and acquisition costs.

• The company also announced that most of its business (54%) in the fourth quarter was in physical goods via its Groupon Goods division rather than the discount vouchers that it is known for.  

Dive Insight:

Groupon is dealing with fundamental changes in where its money comes from, and it’s had to invest mightily in marketing to get customers back. Most (54%) of the company’s business in the fourth quarter came from selling physical goods, rather than the vouchers it made its name with. The discount dealer has built a new marketplace and is working to attract consumers back to the voucher business, but new players in that game could make matters even more difficult.