Groupon’s revenue for Q4 2012 was $638.3m an increase of 30% year-over-year, compared to $492.2m for the same period in 2011.
The company’s gross billings increased 24% to $1.52bn in Q4 2012 compared to $1.23bn in Q4 2011.
"Record billings growth this quarter is a clear signal that customers love Groupons," said Andrew Mason, CEO of Groupon. "We will continue to invest in growth through 2013 as we see new opportunities to give our customers what they want."
Groupon’s net loss in the quarter, however was $81.1 million compared to a net loss of $65.4m in Q4 2011.
The company’s net loss continues to worsen, with losses increasing in each new quarter.
Groupon suffered a net loss of $3m in Q3 2012 and its growth rate continues to decline.
The company had a growth rate of 89% year-on-year in Q1 2012, which fell to 45% in Q2 2012 and 32% in Q3 2012.
Groupon’s CEO said "continued challenges in Europe" offset its strong performance in North America in Q3 2012.
However, ecommerce leaders say that as more retailers develop their own daily deal projects Groupon’s platform is becoming less needed.
"A lot of Groupon’s deals which were ground-breaking two years ago are now no longer great and they have to try and push the boundaries to find new deal and products," Stuart Fuller, head of communications at NetNames told CBR.
"Retailers don’t necessarily need Groupon’s buying power anymore. They’ve been able to develop their own business models and social interactions and that’s helped them survive and flourish without needing to use Groupon."
Even though Groupon stocks continue to fall, the daily deal industry is expected to remain strong.
"Groupon’s stocks may be down, but the sector remains resilient and as lucrative as ever," Gerard Doyle, CEO of DiscountVouchers told CBR. "As with any emerging industry there will be teething problems but no one can question the massive impact daily deal sites have, and will continue to have, on the general e-commerce industry"
