(COUP) Stock Hammered on Earnings, Guidance

Shares of Incorporated (COUP) were trading at $9.90 per share, off -4.61 or -31.77 percent in this morning's premarket after the company announced lower than expected earnings and guidance after the market close yesterday. Inc. stock closed at $14.51 per share, down -0.19 or -1.29 percent in Monday's regular trading session.

Mountain View, California based Coupons.Com Inc. was founded in 1998 by Stephen Boal, Chairman and Chief Executive.
Much like competitor Groupon GRPN, the company is a digital promotion platform offering free printable coupons for businesses such as retailers, large restaurants, entertainment companies to name only a few. The company also offers coupon codes to consumers and display advertising for retailers. More than 700 consumer packaged goods firms use Coupons.Com's platform. had their initial public offering at $16 per share on March 7th of 2014, closing up almost +100 percent to $30 per share in its first day of trading. Inc. posted a fourth quarter loss of -$0.02 per share on revenue of $60 million. The analyst consensus was for the company to earn +0.04 per share on revenue of $63.4 million in the quarter. Nevertheless, the company reported total revenue for the full year 2014 increased +32 percent to $221.8 million versus $167.9 million in 2013, with total digital coupon transactions increasing to +1.6 billion, up 23 percent from 2013.

On a GAAP basis, the company showed a loss of -$23.4 million in 2014, which included a $35.5 million write down for stock based compensation expense compared to a net loss of -$11.2 million in 2013, including -$5.2 million in stock based compensation expense. The company's fourth quarter loss was attributed to lower than expected holiday promotions which directly affected earnings.

Steven Boal , President and Chief Executive Officer of Incorporated said in the company's press release announcing fourth quarter earnings that, "2014 marked a very successful year, delivering on several key milestones and laying the foundation for continued growth, he continued saying, "We delivered 32% revenue growth over last year, with solid momentum in all areas of our business. Our Retailer iQ platform is performing well, demonstrating scale in transaction volumes, consumer adoption, and mobile usage. As we enter 2015, we're excited about the business and our position as a leader in the transformational shift from offline to digital. We believe our focus on data analytics, scaling our network, and mobile engagement will continue to drive our business as we digitally connect retailers, brands and shoppers.

In addition to the earnings release, the company announced it would be adding its former Chief Technology Officer and Vice President of Engineering at Snapchat Inc., Steve Horowitz to its board of directors effective June, 2015. Mr. Horowitz had previously headed the Android development team at Google (GOOG).

CEO Boal added in the press release, saying, "I'm also very pleased to announce that Steve Horowitz , Vice President of Engineering at Snapchat, and former CTO at will be joining our board of directors in June, 2015. Steve brings a wealth of leadership and mobile expertise, and we look forward to welcoming him back. stock sold off more as a result of the company's guidance for its full year 2015, the company expects revenue for the year to be $275 million to $290 million. Analysts forecast guidance of $295.9 million for the company's full 2015 year. stock will open at a new all-time low this morning and well below its previous 52 week low of $11.61.

Other News About COUP

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More than 2,000 March 15 calls were purchased last week at about $1.50 apiece.

Steve Horowitz to Join Board of Directors
Former company CTO returns to join the board of directors.

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Published on Feb 10, 2015
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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