Shares in online deal booking specialist Groupon (NASDAQ:GRPN) plunged nearly 30% as it disappointed on revenue and profit guidance for the current quarter and named a new chief executive.
Chief operating officer since the summer Rich Williams will succeed Eric Lefkofsky co-founder of the business.
The firm said it expects adjusted EPS to range from a loss of 1 cent per share to earnings of 1 cent per share in the fourth quarter and revenue of between $815 million and $865 million.
This factors in nearly 400 basis points of 'unfavorable' impact on the year-over-year growth rate from changes in foreign exchange rates, it said.
Analysts had been expecting adjusted earnings of 7 cents a share during the period, according to FactSet.
That said, Lefkofsky said in a statement: "Over the past few years, we’ve repositioned the business for success and strengthened our foundation. On a trailing twelve-month basis, we generated $3.1 billion in revenue, $1.4 billion in gross profit, $283 million in adjusted EBITDA and $228 million in free cash flow.
He added: "We’ve successfully transformed Groupon to support our next stage of growth. The business is stable, the marketplace is scaling, and we are ready to take our next big step. Now is the right time for me to return to my role as Chairman, and let Rich, who has done a tremendous job over the past four years, lead Groupon during this next stage."
In the third quarter, the firm's revenue was US$713.6 million, while the loss per share was 4 cents, which however did beat Wall Street expectations.
Groupon shares plunged 29.22% to US$2.85.