The online deals site, Groupon Inc (NASDAQ:GRPN) named Brian Stevens its new chief accounting officer on Monday, effective immediately. Stevens worked at accounting firm KPMG LLC for 16 years, most recently as audit partner since October 2007 to August this year. Brian Stevens will replace Joe Del Preto and report directly to CFO Jason Child. Joe Del Preto, who held the accounting office since April 2011, will continue as global controller and vice-president, but now he has to report to Brian Stevens, the company said.
The Chicago-based daily deal site has faced several accounting woes. The company’s stock prices have tumbled 79 percent after the November IPO at $20 per share. Groupon rattled investors in March by stating, “there is a material weakness in the design and operating effectiveness of our internal control over financial reporting”.
Groupon Inc (NASDAQ:GRPN) also disclosed that its fourth quarter revenues were worse than actually reported. The revised Q4 report reduced revenues by $14.3 billion and operating income by $30 million. KPMG has worked with Groupon to fix the accounting flaws, while Ernst & Young is Groupon’s auditor.
The deal site’s popularity reached its peak right after the company’s inception in 2008. At one point, it became so popular that Google Inc (NASDAQ:GOOG) made a $6 billion offer to acquire Groupon Inc (NASDAQ:GRPN). It was one of the few companies, just like Facebook Inc (NASDAQ:FB), that became instantly popular among masses before going public.
The company started facing questions over marketing costs, financial reporting and growth prospects after the initial public offer. Last month, the company posted strong second quarter revenues and profits, especially from North America.
Groupon stocks are now trading at $4.30 in New York, giving it a market value of $2.8 billion.