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_ Gross billings fell to $1.29 billion in the quarter through June, down from $1.35 billion in the first three months of the year. Although that was still a 47 percent increase from a year ago, excluding foreign exchange movements, the figure had more than doubled in the previous quarter and nearly tripled in the quarter before that.

_ The company forecast adjusted earnings _ what it calls consolidated segment operating income _ at $45 million to $65 million in the current quarter. That profit figure, which excludes stock compensation costs, was far below the $80 million expected by analysts polled by FactSet. It was also a decline from the $72 million it reported in the second quarter. A likely factor was lower profits from its direct sales of goods.

_ Active customers grew only 3 percent to 38 million compared with the first quarter, while spending per customer over the previous 12 months fell to $165. That compared with $179 in the first quarter, $187 in the fourth quarter of 2011 and $189 in the third quarter of 2011.

Groupon largely blamed Europe.

Groupon gets more than half of its revenue from outside of North America, and most of that comes from Europe, where economic worries are affecting sales. CEO Andrew Mason told analysts Monday that deals for discretionary items such as laser hair removal and luxury hotel stays were suffering.

A weaker euro and British pound also translated into fewer U.S. dollars in the quarter.

The Chicago-based company said it was aiming to solve some of its problems in Europe by investing to update its technology, changing its mix of promotions to lower-priced services and stepping up its own advertising to increase brand awareness.

Those investments were also questioned.

Mark Mahaney, an analyst with Citi Research, cut his price target on shares to $9 from $19, and downgraded them to “Neutral” from “Buy.”

“The (return on investment) and timing of necessary platform investments won’t be known for some time,” he wrote in a research note Tuesday. “And this management team doesn’t yet have an execution track record. And in the meantime, the core Daily Deals business is sharply slowing.”