Forbes  Jun 10  Comment 
Telemedicine is booming, but it?s also controversial and disconnected from mainstream medicine. Is this an idea that seems hot and then stalls out, like GroupOn, or are we looking at a powerful force for change in healthcare?
Benzinga  Jun 9  Comment 
Groupon Inc (NASDAQ: GRPN) shares are trading lower by $0.23 (6 percent) at $3.26 in Thursday's session. At this time, there is no specific news to account for the decline. After a much lower open ($3.22 vs. Wednesday's close of $3.48), it...
Motley Fool  Jun 7  Comment 
The group-buying site sells off its Indonesian operations, but the turnaround closer to home continues.
TechCrunch  Jun 6  Comment 
 Groupon continues to streamline its business in Asia after it announced the sale of its operations in Indonesia to a somewhat unlikely buyer. KFit, a startup that sells gym and fitness memberships in the same style as ClassPass, is picking up...
Reuters  Jun 6  Comment 
* Signed a deal to acquire Groupon Indonesia at an undisclosed fee
Benzinga  Jun 2  Comment 
Following the results reported by Box Inc (NYSE: BOX), Global Equities Research’s Trip Chowdhry commented that the company’s IPO should have been priced at $5, giving investors an opportunity to make some money. The IPO marked the peak of...
guardian.co.uk  May 22  Comment 
Trump released his personal financial disclosure statement last week – but it’s unclear if his financial wellbeing is substantial or of the Groupon variety Could we be about to elect a one-man financial bubble as president of the United...
Motley Fool  May 16  Comment 
Both e-commerce players look attractively valued. Time to place a bid for eBay, or is Groupon a better deal?


Groupon (NASDAQ:GRPN) is a group buying site which allows merchants to sell deals or discounted offers on their goods or services. The merchant can require that a minimum number of customers must purchase the deal before it becomes valid, or the merchant may limit the number of deals that can be sold. Individuals can subscribe to Groupon, and they receive targeted deals based on their location. Groupon makes money by charging customers for each offer, but the company pays merchants a negotiated percentage of each sale.[1]

Business Overview

For the full year 2010, Groupon's total revenue was $312.9M. This was substantial increase over the total revenue of $14.5M in 2009. The company had not achieved a net income however, as of 2010. In 2009, its net loss was $1.3M and in 2010 it was $413.4M. The largest cost the company incurred in 2010 was marketing, which was $290.6M in 2010. [2] This $20 IPO placed the value of the company at $12.7B.[3]

New Updates

The company's initial public offering of stock on the NASDAQ occurred on November 3, 2011. The company offered 35M shares each for $20. This was above the $16-$18 price range. The company sold 35M shares. This deal raised $7B. The lead bookrunners of the deal were Morgan Stanley, Goldman, and Credit Suisse.[4]

Trends & Forces

High Marketing Expense

Groupon's marketing in 2010 was nearly as large as its total revenue. The company uses marketing to encourage individual to subscribe to Groupon and to purchase live offers. Groupon believes that while it has faced a high marketing costs, such costs will be lower in the future as the company will have created a customer base. However, if such costs remain elevated, Groupon's profits will be directly lowered.[5]

Highly Competitive Industry

While Groupon is a large player in the daily-deal market, the market is very competitive. Groupon does not have any significant way to differentiate itself aside from the type of offers and the level of the discount. This means that defending its market share is relatively hard.[6]

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