QUOTE AND NEWS
Motley Fool  Feb 19  Comment 
The leading provider of flash-sale deals reported better-than-expected results on Wednesday, and the market rewarded the bulls.
Motley Fool  Feb 15  Comment 
These three tickers probably don't belong in your portfolio.
Benzinga  Feb 15  Comment 
Groupon Inc (NASDAQ: GRPN) shares are trading higher by $0.80 at $4.58 in Wednesday's session. A pair of catalysts account for the the 20 percent gain. Before its Q4 report Wednesday morning, it was reported Alibaba Group Holding Ltd (NYSE:...
Clusterstock  Feb 15  Comment 
Groupon is up after reporting fourth-quarter earnings on Wednesday morning. The company announced revenue of $934.9 million, which was ahead of the  $912.8 million that analysts were anticipating. However, Groupon lost $0.09 per share,...
Benzinga  Feb 15  Comment 
Shares of Groupon Inc (NASDAQ: GRPN) soared higher by more than 13 percent early Wednesday morning after the company reported its fourth-quarter results, which may have reassured investors. Groupon said that it earned $0.07 per share in the...
TechCrunch  Feb 15  Comment 
 Groupon, the daily deals platform that has been restructuring itself and trying to shift into more profitable areas of e-commerce, today reported its Q4 earnings. The company reported sales of $934.9 million but with a net loss of $50.2...




 
TOP CONTRIBUTORS

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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