Benzinga  Sep 14  Comment 
  Loop Capital Markets initiated coverage on Etsy Inc (NASDAQ: ETSY) with a Hold rating. The price target for Etsy is set to $14. Etsy shares declined 1.37 percent to close at $13.68 on Tuesday. Analysts at Citigroup initiated...
Benzinga  Sep 14  Comment 
Although Groupon Inc (NASDAQ: GRPN) has grown its revenue by adding a significant number of new customers, while streamlining its operations to boost future profitability, the company would need to “overcome a history of inconsistent execution...
Forbes  Sep 6  Comment 
Since taking over as Groupon CEO last November, Rich Williams has undertaken a series of bold measures such as significantly raising marketing investments, restructuring the international portfolio and moving away from certain low-margin goods...
Forbes  Aug 31  Comment 
Groupon‘s stock is up about 17% in the last year and a whopping 70% year-to-date following solid second quarter results last month. The company’s stock had tumbled over 10% after its first quarter results missed earnings expectations in April,...
SeekingAlpha  Aug 15  Comment 
Forbes  Aug 15  Comment 
Like Groupon for businesses, YouTube is not a profit-making machine for every artist or label, but rather a marketing platform for talking to, understanding and monetizing both new and existing audiences.
Motley Fool  Aug 8  Comment 
The leading provider of flash-sale deals takes off after a blowout quarter and a move into private-label fitness apparel. It has now come through with six consecutive weeks of gains.
Motley Fool  Aug 2  Comment 
The leading provider of flash-sale deals takes off after a blowout quarter.
SeekingAlpha  Jul 29  Comment 


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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