TechCrunch  Mar 10  Comment 
 Daily deals and local commerce service Groupon has made no secret of its plans to explore strategic options for its holdings in Asia, and it looks like it’s not just Ticket Monster that is on the block. TechCrunch has learned that Groupon is...
Motley Fool  Mar 3  Comment 
Traders are betting against these tech stocks like crazy.
Motley Fool  Mar 3  Comment 
Five of the most important quotes from Groupon's fourth quarter earnings call.
Benzinga  Feb 26  Comment 
In a report Wednesday, Morgan Stanley analyst Dean Prissman commented that proprietary survey and churn analysis targeted at both older and newer customers pointed to "continued stability" in Groupon Inc's (NASDAQ: GRPN) Local business. Based...
Benzinga  Feb 25  Comment 
Renowned investor and founder of Gotham Funds Joel Greenblatt was on CNBC recently to discuss the stocks that he perceives to be overvalued and on his shorting list, including Zynga Inc (NASDAQ: ZNGA), Groupon Inc (NASDAQ: GRPN) and Tesla Motors...
Forbes  Feb 18  Comment 
Strong growth across all geographies and business categories caused 31% increase in total gross billings during the quarter. The 4% expansion in gross profit was partially offset by high investments due to the Ticket Monster (Tmon) and ideel...
Benzinga  Feb 17  Comment 
On Tuesday, Omega Advisors released its latest 13F holdings for the fourth quarter of last year. Here are the notable increases, decreases and new stakes. New Stakes: Gilead Sciences Inc (NASDAQ: GILD).- 612,500 shares at 1 percent of...


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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