SeekingAlpha  1 hr ago  Comment 
ByIAEResearch: Groupon (GRPN) is a global leader in local commerce, enabling the people around the world to search and discover great businesses and merchandise at a discount. The company increased its global active customers by a decent margin...
Benzinga  Apr 18  Comment 
In recent years investors in the stock market, as well as institutional investors and private equity firms, have all been looking for relatively safe and high-return companies where they can park their money.  Much of recent investment...
DailyFinance  Apr 16  Comment 
Groupon (NASDAQ: GRPN) (http://www.groupon.com) today announced a campaign with Make It Right, the organization founded by Brad Pitt to build environmentally- friendly homes for people in need. Groupon has already contributed...
Cloud Computing  Apr 16  Comment 
TinderBox, the leading provider of sales automation, today announces the appointment of David Kerr as chief operating officer. As COO, Kerr will be responsible for driving revenue, marketing, implementation and ensuring...
The Hindu Business Line  Apr 14  Comment 
Deals company Groupon India today launched an offer wherein the winner will get a chance to act alongside Bollywood star Shahrukh Khan. Customers who opt for the deal costing Rs 499 will...
Benzinga  Apr 11  Comment 
While late March saw falling interest by short sellers in a number of social media companies based in the United States, Groupon (NASDAQ: GRPN), Twitter (NYSE: TWTR) and Zynga (NASDAQ: ZNGA) had significant short interest gains. The number of...
Forbes  Apr 11  Comment 
When it comes to spreading your message online, accuracy can be less important than a viral headline.
Benzinga  Apr 10  Comment 
Today Groupon (www.groupon.com) announced the addition of in-store coupons to its growing Freebies category (www.groupon.com/freebies), providing national retailers with a programmatic way to reach millions of potential customers with targeted...
MarketWatch  Apr 9  Comment 
Why settle for just one deal when you can quadruple-dip, writes Charles Passy.


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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