TechCrunch  May 18  Comment 
 Groupon has been expanding its footprint beyond daily deals for some time, and today the company is doubling down on its investment in its restaurant point-of-sale system Breadcrumb with a new app designed to bring live sales data to the iPhone....
Forbes  May 11  Comment 
TripAdvisor's business listings grew by 19% to 4.9 million, with 16% growth in hotels, 25% in attraction listings, and 19% in restaurants. TripAdvisor’s monthly unique visitor base grew by 31% year on year to 340 million. Reviews on its websites...
SeekingAlpha  May 7  Comment 
Benzinga  May 7  Comment 
In a report published Thursday, Barrington Research analysts maintained an Outperform rating on Groupon Inc (NASDAQ: GRPN), with a price target of $9, after the company reported its 1Q results. Groupon reported 1Q results broadly in-line with...
TheStreet.com  May 6  Comment 
NEW YORK (TheStreet) -- Electronic Arts surged Wednesday after the company substantially beat Wall Street's fourth-quarter earnings estimates and announced a $1 billion stock buyback plan. Groupon plummeted after issuing a 2015 forecast...
Benzinga  May 6  Comment 
Groupon Inc (NASDAQ: GRPN), which IDC says is the 10th largest e-commerce platform, reported its 1Q15 results in-line with its updated guidance but below the consensus expectations. Shares traded recently at $6.43, down 6 percent. Brean...
Benzinga  May 6  Comment 
Noodles & Co (NASDAQ: NDLS) shares fell 22.26 percent to $16.10 in pre-market trading after the company reported weaker-than-expected Q1 results and issued a weak FY15 guidance. Zulily Inc (NASDAQ: ZU) fell 20.81 percent to $9.36 in pre-market...
USAToday.com  May 6  Comment 
Groupon has been a losing investment for those who bought around the IPO.


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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