TheStreet.com  Nov 20  Comment 
NEW YORK (TheStreet) -- Shares of Groupon  rose 2.69% to $7.45 in afternoon trading Thursday after the online deal company announced its plans for Black Friday next week. Groupon announced significant discounts for the busiest U.S. shopping...
Forbes  Nov 20  Comment 
Based on these results, we have updated our outlook for both the top-line and bottom-line, as well. We expect Groupon’s EBITDA margins to show improvement in the coming years as operating leverage should lead to decline in marketing and SG&A...
Motley Fool  Nov 20  Comment 
Groupon shares are up more than 20% in the last month, but could be headed even higher.
DailyFinance  Nov 20  Comment 
Filed under: Company News, Market News, Industry News, IPOs, Investing www.vip.com The daily-deals craze didn't last long in this country. Groupon (GRPN) went public at $20 in 2011 with a headful of steam and hype, but the buzz died quickly. The...
Motley Fool  Nov 19  Comment 
Three scenarios Groupon shareholders should hope not to see.
TechCrunch  Nov 17  Comment 
 Groupon just announced that it has acquired Swarm Mobile, a startup that helps businesses connect with and track their customers while in stores. This continues Groupon’s pattern of expanding its offerings for local businesses beyond daily...
Benzinga  Nov 17  Comment 
In a report published Monday, Barrington Research analyst Jeff Houston reiterated an Outperform rating on Groupon Inc (NASDAQ: GRPN), and raised the price target from $8.00 to $9.00. In the report, Barrington Research noted, “We maintain our...
SeekingAlpha  Nov 13  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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