The Hindu Business Line  Jul 17  Comment 
Groupon India has launched ‘Rail Deal’ where in consumers pay just Rs 9 and get Rs100 cash back on any Railway ticket booking - if booked on The Spice Safar App. The deal is available across all r...
SeekingAlpha  Jul 16  Comment 
By Ayush Singh: Groupon (NASDAQ:GRPN) has been reporting solid growth in the business. The company's results have been outstanding of late as its service is gaining more traction. A look at Groupon's results clearly reveals why it will prove to be...
TheStreet.com  Jul 16  Comment 
NEW YORK (TheStreet) --  TheStreet Ratings team rates Groupon Inc.   as a "sell" with a ratings score of D. Shares of Groupon are lower by -1.56% to $6.30 in mid-morning trading on Wednesday. TheStreet Ratings Team has this to say about their...
Motley Fool  Jul 15  Comment 
Groupon's transformation is generating impressive results when it comes to sales, but profitability is still scarce. Can Groupon sustain sales growth and increase profitability while competing against challengers such as Amazon and RetailMeNot?
SeekingAlpha  Jul 15  Comment 
By Amal Singh: Restaurant reservation specialist OpenTable (NASDAQ:OPEN) was recently acquired by Priceline (NASDAQ:PCLN). As a result of this merger, the likes of Groupon (NASDAQ:GRPN) and Yelp (NYSE:YELP) will now face serious threats to their...
SeekingAlpha  Jul 11  Comment 
By Michael Ide Sentiment may be turning for Groupon, but some analysts are still unconvinced it will ever be profitable When Groupon Inc. (GRPN) first went public at $20 per share, it was the latest example of an overhyped tech stock for...
Forbes  Jul 11  Comment 
Investors in Groupon (NASD: GRPN) saw new options become available this week, for the September 20th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 71 days until expiration...
SeekingAlpha  Jul 11  Comment 
By Jeffrey Himelson: Recent Operating Performance The ability to generate revenue growth is not under scrutiny for Groupon (GRPN). In Q1 of 2014, it was able to grow revenues 26% y/y. The reason for the selloff is because that growth was...
TechCrunch  Jul 11  Comment 
 Dash Hudson, a startup aiming to make twentysomething men a little less clueless about style, is announcing that it raised $400,000 in seed funding. More impressive than the amount of funding was who participated — co-founder and CEO Thomas...
DailyFinance  Jul 9  Comment 
Today Groupon launched a sweepstakes for a trip for two to travel to Chicago, take part in a private cooking class with celebrity chef Rick Bayless and see his show “Cascabel” at the Lookingglass Theatre Company. Launching...


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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