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Showing posts with label Social Buying. Show all posts
Showing posts with label Social Buying. Show all posts

October 28, 2011

The Groupon IPO Analysis : 5 Charts That Can Impact Investors

Gross Billings," which Groupon formerly classified as "Revenue," continues to grow strongly, rising 25% sequentially in Q3 to nearly $1.2 billion

Revenue," the portion of coupon sales that Groupon keeps, also grew, but much more slowly: Revenue increased 10% to $430 million.

Groupon’s IPO  Presentation Pitch

Groupon’s IPO roadshow pitch is revving into high-gear this week..One of Andrew Mason's tasks on Groupon Inc.'s roadshow this week is to demonstrate to investors that the three-year-old startup is growing up and is capable of acting like a public company.
Firing underperformers is one way. Mr. Mason told investors Wednesday during a presentation in Boston that the company is replacing the weakest 10% of its salesforce

 Groupon’s IPO  Presentation Pitch

 Failing to win enough repeat customers may dampen the rapid growth that currently supports the company's roughly $11 billion valuation

As of Sept. 30, Groupon had 143 million subscribers, but in the third quarter only 30 million of them bought Groupons. Groupon currently has a salesforce of over 4,800, according to its IPO prospectus.Repeat customers increased from the second quarter but only numbered 16 million, according to a regulatory filing with the U.S. Securities and Exchange Commission.

 Why is Groupon's  growth rate collapsing?

There are a few potential reasons why their revenue growth could be stalling.
According to  Yipit Reduced marketing spend.  While Groupon was able to break even this quarter, they did so by reducing their marketing spend. Unfortunately, marketing spend also fuels growth by acquiring new subscribers. Groupon grew their subscribe base by 23% this quarter. The previous quarter, they grew by 39%.

Competition. As competition in the space heats up with Google Offers, Amazon and LivingSocial, Groupon is getting crowded out of the inbox. In Q3, the number of Groupons sold grew just 1% despite Groupon growing their subscribe base 23%.

October 17, 2011

August 22, 2011

Daily Deals Market Revenues To Grow 138% in 2011

This infographic (source :Dailybits ) takes a  look at what the biggest “daily deal services” sites do, which ones have gained most popularity and how they have achieved such viral success, along with analysis and comparisons between these main players 
Revenue from online daily deal and discounts sites including Groupon and LivingSocial will top $2.67 billion in 2011, up 138% from $1.12 billion in 2010, projects Local Offer Network Inc., which sells advertising and technology services to group-buying sites.
The company says at least 320 U.S. sites offer daily deals  and US Daily Deals sites in total offered 63,000 deals in 2010. That record will almost certainly be shattered this year, as Local Offer Network estimates that the first quarter of 2011 brought 40,000 daily deal offers to U.S. consumers. “This is driven by new deal brands and an increasing number of sites publishing multiple offers per day,” the report from the company says, adding that the average daily deal site in the United States serves at least 10 markets.

The most popular types of online limited-time deals in the United States remain those related to food and drink, which in the fourth quarter of 2010 accounted for 26% of such online discount offers.

Beauty, spa and massage offers continue to hold the second spot, with 20% of offers, followed by fitness and nutrition, 7%, and sports and recreation, 5%.Home products and services are making some of the most significant gains, reaching 6% in the fourth quarter from 3% in the third quarter. Offers related to clothing and accessories also are gaining importance, the report says, reaching 4% in the fourth quarter, up from 2% in the second quarter.
However not all is hunky dory with the Daily Deals Market.A recent study by Rice University found that, on average, just 55.5 percent of merchants made money via a Groupon deal, with salons and spas, plus restaurants, having the hardest time with a Groupon daily deal promotion. In fact, according to the survey, just 43 percent of restaurants earned a profit with a Groupon deal, prompting some to ask why Google even considered buying it in the first place.

June 21, 2011

Groupon Top 10 Global Markets

Chart: Groupon_Top 10 Markets

Photo by: iStockphoto
Groupon_Top 10 Markets
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Top Global Markets For Groupon
Hunting out the best deals is truly a global activity. ComScore reports that In April 2011, Groupon reached more than 1 million unique visitors (age 15+ home/work location) in 12 markets across the globe. The U.S. saw the largest audience reaching 10.4 million visitors, followed by France with 3.6 million visitors and Brazil with 2.5 million visitors. In Asia, Japan and Taiwan made the list of the top 10 largest markets for Groupon reaching nearly 1.6 and 1.2 million visitors, respectively.

Not many would know Groupon went from a 5,000-person mailing list in Chicago to opening in three more cities (Boston, New York, and Washington, D.C.) in just six months.Here are some little known facts about groupon

    It's available in 160+ US Cities

    There are 30,150,000+ Groupon subscribers in North America alone

    160+ US cities

    And in 35 countries

    31,150,000+ coupons have been bought in North America alone

    People have saved $1,325,000,000 with Groupon discounts

    About 10 million people are signed up for the mailing list


June 3, 2011

The Road To Groupon's $750 million IPO :

Groupon just filed an S-1 with the SEC in order to raise $750 million in an IPO. In an upset, Morgan Stanley and not Goldman Sachs will lead the underwriting of the IPO.Here are the roads that led to The Groupon IPO

Headquarters: Chicago.

Employees: 7,107 as of March 31.

Members: 83 million.

Revenue: $713 million in 2010, but growing fast. It reported $644 million in revenue in just the first quarter of 2011.Profit: None yet. Groupon lost $117 million in the first quarter as it invested in growth, especially overseas.

 Groupon's Early Funding:  New Enterprise Associates. Eric Lefkofsky and Brad Keywell are investors in Groupon.
In April 2010, Groupon raised $135 million from Digital Sky Technologies, a Russian investment firm.On December 29, 2010, Groupon's executive board approved a change to Groupon's certificate of incorporation that would permit the company to raise $950 million in venture capital funding, based on a valuation of $6.4 billion.
Groupon's Revenue Performance : Not something to boast about..From January 2010 through January 2011, Groupon’s U.S. monthly revenues grew from $11 million to $89 million. Total 2011 U.S. revenues were an estimated $460 million. In February 2011 monthly revenue dropped to $62 million. Groupon’s 2011 estimated revenues are in the $3 billion to $4 billion range
Groupon RevenueTrivia
  • Groupon lost $413 million in 2010.
  • 2010 revenues totaled $713 million.
  • Groupon's first quarter 2011 revenues reached $645 million.
  • Groupon's international business accounted for 37.2%, or $265 million, of the company's total revenues in 2010.
  • In 2010 and the first quarter of 2011, Groupon spent $241.5 million and $179.9 million, respectively, on online marketing initiatives relating to subscriber acquisition.

Competitors of Groupon:Worldwide, there are over 500 similar sites including over 100 in US However, by December 2010, only one competitor, named LivingSocial, has been described as a serious competitor; according to one estimate, it received an investment from Amazon of $175 million. Other notable firms operating in the market include Xferral, BuyWithMe, Plum district,, Groop Swoop, TownHog, Gilt city Buywith me Tippr Juice in the city wegiveto get eWinWin.

Google, following its failure to purchase Groupon for $6 billion launched Google Offers In April 2011, Facebook begins testing social-buying program‎. Other Web heavyweights  and giants  including Facebook, Yelp, Travelzoo, OpenTable and the spurned suitor Google — are all adopting features similar to Groupon’s.

Groupon  Market Locations " Groupon serves many major geographic markets internationally including cites in the United States, Canada, Taiwan, Brazil, Germany, Greece, France, the Netherlands, Belgium, the United Kingdom, India, Israel, Italy, Portugal, Spain, Puerto Rico, Japan, Poland, Turkey, Mexico, Peru, Chile, Colombia, South Korea, Sweden, Argentina, the United Arab Emirates, Norway, Romania, Singapore, Malaysia, Hong Kong, Mainland China, and Russia.

In Australia, development of Groupon has been slow owing to legal disputes between Groupon and an Australian company, Scoopon. Groupon now operates in Australia as "Stardeals" while the legal problems are worked out.

On February 19, 2011 The Wall Street Journal reported that Groupon was preparing to launch in ChinaGroupon is also expanding into the MENA region with its launch of Groupon UAE on March 1, 2011.
Groupon New Zealand launched on 10th May 2011 in conjunction with local Facebook tourism

April 25, 2011