Since the expenses incurred during market expansion had a particularly negative effect on operational results, Groupon is also able to show profitability by adjusting their expenditures – naturally at the cost of their growth figures.
The central question still remains the same: Will the marketing efforts pay out over time and does Groupon thus have a sustainable business model:
In an IPO targeted for November 3-4, Groupon wants to issue 30 million shares at $16 - $18 apiece (or more), and thus hope to raise over $540 million with about 5% of their equity.
Dan Frommer soberly recapitulated the essential aspects of the coming IPO ("Here's what actually matters about Groupon (and what doesn't)").
Related posts:
- Groupon As A Product Mover
- Groupon Bashing and the Internal Response
- Groupon IPO: The Best Analyses of the Public Offering
- Groupon IPO: Groupon Reveals Financial Performance Figures
Originally posted in German by Jochen Krisch, adapted for excitingcommerce.com by Jason Soo.
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