Feeds

Coupon-spaffer Groupon starts to sniff actual profits

And those marketing costs are way down

Gartner critical capabilities for enterprise endpoint backup

Groupon significantly reduced the amount of money it lost in the first quarter of this year, only ending up with a net loss of $11.7m compared to a loss of $146.5m in the same quarter of 2011.

The daily deals site actually managed to make its first ever operating profit, claiming $39.6m on its coupons, but interest and taxes sent the net earnings into the red.

Revenue shot up to $559m, a leap of 89 per cent from the first quarter of last year.

“We are pleased to report a record quarter that demonstrates our progress in unlocking the opportunity in local commerce for merchants and customers worldwide,” Andrew Mason, CEO of Groupon, said in a canned statement on the results.

The coupon site has been trying to prove that it is worth investing in after a number of accounting discrepancies and a failure to turn any of its business into profit, sent shares plummeting by 62 per cent since its first day close of $26.11 to last Friday's close.

After announcing its quarterly results yesterday, stocks shot up by 18.5 per cent to $11.73 a share, with investors still buying in after-hours trading.

Most tellingly, the number one concern about Groupon as a business seems to have been addressed. Critics of the voucher business model have pointed to the large sums needed for marketing wiping out profits, but Groupon's marketing expenses have now actually fallen as its revenue rose.

The site reported marketing expenses of $116m compared to $230m in the same quarter last year. As a percentage of revenue, marketing costs have tumbled from 78 per cent to 21 per cent.

Groupon said it was expecting revenue for the next quarter to be somewhere between $550m and $590m and it is hoping for an operating profit of between $25m and $45m. ®

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?