Groupon Triples Loss From Last Year
The daily deals site reveals its second quarter loss - a staggering $102 million, more than triple its loss from last year.
In midst of preparations to go public, Groupon Inc. revealed that its second quarter loss amounted to $102.7 million, in line with the first quarter and more than triple the $36.8-million loss from the second quarter of 2010. With more than 1,000 new employees, the daily deal company trimmed back marketing costs in an effort to cut losses, spending $170.5 million in the second quarter, compared to the $208 million in the first quarter. Groupon said about 40 percent of its subscribers in North America came through word of mouth, suggesting that the company did not have to spend as much on marketing to attract subscribers. Meanwhile, analysts are questioning the potential IPO to be vulnerable to larger companies like Google, which enlists a costly sales staff to enlist merchants and provide customer service. Currently, Groupon’s workforce is at over 4,800 employees.
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