Groupon Triples Loss From Last Year

Groupon Triples Loss From Last Year
technology

The daily deals site reveals its second quarter loss - a staggering $102 million, more than triple its loss from last year.

Alice Chan
  • 15 august 2011

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.

Access this article for free
Fill in your email below and you'll gain access to this article while also receiving a number of membership features as part of a special 30-day trial.
*Already a member? Log in here

Learn About Our Membership Services

Need Research Help?
As a member you can ask us any research questions and get complimentary research assistance with a 4-day turnaround. Reports inclde stats, quotes, and best-inclass examples on research topics.
Remain Informed & Strategic
We publish several trends reports each month. By becoming a member you will have access to over 100 existing reports, plus a growing catalog of deep topical analysis and debrief-style reports so you always remain in the know.
See Trends Come To Life
Meet your peers and immerse yourself in monthly trend and innovation webinars and discounted conferences.
No search results found.