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Groupon, by the nature of it's business takes in a lot of revenue. But it doesn't keep most of it. Much of that money is paid out to the business running the pr
by sudonim 16y ago
Groupon, by the nature of it's business takes in a lot of revenue. But it doesn't keep most of it. Much of that money is paid out to the business running the promotion. Maybe someone else knows the approximate split?
Revenue has some bearing on Groupon's ability to generate profit, but revenue is a vanity metric.
- Jsarokin 16y agoI agree. They could be making $100 million in revenue a month but if it costs them $95 million to make that then a $21 billion valuation seems crazy on a company that profits $5 million a month. Complete vanity.
- Helianthus16 16y agoNo offense, thinking about it is fun, but we're not exactly accountants; and we're definitely not accountants with access to Groupon's numbers. It "seems crazy" isn't exactly a critical argument.
- schwabacher 16y agoDon't they take a 50% cut for every coupon sold? I am sure they have other spending for salaries, offices, servers, etc.. but these things probably don't scale up (too much) with revenue, so I would think that revenue growth would be a really good indicator of profit.
- bps4484 16y agothey do take a 50% cut, but I think they also do a looooot of advertising.