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Groupon is on target for revenues in the $4 billion region this year (it was $2.6 billion last year). That's more than the combined revenue of Facebook, Twitte
by ig1 15y ago
Groupon is on target for revenues in the $4 billion region this year (it was $2.6 billion last year).
That's more than the combined revenue of Facebook, Twitter and Linkedin last year (which were around $2.5 billion).
Groupon is a huge revenue machine, like it or not they are clearly a billion dollar company in an enormous untapped market.
- jpastika 15y agoRevenue can be a very misleading measurement of success. I agree that $4 billion in revenue is very impressive, especially considering the rate of Groupon's revenue growth, but overall losses and no profit plans any time soon, leaves me disappointed. What impresses me more is a company generating $10 million in revenue with $7 million in profit. Will Groupon eventually make money...maybe, but I'm not sure it will happen any time soon nor with their current business model. Groupon has two very valuable assets that I believe will eventually be used as the reasoning for an acquisition by Amazon or Google: 1) a large and growing list of consumers and 2) their buying habits.
- edw 15y agoYou should invest in profit machines, not revenue machines.
- run4yourlives 15y agoGroupon's expenses are larger than their revenue, and have been since inception. This is a Bad Thing. You could make an exception if unprofitably is caused by re-investment into a model that is proven to profitable but requires a certain level of scale. Groupon isn't doing that however. What they're doing is reinvesting the money into other people's pockets.