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The results are disappointing to analysts, but surprisingly good to me. I read this as "Groupon cuts marketing expense by 25%, manages to triple revenue (YOY) t
by pitdesi 15y ago
The results are disappointing to analysts, but surprisingly good to me. I read this as "Groupon cuts marketing expense by 25%, manages to triple revenue (YOY) this quarter." They are in MUCH better shape than LivingSocial (lost $558mil on revenues of $245mil in 2011 http://www.washingtonpost.com/business/economy/livingsocial-lost-558-million-in-2011/2012/02/01/gIQAjId3hQ_story.html?tid=sm_twitter_washingtonpost http://www.washingtonpost.com/business/economy/livingsocial-...)
Groupon had $507 million in revenues this QUARTER, and lost $43 million. My guess is that if they wanted to lower expenses with their current model, they could cut the writing staff pretty significantly. From talking to friends there, at the moment the writers write 5 deals per day... They could easily do some huffpo style shit and cut that staff in half. They also are planning to get in deeper with their merchants... remains to be seen how it goes, but will be interesting.
(edited to add YOY - thanks for the correction vladd)
- vladd 15y ago> manages to triple revenue this quarter Quarter revenue was tripled on a year-to-year basis (2011 Q4 versus 2010 Q4). > if they wanted to lower expenses they could cut the writing staff pretty significantly Based on the earnings call, staff expenses are actually about to increase as GRPN will start to hire more tech on its payroll (Silicon Valley software engineers).
- D-mo 15y agoGood point. Writers are paid around $37k/yr according to Gawker, whereas an engineer is at least 2x that. http://gawker.com/5806961/groupon-simply-cant-afford-to-pay-its-writers-well http://gawker.com/5806961/groupon-simply-cant-afford-to-pay-...
- bennesvig 15y agoThe writing was a draw at first, but now I never read the copy. Just scan whatever deals they have that day.
- dfriedmn 15y agoI wonder whether the inability to measure repeat visitors is just because they haven't figured out how to offer it yet, or whether it's intentional because they know it will reveal damaging information to merchants (that running one doesn't make long-term sense). Unclear what the answer is here...