Groupon's quarterly earnings surpass expectations
Since yesterday’s blog post, Groupon’s latest quarterly report has been published showing its earnings so far this year, surpassing expectations and predictions.
After a number of financial issues, the daily deals website has made a net profit for the first time and their revenue of $559.3 million is a huge 89% year-on-year increase.
Since publishing the report, Groupon’s stock has increased by more than 18% in after-hours trading so things are looking far more positive now, particularly in comparison to the 50% loss in value Groupon’s shares saw after its IPO eleven months ago.
Groupon’s chief executive recently explained that the company has benefitted greatly from technological advances and an increase in deals available closer to users.
He said: “Proximity of deals is the number-one driver of purchase behaviour, so by getting more dense deals, we are able to use our technology to provide better targeting to customers and give them deals that are more relevant to them.”
It has also helped that marketing expenses have been able to be reduced from 78% of revenues in the last quarter of 2011 to just 21% as the brand has become better known.