Thursday, 11 August 2011

Groupon's quarterly losses trebled Y-o-Y in Q2 2011

"Daily deals juggernaut Groupon managed to significantly slash marketing costs last quarter, but its net loss in the second quarter of this year has almost tripled compared to last year as it hired more than 1,000 new employees, according to an SEC filing published this morning. Basically, the company is still growing like gangbusters but losing money like crazy in the process.
The updated financial details show that Groupon increased revenue from $3.3 million in Q2 2009 to $878 million in the second quarter of 2011, while net income swung from $21,000 for the second quarter of 2009 to a staggering net loss of $102.7 million for the second quarter of 2011.
The reported net loss is in line with the first quarter of 2011 but nearly triple the $36 million loss from Q2 2010. Groupon hired more than 1,000 employees in the 3-month period – growing its sales force to more than 4,800 people – which caused a serious bump in ‘general and administrative expenses’.
In total, Groupon grew from 37 employees as of June 2009 to 9,625 employees as of June 2011."
Source:  SEC filing from Groupon, reported by TechCrunch, 10th August 2011

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