Groupon Releases Shocking Numbers

Prominent daily deal company, Groupon, has gone through its share of backlash and doubt from the media, the industry and some consumers, but with the release of their Q3 today, this may all change. Rather than falling off the bandwagon this quarter, Groupon’s Q3 report shows the company unexpectedly broke even.

Numbers in the Spotlight:

Highlights of the somewhat notorious daily deal company’s Q3 included significant changes in revenue and operating income. Gross billings growth increased 24% consecutively, accumulating about $1.2 billion for the quarter. Revenue growth on the other hand, grew at a slower rate of 9% resulting in $430 million.  Customer base did continue to grow, striking the 29.5 million mark, even through a lower marketing spend.  As expected, marketing spending dramatically dropped, as Groupon attempts to lessen their image as any type of “Ponzi” scheme-based company. Lastly, “free cash flow” increased to $60 million, assumingly as a result of Groupon continually collecting cash far in advance of making payments to merchants.

The end result: Groupon broke even.

Consequently, Groupon’s operating loss decreased significantly to 239,000 in Q3, a drop of over $100 million compared to the roughly $101 million in Q2. All in all, there were some single-quarter gains when stock-based compensation is excluded.  Comparatively, operating losses were $2 million with stock-based compensation is excluded, rather than the $60 million in Q2.

What does this mean for Groupon? The company is here to stay. What does this mean for the Daily Deal Industry? It’s a huge boost for an industry that’s been slammed with bad news lately.

Check out our video “Inside Groupon” to see my exclusive tour of the Groupon headquarters: Inside Groupon II – With Boyan Josic – Daily Deal Media

Source: Business Insider

Image Source: Silicon Alley Insider