Groupon updates IPO filing, admits it's unprofitable
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Groupon updates IPO filing, admits it's unprofitable
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Re: Groupon updates IPO filing, admits it's unprofitable
#2The juice that we're all looking for:
> On that basis, Groupon incurred a $420 million operating loss for 2010 and a $117.1 million loss in the first quarter.
So they had a slightly worse amortized 1st quarter this year than last.
Re: Groupon updates IPO filing, admits it's unprofitable
#3It has always admitted it's unprofitable - they dropped their BS accounting metric trying to show that with some magic they were making a profit.
To be honest their filing reeked so bad and them trying to slip in that crap and not account for marketing expenses - I wouldn't trust their executive team at all.
Re: Groupon updates IPO filing, admits it's unprofitable
#4The juice that we're all looking for: > On that basis, Groupon incurred a $420 million operating loss for 2010 and a $117.1 million loss in the first quarter. So they had a slightly worse amortized 1st quarter this year than last.
MarketWatch puts it succinctly: 'the bigger Groupon gets, the more it loses'. Although it's not the firm's fault, the timing of this filing amendment couldn't be worse - investors are likely to psychologically associate it with the market instability. Not that I'm qualified to dispense investment advice or anything, but my bet is that this offering will either be under-subscribed or the firm will end up under-capitalized and the founders will get ejected within a year of being listed.
http://www.marketwatch.com/story/the-bigger-groupon-gets-the...
Re: Groupon updates IPO filing, admits it's unprofitable
#5Groupon not selling to Google was the dumbest thing I've ever seen a company do.
Ever.
Re: Groupon updates IPO filing, admits it's unprofitable
#6Groupon=Bubble
Re: Groupon updates IPO filing, admits it's unprofitable
#7The juice that we're all looking for: > On that basis, Groupon incurred a $420 million operating loss for 2010 and a $117.1 million loss in the first quarter. So they had a slightly worse amortized 1st quarter this year than last.
No worries:
We exclude those costs because, unlike our other marketing expenses, they are an up-front investment to acquire new subscribers that we expect to end when this period of rapid expansion in our subscriber base concludes
See? Once they acquire all of their subscribers, they will never have to acquire subscribers again. Then they can just rake in the dough.
Re: Groupon updates IPO filing, admits it's unprofitable
#8Groupon not selling to Google was the dumbest thing I've ever seen a company do. Ever.
So, does that make Google offering to buy Groupon also one of the dumbest things you've ever seen a company do?
Re: Groupon updates IPO filing, admits it's unprofitable
#9Groupon not selling to Google was the dumbest thing I've ever seen a company do. Ever.
So, does that make Google offering to buy Groupon also one of the dumbest things you've ever seen a company do?
It's relative. Google has piles of money and the means of making more; if they make a mistake in spending their pocket change, it's no biggie. But Groupon has piles of debts, and their runway is getting shorter.