Groupon reveals a loss of $ 540 million IPO and listing

While preparing to file its IPO Groupon, submitted by the site specialist group purchases to the SEC brings up a net loss of 540.2 million dollars since its inception in 2008. Expected to be one of IPOs event of the year, following similar successful LinkedIn RenRen and Yandex, the site reveals a net loss of $ 413 million in 2010, and already nearly 114 million in the first quarter 2011 . Groupon, which is valued between 15 and 20 billion, hopes to raise $ 750 million during its IPO and did not report the number of shares offered for sale.

These losses contrast with the predictions of analysts, especially with the fact that the site relies on a bulk purchase solid business model, which, like many e-commerce sites, generates margin. Provided growth remains impressive Groupon, 1.8 million Internet users in late 2009, the site now has nearly 83 million subscribers. Its turnover was 94 000 dollars in 2008, against 713.4 million dollars in 2010 and could exceed $ 2.4 billion in 2011.

The loss of the site can be explained by the numerous acquisitions made by Groupon International (which Citydeal in Europe) and especially by the high cost of personnel, since the site has grown from 37 employees in June 2009 to over 7100 employees recorded at 31 March 2011, largely composed of business. The site is also facing increased competition with nearly 500 similar sites in the world. For this, Groupon has expanded its offering to travel and has recently launched Groupon Now the U.S., a service dedicated to mobile marketing investments and more important.


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