Let’s re-group on Groupon Inc (NASDAQ:GRPN)
Let’s face it, despite all its shake-up’s Groupon Inc (NASDAQ:GRPN)’s customer-base is ever-increasing; it has an excellent business model and a healthy take-rate. Somehow, all these are indications that many people would have a bullish take on the company. In addition GRPN has delivered strong fiscal results in the recent quarters.
It has also been expanding its active-deal offerings to tap all available growth-opportunities and also to grow its active customer-base. In addition, analysts have estimated that the company will have a hearty 24% /annum growth-rate for the next 5 years.
In recent quarters, the company’s revenues have also been on the rise. GRPN reported total revenues of $609M for the 2013 Q2 which was up by 7% on a year on year basis. This topped analyst projections by $7M. North America as well as the international markets accounted for 62% and 38% respectively. In the 2013 Q2, revenues from the North American segment rose by 45% and the revenues from the international segment were $232M, which was a 25 percent y-o-y rise.
The increase in total revenue has been attributed to an increase in the active customer-base and also in higher gross- billings. The company has also successfully expanded its gross-billing by 10 percent y-o-y for the quarter.
The smartphone effect
In recent years, a larger number of people have begun using smartphones and GRPN is one company that has benefited greatly from this trend. In the 2013 Q2, there was a 30% y-o-y rise in mobile-device transactions. In addition, around 7.5M GRPN mobile-apps were downloaded in the Q2. This added to the growth in revenue. In the recent quarter, the company also added 0.9M active-customers and its active customer-base has now expanded to 42.6M which is a rise from the 38M that it stood at, in the same quarter, last year.