Let’s re-group on Groupon Inc (NASDAQ:GRPN)

Posted by George Brook August 22, 2013 0 Comment 2550 views

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.

Revenue rise

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.

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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