Groupon Made $1.6 Billion In Revenue In 2011
Well so much for reading Groupon its last rites. Instead of dying, the company has gone from struggling daily deals website to quoted company, and now one that is not doing too badly where revenues are concerned.
In its first earnings call since going public last October, the company is revealing revenues of $1.6 billion for the year 2011—a figure which represents a whopping 419% growth on 2010’s revenues. This massive growth is tempered only by the news that the company is still losing money–$350 million at the end of last year. But, there’s a silver lining because according to Groupon, much of these losses are as a result of international expansion. The company currently employs over 10,000 people, 7,000 of which are oversees.
Groupon’s US numbers weren’t half bad, and it recorded an operating profit of $22 million. Had it not been for international losses, the entire ship would be steady. Despite a few struggles in the middle of the year, Groupon still managed to end the year with a customer base of 33 million—a figure which represents a 275% growth on the numbers for 2010.
So does this mean that the daily deals model is very alive? Perhaps; but Groupon will still need to sleigh its arch enemy, LivingSocial if it’s to keep raking the sort of cash it did in 2011.
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