Groupon Lost More Than $100 Million Last Quarter – Again

[Aristotle]

Wow.


Groupon Lost More Than $100 Million Last Quarter – Again – As Hiring Costs Jump

The updated financial details show that Groupon increased revenue from $3.3 million in Q2 2009 to $878 million in the second quarter of 2011, while net income swung from $21,000 for the second quarter of 2009 to a staggering net loss of $102.7 million for the second quarter of 2011.

The reported net loss is in line with the first quarter of 2011 but nearly triple the $36 million loss from Q2 2010. Groupon hired more than 1,000 employees in the 3-month period – growing its sales force to more than 4,800 people – which caused a serious bump in ‘general and administrative expenses’.

In total, Groupon grew from 37 employees as of June 2009 to 9,625 employees as of June 2011.

So Groupon is now up to almost 10,000 employees, over $3 billion in annual revenue, but is losing almost half a billion bucks a year.

WTF?

Anyone use this? Anyone have a business that uses this?

[Aristotle]

This is another interesting article about Groupon that shows how it is a really bad deal for businesses. It alleges that Groupon's real business is to basically operate as a loanshark.


Why Groupon Is Poised For Collapse

[Ashyr]

I just signed up with Groupon as I'm interested in the coupons they have for a lot of the museums, zoo's, and resteraunts in my area. Also they have a few good deals here and there for stocking up on things like wine and beer.

With all that said though, I have yet to actually purchase anything through them. I've come very close and know a few people who have (and convinced me to sign up in the first place), but haven't been able to push the "buy" button just yet.

[Qenton]

Wow. From the look of it, Groupon can just absolutely no lube stick it up to the elbow in the Merchants if they aren't completely 'compliant' based on the paraphrased merchant agreement I just read. Absolutely brutal.

[Ismenia]

I actually bought a Groupon for a BidMyCrib to come paint two rooms in my house. It was horrendous!!! I had the rooms all cleared out and prepped and they called me at 10:30 the night before to cancel or change the appointment for a month from our appointment. The rooms belonged to my little girls, so I couldn't have them empty for a month! I ended up painting the rooms myself. I think BidMyCrib got in way over their heads.

Groupon was great about refunding my money though. I was satisfied with that aspect of it. I have heard before that some companies, ie painters, masseuse services, etc. have bitten off more than they could chew. They get so overwhelmed by the sheer numbers that are buying the groupons that they can't provide quality services.

I did just buy a groupon for a online photobook, so I will have to see how that goes. I might be a glutton for punishment. Though I think it will be more successful.