Those who purchase e-coupons scour for deals rather than return to purchase again once the deal is over, studies have shown. Bad news for businesses offering deals through Groupon’s coupons, since they are seeking to expand their own base of customers.
Groupon missed its projected revenues for the third quarter this year, taking in $568.6 million — below an expected $580 million to $620 million. It also sells goods, a la Amazon, but the company posted a net loss of $3 million. About 40 million people purchased a Groupon offer this year, up from 15.4 million at the same time last year, but year-on-year growth rate of quarterly revenues has plummeted. Gross billing per customer has also dropped nearly 12%.
“Our stock is going to reflect our long-term performance. I don’t think you can talk the stock back up to 20 bucks. You have to deliver,” said Groupon founder and CEO Andrew Mason at the Business Insider Ignition conference in New York City. He just kept his job by the skin of his teeth, and we hope he takes his own advice. This deal is subject to expire when his term does.
- Investment & Company Information