Groupon sent vouchers via e-mail to its subscriber base, offering discounts at local merchants. The vouchers were issued only after a critical number of subscribers expressed interest. At that point, Groupon charged those subscribers for the purchase and recorded the entire proceeds as revenue. Subsequently, when the subscriber redeemed the voucher with the merchant, Groupon remitted a portion of the proceeds to the merchant and retained the remainder. ...

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THE RISE

By the end of 2009, Groupon had spread to 28 US cities and had a presence in international markets including Germany, France, Italy, Spain, the UK, Switzerland, and Belgium. It had just over 150,000 subscribers. Reportedly, revenue jumped from US$94,000 in 2008 to over US$30 million in 2009. According to industry observers, Groupon had revived the concept of couponing for the Facebook and Twitter generation....

GROWING PAINS

Soon after going public, the company’s auditors required Groupon to disclose a material weakness in its internal controls over financial reporting which was impacting its disclosures on revenue and its estimation of returns..

THE ROAD AHEAD

In the third quarter ended September 2016 Groupon’s revenue was US$720.5 million as against US$713.6 million in the third quarter of 2015. The company posted a net loss of US$35.8 million in the quarter. In 2015, the company also sold its controlling stake in Ticket Monster . With slowing demand for daily deals, Groupon began moving away from its daily-deal roots, converting itself into an online marketplace. The company planned to venture into areas like mobile commerce and building specific vertical businesses such as restaurants and travel...

EXHIBITS

Exhibit I:Groupon Business Model
Exhibit II: Ten Start-ups that Reached Unicorn Status the Fastest
Exhibit III: Key Financials of Groupon Inc.