- Groupon's biggest problem is that everybody thinks that Groupon is dead. The company generates just over $200m in sales per quarter around break-even mark.
- Outsourcing of goods and focus on services should have unlocked the growth; however, Q3 numbers were disappointing. Recent partnerships with Square and Google Pay may turn the tide.
- We remain bullish in Groupon as the company has huge operating leverage after doing its homework on repairing relationships with merchants. Groupon still has 24m customers it can activate.
- However, if the company is not able to produce 30% y-o-y revenue growth in the next three quarters, we will throw in the towel.
For further details see:
Groupon Urgently Needs To Deliver Double-Digit Quarterly Growth