The IPO mad dash is on – Groupon IPO

Hot on the heels of the LinkedIn IPO, Groupon has filed an S-1 with the SEC to hold an IPO.  The Groupon IPO is expected to raise $750M.  Zero Hedge points out the key performance statistics of the company:

  • Q1 Revenue: $644 million, up from $44 million a year prior
  • Q1 Gross Profit: $270 million, 41.9% margin, up from $20 million a year prior, and down from the margin of 45.5%
  • Q1 Loss from operations: ($117) million compared to $8.5 million profit a year earlier.
  • Q1 subscribers: 83.1 million, up from 3.4 million
  • Q1 cash flow: $6.978 million down from $12.0 million a year earlier
  • Cumulative customers: 15.8 million, up from 874K
  • Featured merchants 56.781 up from 2,903
  • Groupons sold: 28 million compared to 1.76 million
  • Cash balance: $208.7 million; Working capital deficit: ($228.7) million
  • Total Assets: $541.4 million, Total Liabilities: $14.8 million
  • Total shares outstanding: 296,140,145

There is definitely growth there, but the cost to serve and grow is weighing on margins and cash flow.  How this stock will perform post-IPO is anybody’s guess.  However I would caution our readers to look at LinkedIn (LNKD) since it started trading. If you were some of the of the people that “had to have the stock” the first day it opened, you could have bought at $100, $110 or even $122 a share.  The price today is now $78, below the $80 opening IPO price.

Linked In Stock Chart

Groupon files for $750M IPO | TechCrunch

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4 Responses to “The IPO mad dash is on – Groupon IPO”

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