Groupon's Q2 revenue rises, but net income free falls
Groupon earned $878 million in second-quarter 2011 revenue, an increase of 906% compared with the prior year. However, the company reported a $102.7 million net loss in the period. The daily deals service has not posted a profit since the first quarter of 2010.
Groupon's merchant base grew by 720% since last year to 78,466 merchants in the second quarter. Its subscriber base also rose to 115.7 million consumers, up 1,007% year-over-year. However, average revenue per subscriber shrunk to $9 from $13 last year. More than 32 million Groupons were sold in the second quarter, a 295% increase year-over-year.
Groupon spent $378.7 million on marketing in this first half of this year, 43% more than all of last year.
Groupon filed paperwork to go public on June 2 but has yet to set a date for its initial public offering (IPO). CNBC reported last month that Groupon delayed its IPO after the US Securities and Exchange Commission asked the company to revise its accounting metrics, which were derided for excluding subscriber acquisition costs. Groupon revised those metrics in the regulatory filing amended to detail the company's second-quarter earnings.