Over the past few years, the number of Groupon shoppers has fallen sharply. From nearly 54 million unique customers purchasing at least one offer on the site in the fourth quarter of 2014, this figure shrank to 16.1 million buyers by the first quarter of 2024.
Company situation at a glance
Slumping customer numbers have taken a significant toll on Groupon's revenues. In 2022, Groupon's global revenue was around 599 million U.S. dollars, far less than half of what it recorded at its peak in 2016. In large part due to the COVID-19 pandemic, 2020 was particularly difficult for the deal-of-the-day business, posting a net loss of some 286 million dollars. In 2021, the company accumulated over 120 million U.S. dollars of net income, a major increase after the loss in the previous year. However, the recovery was short-lived as the company recorded a net loss of 234 million dollars in 2022.
Groupon's mobile app
In addition to the website, Groupon customers can browse, shop, and redeem deals directly from the mobile app. In 2023, there were 441,000 monthly downloads of the Groupon application across the globe. While the United States, its birthplace, ranks as the top country for downloads of the app - with more than 3.5 million downloads recorded that year. The United Kingdom represented the second-highest downloads of the Groupon app, with 492,000 downloads, followed by Italy at 475,000 downloads.
FAQs
Number of Groupon active customers 2009-2024
How many merchants does Groupon have? ›
Groupon has worked with over a million merchants globally to pump more than $20 billion into local businesses to date. Gain unlimited visibility into your campaign's performance.
What is the use of Groupon? ›
Groupon is a website and mobile app that offers coupons, cashback on purchases and group deals to consumers. Restaurants, retailers, and manufacturers use Groupon deals in an effort to lure customers into their establishments or to purchase their products.
How much revenue does Groupon make? ›
In 2023, the daily deal website Groupon generated an annual revenue of nearly 515 million U.S. dollars. This figure has steadily decreased in recent years. The coupon company reached its highest global revenue in 2016 at just over 3 billion U.S. dollars.
Why is Groupon not popular anymore? ›
Groupon faced a deluge of competition from other platforms, many of which it acquired. Google's changes to subscription emails dented Groupon's open rates in 2013; in Q3, Groupon reported a $2.6m net loss. The platform struggled to diversify; attempts to offer physical goods faltered.
How many people still use Groupon? ›
Over the past few years, the number of Groupon shoppers has fallen sharply. From nearly 54 million unique customers purchasing at least one offer on the site in the fourth quarter of 2014, this figure shrank to 16.1 million buyers by the first quarter of 2024.
Is Groupon still active? ›
Today, it's still operating but is losing money and is on track to run out of cash within the next year. Groupon's rise and fall is a stark reminder that not all that glitters is gold. It's a lesson in the importance of sustainable growth, the dangers of overhype, and the need for a solid, profitable business model.
Why is Groupon so cheap? ›
“As a pay-only-for-performance marketing channel, we don't take anything upfront from our merchants.” In order to make an offer enticing to shoppers, businesses may have to offer a discount that significantly reduces their profit, and Groupon users may not turn into repeat customers.
Why did Groupon fall? ›
Declining revenue, high marketing spend, unprofitable
Revenue fell 3% year over year to $124.6 million. Investors hate shrinking revenues, so this was a negative right off the bat. Further down the income statement, it gets even worse. Groupon spent $36.5 million on marketing in the quarter, or 32% of gross profit.
What is the future of Groupon? ›
GRPN Stock 12 Month Forecast
Based on 3 Wall Street analysts offering 12 month price targets for Groupon in the last 3 months. The average price target is $19.67 with a high forecast of $26.00 and a low forecast of $11.00. The average price target represents a 79.80% change from the last price of $10.94.
Full Year 2023 Key Highlights
Gross profit was $450.7 million in 2023, down 14% (14% FX-neutral) compared with $522.8 million in 2022. Net loss was $52.9 million in 2023, compared with net loss of $234.4 million in 2022. Adjusted EBITDA was positive $55.5 million in 2023 compared with negative $15.1 million in 2022.
Who owns Groupon? ›
Bradley Keywell owns the most shares of Groupon Inc (GRPN).
How much debt does Groupon have? ›
Total debt on the balance sheet as of June 2024 : $0.23 B.
Does Google own Groupon? ›
Google offered to buy Groupon, then a two-year-old local e-commerce startup, for $5.75 billion in the fall of 2010. But the deal fell through for three main reasons, according to writer Frank Sennett, the author of a forthcoming book on the company. Google offered a $800 million breakup fee.
Will Groupon survive? ›
Its Stock Is Tumbling. Remember Groupon? The Chicago-based internet-deals site went public nearly 12 years ago, with high hopes for gaining a foothold in online commerce and an initial market cap of nearly $13 billion.
How much does Groupon pay merchants? ›
Groupon handles the purchasing process from there. After the deal is live, Groupon collects the revenue earned from your product or service sales and distributes them to you every 30 days. They usually take around 50% of the profit you receive from selling your product on their service.
Who is Groupon owned by? ›
Groupon, American e-commerce company that offers deep discounts, usually 50–90 percent, for popular products and services by using a group discount model. The company's name is a portmanteau of group and coupon. Groupon was cofounded by Andrew Mason, Eric Lefkofsky, and Brad Keywell in 2008.
