Companies and Brands
Groupon Files For IPO (GRPN, GOOG, AMZN, TZOO, RLOC, LOCM)
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Groupon, Inc. has just filed for an initial public offering. No terms were disclosed other than that the sale is for up to $750 million in common stock. The company plans to trade under the stock ticker “GRPN” but it has not selected the New York Stock Exchange or a NASDAQ listing as of yet. Yet one more of our Top 17 IPOs to Watch in 2011 is coming public. Google Inc. (NASDAQ: GOOG) tried to acquire this company, but the offer was turned down.
One warning we have made is that everyone may be competition ahead. Just a few are Google Inc. (NASDAQ: GOOG), Amazon.com Inc. (NASDAQ: AMZN), Travelzoo Inc. (NASDAQ: TZOO), ReachLocal, Inc. (NASDAQ: RLOC), Local.com (NASDAQ: LOCM), and more. The social couponing website said that it now has over 7,000 employees offering more than 1,000 daily deals, and it offers those to more than 83 million subscribers in 43 countries. More statistics are as follows:
The only underwriters so far as listed as Morgan Stanley, Goldman Sachs, and Credit Suisse. As of March 31, 2011, Groupon had some $208.68 million in cash and cash equivalents. The latest valuation we have seen is somewhere in the $20 billion range. Whether or not you trust that value is something we will let you decide upon for yourself.
There are a few things that investors need to know here. There is a CEO letter attached from Anrew Mason that notes, “Our customers and merchants are all we care about…..” and then it also notes, “We don’t measure ourselves in conventional ways.” Whoops, that may not work for investors and valuation.
The letter goes on to note… “There are three main financial metrics that we track closely. First, we track gross profit, which we believe is the best proxy for the value we’re creating. Second, we measure free cash flow—there is no better metric for long-term financial stability. Finally, we use a third metric to measure our financial performance—Adjusted Consolidated Segment Operating Income, or Adjusted CSOI. This metric is our consolidated segment operating income before our new subscriber acquisition costs and certain non-cash charges; we think of it as our operating profitability before marketing costs incurred for long-term growth.”
Experian Hitwaise also just sent us over some key statistics….
Also noted by Experian Hitwise was the following: Regarding the Expedia.com deal – Group Buying sites sent 5% of visits to Travel sites last week. That represents a 16% increase in referral traffic from Group Buying sites to Travel sites comparing last week vs. same week in 2010.
The full S-1 IPO filing is here.
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