Groupon’s Revenue Numbers Worsen

Groupon posted a revised financial statement lowering its revenues to $393 million in the second quarter of 2011, compared to initial $878 million, according to its S-1 registration statement. In fact, the company shifted from a gross measure of revenue to a net one, losing some $400 million in revenue in the process.

Groupon Revenue Down

The news might jeopardize the company’s planned $750 million IPO and force market analysts to re-evaluate the company’s valuation, which now stands at $ 20 billion by more than a half. In addition, a second COO is leaving the company in less than a year with Margo Georgiadis returning to her previous employer Google. Earlier, Rob Solomon spend only two months as COO of Groupon, which also fuels rumors there is something wrong in the business model of the company, according to market analysts.

LivingSocial, Groupon’s closest competitor, is close to finalizing a $200 million IPO that will value the company at $6 billion and will give them a boost over competitors Groupon in case they are able finalize an IPO before Groupon. The the U.S. Securities and Exchange Commission (SEC) put Groupon’s IPO under scrutiny over its accounting practices, barring the company from going public until its accounting practices are put in compliance with the U.S. accounting standards.

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