BA 231 Computers in Business Instructor: Matt GoffBecoming theOperating Orange Team:System for Errecart, Kristen Guzman, JenniferLocal Palacio, Jaylin Sessions, PamelaCommerce
Seeds Plantedin Pursuit of Mission Site and Email Mobile Personalization Adoption Groupon Groupon Rewards Scheduler
Something For EveryoneGroupon offers a varietyof deals on variousgoods and services:• Featured Deals• Getaways• Goods
CONSISTENT DEMAND FOR DAILY DEALS1Q 2012 Results:36.9 Million ActiveCustomersandServed More Than100,000 UniqueMerchants
Groupon’s Q1 Earnings BeatEstimatesAnalysts: $530 Million in RevenueGroupon: Between $510 and $550 MillionCompany Made $559.3 Million in RevenueDuring First Quarter of 2012 (up 89% year-over-year)Groupon’s Prediction for Next Quarter: Between $550 and $590 million
Groupon Earnings $559.3 Million in Revenue $540 $490 $440Revenue in Millions $390 $340 $290UP 89%FROM AYEAR AGO
Operating Income $20.0 -$30.0 Q1 Q1 2011 2012 -$80.0-$130.0 In One Year
MANAGEMENT Andrew Mason Founder And CEO Kal Raman Jason Child SVP CFOVinayak Hedge Suneel GuptaVP, Engineering VP, Product DevelopmentMargo Georgiadis Sean SmythCOO VP, Business Development Jeff Holden Ken Pelletier SVP of Product Management CTO
BOARD OF DIRECTORSPeterBarrisMellody HobsonBrad KeywellDaniel HenryRobert Bass
Groupon Is Likely toContinue GrowingSecond Quarter 2012 OutlookExpected Revenue for 2Q 2012: Between $550 Million and $590 MillionIncrease of 40% to 50% Compared with 2Q 2011Expected Income from Operations for 2Q 2012: Between $25 Million and $45 MillionCompared with a Loss from Operations of $101.0Million in 2Q 2011
Customer Base Still Increasing 40 35 30 25 Active Customers 20 (In Millions) 15 10 5 0 1Q11 2Q11 3Q11 4Q11 1Q12
Concerned About Other DailyDeal Sites That Have Popped Up?Groupon Has First Mover AdvantageGroupon Definitely Has a CommandingInternational Lead Over the Competition (Global Leadership Board of the Social Buying Market)Global Year-Over-Year Top Line Growth Unprecedented 426% as New Markets are Penetrated Groupon’s Business Model Proves Successful
Why Invest in Groupon? Consumer and Merchant Satisfaction Business Model Untapped Potential Reasons to Invest Widespread Success and Long-term Acquisitions Plans
Widespread SuccessBy the end of 2011: sold more than 170 million Groupons to more than 33 million active customers on behalf of more than 250,000 merchants in 48 countries around the world
Acquisitions 2011: Groupon Completed 11 Acquisitions Most Recent Acquisition: Breadcrumb an affordable point-of-sale system and an iPad app that will help local restaurants 1. Add Talent to the Team 2. New Clients Founder Seth Harris More Than 12 Years of Hospitality Management Experience
Business Model Brings the Power of the Internet to Local Commerce Bring Together Millions of Consumers and Hundreds of Thousands of Merchants Building a Brand that Merchants Deeply Trust
Consumers Love Groupon ForeSee, a Third-party Firm that Measures Customer Satisfaction Groupon Received a Score of 83 out of 100 Within Approximately 2 Points of the Average #1 Satisfaction Score for Online Retailers
Conclusion Widespread Success and Acquisitions Current and Future Demand for Daily Deals Seeds Planted in Pursuit of Mission First Quarter Earnings Beat Estimates Experienced Team of Professionals Strategic Long-term Plans Proven Business Model Customer and Merchant SatisfactionGroupon Soon to Become the OperatingSystem for Local Commerce!
References(2007-2012). Retrieved from Venture Beat Profiles: http://venturebeatprofiles.com/person/profile/ken-pelletierGroupon Key People. (2007-2012). Retrieved from VentureBeat Profiles: http://venturebeatprofiles.com/company/profile/groupon/key_p eople40 Under 40. (2011, October 25). Retrieved from CNNMoney: http://money.cnn.com/galleries/2011/news/companies/1110/gall ery.40_under_40.fortune/27.htmlAshton, K. (2010, December 20). Groupon Snags Jason Child as New CFO. Retrieved from Daily Deal Media: http://www.dailydealmedia.com/groupon-snags-jason-child-as- cfo620/Empson, R. (2012, May 30). Groupon Picks Up Breadcrumb For A Little Point- Of-Sale Magic. Retrieved from Seeking Alpha: http://seekingalpha.com/article/625831-groupon-picks-up- breadcrumb-for-a-little-point-of-sale- magic?source=email_rt_article_readmore&ifp=0Groupon. (2012, May 30). Corporate Governance. Retrieved from Groupon Investor Relations: http://investor.groupon.com/directors.cfmGroupon. (2012, May 30). The Easiest Rewards Program in the World. Retrieved from Groupon.com: http://www.groupon.com/inforewards
References(Continued) Images, S. O. (Retrieved May 28,2012). [Untitled photograph of Groupon logo and sillouette of a person]. Retrieved from http://www.cbsnews.com/8301-505123_162-57434031/groupon- loss-narrows-on-strong-growth/ Lardinois, F. (2012, May 14). Groupons Q1 Earnings Beat Estimates. Retrieved from Seeking Alpha: http://seekingalpha.com/article/588661-groupon-s-q1- earnings-beat-estimates?source=email_rt_article&ifp=0 Mason, A. D. (2012, May). Groupon Letter to Stockholders. Retrieved from investor.groupon.com: http://files.shareholder.com/downloads/AMDA- E2NTR/1870021308x0x566710/E32E9A54-B144-41D6-8833- 210812A92616/2011_Groupon_Letter_to_Stockholders.pdf Mukherjee, S. (2012, May 15). Groupon shares jump on upbeat Q1 results. Retrieved from Reuters: http://www.reuters.com/article/2012/05/15/us-groupon-shares- idUSBRE84E0L420120515 Pinkasovitch, A. (2012, January 6). Shorting Groupon. Retrieved from The Motley Fool: http://beta.fool.com/apinkasovitch/2012/01/06/shorting- groupon/552/#disqus_thread
References(Continued)Soo, J. (2011, October 1). Groupon Rewards To Convert Bargain Hunters to Repeat Customers . Retrieved from excitingcommerce.com: http://www.excitingcommerce.com/2011/10/gr oupon- rewards-to-convert-bargain-hunters-to-repeat-customers- .htmlSwisher, K. (2011, April 21). Google Confirms That Groupon COO Will Be Googles Margo Georgiadis. Retrieved from All Things D: http://allthingsd.com/20110421/groupon-coo-will-be- googles-margo-georgiadis/
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