How Big Is Groupon’s Business and How Fast Is It Growing?
On April 16, 2010, Groupon had 31 deals, 45,910 paying customers and sold nearly $1.3 million worth of coupons. This was a significant increase from the 17 deals, 10,018 customers and $240,000 in gross sales it had on November 6, 2009. Along every measurement I looked at—the number of deals /day, average customers/deal, average deal price, average gross revenue/deal—Groupon is seeing tremendous growth. Of particular importance is that its average deal price is increasing (from $24.65 to $44.94) and it is rapidly opening up new markets. All of this is what is causing Groupon’s revenues to scale quickly. Assuming a 30% revenue share, Groupon netted $72,000, last November for a monthly run rate of close to $1.5 million, assuming 20 deal days each month. In April this had jumped 5X to $380,000, implying a monthly run rate of $7.6 million. As you can see from the chart below, not only is the number of deals increasing, but the number of customers per deal more than doubled and Groupon was a
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