As Groupon makes moves to launch an IPO, there’s one overriding truth that has everyone from Wall Street to the SEC nervous. And that is, will Groupon continue to be a profitable company going forward? Charts like the one below would suggest that Groupon is, in fact, struggling to grow and expand. And with revenues dropping as dramatically as they are in markets like Boston, then it’s going to be a tough sell to investors no matter how it presented.
Here’s a chart from BI showing Groupon’s revenue growth over the past 12 months in Boston. And as you can see, the daily deal site might find that it’s toughest neighborhood to close a deal in might just be Wall Street:
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