Groupon Keeps Growing AND Improving Profitability

Groupon had its first earnings call since going public yesterday, and the results were strong. Earnings per share for the fourth quarter fell to -$0.09, and excluding a one-time international tax charge they were -$0.02. The company also reported a quarterly operating profit for the first time in its history.

Interestingly, revenue growth was also up, to 19 per cent from 10 per cent in the previous quarter. In other words, Groupon is both growing fast and improving profitability.

Daily deals are anything but a flash in the pan or a ponzi scheme. But even more encouraging, it should put a damper on the fears (including ours) that when Groupon would begin to focus on profitability, growth would screech to a halt. That’s not happening yet.

Groupon EPS and Revenue Growth

Photo: Business Insider Intelligence

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