Groupon has released its second-quarter earnings for 2012. Investors hate them.The company and its CEO, Andrew Mason, have a lot to prove, of course. But there’s one thing that the online-discounts company deserves credit for.
And sure enough, Groupon has reduced marketing as a percentage of revenues from 54 per cent in the second quarter of 2011 to 15 per cent in the most recent quarter.
In the earnings call, Mason said the company used technology to cut costs by 58 per cent by improving how it “allocated” marketing spending.
Growth has slowed down. Active customers are still up in the most recent quarter, but they only grew from 36.9 million in the first quarter of the year to 38 million in the second quarter.
And Mason said that the company needed to increase its brand awareness in Europe, where most of its international business comes from.
Here’s the slide: