It’s cool to hate Groupon.It’s cool to snicker with tech friends and diss Groupon as a people-powered business that will “never make money” and will soon “go bankrupt.”
It’s cool to scoff at Groupon’s former grad student CEO Andrew Mason.
And so on.
It’s so cool to hate Groupon, in fact, that it’s almost as cool as it was to hate Amazon back in the 1990s, when all the cool people agreed that Amazon could “never make money” and was going to “go bankrupt.”
And we know how that one turned out.
Anyway, it will probably stay cool to hate Groupon for a little while longer, until one of the cool Groupon haters actually looks at the facts and realises that the company has already proven the haters wrong.
Because it turns out that Groupon actually CAN make money.
And it can make money while CONTINUING TO GROW.
Which means that cutting marketing spending sharply won’t actually be the death of Groupon.
In the just-reported Q4, Groupon booked operating income of $15 million and strong sequential growth.
And Groupon is forecasting solid growth and profitability for Q1, which is almost half over.
That’s an inconvenient truth for folks snickering that Groupon “can’t make money,” isn’t it?
Maybe it’s time for them to quietly admit that they were wrong?
(Please don’t start in with the “but they lost money on the net income line.” That “loss” was the result of a big international tax bill and some equity interests. Groupon’s business is now profitable. So the “they can’t make money” line is ridiculous.)
(Also, please don’t tell me that the stock’s overvalued. I know that. That’s why I said “Enjoy The Ride, Groupon Investors, I’m Outta Here!!!“. Groupon’s growth is decelerating rapidly, and that’s generally hell on stock prices. But this conversation isn’t about the stock. It’s about the company. And if you have said “Groupon can’t make money,” you’re wrong. So just admit it!)
SEE ALSO: Groupon Reports Q4 Results
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