Groupon CEO: Moving fast is key to success

May 07, 2012

(AP) -- Groupon CEO Andrew Mason says the online deal company's business continues to improve, though he acknowledges in a letter to shareholders that the six months since its initial public offering have been "rocky to say the least."

Mason told Groupon Inc. shareholders Monday that the company's goal is to become the operating system for local commerce. Groupon, he wrote, is transforming from a daily deal provider to a local commerce platform, and it won't happen overnight.

He reminded investors that he warned them in the company's IPO documents that the road might be bumpy - "an unfortunate side effect of our unprecedented growth." Groupon has more than 11,000 employees just three-and-a-half years after its founding.

"Why move so fast? We believe that Groupon is standing before an enormous opportunity, one that hundreds of competitors large and small have seen," he wrote. "Although there are risks in moving too fast, companies often don't survive long enough to apologize for moving too slow."

Groupon's stock is trading at about half of its IPO price, closing Monday at $10.46. It priced at $20 when Groupon went public in early November.

The Chicago-based company has gone through some rough patches. In March, it restated its quarterly financial results, explaining that it lost more than it initially reported because it had to pay out more refunds than expected. And last week, it replaced two of its board members, adding executives with more accounting experience.

Explore further: BofA to refund Apple Pay customers charged twice

More information: Online: http://www.groupon.com/blog/cities/todays-stockholders-letter/

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Report: Groupon may delay IPO

Sep 06, 2011

Groupon Inc. may delay its plans to go public due to concerns about the stock market's stability, according to a report.

Groupon files for IPO, seeks to raise $750 million

Jun 02, 2011

Rapidly growing online coupon seller Groupon Inc. is offering its most tantalizing deal yet - an initial public offering of stock likely to intensify a debate about whether an investment bubble is forming ...

Groupon acts locally with $10 credit offer

Dec 19, 2011

(AP) -- Groupon is thinking locally. The online deals site is offering a $10 credit to the first 150,000 people who purchase a local Groupon by Dec. 24.

Groupon's public valuation close to $20 bln: report

Apr 15, 2011

US coupon deals website Groupon will likely pick Goldman Sachs Group and Morgan Stanley to be principal underwriters for its public offering later in the year, valuing the company at up to $20 billion, the ...

Groupon IPO expected in October-November: report

Sep 15, 2011

Bargaining website Groupon's planned IPO is back on track after a run-in with regulators and it hopes to go public in late October or early November, the New York Times reported Thursday.

Zynga plans to raise up to $1.15B in IPO

Dec 02, 2011

(AP) -- Online game maker Zynga says it plans to raise up to $1.15 billion in an initial public offering of 115 million shares in the latest in a spate of Internet IPOs

Recommended for you

Nokia turnaround since handset unit sale continues

1 hour ago

Nokia appears to have turned around its fortunes after the sale of its ailing cellphone unit to Microsoft, reporting a third-quarter net profit of 747 million euros ($950 million), from a loss of 91 million euros a year earlier. ...

Yahoo CEO defends strategy in face of criticism

1 hour ago

Signaling her reign has reached a pivotal juncture, Yahoo CEO Marissa Mayer is trying to convince restless shareholders that the long-struggling Internet company is heading in the right direction.

Sk Hynix logs all-time high Q3 earnings

1 hour ago

SK Hynix, the world's second-largest memory chip maker, reported Thursday a record high quarterly net profit for the three months to September on strong sales and currency earnings.

User comments : 0