You Should Move On From Groupon
Estimize | Aug 02, 2018 01:46PM ET
Groupon (NASDAQ:GRPN) is set to report this Friday, August 3rd and things are not looking so good for the coupon/voucher services company. Earnings per share (EPS) is projected to increase by a whopping 1¢ from the previous quarter (Q1 2018). In terms of year over year (YoY%) that is technically a 100% increase. However, going from $0.02 (Q2 2017) to $0.04 (proj. Q2 2018) in a year is not a strong indicator of growth.
Furthermore, Groupon’s acquisition rate of North American Active Customers is projected to grow only by 3% (YoY). This increase is much smaller when compared to the same quarter last year (Q2 2017), when Groupon’s North American Active Customers increased by 14%. Compared to Q2 2017, the decreased rate of growth this quarter is a strong indicator of one of Groupon’s weaknesses in the market itself. It demonstrates a lack of active customer development from year to year. Groupon needs to find a way to appeal to more e-shoppers (and maintain its integrity) if it hopes to be financially viable in the future.
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