Groupon fills COO role
Groupon (GRPN) recently moved to fill an executive position that has been lying vacant for two years. The company announced that it has appointed Steve Krenzer to the role of COO (chief operating officer).
Groupon had been without a real COO since November 2015, when Rich Williams left to become the company’s CEO (chief executive officer). Krenzer was most recently CEO of direct-response advertising firm Core Digital Media. He also held senior executive positions at Experian and Interactive Media.
Stepping up marketing activities
Given Krenzer’s background, the move to appoint him as COO appears to signal that Groupon is preparing to step up its marketing activities. Groupon actually hinted about this in a press release, stating: “Krenzer will have ultimate oversight for the company’s North America and International segments, as well as Global Marketing and Global Operations.”
Revenue fell 8.0%
Groupon spent $101.5 million on marketing activities in 3Q17, indicating that the company’s marketing budget expanded 20% YoY (year-over-year). Its revenues for the quarter came to $634.5 million, which was 8.0% lower YoY, largely because of restructuring measures as the company has pulled away from some international markets.
Industry peers eBay (EBAY), Amazon.com (AMZN), and Yelp (YELP) grew their revenues by 8.6%, 34%, and 19% YoY, respectively, in the same period. Overstock.com (OSTK) bucked the trend and saw its revenues fall 4.0% YoY.