What Are Groupon’s Three Priority Areas?



Driving growth organically and through acquisitions

Groupon (GRPN) turned ten years old this month. As it enters its second decade, the company has outlined three priority areas that will guide its execution. First, Groupon wants to continue investing in growing its business organically. Groupon’s revenue declined 7.0% YoY to $592.9 million in the third quarter.

Second, Groupon wants to make strategic acquisitions. So far this year, Groupon has acquired one company. It acquired Cloud Savings Company for $65 million, adding to its portfolio brand loyalty provider Giftcloud and online discount code platform Vouchercloud. Groupon has acquired 40 companies since its inception, according to CrunchBase data. Shopify (SHOP) and Etsy (ETSY) have both acquired eight and six companies, respectively, since their founding.

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$850 million returned to shareholders

The third priority area for Groupon as it begins its second decade in business is returning cash to shareholders. The company says it has returned more than $850 million of cash to its shareholders since its founding. Groupon mostly returns cash to shareholders through share repurchase programs. It wants to continue the practice of returning cash to shareholders. eBay (EBAY) and Alibaba (BABA) also return cash to shareholders through share repurchase programs. eBay closed the third quarter with $4.7 billion remaining under its existing repurchase authorization, while Alibaba recently began implementing its program to return $6.0 billion to shareholders through share repurchases over the next two years.

Groupon is sitting on $572 million in cash

Groupon turned a profit of $44.6 million in the third quarter. The company exited the quarter with $572.4 million of cash.


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