There has been a consistent error in the reporting on Groupon's financial performance: Its real revenue is nothing like the number that's tossed around by most news organizations (including us).
Conor Sen at Minyanville points out that Groupon's often cited $645 million in revenue for the first three months of this year is gross revenue. As in, that's all the money Groupon takes in from deals.
Of that, it keeps $270 million, which is Groupon's net revenue number.
So, Groupon's net revenue for the year will be something like $1.2 billion or more. Still impressive, but considerably less than what people are expecting.
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See Also:
- CHART OF THE DAY: Groupon's Massive Revenue And Massive Losses
- The Weird Groupon IPO -- The SAIcast Discuss
- WHY WAIT FOR THE IPO? These 13 Groupon Execs And Investors Have Already Cashed Out To Tune Of $870 Million
Groupon's REAL Revenue Last Quarter Was Not $645 Million
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