Groupon announced their first quarter financials on Wednesday. The company reported revenues of $601.4 million in revenues and an EPS of $0.03. Analysts were expecting revenues of $592 million and an EPS of $0.03. The company’s net loss was $81.1 million.
Groupon CEO Andrew Mason was fired earlier this month. Mason is worth around $228 million according to a report with The WSJ. Mason’s 7.1% stake in Class A and Class B shares is worth around $228 million. This is addition to the $31 million that Mason earned before the company went public. Mason was a billionaire when Groupon went public, but the stock price dropped around 85%.
Groupon CEO Andrew Mason spoke at the Business Insider Ignition conference today. In the interview, Mr. Mason said that the Groupon board might fire him.
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This past May Groupon acquired a company called Breadcrumb. Breadcrumb is a point-of-sale company that was created for the hospitality industry. Breadcrumb’s technology would be used to replace older systems of past years and replace them with a nicely designed and affordable iPad app. Breadcrumb has the ability to process sales by supporting a card swiping attachment for the iPad.
Groupon has acquired a company called Savored, which is a restaurant reservation and discount meal provider. The financial terms of the deal was undisclosed. Savored is used by around 1,000 restaurants and gives diners discounts of up to 40% when they book through their website. Groupon will keep Savored running independently. Savored’s team will be working on the Groupon Now! product team and will report to VP Dan Roarty. Savored used to be known as VillageVines and then they rebranded in 2011. Check out the press release below:
Groupon’s stock has fallen around 20% in after hours trading because the company missed estimates in Q2 earnings. Groupon’s stock has hit a low of $5.95 per share, but now it is at $6.06. Groupon announced $568.3 million in revenue, but Wall Street analysts expected around $573.13 million.
It has been about two years since CityDeal was acquired by Groupon. The CityDeal co-founders Daniel P. Glasner and Philipp Magin are leaving Groupon according to Deutsche Startups. Marc Samwer, the oldest of the three Samwer brothers left as the head of international operations at Groupon. CityDeal was incubated by Rocket Internet, which is run by the Samwer brothers.
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If Groupon accepted Google’s $6 billion offer, it would have been the largest acquisition in Internet history. The acquisition offer was made in the fall of 2010. Groupon was the fastest website to hit $1 billion in sales and was the second quickest growing website behind YouTube to hit a $1 billion valuation. The company is led by 32-year-old Andrew Mason, an inexperienced CEO with a sharp mind, which means that he could have been a billionaire by age 30. Groupon was experiencing rapid growth and Google had a really fat wallet at the time so a sale was attractive to Groupon’s leadership team and venture capital investors.
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