How Does Groupon’s Gross Billings Per Customer Vary Across Regions?

-68.54%
Downside
13.34
Market
4.20
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GRPN: Groupon logo
GRPN
Groupon

Groupon (NASDAQ:GRPN) reported mixed first quarter earnings last week, with revenue beating market expectations but its net loss tripling over the prior year quarter. The company’s gross billings, revenues and profits declined in international markets, owing to its strategy to focus on the North American market and move away from certain low-margin goods businesses. In this note, we focus on Groupon’s gross billings per active customer and how it trended over the last five quarters.

In Q1 2016, the number of active customers grew by 10% y-o-y in North America while they declined by 12% in the Rest of World segment. The number of active customers currently stand at about 49.4 million, including almost 27 million in North America. Groupon’s gross billings per average active customer declined from $34.90 per year in Q4 2015 to less than $30 in Q1 2016. In terms of geographical spread, this metric declined in low single digits y-o-y for North America and by 15% and 18% in EMEA and Rest of World, respectively.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Groupon
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