According to Groupon’s recent press release, 1 of every 4 Groupons bought in North America was purchased on a mobile device.  This is an encouraging metric for the daily deal giant, which can benefit from increasing mobile penetration especially in the emerging markets. Additionally, it also paves the way for Groupon to differentiate itself further from competition as deal personalization and customization keeps improving on mobile platforms. Groupon leads the daily deal market and shares this space with players such as LivingSocial and Google (NASDAQ:GOOG) Offers.
However, Comparative Growth Rates Not That Impressive
While Groupon’s mobile app users have tripled to 9 million over the last year,  the growth is actually less than Groupon’s growth in active customers which grew by 275%.  Hence the 9 million figure is not as big a revelation as it’s being made out to be, although it does put Groupon back on the mobile bandwagon, especially since Groupon NOW has produced mediocre results at best.
Thailand is the 48th Country for Groupon
Groupon also expanded its presence in Asia further with the launch of Groupon Thailand.  International daily deals constitute a majority of Groupon’s value, standing at around 44% by our current estimates. While the latest expansion into Thailand would only build more scale into this division, Groupon will need to watch out for how many Groupons it sells on a per capita basis, since this metric is markedly low in international markets compared to the company’s domestic market in the U.S.
We have updated our analysis for Groupon with a $12.55 price estimate, which is well below the current market price.
- Groupon Bear Case: Declining EMEA Gross Billings Could Lower Valuation By Over 10%
- How Important Is North America For Groupon?
- What Can Move Groupon’s Stock By Over 10%?
- How Do Groupon’s Revenue Per Gross Billings Vary Across Regions?
- How Does Groupon’s Gross Billings Per Customer Vary Across Regions?
- Groupon’s Stock Tumbles As Net Loss Triples
Refer our note on why Groupon’s valuation has fluctuated significantly over the past two years.Notes:
- Groupon Announces Record Mobile Purchases and Customer/Merchant Partner Engagement, Groupon Investor Relations, 27th Feb 2012 [↩]
- Groupon reports big growth in North America; cites mobile usage, Chicago Tribune, 27th Feb 2012 [↩]
- Groupon Announces Fourth Quarter 2011 Results, Groupon Investor Relations, 8th Feb 2012 [↩]
- Groupon Launches in Thailand, Groupon Investor Relations, 27th Feb 2012 [↩]