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

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Groupon

Groupon (NASDAQ:GRPN) has had a mixed 2016 so far, with revenue slightly improving year-over-year (y-o-y) in the first nine months but net loss growing to $142 million, compared to a profit of over $67 million in the same period last year. 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 seven quarters.

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In Q3 2016, the number of active customers grew by 15.5% y-o-y in North America, while they declined by 21% in the Rest of World segment. The number of active customers currently stand at about 50.8 million, including over 29 million in North America. Groupon’s gross billings per average active customer declined from $30.20 per year in Q3 2015 to $28.20 in Q3 2016. In terms of geographical spread, this metric declined in high single digits y-o-y for North America and by 11% and 3% in EMEA and Rest of World, respectively.

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