New Groupon SEC Filings Cause IPO Worries | Adweek New Groupon SEC Filings Cause IPO Worries | Adweek
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Is Groupon's Upcoming IPO in Trouble?

The company is raking in revenue—and spending it all
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Groupon’s much-anticipated IPO could be in danger, according to the New York Post. With the release of worrisome financial information about the daily deals site and the current precarious state of the stock market, analysts are wondering whether Groupon will be able to reach its massive $30 billion valuation—and even suggesting that the company’s bankers will persuade it to lower its expected offering price by about 30 percent when it goes public.

Yesterday, Groupon filed yet another amended S-1 with the Securities and Exchange Commission—its ninth since the company announced its IPO in June. The filing showed that despite impressive revenues, Groupon is continuing to spend heavily.

In the first half of the year, Groupon generated $1.5 billion in revenue, compared to $130 million in the same period a year ago. But the company still managed to spend its way to a loss of $220 million in those same six months. Analysts told the Post that because of the newness of the daily deals market, it’s unclear whether Groupon can lower its rate of spending and still acquire and keep customers.