Groupon CFO notes room for growth

The daily-deals site's highly anticipated IPO opens to strong demand.

By Benzinga Nov 4, 2011 1:26PM
Groupon (GRPN) chief financial officer Jason Child had some interesting things to say Friday morning as his company debuted on the Nasdaq.

The company soared more than 40% past its opening price of $20 in morning trading. Groupon is said to have raised about $700 million in the offering.

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Child told CNBC that Groupon's revenue per customer is increasing rapidly. Child believes viral growth is becoming significant, which will help drive new initiatives as well.

When asked about new ways to grow, Child said the company, which sells daily discounts to local merchants, has plenty of opportunities. It is expanding across the globe with several new initiatives, such as selling electronics. The company is also working on increased personalization. Groupon continues to cater to a variety of demographics with the goal of increasing coupon activations.

Child was also asked about the accounting concerns that dogged the company in the run-up to the IPO. He said the company's accounts receivable period is generally about 10 days and he does not have huge concerns about this. He was also pressed about the small float of the offering -- just 5% of the company -- and his response was that existing shareholders did not want dilution.

CNBC's Jim Cramer asked Child what separates Groupon from companies like Living Social, Google (GOOG) and Amazon (AMZN). Child said the company has more than 250,000 merchants across the globe. Groupon has been the most reliable source to drive traffic. He also said the company is trying to increase the number of dollars each customer spends.

Disclaimer: Benzinga is funded by LightBank, which is a venture capital firm started by Eric Lefkofsky and Brad Keywell, two of Groupon's founders.
Tags: GOOGGRPN
1Comment
Nov 4, 2011 1:41PM
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Strong open by Groupon, they have a relationship with thousands of small businesses and will do a better job in yield management than anyone else.  The Daily Deal space is and was a winner-take-most market which led to the massive marketing spend. The future looks promising, despite the naysayers: Groupon Now, Groupon Goods, to real-time yield management where small businesses can create self-service, on-demand deals.
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