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Groupon Inc GRPN

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Stability at Groupon Could Be in Sight; Firm Chooses Kedar Deshpande As Its CEO; Maintaining $53 FVE

Ali Mogharabi Senior Equity Analyst

Analyst Note

| Ali Mogharabi |

Groupon finally appointed a permanent CEO, Kedar Deshpande, who will replace Aaron Cooper, the firm’s interim CEO, beginning on Dec. 10. Deshpande will also serve on Groupon’s board. Prior to this, Deshpande was the CEO of Zappos, an online retailer that was acquired by Amazon in 2009. We are maintaining our no-moat rating and $53 fair value estimate of Groupon.

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Company Profile

Business Description

Groupon acts as the middleman between consumers and merchants, offering a variety of products and services at discounts via its online store. It offers consumers daily deals (in the form of online vouchers) from local merchants. Groupon also sells products directly to consumers. It generates revenue from the take rate on the purchase and/or usage of the vouchers (40% of total revenue) and from direct sales (60% of total revenue). More than 65% of Groupon’s revenue comes from North America.

Contact
600 West Chicago Avenue, Suite 400
Chicago, IL, 60654
T +1 312 334-1579
Sector Communication Services
Industry Internet Content & Information
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Slow Growth
Employees 4,159

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