Groupon's revenue drops 30%
March 23rd, 2011 • Posted by Seth Gardenswartz • Permalink
For all of use that have been saying Groupon is a fad, we now have some numbers that may support our forecast. Today's TechCrunch reveals exclusive information showing Groupon's domestic sales plummeted 30% in February from their January high.
Commentator Erick Schonfeld ponders if the drop is a response to Mason's taste-free superbowl ads or just a post holiday breather. Personally, I think there is another, more fundamental reason: small businesses have gotten wise to Groupon's business model and are looking for more profitable ways to grow their businesses. I guess we have Groupon to thank for yet another lesson installment of "If it sounds too good to be true, look for the catch." Or perhaps "What goes up…."
UPDATE: The reporter who broke the story on Google's sales being down released an update today saying the numbers he used were way off. You can read his update here. These "confirmed" numbers show January as $93M and February as $102M. It looks like there were still plenty of suckers out there in February.