Groupon Has Troubles, But Continues To Grow
by: TechCrunch

It's not all bad news over at Groupon. In the face of negative traffic reports, senior departures, and plans to postpone its IPO, the deal service still broke revenue records in August. According to new data from daily deals aggregator Yipit, Groupon grew 13% in August -- increasing its revenue to $120.7 million from $106 million in July. "This growth broken down symbolizes a 10% increase in the number of Groupons sold per deal and a 5% increase in the average Groupon price," notes TechCrunch, adding, "both increases compensating for a decline in the number of deals ran by Groupon."

More striking, Groupon's double-digit revenue growth in August was in stark contrast to competitor LivingSocial, whose revenues declined for the second month in a row. Putting a quirky spin on the
positive sales numbers, Groupon recently debuted an "addiction hotline" for deal obsessives. As CNN's Jacque Wilson reports, however, the consumers could soon require real counseling for their deal addictions. Particularly promising, Groupon Getaways, Groupon's travel deals product accounting for $9.6 million in revenue in August -- compared to $5.7 million in July. The $3.9 million Groupon Getaways difference represented 27% of Groupon's overall growth for the month. Accordig to Yipit, LivingSocial's revenue in August was $45.1 million, representing a 3% decline from $46.4 million in July. "For now ... Groupon remains the company to beat in [the daily deal] realm, with 115 million subscribers and an estimated $20 billion valuation," CNet writes. Nonetheless, "Groupon's glow appears to be fading as investors, employees, and consumers are becoming disenchanted with the company's scrappy approach coupled with a series of reckless maneuvers."