Groupon Triples Its Losses
Groupon is getting ready to go public, so naturally the online discounts startup has ratcheted up the rate at which it is bleeding cash, posting a $103 million quarterly loss, triple the loss for the same period last year. If tech bubble investors demand growth at any cost, Groupon will damn sure give it to them.
Groupon managed to grow quarterly revenue tenfold from last year to $880 million, according to an SEC filing. But its losses exploded alongside sales because the company hired 1,000 new employees in the quarter. The company's future shareholders should hope Groupon does a better job holding down workers' crappy pay than it has done for top executives.
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