Groupon Investor Relations Material

Groupon is an American Company that sells coupons and vouchers for things such as activities, travel, apparel, and services in various countries. These deals are available for a limited time and cover various categories, including restaurants, retail, health and beauty services, and more. The company is active in well over 500 different cities and locations across the world, with a primary focus on North America, Europe, and parts of Asia. Groupon is headquartered in Chicago, Illinois and its shares are listed on the Nasdaq.

Groupon was founded in 2008, and started as a side project of a company called The Point, a website for collective action. Initially, it focused on local deals in the Chicago area and the company’s first deal on sale was a buy one get one free coupon at a local pizza restaurant. Groupon quickly gaining popularity in its hometown for its unique approach to e-commerce, as well as by offering appealing goods and services at heavily discounted prices. The success in Chicago led to rapid expansion into other US cities and eventually global markets. Today, the company is well-established and has millions of users spread out across the world.

Groupon provides an online marketplace that connects consumers with local businesses by offering a range of discounted goods and services. These include deals on restaurants, retail products, travel experiences, leisure activities, beauty services, and more. Customers access deals through Groupon's platform, purchasing items and experiences, or in some cases vouchers that can be redeemed at businesses for the service or product at a reduced price. The company’s model aims to benefit all three parties: consumers save money on products and services, businesses gain exposure and potential new customers, and Groupon makes money facilitating the connection.

Groupon generates revenue primarily by acting as an intermediary between customers and businesses, in a similar fashion to how Amazon and eBay make money off its platforms. When a customer purchases a deal, Groupon collects a portion of the sale. This commission is a primary source of their income, and Groupon charges for marketing and selling the businesses' offers on its platform. The exact percentage varies, but it allows Groupon to profit from each voucher sold, while the remaining revenue goes to the merchant offering the deal. Groupons platform is relatively.