Groupon's Explosive Growth Continues - As Do Its Losses

| About: Groupon, Inc. (GRPN)

Daily deal leader Groupon (NASDAQ:GRPN) continues to grow its revenues at a jaw-dropping pace. According to its updated S-1 filing, the company sold $878 million in Groupons in the second quarter, 10 times more than a year earlier.

[Click all to enlarge]

However, costs have been exploding too. Groupon spent almost $1 billion in Q2.

Put it all together, and Groupon has been losing hundreds of millions of dollars.

Small compared to the billions and trillions of red ink the federal government confronts, but still a formidable problem... particularly given all the other players in this space, including a certain search company whose $6 billion acquisition offer Groupon spurned last year. I would have taken the money and run. But perhaps I am not seeing the secret ingredient that will give Groupon a persistent competitive advantage in the face of vigorous competition.