Groupon made a mistake in terms of commission

Despite the fears of many experts, Groupon is still afloat. True, the problem is still there, and serious. Recently it became known that the company made a mistake in calculating the commission to its partners. The error turned out to be rather big, so the previously calculated losses increased. As it turned out, the commission was calculated incorrectly for the entire first quarter after the company’s IPO.



Immediately after it became aware of the error, the value of the company's shares fell significantly. Previously, they were trading at about $ 20, after the error message the price fell to $ 17.2 apiece. Nevertheless, some analysts evaluate the incident from the positive side. The fact is that the company did not conceal the mistake, but reported it itself, knowing that the consequences would not be the most pleasant. On the other hand, if all this was withheld, the problem would still become obvious, and then the consequences would have become even worse.

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On the other hand, the problem in the calculations may indicate that the company can not properly control the direction of financial flows. This is already serious, and some investors are unhappy with what happened. Groupon’s position is also aggravated by the fact that, after recalculation, the company's loss was not $ 37 million, but $ 59.6 million. Of course, the company's revenue was $ 14.3 million lower than previously thought. Analysts say that the current capitalization of the company ($ 11 billion) is clearly overstated. In general, many people understand this, but so far the company is holding on to its potential, imaginary or explicit.



Of course, Groupon has already stated that, despite the error in calculations, the general direction of the company's development will not change. Third-party analysts believe that in order to reach at least zero, not to mention profit, Groupon needs to work a lot on its own mistakes, and also somewhat change the current management style of the company.