Groupon 2014 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2014 Groupon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

addition, we reduced our losses in our Rest of World business dramatically throughout 2014, ending the
year on track to generate positive segment operating income within the next few quarters.
Two years ago, our Goods and Getaways categories were in their infancy. Together, they represented
roughly $700 million in billings in North America in 2012. By the end of 2014, they were about 200
percent larger in North America alone and had expanded globally. In addition, some of our newest and
most promising businesses were either just getting off the ground or had yet to even be born: Live,
Home, Coupons, Snap, Payments, Stores, Basics – all representing future opportunities. The strength of
our brand is a strategic advantage, and one that has allowed us to extend our value proposition into new
and emerging categories.
Finally, two years ago, our product and engineering organization was fragmented. Today, our technology
team has never been stronger, as we continue to bring our global operations onto a unified platform. With
roughly 1,400 people straddled across major development centers in Palo Alto, Seattle, Chicago, San
Francisco, New York, Chennai, Berlin, Dublin and Chile, we are building and deploying features at an
unprecedented pace.
LOOKING AHEAD
Our progress over the past few years, and especially in 2014, has been essential to writing Groupon’s
next chapter.
Early in our history, many observers speculated that our business model would be overrun. The opposite
has proven to be true. In 2015, we intend to continue the marketplace transformation we started a few
years ago, adding more merchants to our platform and allowing our customers to buy, book, reserve,
redeem and pay for local goods and services seamlessly through our app.
As we aggregate more inventory and improve user experience, we believe conversion will rise, and we’ll
be able to invest more heavily in driving traffic and transactions, unlocking new pools of growth.
As such, we now turn our attention to making our product truly indispensable to consumers looking to
explore the world around them and save money while they’re at it. We aspire to be the best kind of daily
habit -- one of surprise and delight; a place you start when you’re looking to do or buy just about anything
locally.
As we seek to connect local commerce and reward everyday curiosity, we’re mindful of how far we’ve
come and how far we have yet to go given the size of the opportunity before us.
Six years ago, we invented a category. Two years ago, we reinvented it. Our goal is that two years from
now, we’ll have built an unrivaled and ubiquitous platform for local and mobile discovery. I wouldn’t be
able to say that but for the incredible work of our team over the past few years and the support of our
stockholders along the way. Thank you again for joining us on this journey.
Sincerely,
Eric Lefkofsky
CEO, Groupon, Inc.