Groupon IPO Presentation - Business Insider

RetailRoadshowMasonduringtheIPOroadshowGROUPON'SIPOROADSHOWPRESENTATION:Here'sWhatGrouponWillBeTellingInvestorsJAYYAROWOCT.21,2011,10:40AMGrouponishittingtheroadtosellthecompanytobiginvestors.We'vewatchedtheroadshowandpulledalltherelevantslides.CEOAndrewMasondropsthefunny-manroutine,andmakesaprettylevelheadedargumentforwhyGrouponwillbealongtermsuccess.MostpunditsfocusonGroupon'smassivelosses,butMasonsaysthoselosseshadtobefrontloadedintothebusinesstoachievemassivescale.OnceGrouponestablishesacustomer,spendingfromthatcustomerincreasesovertimepayingbackthelargeupfrontmarketingspend.Masondoesn'tmakehispitchsolo.HehastwoGrouponexecswithhim.BothexecsleftAmazonforGroupon,andtheyrepeatedlycomparethetwocompanies.WedoubtthispitchwillbeenoughtosilencethenumerousGrouponhatersoutthere,butit'sastart.AndmoreimportantlyforGroupon,itshouldbeenoughtoraise$500millionthroughthepublicmarkets.WelcometothepresentationRetailRoadshowBoilerplate!RetailRoadshowMorestandarddetailsontheoffering...RetailRoadshowAndrewMasontakesoverRetailRoadshowHesaysGrouponhasaplatformforlocalcommerceandthesearethekeydriversofbusinessRetailRoadshowAwalkthroughofhowGrouponswork--OfferadiscountthroughemailtomillionsofpeopledailyRetailRoadshowMerchantsloveGrouponbecausethereisnootherwaytogetthousandsofnewcustomersinonefellswoop,saysMasonRetailRoadshowMasonsaysGroupon'smarketingspendisrecoveredinjusttwoquartersRetailRoadshowThecumulativerevenuefromcustomersgrowsandgrowsafterthefirstupfrontpaymentRetailRoadshowAgain,Groupon'saplatformtodelivercustomersRetailRoadshowGroupon'smodelcanbeexpandedtoanumberofverticalsRetailRoadshowMason'sfavoriteline:Thelocalcommercemarketmeasuredintrillions.It'sthelargestmarket,andwe'rethelargestbusinessinit.RetailRoadshowIt'saninternationalbusinessRetailRoadshowTherearealotofcompetitorsouttherereadytotakeonGroupon...RetailRoadshow...Andit'snotjustthebigboys,thousandsofsmallercompaniesaretrying.RetailRoadshowBut,Masonsaystherearehighbarrierstosuccess,andtheupstartshaven'tmademuchofanimpact.RetailRoadshowThisistheGrouponmascot:Halfcyborg,half-human.Grouponisamixoftechnologyandhumaninteraction.RetailRoadshowThe5areasofstrengthforGrouponRetailRoadshowMasonsaysoperationalexcellencecomesfrombeinggreatatsales.Wehave10,000peoplethinkingaboutgettingdealsinfrontofpeople.Thisisnotahobbyforoursalespeople.Theythinkaboutitalldaylong.RetailRoadshowGrouponhas6Xtheheartshareofitsrivals,saysMason.RetailRoadshowAlookattheteam:FilledwithexecsfromanumberofsuccessfultechcompaniesRetailRoadshowMasonsaysGrouponwilldriveresultshigher,andhesaysthatinaseaofconfusionaboutwhichdealcompanyislegit,peoplecometoGrouponbecauseit'sanestablishedbrandRetailRoadshowSomeofGroupon'stechtohelpmerchantsRetailRoadshowNextup!Theproductboss,JeffHoldenRetailRoadshowHoldentalksaboutGroupon'simmensedataandhowitusesthedatatodeliversmartdealsthatarecustomizedtotheuser.Thesmarterthedeal,themorelikelytheyuseristobuyit.[Inouropinion,thisneedswork,wegetalotofirrelevantdealssenttous]RetailRoadshowGrouponNowisthenextphaseofthecompany.It'sinstantdeals.Itgivesbusinessesatrueropportunitytobringincustomers.RetailRoadshowHoldensaysGrouponaddressesthe3coreneedsofbusinesses.RetailRoadshowGrouponrewardsisanewproduct,butit'satech-basedversionoftheloyaltycard.RetailRoadshowNextup:TheCFO,JasonChildRetailRoadshowHereiteratesthedriversforGroupon'sbusiness/RetailRoadshowGroupon'srevenuewasup426%onyearoveryearbasis.(That'srevenuethatitgetstokeep,notgrossbillings,whichisthetotalamountofsalesthatflowthroughGroupon.)RetailRoadshowGrouponismovingpastthedailydealintonewlinesofbusinessRetailRoadshowHeaddressesthebiggestconcern,andsaysmarketingspendisfalling.PartofthereasonisthatGroupon'sviralityisoffsettingtheneedtospendmoney.RetailRoadshowHealsosaysGrouponisgettingagoodreturnonitsmarketingspend.RetailRoadshowThecompany'soperationsarenearlybreak-evenRetailRoadshowChildssaysthebalancesheetisgettingstronger,andaftertheIPOitwillhave$743millionincashonhandRetailRoadshowOnemorelookatthedriversofthebusinessRetailRoadshowAndthat'sthat!RetailRoadshow*Copyright©2014BusinessInsider,Inc.Allrightsreserved.