Since taking over as Groupon CEO last November, Rich Williams has undertaken a series of bold measures such as significantly raising marketing investments, restructuring the international portfolio and moving away from certain low-margin goods businesses. These initiatives helped in improving sales in North America but took a toll on profits. In the first half of the year, Groupon’s revenues grew 1% year over year to $1.5 billion but its net loss increased to $104 million owing to significantly higher marketing expenses. In this note, we focus on Groupon’s marketing expenses and how they are impacting the company’s top line and active customer growth.

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