Revenue for the new Groupon Getaways jumped 154% in October.
After its first day of trading in November, Groupon Inc.’s stock price was up more than 30%. But since then the stock has taken a hit, with the price down nearly 3% from its initial public offering price of $20 a share at the close of trading yesterday. Still, while investors may be shying away from the daily deal operator, its $176 million in October revenue represents a 22.2% increase compared with $144 million in September 2011, according to data compiled by daily-deal aggregator Yipit. It does not have year-over-year data because it did not estimate Groupon’s revenue at a similar point in 2010.
Each of Groupon’s core categories—daily local deals, its Groupon Getaways travel offering, the Groupon Goods flash sale deals, the Groupon Live online ticket offering and its Groupon Now limited-time deals product–had double-digit growth in October, says David Sinsky, Yipit’s data product manager.
The biggest revenue growth came from Groupon Getaways, which launched in June and generated $22.1 million in October, a 154% jump from $8.7 million in September. Travel deals now account for about 12.6% of Groupon’s North American revenue. Sales on Groupon Goods increased 175% to $5.5 million, compared to $2 million in September.
Meanwhile, Groupon Now—geared toward consumers using mobile devices—generated $1.2 million in revenue in October, a 24.5% increase from September. However, given Groupon’s large marketing push behind the offering, Sinsky says that total revenue figure is a sign consumers are reluctant to use the product, which offers consumers limited-time deals based on their location. “It looks like consumers don’t find it compelling,” he says. “I think that’s because it is a hard product to sell. It’s not like Groupon is losing out to someone else. The figures demonstrate how early on we are in the mobile commerce cycle and how hard it is to create compelling products that will resonate with consumers.”
Groupon gave no immediate comment.
However, now that Groupon’s quiet period is over, the daily deal operator has begun touting its growth on its blog. CEO Andrew Mason recently noted that Groupon sold more than 650,000 deals via Grouponicus, its holiday deals program between the Friday after Thanksgiving and Monday, an increase of more than 500% from the same period last year. In part, that growth is thanks to Groupon doubling the number of markets it offers deals—consumers in roughly 40 cities receive the offers—as well as the program adding new verticals like travel and big-ticket items.
Groupon says that it sold more than 9,000 of the Coz-e Heated Blanket with Sleeves that it featured last week in its Groupon Goods flash sale offering and more than 5,000 Sony Bloggie Touch Cameras on Monday.
Groupon is featured in the 2012 Hot 100 List, which can be ordered here.