(The following memo was obtained by Bloomberg News.)
After more than five years of super-human service to Groupon, Andrew has been
asked to step down.
Andrew’s achievements during his tenure are virtually unmatched in Internet
history. Not only did he help invent the daily deals space, but he also
created one of the fastest growing companies in history. But for all of us on
the Board, maybe his greatest achievement is that in the face of extreme
pressure and public scrutiny, he guided the company with grace and never lost
sight of the things that matter most: our customers and merchants.
It’s hard to believe that Groupon is only four years old. Our journey began in
November of 2008 when we offered our first deal (pizza at 50% off) to a handful
of people in Chicago. Today, with over 11,000 employees, we now offer more
than 30,000 deals a day to over 200 million subscribers globally. But even
more staggering is the fact that our customers purchased more than 50 million
Groupons last quarter alone.
Groupon is a very different company today than it was just a few short years
ago. From our local daily deal roots, we have spent significant time and
resources evolving into new categories including Goods, Getaways, and Live.
We have also fundamentally changed the way customers interact with Groupon. We
have migrated nearly 40% of users in North America to mobile, while
dramatically reducing our reliance on email which now accounts for less than
50% of our transactions. And with Pull, consumers can browse among thousands
of deals on our site and buy exactly what they want, when they want it.
In the midst of this evolution in 2012 we delivered 35% growth in billings to
$5.4 billion, 45% growth in Revenue to $2.3 billion, 22% growth in active
customers to 41 million. Additionally our Operating Profit improved from a
loss of $233 million in 2011 to a gain of $99 million last year.
Yet we all know our operational and financial performance has eroded the
confidence of many of our supporters, both inside and outside of the company.
Now our task at hand is to win back their support.
We also need to stay relentlessly focused on doing what is right for our
customers and merchants. We’ve built a curated marketplace that is vibrant and
thriving; and if we continue to invest in our future, stay focused on the long
term and lead through innovation, we can achieve truly great things together.
As Groupon starts to write its next chapter, Ted and I are both honored to be
able to help guide the company until a new CEO is in place. We are fortunate
to have a very talented and committed management team to help us execute on our
We appreciate the tireless effort you have poured into getting our company
where it is today, and we are even more excited about the future that lies
Executive Chairman & co-founder
Press spacebar to pause and continue. Press esc to stop.