2014 has been a productive year for Initial Public Offerings
(IPOs). The latest one being
), whose shares surged 87.5% ($14.00) to $30.00 on Mar 7, 2014.
Originally priced at $16.00, the digital coupons provider sold
10.5 million shares and fetched $168.0 million in its IPO.
Earlier, Coupons.com received $277.0 million in venture
financing, with the bulk of it coming from Passport Capital.
Passport Capital has a 20.0% stake in Coupons.com and T. Rowe
Price has a 10% stake. The offering was led by
), while Allen & Co., Bank of America and RBC Capital Markets
served as underwriters.
Coupons.com partners more than 700 consumer-packaged goods
companies, which use the website to market approximately 2000
brands. Coupons.com earns fees from these partners when a
customer selects and prints/save one of their coupons. The
company also earns a fee when customers purchase goods using the
The surge in Coupons.com share price is quite surprising.
Although the company's revenues continue to grow, it has reported
loss for the period of 2011, 2012 and 2013. The company has
accumulated deficit of $168.0 million, which is equivalent to the
amount it raised from the market.
Coupons.com's overall transaction increased from 345 million in
2009 to 1.3 billion in 2013. The company reported revenues of
$167.9 million and net loss of $11.2 million. The company spent
$61.8 million on sales & marketing and $40.0 million on
research & development. In the fourth quarter, the company
reported revenues of $52.6 million and profit of $1.5 million.
We believe Coupons.com has a tough task in hand as the
competition intensifies from
) and daily deals provider
). Year-to-date, RetailMeNot shares are up 53.5%, but Groupon
shares are down 27.4%. If the Coupon.com shares can continue to
post strong returns, it will be one of the best U.S. IPOs in
Currently, RetailMeNot has a Zacks Rank #3 (Hold), while Groupon
has a Zacks Rank #4 (Sell).
GROUPON INC (GRPN): Free Stock Analysis
GOLDMAN SACHS (GS): Free Stock Analysis
RETAILMENOT INC (SALE): Free Stock Analysis
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