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Groupon Inc. (Nasdaq: GRPN) has set ambitious long-term growth targets, aiming to grow its revenue and adjusted EBITDA by more than 20% and 25% by 2017. In order to accomplish these goals, the company would need to significantly expand its merchant network and move towards non-email based marketing strategies. A common criticism of Groupon’s current business model is that its voucher doesn't help generate a profitable stream of loyal customers, only discount seekers looking to make a one-time purchase.
In its latest earnings report, Groupon generated $757.1 million in quarterly sales, 27.2% growth from last year's third quarter. But the e-commerce company also posted a loss of $21.2 million, compared to last year's $2.5 million loss, for a loss-per-share of $0.03, worse than last year's earnings per share (EPS) of $0.00.