Groupon (GRPN) earnings: is Vouchercloud the hope for the compan

Groupon reported better-than-expected first-quarter results, as last year’s restructuring is bearing fruit. While streamlining the operation is helping Groupon expand margins, the firm is continuing to increase marketing as a percentage of revenue. It has done so since 2015. Analysts speculate this is because of its lack of network effect and low switching costs, which forces Groupon to continue to increase its marketing spending.

Management upped its full-year guidance due to the strong first-quarter numbers and the accretive acquisition of Vouchercloud in April. The stock barely moved in reaction to the first-quarter numbers, which is concerning to many prospective investors.

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