Benchmark Says Daily Deals Space Re-Accelerating

Benchmark Capital is out with a research report on the daily deals space, and says it is re-accelerating.

In a note to clients, Benchmark Capital writes, "A slumping stock market, SEC hurdles, financial reporting changes, a leaked internal email and the COO's resignation may delay Groupon's IPO launch window. On Friday, Groupon filed an amended S-1 which restated revenue to reflect the share of billings kept by Groupon and highlighted Andrew Mason's email. The daily deals market growth re-accelerated in August and September after a summer slowdown with Groupon gaining market share. We expect a combination of more diversification of offerings and geographic expansion could help drive total Groupon gross billings growth of 452% y/y in 2011 to over $4 billion leading to almost $1.7 billion of revenue."