Groupon just released its earnings report for the second quarter, its second since former CEO Andrew Mason was fired. The company also took the opportunity to announce that it now has a permanent CEO – Eric Lefkofsky.
Lefkofsky, one of Groupon’s co-founders, has been acting as chairman and co-CEO since Mason was let go, and the board apparently likes what it has seen from him. It also appointed Ted Leonsis Chairman of the Board.
Last time, Groupon beat Wall Street expectations, and this time they did it again.
The company reported gross billings of $1.41 billion and revenue of $608.7 million. GAAP operating income was $27.4 million.
“We significantly exceeded our operating income expectations, and delivered our strongest quarter ever in North America, due in part to accelerated billings growth of 30%,” said Lefkofsky. “With two quarters on the job, I’m pleased with the progress we’ve made in such a short time. We continue to gain traction in mobile, with nearly 50% of our North American transactions coming from mobile in June. To date, more than 50 million people have downloaded Groupon apps worldwide.”
Here’s the earnings release in its entirety:
CHICAGO–(BUSINESS WIRE)– Groupon, Inc. (NASDAQ: GRPN) today announced financial results for the quarter ended June 30, 2013.
“We significantly exceeded our operating income expectations, and delivered our strongest quarter ever in North America, due in part to accelerated billings growth of 30%,” said Eric Lefkofsky, CEO of Groupon. “With two quarters on the job, I’m pleased with the progress we’ve made in such a short time. We continue to gain traction in mobile, with nearly 50% of our North American transactions coming from mobile in June. To date, more than 50 million people have downloaded Groupon apps worldwide.”
Groupon also announced today that its Board of Directors has appointed Eric Lefkofskyas CEO, and Ted Leonsis as Chairman of the Board. “The Board is encouraged by Groupon’s performance under Eric’s leadership, and we’re pleased that he has agreed to lead the company through this important stage of its evolution,” said Ted Leonsis, Chairman of Groupon.
Second Quarter 2013 Summary
Groupon changed its segment disclosures in the second quarter to separately report three segments: North America, EMEA and Rest of World, which provides a better sense of the financial profile of its regions.
Gross billings, which reflect the total dollar value of customer purchases of goods and services, excluding any applicable taxes and net of estimated refunds, increased 10% globally to $1.41 billion in the second quarter 2013, compared with $1.29 billion in the second quarter 2012. North America growth of 30% and EMEA growth of 4% was offset by a 21% decline in Rest of World.
Revenue increased 7% to $608.7 million in the second quarter 2013, compared with$568.3 million in the second quarter 2012. North America revenue growth of 45% was offset by a 24% decline in EMEA and a 26% decline in Rest of World.
Gross profit was $384.7 million in the second quarter 2013, compared with $433.2 millionin the second quarter 2012.
Operating income was $27.4 million in the second quarter 2013, compared with $46.5 million in the second quarter 2012. Operating income increased$6.2 million compared with the first quarter 2013.
Operating income excluding stock compensation and acquisition-related costs, net, a non-GAAP financial measure, was $59.0 million in the second quarter 2013, compared with $71.9 million in the second quarter 2012. Operating income excluding stock compensation and acquisition-related costs, net, increased $7.9 million compared with first quarter 2013.
Adjusted EBITDA was $80.5 million in the second quarter 2013, compared with $84.7 million in the second quarter 2012.
Second quarter 2013 net loss attributable to common stockholders was $7.6 million, or $0.01 per share, including stock compensation and acquisition-related costs, net, of $31.6 million, or $21.8 million net of tax. Earnings per share excluding stock compensation and acquisition-related costs, net of tax, a non-GAAP financial measure, was $0.02 per share, including a $0.01 negative impact from foreign exchange.
Operating cash flow for the trailing twelve months ended June 30, 2013 was $159.9 million. Free cash flow, a non-GAAP financial measure, was $29.3 million in the second quarter 2013, bringing free cash flow for the trailing twelve months ended June 30, 2013 to $75.3 million.
At the end of the quarter, Groupon had $1.2 billion in cash and cash equivalents.
Definitions and reconciliations of all non-GAAP financial measures are included below in the section titled “Non-GAAP Financial Measures” and in the accompanying tables.
Second Quarter Operating Highlights
- Global units: Consolidated units, defined as vouchers and products sold before cancellations and refunds, increased 15% year-over-year to 46 million. North America units increased 45%, EMEA units decreased 3%, and Rest of World units decreased 12%.
- Active deals: At the end of the second quarter 2013, the number of active deals in North America increased to more than 54,000 on average, compared with nearly 40,000 as reported at the end of the first quarter 2013.
- Active customers: Active customers, or customers that have purchased a Groupon within the last twelve months, grew 12% year-over-year, to 42.6 million as of June 30, 2013, comprising 19.1 million in North America, 13.9 million in EMEA, and 9.6 million in Rest of World.
- Customer spend: Second quarter 2013 trailing twelve month billings per average active customer remained unchanged at $138, compared with the first quarter 2013. North America trailing twelve month billings per average active customer increased $5 compared with the first quarter 2013, from $151 to $156.
- Mobile: In June 2013, nearly 50% of North American transactions were completed on mobile devices, compared with about 30% in June 2012. More than 50 million people have now downloaded Groupon mobile apps worldwide, with more than 7.5 million people downloading them in the second quarter alone.
- Marketplace: Direct email accounted for less than 40% of North American transactions in the second quarter 2013, providing evidence that the rollout of Groupon’s marketplace (“Pull”) continues to gain momentum.
Share Repurchase Authorization
Groupon also announced today that its Board of Directors has authorized a share repurchase program. Under the program, Groupon is authorized to repurchase up to $300 million of its outstanding Class A common stock over the next 24 months. The timing and amount of any share repurchases will be determined based on market conditions, share price and other factors, and the program may be discontinued or suspended at any time. Repurchases will be made in compliance with SEC rules and other legal requirements, and may be made in part under a Rule 10b5-1 plan, which permits stock repurchases when Groupon might otherwise be precluded from doing so. The program is intended to offset the annual dilution from employee stock grants.
Outlook
In the third quarter 2013, Groupon expects seasonality to impact the Local business, as people travel more frequently in the summer months. In addition, the Company anticipates continued investment in marketing initiatives to drive long-term growth. As a result, for the third quarter 2013, the Company expects revenue of between $585 million and $635 million, operating income excluding stock compensation and acquisition-related expenses of between$20 million and $40 million, and EPS excluding stock-compensation and acquisition related expenses, net of tax, of between negative $0.01 and positive$0.01. Stock compensation is expected to be approximately $30 million, or approximately $20 million net of tax. This outlook assumes no acquisitions or investments, or material changes in foreign exchange rates.
Groupon reaffirms its guidance that full year 2013 GAAP operating income will exceed $100 million.
Conference Call
A conference call will be webcast live today at 4:00 p.m. CT / 5:00 p.m. ET, and will be available on Groupon’s investor relations website athttp://investor.groupon.com. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.
Non-GAAP Financial Measures
In addition to financial results reported in accordance with U.S. generally accepted accounting principles (U.S. GAAP), we have provided the following non-GAAP financial measures in this release and the accompanying tables: foreign exchange rate neutral operating results, operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net, Adjusted EBITDA, earnings per share excluding stock-based compensation and acquisition-related expense (benefit), net, and free cash flow. These non-GAAP financial measures are presented to aid investors in better understanding Groupon’s performance and to facilitate comparisons to many of our peers who present similar measures. However, these measures are not intended to be a substitute for those reported in accordance with U.S. GAAP. These measures may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures. For reconciliations of these measures to the most applicable financial measures under U.S. GAAP, see “Non-GAAP Reconciliation Schedules” and “Supplemental Financial Information and Business Metrics” included in the tables accompanying this release.
We exclude the following items from one or more of our non-GAAP financial measures:
Stock-based compensation. We exclude stock-based compensation because it is primarily non-cash in nature and we believe that non-GAAP financial measures excluding this item provide meaningful supplemental information about our operating performance and liquidity.
Acquisition-related expense (benefit), net. Acquisition-related expense (benefit), net represents the change in the fair value of contingent consideration arrangements related to business combinations. The composition of our contingent consideration arrangements and the impact of those arrangements on our operating results vary over time based on a number of factors, including the terms of our business combinations and the timing of those transactions. We exclude acquisition-related expense (benefit), net because we believe that non-GAAP financial measures excluding this item provide meaningful supplemental information about our operating performance and facilitate comparisons to our historical operating results.
Depreciation and amortization. We exclude depreciation and amortization because it is non-cash in nature and we believe that non-GAAP financial measures excluding these items provide meaningful supplemental information about our operating performance and liquidity.
Descriptions of the non-GAAP financial measures included in this release and the accompanying tables are as follows:
Foreign exchange rate neutral operating results show our current period operating results as if foreign currency exchange rates had remained the same as those in effect in the comparable period.
Operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net is a non-GAAP financial measure that comprises the consolidated total of the segment operating income (loss) of our three segments, North America, EMEA, and Rest of World. We use consolidated operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net to allocate resources and evaluate performance internally.
Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) excluding income taxes, interest and other non-operating items, depreciation and amortization, stock-based compensation, and acquisition-related expense (benefit), net. Adjusted EBITDA is similar to Operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net, except Adjusted EBITDA also excludes depreciation and amortization. Our definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. We believe that Adjusted EBITDA is a meaningful measure for evaluating our operating performance and liquidity.
Earnings per share excluding stock-based compensation and acquisition-related expense (benefit), net is a non-GAAP financial measure that adjusts our earnings (loss) per share to exclude the impact of stock-based compensation expense, acquisition-related expense (benefit), net and the income tax effect of those items. We believe that this non-GAAP financial measure provides meaningful supplemental information for evaluating our operating performance.
Free cash flow is a non-GAAP financial measure that comprises net cash provided by operating activities less purchases of property and equipment and capitalized software. We use free cash flow, and ratios based on it, to conduct and evaluate our business because, although it is similar to cash flow from operations, we believe that it typically represents a more useful measure of cash flows because purchases of fixed assets, software developed for internal use and website development costs are necessary components of our ongoing operations. Free cash flow is not intended to represent the total increase or decrease in Groupon’s cash balance for the applicable period.
Note on Forward-Looking Statements
The statements contained in this release that refer to plans and expectations for the next quarter or the future are forward-looking statements that involve a number of risks and uncertainties, and actual results could differ materially from those discussed. The risks and uncertainties that could cause our results to differ materially from those included in the forward-looking statements include, but are not limited to, volatility in our revenue and operating results; risks related to our business strategy; responding to changes in the market; effectively dealing with challenges arising from our international operations; retaining existing customers and adding new customers; retaining existing merchant partners and adding new merchant partners; incurring expenses as we expand our business; competing against competitors with more financial resources than us; maintaining favorable terms with our business partners; maintaining a strong brand; managing inventory and order fulfillment; integrating our technology platforms; managing refund risks; retaining our executive team; litigation; regulations, including the CARD Act and regulation of the Internet; tax liabilities; tax legislation; maintaining our information technology infrastructure; security breaches; protecting our intellectual property; handling acquisitions, joint ventures and strategic investments effectively; seasonality; payment-related risks; customer and merchant partner fraud; global economic uncertainty; compliance with rules and regulations associated with being a public company; and our ability to raise capital if necessary. We urge you to refer to the factors included under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the company’s Investor Relations web site athttp://investor.groupon.com or the SEC’s web site at www.sec.gov. Groupon’s actual results could differ materially from those predicted or implied and reported results should not be considered an indication of future performance.
You should not rely upon forward-looking statements as predictions of future events. Although Groupon believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither the company nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. The forward-looking statements reflect Groupon’s expectations as of August 7, 2013.Groupon undertakes no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in its expectations.
Groupon encourages investors to use its investor relations website as a way of easily finding information about the company. Groupon promptly makes available on this website, free of charge, the reports that the company files or furnishes with the SEC, corporate governance information (including Groupon’s Global Code of Conduct), and select press releases and social media postings.
About Groupon
Groupon (NASDAQ: GRPN) is a global leader in local commerce, making it easy for people around the world to search and discover great businesses at unbeatable prices. Groupon is reinventing the traditional small business world by providing merchants with a suite of products and services, including customizable deals, payments processing capabilities and point-of-sale solutions to help them attract more customers and run their operations more effectively. By leveraging the company’s global relationships and scale, Groupon offers consumers incredible deals on the best stuff to eat, see, do, and buy in 48 countries. With Groupon, shoppers discover the best a city has to offer with Groupon Local, enjoy vacations with GrouponGetaways, and find a curated selection of electronics, fashion, home furnishings and more with Groupon Goods. To subscribe to Groupon emails, visit www.Groupon.com. To learn more about the company’s merchant solutions and how to work with Groupon, visit www.GrouponWorks.com.
| Groupon, Inc. | ||||||||||||||||||||||||||||||||||||||
| Summary Consolidated and Segment Results | ||||||||||||||||||||||||||||||||||||||
| (in thousands, except share and per share amounts) | ||||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Y/Y % | Y/Y % | |||||||||||||||||||||||||||||||||||||
| Three Months Ended | Growth | Six Months Ended | Growth | |||||||||||||||||||||||||||||||||||
| June 30, | excluding | June 30, | excluding | |||||||||||||||||||||||||||||||||||
| 2013 | 2012 | Y/Y % Growth | FX Effect (2) | FX(2) | 2013 | 2012 | Y/Y % Growth | FX Effect (2) | FX(2) | |||||||||||||||||||||||||||||
| Gross Billings (1) | ||||||||||||||||||||||||||||||||||||||
| North America | $ | 712,205 | $ | 548,275 | 29.9 | % | $ | (130 | ) | 29.9 | % | $ | 1,393,524 | $ | 1,101,832 | 26.5 | % | $ | (201 | ) | 26.5 | % | ||||||||||||||||
| EMEA | 482,250 | 462,379 | 4.3 | % | 3,019 | 3.6 | % | 974,568 | 999,940 | (2.5 | ) | % | 4,584 | (3.0 | ) | % | ||||||||||||||||||||||
| Rest of World | 219,351 | 276,022 | (20.5 | ) | % | (12,497 | ) | (16.0 | ) | % | 453,483 | 539,704 | (16.0 | ) | % | (25,869 | ) | (11.2 | ) | % | ||||||||||||||||||
| Consolidated gross billings | $ | 1,413,806 | $ | 1,286,676 | 9.9 | % | $ | (9,608 | ) | 10.6 | % | $ | 2,821,575 | $ | 2,641,476 | 6.8 | % | $ | (21,486 | ) | 7.6 | % | ||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||||||||||
| North America | $ | 377,182 | $ | 260,181 | 45.0 | % | $ | (42 | ) | 45.0 | % | $ | 716,736 | $ | 498,746 | 43.7 | % | $ | (74 | ) | 43.7 | % | ||||||||||||||||
| EMEA | 159,962 | 211,555 | (24.4 | ) | % | 981 | (24.9 | ) | % | 343,760 | 441,911 | (22.2 | ) | % | 1,661 | (22.6 | ) | % | ||||||||||||||||||||
| Rest of World | 71,603 | 96,599 | (25.9 | ) | % | (4,364 | ) | (21.4 | ) | % | 149,653 | 186,961 | (20.0 | ) | % | (9,237 | ) | (15.0 | ) | % | ||||||||||||||||||
| Consolidated revenue | $ | 608,747 | $ | 568,335 | 7.1 | % | $ | (3,425 | ) | 7.7 | % | $ | 1,210,149 | $ | 1,127,618 | 7.3 | % | $ | (7,650 | ) | 8.0 | % | ||||||||||||||||
| Income from operations | $ | 27,412 | $ | 46,485 | (41.0 | ) | % | $ | (2,971 | ) | (34.6 | ) | % | $ | 48,590 | $ | 86,124 | (43.6 | ) | % | $ | (1,352 | ) | (42.0 | ) | % | ||||||||||||
| Net (loss) income attributable to common stockholders | $ | (7,574 | ) | $ | 28,386 | $ | (11,566 | ) | $ | 16,691 | ||||||||||||||||||||||||||||
| Net (loss) earnings per share | ||||||||||||||||||||||||||||||||||||||
| Basic | $ | (0.01 | ) | $ | 0.04 | $ | (0.02 | ) | $ | 0.03 | ||||||||||||||||||||||||||||
| Diluted | $ | (0.01 | ) | $ | 0.04 | $ | (0.02 | ) | $ | 0.03 | ||||||||||||||||||||||||||||
| Weighted average basic shares outstanding | 662,361,436 | 647,149,537 | 660,580,927 | 645,073,582 | ||||||||||||||||||||||||||||||||||
| Weighted average diluted shares outstanding | 662,361,436 | 663,122,709 | 660,580,927 | 663,230,558 | ||||||||||||||||||||||||||||||||||
| (1) Represents the total dollar value of customer purchases of goods and services, excluding any applicable taxes and net of estimated refunds. Includes direct billings and third party and other billings. | ||||||||||||||||||||||||||||||||||||||
| (2) Represents the change in financial measures that would have resulted had average exchange rates in the reporting period been the same as those in effect during the three and six months ended June 30, 2012. | ||||||||||||||||||||||||||||||||||||||
| Groupon, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months EndedJune 30, | Six Months EndedJune 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Operating activities | ||||||||||||||||
| Net (loss) income | $ | (5,551 | ) | $ | 33,549 | $ | (8,793 | ) | $ | 29,956 | ||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||||||
| Depreciation and amortization | 21,468 | 12,810 | 42,168 | 24,526 | ||||||||||||
| Stock-based compensation | 32,446 | 27,084 | 62,353 | 55,087 | ||||||||||||
| Deferred income taxes | (308 | ) | 13,873 | (566 | ) | 12,997 | ||||||||||
| Excess tax benefits on stock-based compensation | (2,936 | ) | (18,869 | ) | (3,768 | ) | (21,750 | ) | ||||||||
| Loss on equity method investments | 14 | 3,428 | 33 | 8,556 | ||||||||||||
| Acquisition-related benefit, net | (815 | ) | (1,635 | ) | (747 | ) | (1,687 | ) | ||||||||
| Gain on E-Commerce transaction | – | (56,032 | ) | – | (56,032 | ) | ||||||||||
| Change in assets and liabilities, net of acquisitions: | ||||||||||||||||
| Restricted cash | 744 | (1,471 | ) | 3,267 | (2,828 | ) | ||||||||||
| Accounts receivable | 4,743 | 19,963 | (2,941 | ) | 8,085 | |||||||||||
| Prepaid expenses and other current assets | 3,465 | (17,624 | ) | 15,992 | (21,745 | ) | ||||||||||
| Accounts payable | (3,225 | ) | 20,089 | (22,831 | ) | 18,268 | ||||||||||
| Accrued merchant and supplier payables | 1,442 | (13,979 | ) | (37,975 | ) | 32,021 | ||||||||||
| Accrued expenses and other current liabilities | (20,539 | ) | 49,657 | (7,237 | ) | 63,077 | ||||||||||
| Other, net | 12,354 | 4,472 | 13,107 | 10,498 | ||||||||||||
| Net cash provided by operating activities | 43,302 | 75,315 | 52,062 | 159,029 | ||||||||||||
| Net cash used in investing activities | (15,862 | ) | (60,153 | ) | (46,541 | ) | (106,597 | ) | ||||||||
| Net cash (used in) provided by financing activities | (7,941 | ) | 24,158 | (17,283 | ) | 15,883 | ||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (3,138 | ) | (14,511 | ) | (15,516 | ) | (5,452 | ) | ||||||||
| Net increase (decrease) in cash and cash equivalents | 16,361 | 24,809 | (27,278 | ) | 62,863 | |||||||||||
| Cash and cash equivalents, beginning of period | 1,165,650 | 1,160,989 | 1,209,289 | 1,122,935 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 1,182,011 | $ | 1,185,798 | $ | 1,182,011 | $ | 1,185,798 | ||||||||
| Groupon, Inc. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (in thousands, except share and per share amounts) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenue: | ||||||||||||||||
| Third party and other | $ | 418,871 | $ | 502,985 | $ | 857,979 | $ | 1,043,038 | ||||||||
| Direct | 189,876 | 65,350 | 352,170 | 84,580 | ||||||||||||
| Total revenue | 608,747 | 568,335 | 1,210,149 | 1,127,618 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Third party and other | 55,507 | 77,032 | 125,523 | 179,661 | ||||||||||||
| Direct | 168,546 | 58,152 | 320,923 | 75,021 | ||||||||||||
| Total cost of revenue | 224,053 | 135,184 | 446,446 | 254,682 | ||||||||||||
| Gross Profit | 384,694 | 433,151 | 763,703 | 872,936 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Marketing | 55,497 | 88,407 | 105,054 | 205,022 | ||||||||||||
| Selling, general and administrative | 302,600 | 299,894 | 610,806 | 583,477 | ||||||||||||
| Acquisition-related benefit, net | (815 | ) | (1,635 | ) | (747 | ) | (1,687 | ) | ||||||||
| Total operating expenses | 357,282 | 386,666 | 715,113 | 786,812 | ||||||||||||
| Income from operations | 27,412 | 46,485 | 48,590 | 86,124 | ||||||||||||
| Loss on equity method investments | (14 | ) | (3,428 | ) | (33 | ) | (8,556 | ) | ||||||||
| Other (expense) income, net | (5,565 | ) | 57,367 | (10,629 | ) | 53,828 | ||||||||||
| Income before provision for income taxes | 21,833 | 100,424 | 37,928 | 131,396 | ||||||||||||
| Provision for income taxes | 27,384 | 66,875 | 46,721 | 101,440 | ||||||||||||
| Net (loss) income | (5,551 | ) | 33,549 | (8,793 | ) | 29,956 | ||||||||||
| Net income attributable to noncontrolling interests | (2,023 | ) | (1,220 | ) | (2,773 | ) | (2,100 | ) | ||||||||
| Net (loss) income attributable to Groupon, Inc. | (7,574 | ) | 32,329 | (11,566 | ) | 27,856 | ||||||||||
| Adjustment of redeemable noncontrolling interests to redemption value | – | (3,943 | ) | – | (11,165 | ) | ||||||||||
| Net (loss) income attributable to common stockholders | $ | (7,574 | ) | $ | 28,386 | $ | (11,566 | ) | $ | 16,691 | ||||||
| Net (loss) earnings per share | ||||||||||||||||
| Basic | $ | (0.01 | ) | $ | 0.04 | $ | (0.02 | ) | $ | 0.03 | ||||||
| Diluted | $ | (0.01 | ) | $ | 0.04 | $ | (0.02 | ) | $ | 0.03 | ||||||
| Weighted average number of shares outstanding | ||||||||||||||||
| Basic | 662,361,436 | 647,149,537 | 660,580,927 | 645,073,582 | ||||||||||||
| Diluted | 662,361,436 | 663,122,709 | 660,580,927 | 663,230,558 | ||||||||||||
| Groupon, Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (in thousands, except share and per share amounts) | ||||||||
| June 30, 2013 | December 31, 2012 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,182,011 | $ | 1,209,289 | ||||
| Accounts receivable, net | 96,808 | 96,713 | ||||||
| Deferred income taxes | 30,636 | 31,211 | ||||||
| Prepaid expenses and other current assets | 127,496 | 150,573 | ||||||
| Total current assets | 1,436,951 | 1,487,786 | ||||||
| Property, equipment and software, net of accumulated depreciation and amortization of $75,210 and $46,236, respectively |
125,860 | 121,072 | ||||||
| Goodwill | 206,683 | 206,684 | ||||||
| Intangible assets, net | 33,186 | 42,597 | ||||||
| Investments | 97,321 | 84,209 | ||||||
| Deferred income taxes, non-current | 28,837 | 29,916 | ||||||
| Other non-current assets | 47,830 | 59,210 | ||||||
| Total Assets | $ | 1,976,668 | $ | 2,031,474 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 35,499 | $ | 59,865 | ||||
| Accrued merchant and supplier payables | 616,605 | 671,305 | ||||||
| Accrued expenses | 226,846 | 246,924 | ||||||
| Deferred income taxes | 51,191 | 53,700 | ||||||
| Other current liabilities | 134,805 | 136,647 | ||||||
| Total current liabilities | 1,064,946 | 1,168,441 | ||||||
| Deferred income taxes, non-current | 20,387 | 20,860 | ||||||
| Other non-current liabilities | 100,907 | 100,072 | ||||||
| Total Liabilities | 1,186,240 | 1,289,373 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ Equity | ||||||||
| Class A common stock, par value $0.0001 per share, 2,000,000,000 shares authorized, 661,630,188 and 654,523,706 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively |
66 | 65 | ||||||
| Class B common stock, par value $0.0001 per share, 10,000,000 shares authorized, 2,399,976 shares issued and outstanding at June 30, 2013 and December 31, 2012 |
– | – | ||||||
| Common stock, par value $0.0001 per share, 2,010,000,000 shares authorized, no shares issued and outstanding at June 30, 2013, and December 31, 2012 |
– | – | ||||||
| Additional paid-in capital | 1,532,699 | 1,485,006 | ||||||
| Accumulated deficit | (765,043 | ) | (753,477 | ) | ||||
| Accumulated other comprehensive income | 24,774 | 12,446 | ||||||
| Total Groupon, Inc. Stockholders’ Equity | 792,496 | 744,040 | ||||||
| Noncontrolling interests | (2,068 | ) | (1,939 | ) | ||||
| Total Equity | 790,428 | 742,101 | ||||||
| Total Liabilities and Equity | $ | 1,976,668 | $ | 2,031,474 | ||||
| Groupon, Inc. | |||||||||||||||||
| Segment Information | |||||||||||||||||
| (in thousands) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||
| North America | |||||||||||||||||
| Gross Billings (1) | $ | 712,205 | $ | 548,275 | $ | 1,393,524 | $ | 1,101,832 | |||||||||
| Revenue | $ | 377,182 | $ | 260,181 | $ | 716,736 | $ | 498,746 | |||||||||
| Segment cost of revenue and operating expenses(2) | 328,674 | 216,752 | 626,862 | 415,145 | |||||||||||||
| Segment operating income(2) | $ | 48,508 | $ | 43,429 | $ | 89,874 | $ | 83,601 | |||||||||
| Segment operating income as a percent of segment revenue | 12.9 | % | 16.7 | % | 12.5 | % | 16.8 | % | |||||||||
| EMEA | |||||||||||||||||
| Gross Billings (1) | $ | 482,250 | $ | 462,379 | $ | 974,568 | $ | 999,940 | |||||||||
| Revenue | $ | 159,962 | $ | 211,555 | $ | 343,760 | $ | 441,911 | |||||||||
| Segment cost of revenue and operating expenses(2) | 135,254 | 179,761 | 284,876 | 373,789 | |||||||||||||
| Segment operating income(2) | $ | 24,708 | $ | 31,794 | $ | 58,884 | $ | 68,122 | |||||||||
| Segment operating income as a percent of segment revenue | 15.4 | % | 15.0 | % | 17.1 | % | 15.4 | % | |||||||||
| Rest of World | |||||||||||||||||
| Gross Billings (1) | $ | 219,351 | $ | 276,022 | $ | 453,483 | $ | 539,704 | |||||||||
| Revenue | $ | 71,603 | $ | 96,599 | $ | 149,653 | $ | 186,961 | |||||||||
| Segment cost of revenue and operating expenses(2) | 85,776 | 99,888 | 188,215 | 199,160 | |||||||||||||
| Segment operating loss(2) | $ | (14,173 | ) | $ | (3,289 | ) | $ | (38,562 | ) | $ | (12,199 | ) | |||||
| Segment operating loss as a percent of segment revenue | (19.8 | ) | % | (3.4 | ) | % | (25.8 | ) | % | (6.5 | ) | % | |||||
| Consolidated | |||||||||||||||||
| Gross Billings (1) | $ | 1,413,806 | $ | 1,286,676 | $ | 2,821,575 | $ | 2,641,476 | |||||||||
| Revenue | $ | 608,747 | $ | 568,335 | $ | 1,210,149 | $ | 1,127,618 | |||||||||
| Segment cost of revenue and operating expenses(2) | 549,704 | 496,401 | 1,099,953 | 988,094 | |||||||||||||
| Segment operating income(2) | $ | 59,043 | $ | 71,934 | $ | 110,196 | $ | 139,524 | |||||||||
| Segment operating income as a percent of segment revenue | 9.7 | % | 12.7 | % | 9.1 | % | 12.4 | % | |||||||||
| Stock-based compensation | 32,446 | 27,084 | 62,353 | 55,087 | |||||||||||||
| Acquisition-related benefit, net | (815 | ) | (1,635 | ) | (747 | ) | (1,687 | ) | |||||||||
| Income from operations | 27,412 | 46,485 | 48,590 | 86,124 | |||||||||||||
| Loss on equity method investments | 14 | 3,428 | 33 | 8,556 | |||||||||||||
| Other expense (income), net | 5,565 | (57,367 | ) | 10,629 | (53,828 | ) | |||||||||||
| Income before provision for income taxes | 21,833 | 100,424 | 37,928 | 131,396 | |||||||||||||
| Provision for income taxes | 27,384 | 66,875 | 46,721 | 101,440 | |||||||||||||
| Net (loss) income | $ | (5,551 | ) | $ | 33,549 | $ | (8,793 | ) | $ | 29,956 | |||||||
| (1) Represents the total dollar value of customer purchases of goods and services, excluding any applicable taxes and net of estimated refunds. Includes direct billings and third party and other billings. | |||||||||||||||||
| (2) Segment cost of revenue and operating expenses and segment operating income (loss) exclude stock-based compensation and acquisition-related benefit, net. | |||||||||||||||||
| Groupon, Inc. | ||||||||||||||||||||||
| Non-GAAP Reconciliation Schedules | ||||||||||||||||||||||
| (in thousands, except share and per share amounts) | ||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||
| The following are reconciliations of diluted earnings per share excluding stock-based compensation and acquisition-related benefit, net and foreign exchange rate neutral operating results to the most comparable U.S. GAAP financial measures. See “Supplemental Financial Information and Business Metrics” for reconciliations of Adjusted EBITDA, operating income, excluding stock-based compensation and acquisition-related benefit, net and free cash flow to the most comparable U.S. GAAP financial measures. | ||||||||||||||||||||||
| The following is a reconciliation of diluted net loss per share to diluted earnings per share excluding stock-based compensation and acquisition-related benefit, net for the three and six months ended June 30, 2013: | ||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||
| June 30, 2013 | June 30, 2013 | |||||||||||||||||||||
| Net loss attributable to common stockholders | $ | (7,574 | ) | $ | (11,566 | ) | ||||||||||||||||
| Stock-based compensation | 32,446 | 62,353 | ||||||||||||||||||||
| Acquisition-related benefit, net | (815 | ) | (747 | ) | ||||||||||||||||||
| Income tax effect of adjustments | (9,797 | ) | (18,910 | ) | ||||||||||||||||||
| Net income attributable to common stockholders excluding stock-based | ||||||||||||||||||||||
| compensation and acquisition-related benefit, net | $ | 14,260 | $ | 31,130 | ||||||||||||||||||
| Diluted shares | 662,361,436 | 660,580,927 | ||||||||||||||||||||
| Incremental diluted shares (1) | 14,644,615 | 13,410,174 | ||||||||||||||||||||
| Adjusted diluted shares | 677,006,051 | 673,991,101 | ||||||||||||||||||||
| Diluted net loss per share | $ | (0.01 | ) | $ | (0.02 | ) | ||||||||||||||||
| Impact of stock-based compensation and acquisition-related | ||||||||||||||||||||||
| benefit, net and the related income tax effects | 0.03 | 0.07 | ||||||||||||||||||||
| Diluted earnings per share excluding stock-based compensation and | ||||||||||||||||||||||
| acquisition-related benefit, net | $ | 0.02 | $ | 0.05 | ||||||||||||||||||
| (1) Outstanding equity awards are not reflected in the diluted net loss per share calculation for the three and six months ended June 30, 2013 because the effect would be antidilutive. However, those awards have been reflected in the calculation of diluted earnings per share excluding stock-based compensation and acquisition-related benefit, net for the three and six months ended June 30, 2013 because they have a dilutive effect on that calculation. | ||||||||||||||||||||||
| The following are reconciliations of foreign exchange rate neutral operating results to the most comparable U.S. GAAP financial measures, “Gross Billings,” “Revenue” and “Income from operations,” for the three and six months ended June 30, 2013. | ||||||||||||||||||||||
| The effect on the Company’s gross billings, revenue and income from operations from changes in exchange rates versus the U.S. Dollar for the three months ended June 30, 2013 was as follows: | ||||||||||||||||||||||
| Three Months Ended June 30, 2013 | Three Months Ended June 30, 2013 | |||||||||||||||||||||
| At Avg. | Exchange | At Avg. | Exchange | |||||||||||||||||||
| Q2 2012Rates (1) | RateEffect (2) | AsReported | Q1 2013Rates (3) | RateEffect (2) | AsReported | |||||||||||||||||
| Gross billings | $ | 1,423,414 | $ | (9,608 | ) | $ | 1,413,806 | $ | 1,427,060 | $ | (13,254 | ) | $ | 1,413,806 | ||||||||
| Revenue | $ | 612,172 | $ | (3,425 | ) | $ | 608,747 | $ | 613,123 | $ | (4,376 | ) | $ | 608,747 | ||||||||
| Income from operations | $ | 30,383 | $ | (2,971 | ) | $ | 27,412 | $ | 30,817 | $ | (3,405 | ) | $ | 27,412 | ||||||||
| The effect on the Company’s gross billings, revenue and income from operations from changes in exchange rates versus the U.S. Dollar for the six months ended June 30, 2013 was as follows: | ||||||||||||||||||||||
| Six Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | |||||||||||||||||||||
| At Avg. | Exchange | At Avg. | Exchange | |||||||||||||||||||
| Q2 2012 YTDRates (1) | RateEffect (2) | AsReported | Q4’12 – Q1’13Rates (3) | RateEffect (2) | AsReported | |||||||||||||||||
| Gross billings | $ | 2,843,061 | $ | (21,486 | ) | $ | 2,821,575 | $ | 2,836,022 | $ | (14,447 | ) | $ | 2,821,575 | ||||||||
| Revenue | $ | 1,217,799 | $ | (7,650 | ) | $ | 1,210,149 | $ | 1,214,833 | $ | (4,684 | ) | $ | 1,210,149 | ||||||||
| Income from operations | $ | 49,942 | $ | (1,352 | ) | $ | 48,590 | $ | 52,189 | $ | (3,599 | ) | $ | 48,590 | ||||||||
| (1) Represents the financial statement balances that would have resulted had average exchange rates in the reported period been the same as those in effect during the three and six months ended June 30, 2012. | ||||||||||||||||||||||
| (2) Represents the increase or decrease in reported amounts resulting from changes in exchange rates from those in effect in the comparable period. | ||||||||||||||||||||||
| (3) Represents the financial statement balances that would have resulted had average exchange rates in the reported period been the same as those in effect during the three and six months ended March 31, 2013. | ||||||||||||||||||||||
| Groupon, Inc. | |||||||||||||||||||||
| Supplemental Financial Information and Business Metrics(14) | |||||||||||||||||||||
| (financial data in thousands, except per share data; active customers in millions) | |||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||
| Q2 2012 | Q3 2012 | Q4 2012 | Q1 2013 | Q2 2013 | |||||||||||||||||
| Segments | |||||||||||||||||||||
| North America Segment | |||||||||||||||||||||
| Gross Billings (1) | |||||||||||||||||||||
| Local (2) Gross Billings | |||||||||||||||||||||
| Third Party | $ | 412,348 | $ | 349,293 | $ | 430,255 | $ | 450,140 | $ | 449,770 | |||||||||||
| Direct | 288 | 6,450 | – | – | 693 | ||||||||||||||||
| Total Local Gross Billings | $ | 412,636 | $ | 355,743 | $ | 430,255 | $ | 450,140 | $ | 450,463 | |||||||||||
| Goods Gross Billings | |||||||||||||||||||||
| Third Party | $ | 40,173 | $ | 25,508 | $ | 31,270 | $ | 17,294 | $ | 15,501 | |||||||||||
| Direct | 52,773 | 126,608 | 209,575 | 148,065 | 181,377 | ||||||||||||||||
| Total Goods Gross Billings | $ | 92,946 | $ | 152,116 | $ | 240,845 | $ | 165,359 | $ | 196,878 | |||||||||||
| Travel and Other Gross Billings | |||||||||||||||||||||
| Third Party and Other | $ | 42,693 | $ | 44,510 | $ | 47,852 | $ | 65,820 | $ | 64,864 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Gross Billings | $ | 42,693 | $ | 44,510 | $ | 47,852 | $ | 65,820 | $ | 64,864 | |||||||||||
| Total Gross Billings | |||||||||||||||||||||
| Third Party and Other | $ | 495,214 | $ | 419,311 | $ | 509,377 | $ | 533,254 | $ | 530,135 | |||||||||||
| Direct | 53,061 | 133,058 | 209,575 | 148,065 | 182,070 | ||||||||||||||||
| Total Gross Billings | $ | 548,275 | $ | 552,369 | $ | 718,952 | $ | 681,319 | $ | 712,205 | |||||||||||
| Year-over-year growth | 48 | % | 38 | % | 51 | % | 23 | % | 30 | % | |||||||||||
| % of Consolidated Gross Billings | 43 | % | 45 | % | 47 | % | 48 | % | 50 | % | |||||||||||
| Gross Billings Trailing Twelve Months (TTM) | $ | 1,978,617 | $ | 2,130,008 | $ | 2,373,153 | $ | 2,500,915 | $ | 2,664,845 | |||||||||||
| Revenue (3) | |||||||||||||||||||||
| Local Revenue | |||||||||||||||||||||
| Third Party | $ | 184,189 | $ | 134,993 | $ | 142,454 | $ | 171,593 | $ | 174,117 | |||||||||||
| Direct | 288 | 6,450 | – | – | 693 | ||||||||||||||||
| Total Local Revenue | $ | 184,477 | $ | 141,443 | $ | 142,454 | $ | 171,593 | $ | 174,810 | |||||||||||
| Goods Revenue | |||||||||||||||||||||
| Third Party | $ | 10,387 | $ | 13,064 | $ | 11,877 | $ | 3,144 | $ | 4,651 | |||||||||||
| Direct | 52,774 | 126,608 | 209,575 | 148,065 | 181,377 | ||||||||||||||||
| Total Goods Revenue | $ | 63,161 | $ | 139,672 | $ | 221,452 | $ | 151,209 | $ | 186,028 | |||||||||||
| Travel and Other Revenue | |||||||||||||||||||||
| Third Party and Other | $ | 12,543 | $ | 10,488 | $ | 11,445 | $ | 16,752 | $ | 16,344 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Revenue | $ | 12,543 | $ | 10,488 | $ | 11,445 | $ | 16,752 | $ | 16,344 | |||||||||||
| Total Revenue | |||||||||||||||||||||
| Third Party and Other Revenue | $ | 207,119 | $ | 158,545 | $ | 165,776 | $ | 191,489 | $ | 195,112 | |||||||||||
| Direct Revenue | 53,062 | 133,058 | 209,575 | 148,065 | 182,070 | ||||||||||||||||
| Total Revenue | $ | 260,181 | $ | 291,603 | $ | 375,351 | $ | 339,554 | $ | 377,182 | |||||||||||
| Year-over-year growth | 66 | % | 81 | % | 109 | % | 42 | % | 45 | % | |||||||||||
| % of Consolidated Revenue | 46 | % | 51 | % | 59 | % | 56 | % | 62 | % | |||||||||||
| Revenue TTM | $ | 839,909 | $ | 969,987 | $ | 1,165,700 | $ | 1,266,689 | $ | 1,383,690 | |||||||||||
| Cost of Revenue (4) | |||||||||||||||||||||
| Local Cost of Revenue | |||||||||||||||||||||
| Third Party | $ | 35,710 | $ | 13,176 | $ | 23,203 | $ | 25,915 | $ | 19,818 | |||||||||||
| Direct | 234 | 5,231 | – | – | 636 | ||||||||||||||||
| Total Local Cost of Revenue | $ | 35,944 | $ | 18,407 | $ | 23,203 | $ | 25,915 | $ | 20,454 | |||||||||||
| Goods Cost of Revenue | |||||||||||||||||||||
| Third Party | $ | 2,014 | $ | 1,275 | $ | 1,935 | $ | 475 | $ | 522 | |||||||||||
| Direct | 45,925 | 110,329 | 196,789 | 138,278 | 158,529 | ||||||||||||||||
| Total Goods Cost of Revenue | $ | 47,939 | $ | 111,604 | $ | 198,724 | $ | 138,753 | $ | 159,051 | |||||||||||
| Travel and Other Cost of Revenue | |||||||||||||||||||||
| Third Party and Other | $ | 2,431 | $ | 1,024 | $ | 1,864 | $ | 2,530 | $ | 3,091 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Cost of Revenue | $ | 2,431 | $ | 1,024 | $ | 1,864 | $ | 2,530 | $ | 3,091 | |||||||||||
| Total Cost of Revenue | |||||||||||||||||||||
| Third Party and Other Cost of Revenue | $ | 40,155 | $ | 15,475 | $ | 27,002 | $ | 28,920 | $ | 23,431 | |||||||||||
| Direct Cost of Revenue | 46,159 | 115,560 | 196,789 | 138,278 | 159,165 | ||||||||||||||||
| Total Cost of Revenue | $ | 86,314 | $ | 131,035 | $ | 223,791 | $ | 167,198 | $ | 182,596 | |||||||||||
| % of North America Total Revenue | 33 | % | 45 | % | 60 | % | 49 | % | 48 | % | |||||||||||
| Gross Profit | |||||||||||||||||||||
| Local Gross Profit | |||||||||||||||||||||
| Third Party | $ | 148,479 | $ | 121,817 | $ | 119,251 | $ | 145,678 | $ | 154,299 | |||||||||||
| Direct | 54 | 1,219 | – | – | 57 | ||||||||||||||||
| Total Local Gross Profit | $ | 148,533 | $ | 123,036 | $ | 119,251 | $ | 145,678 | $ | 154,356 | |||||||||||
| % of North America Total Local Revenue | 80.5 | % | 87.0 | % | 83.7 | % | 84.9 | % | 88.3 | % | |||||||||||
| % of North America Total Local Gross Billings | 36.0 | % | 34.6 | % | 27.7 | % | 32.4 | % | 34.3 | % | |||||||||||
| Goods Gross Profit | |||||||||||||||||||||
| Third Party | $ | 8,373 | $ | 11,789 | $ | 9,942 | $ | 2,669 | $ | 4,129 | |||||||||||
| Direct | 6,849 | 16,279 | 12,786 | 9,787 | 22,848 | ||||||||||||||||
| Total Goods Gross Profit | $ | 15,222 | $ | 28,068 | $ | 22,728 | $ | 12,456 | $ | 26,977 | |||||||||||
| % of North America Total Goods Revenue | 24.1 | % | 20.1 | % | 10.3 | % | 8.2 | % | 14.5 | % | |||||||||||
| % of North America Total Goods Gross Billings | 16.4 | % | 18.5 | % | 9.4 | % | 7.5 | % | 13.7 | % | |||||||||||
| Travel and Other Gross Profit | |||||||||||||||||||||
| Third Party and Other | $ | 10,112 | $ | 9,464 | $ | 9,581 | $ | 14,222 | $ | 13,253 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Gross Profit | $ | 10,112 | $ | 9,464 | $ | 9,581 | $ | 14,222 | $ | 13,253 | |||||||||||
| % of North America Total Travel and Other Revenue | 80.6 | % | 90.2 | % | 83.7 | % | 84.9 | % | 81.1 | % | |||||||||||
| % of North America Total Travel and Other Gross Billings | 23.7 | % | 21.3 | % | 20.0 | % | 21.6 | % | 20.4 | % | |||||||||||
| Total Gross Profit | |||||||||||||||||||||
| Third Party and Other | $ | 166,964 | $ | 143,070 | $ | 138,774 | $ | 162,569 | $ | 171,681 | |||||||||||
| Direct | 6,903 | 17,498 | 12,786 | 9,787 | 22,905 | ||||||||||||||||
| Total Gross Profit | $ | 173,867 | $ | 160,568 | $ | 151,560 | $ | 172,356 | $ | 194,586 | |||||||||||
| % of North America Total Revenue | 66.8 | % | 55.1 | % | 40.4 | % | 50.8 | % | 51.6 | % | |||||||||||
| % of North America Total Gross Billings | 31.7 | % | 29.1 | % | 21.1 | % | 25.3 | % | 27.3 | % | |||||||||||
| Operating Income Excl Stock-Based Compensation (SBC), Acquisition-Related (Benefit) Expense, net | $ | 43,429 | $ | 39,093 | $ | 17,032 | $ | 41,366 | $ | 48,508 | |||||||||||
| Year-over-year growth | N/A | 108 | % | (7 | ) | % | 3 | % | 12 | % | |||||||||||
| % of Consolidated Operating Income Excl SBC, Acq-Related | 60 | % | 77 | % | 124 | % | 81 | % | 82 | % | |||||||||||
| Operating Margin Excl SBC, Acq-Related (% of North America Total revenue) | 16.7 | % | 13.4 | % | 4.5 | % | 12.2 | % | 12.9 | % | |||||||||||
| Year-over-year growth (bps) | 2,337 | 170 | (570 | ) | (460 | ) | (380 | ) | |||||||||||||
| Operating Income TTM Excl SBC, Acq-Related | $ | 120,676 | $ | 140,933 | $ | 139,726 | $ | 140,920 | $ | 145,999 | |||||||||||
| Operating Margin TTM Excl SBC, Acq-Related (% of North America Total TTM revenue) | 14.4 | % | 14.5 | % | 12.0 | % | 11.1 | % | 10.6 | % | |||||||||||
| Year-over-year growth (bps) | 2,601 | 2,100 | 1,120 | 200 | (380 | ) | |||||||||||||||
| Q2 2012 | Q3 2012 | Q4 2012 | Q1 2013 | Q2 2013 | |||||||||||||||||
| EMEA Segment | |||||||||||||||||||||
| Gross Billings | |||||||||||||||||||||
| Local Gross Billings | |||||||||||||||||||||
| Third Party | $ | 270,954 | $ | 182,983 | $ | 239,944 | $ | 259,423 | $ | 241,108 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Local Gross Billings | $ | 270,954 | $ | 182,983 | $ | 239,944 | $ | 259,423 | $ | 241,108 | |||||||||||
| Goods Gross Billings | |||||||||||||||||||||
| Third Party | $ | 113,254 | $ | 136,960 | $ | 195,582 | $ | 141,742 | $ | 165,413 | |||||||||||
| Direct | 10,589 | 9,880 | 9,020 | 7,451 | 2,181 | ||||||||||||||||
| Total Goods Gross Billings | $ | 123,843 | $ | 146,840 | $ | 204,602 | $ | 149,193 | $ | 167,594 | |||||||||||
| Travel and Other Gross Billings | |||||||||||||||||||||
| Third Party and Other | $ | 67,582 | $ | 66,264 | $ | 87,935 | $ | 83,702 | $ | 73,548 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Gross Billings | $ | 67,582 | $ | 66,264 | $ | 87,935 | $ | 83,702 | $ | 73,548 | |||||||||||
| Total Gross Billings | |||||||||||||||||||||
| Third Party and Other | $ | 451,790 | $ | 386,207 | $ | 523,461 | $ | 484,867 | $ | 480,069 | |||||||||||
| Direct | 10,589 | 9,880 | 9,020 | 7,451 | 2,181 | ||||||||||||||||
| Total Gross Billings | $ | 462,379 | $ | 396,087 | $ | 532,481 | $ | 492,318 | $ | 482,250 | |||||||||||
| Year-over-year growth | 27 | % | (21 | ) | % | 2 | % | (8 | ) | % | 4 | % | |||||||||
| Year-over-year growth, excluding FX (5) | 41 | % | (13 | ) | % | 4 | % | (9 | ) | % | 4 | % | |||||||||
| % of Consolidated Gross Billings | 36 | % | 33 | % | 35 | % | 35 | % | 34 | % | |||||||||||
| Gross Billings TTM | $ | 2,026,403 | $ | 1,920,215 | $ | 1,928,507 | $ | 1,883,265 | $ | 1,903,136 | |||||||||||
| Revenue | |||||||||||||||||||||
| Local Revenue | |||||||||||||||||||||
| Third Party | $ | 134,069 | $ | 109,552 | $ | 98,668 | $ | 110,715 | $ | 109,481 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Local Revenue | $ | 134,069 | $ | 109,552 | $ | 98,668 | $ | 110,715 | $ | 109,481 | |||||||||||
| Goods Revenue | |||||||||||||||||||||
| Third Party | $ | 46,092 | $ | 49,649 | $ | 49,173 | $ | 45,875 | $ | 32,938 | |||||||||||
| Direct | 10,589 | 9,880 | 9,020 | 7,451 | 2,181 | ||||||||||||||||
| Total Goods Revenue | $ | 56,681 | $ | 59,529 | $ | 58,193 | $ | 53,326 | $ | 35,119 | |||||||||||
| Travel and Other Revenue | |||||||||||||||||||||
| Third Party and Other | $ | 20,805 | $ | 18,206 | $ | 19,417 | $ | 19,757 | $ | 15,362 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Revenue | $ | 20,805 | $ | 18,206 | $ | 19,417 | $ | 19,757 | $ | 15,362 | |||||||||||
| Total Revenue | |||||||||||||||||||||
| Third Party and Other Revenue | $ | 200,966 | $ | 177,407 | $ | 167,258 | $ | 176,347 | $ | 157,781 | |||||||||||
| Direct Revenue | 10,589 | 9,880 | 9,020 | 7,451 | 2,181 | ||||||||||||||||
| Total Revenue | $ | 211,555 | $ | 187,287 | $ | 176,278 | $ | 183,798 | $ | 159,962 | |||||||||||
| Year-over-year growth | 27 | % | (4 | ) | % | (27 | ) | % | (20 | ) | % | (24 | ) | % | |||||||
| Year-over-year growth, excluding FX(5) | 41 | % | 6 | % | (25 | ) | % | (20 | ) | % | (25 | ) | % | ||||||||
| % of Consolidated Revenue | 37 | % | 33 | % | 28 | % | 31 | % | 26 | % | |||||||||||
| Revenue TTM | $ | 876,202 | $ | 869,268 | $ | 805,476 | $ | 758,918 | $ | 707,325 | |||||||||||
| Cost of Revenue | |||||||||||||||||||||
| Local Cost of Revenue | |||||||||||||||||||||
| Third Party | $ | 11,668 | $ | 10,416 | $ | 10,622 | $ | 14,192 | $ | 10,898 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Local Cost of Revenue | $ | 11,668 | $ | 10,416 | $ | 10,622 | $ | 14,192 | $ | 10,898 | |||||||||||
| Goods Cost of Revenue | |||||||||||||||||||||
| Third Party | $ | 4,012 | $ | 4,721 | $ | 5,294 | $ | 5,880 | $ | 4,705 | |||||||||||
| Direct | 10,594 | 7,845 | 14,550 | 7,472 | 3,306 | ||||||||||||||||
| Total Goods Cost of Revenue | $ | 14,606 | $ | 12,566 | $ | 19,844 | $ | 13,352 | $ | 8,011 | |||||||||||
| Travel and Other Cost of Revenue | |||||||||||||||||||||
| Third Party and Other | $ | 1,810 | $ | 1,731 | $ | 2,090 | $ | 2,533 | $ | 1,522 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Cost of Revenue | $ | 1,810 | $ | 1,731 | $ | 2,090 | $ | 2,533 | $ | 1,522 | |||||||||||
| Total Cost of Revenue | |||||||||||||||||||||
| Third Party and Other Cost of Revenue | $ | 17,490 | $ | 16,868 | $ | 18,006 | $ | 22,605 | $ | 17,125 | |||||||||||
| Direct Cost of Revenue | 10,594 | 7,845 | 14,550 | 7,472 | 3,306 | ||||||||||||||||
| Total Cost of Revenue | $ | 28,084 | $ | 24,713 | $ | 32,556 | $ | 30,077 | $ | 20,431 | |||||||||||
| % of EMEA Total Revenue | 13 | % | 13 | % | 18 | % | 16 | % | 13 | % | |||||||||||
| Gross Profit | |||||||||||||||||||||
| Local Gross Profit | |||||||||||||||||||||
| Third Party | $ | 122,401 | $ | 99,136 | $ | 88,046 | $ | 96,523 | $ | 98,583 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Local Gross Profit | $ | 122,401 | $ | 99,136 | $ | 88,046 | $ | 96,523 | $ | 98,583 | |||||||||||
| % of EMEA Total Local Revenue | 91.3 | % | 90.5 | % | 89.2 | % | 87.2 | % | 90.0 | % | |||||||||||
| % of EMEA Total Local Gross Billings | 45.2 | % | 54.2 | % | 36.7 | % | 37.2 | % | 40.9 | % | |||||||||||
| Goods Gross Profit | |||||||||||||||||||||
| Third Party | $ | 42,080 | $ | 44,928 | $ | 43,879 | $ | 39,995 | $ | 28,233 | |||||||||||
| Direct | (5 | ) | 2,035 | (5,530 | ) | (21 | ) | (1,125 | ) | ||||||||||||
| Total Goods Gross Profit | $ | 42,075 | $ | 46,963 | $ | 38,349 | $ | 39,974 | $ | 27,108 | |||||||||||
| % of EMEA Total Goods Revenue | 74.2 | % | 78.9 | % | 65.9 | % | 75.0 | % | 77.2 | % | |||||||||||
| % of EMEA Total Goods Gross Billings | 34.0 | % | 32.0 | % | 18.7 | % | 26.8 | % | 16.2 | % | |||||||||||
| Travel and Other Gross Profit | |||||||||||||||||||||
| Third Party and Other | $ | 18,995 | $ | 16,475 | $ | 17,327 | $ | 17,224 | $ | 13,840 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Gross Profit | $ | 18,995 | $ | 16,475 | $ | 17,327 | $ | 17,224 | $ | 13,840 | |||||||||||
| % of EMEA Total Travel and Other Revenue | 91.3 | % | 90.5 | % | 89.2 | % | 87.2 | % | 90.1 | % | |||||||||||
| % of EMEA Total Travel and Other Gross Billings | 28.1 | % | 24.9 | % | 19.7 | % | 20.6 | % | 18.8 | % | |||||||||||
| Total Gross Profit | |||||||||||||||||||||
| Third Party and Other | $ | 183,476 | $ | 160,539 | $ | 149,252 | $ | 153,742 | $ | 140,656 | |||||||||||
| Direct | (5 | ) | 2,035 | (5,530 | ) | (21 | ) | (1,125 | ) | ||||||||||||
| Total Gross Profit | $ | 183,471 | $ | 162,574 | $ | 143,722 | $ | 153,721 | $ | 139,531 | |||||||||||
| % of EMEA Total Revenue | 86.7 | % | 86.8 | % | 81.5 | % | 83.6 | % | 87.2 | % | |||||||||||
| % of EMEA Total Gross Billings | 39.7 | % | 41.0 | % | 27.0 | % | 31.2 | % | 28.9 | % | |||||||||||
| Operating Income Excl SBC, Acq-Related | $ | 31,794 | $ | 29,107 | $ | 8,776 | $ | 34,176 | $ | 24,708 | |||||||||||
| Year-over-year growth | 110 | % | 14 | % | (77 | ) | % | (6 | ) | % | (22 | ) | % | ||||||||
| % of Consolidated Operating Income Excl SBC, Acq-Related | 44 | % | 58 | % | 64 | % | 67 | % | 42 | % | |||||||||||
| Operating Margin Excl SBC, Acq-Related (% of EMEA Total revenue) | 15.0 | % | 15.5 | % | 5.0 | % | 18.6 | % | 15.4 | % | |||||||||||
| Year-over-year growth (bps) | 592 | 237 | (1,073 | ) | 282 | 40 | |||||||||||||||
| Operating Income TTM Excl SBC, Acq-Related | $ | 131,426 | $ | 134,945 | $ | 106,005 | $ | 103,853 | $ | 96,767 | |||||||||||
| Operating Margin TTM Excl SBC, Acq-Related (% of EMEA Total TTM revenue) | 15.0 | % | 15.5 | % | 13.2 | % | 13.7 | % | 13.7 | % | |||||||||||
| Year-over-year growth (bps)(7) | N/A | N/A | N/A | (13 | ) | (132 | ) | ||||||||||||||
| Q2 2012 | Q3 2012 | Q4 2012 | Q1 2013 | Q2 2013 | |||||||||||||||||
| Rest of World Segment | |||||||||||||||||||||
| Gross Billings | |||||||||||||||||||||
| Local Gross Billings | |||||||||||||||||||||
| Third Party | $ | 152,359 | $ | 145,061 | $ | 128,954 | $ | 119,990 | $ | 114,630 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Local Gross Billings | $ | 152,359 | $ | 145,061 | $ | 128,954 | $ | 119,990 | $ | 114,630 | |||||||||||
| Goods Gross Billings | |||||||||||||||||||||
| Third Party | $ | 73,645 | $ | 74,504 | $ | 89,475 | $ | 70,994 | $ | 66,774 | |||||||||||
| Direct | 1,699 | 2,050 | 6,581 | 6,778 | 5,625 | ||||||||||||||||
| Total Goods Gross Billings | $ | 75,344 | $ | 76,554 | $ | 96,056 | $ | 77,772 | $ | 72,399 | |||||||||||
| Travel and Other Gross Billings | |||||||||||||||||||||
| Third Party and Other | $ | 48,319 | $ | 48,185 | $ | 44,009 | $ | 36,370 | $ | 32,322 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Gross Billings | $ | 48,319 | $ | 48,185 | $ | 44,009 | $ | 36,370 | $ | 32,322 | |||||||||||
| Total Gross Billings | |||||||||||||||||||||
| Third Party and Other | $ | 274,323 | $ | 267,750 | $ | 262,438 | $ | 227,354 | $ | 213,726 | |||||||||||
| Direct | 1,699 | 2,050 | 6,581 | 6,778 | 5,625 | ||||||||||||||||
| Total Gross Billings | $ | 276,022 | $ | 269,800 | $ | 269,019 | $ | 234,132 | $ | 219,351 | |||||||||||
| Year-over-year growth | 41 | % | 6 | % | 17 | % | (11 | ) | % | (21 | ) | % | |||||||||
| Year-over-year growth, excluding FX(5) | 53 | % | 15 | % | 20 | % | (6 | ) | % | (16 | ) | % | |||||||||
| % of Consolidated Gross Billings | 21 | % | 22 | % | 18 | % | 17 | % | 16 | % | |||||||||||
| Gross Billings TTM | $ | 1,024,534 | $ | 1,040,377 | $ | 1,078,524 | $ | 1,048,973 | $ | 992,302 | |||||||||||
| Revenue | |||||||||||||||||||||
| Local Revenue | |||||||||||||||||||||
| Third Party | $ | 59,792 | $ | 54,632 | $ | 46,166 | $ | 45,085 | $ | 43,323 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Local Revenue | $ | 59,792 | $ | 54,632 | $ | 46,166 | $ | 45,085 | $ | 43,323 | |||||||||||
| Goods Revenue | |||||||||||||||||||||
| Third Party | $ | 21,772 | $ | 21,661 | $ | 25,529 | $ | 18,062 | $ | 14,985 | |||||||||||
| Direct | 1,699 | 2,050 | 6,580 | 6,778 | 5,625 | ||||||||||||||||
| Total Goods Revenue | $ | 23,471 | $ | 23,711 | $ | 32,109 | $ | 24,840 | $ | 20,610 | |||||||||||
| Travel and Other Revenue | |||||||||||||||||||||
| Third Party and Other | $ | 13,336 | $ | 11,319 | $ | 8,398 | $ | 8,125 | $ | 7,670 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Revenue | $ | 13,336 | $ | 11,319 | $ | 8,398 | $ | 8,125 | $ | 7,670 | |||||||||||
| Total Revenue | |||||||||||||||||||||
| Third Party and Other Revenue | $ | 94,900 | $ | 87,612 | $ | 80,093 | $ | 71,272 | $ | 65,978 | |||||||||||
| Direct Revenue | 1,699 | 2,050 | 6,580 | 6,778 | 5,625 | ||||||||||||||||
| Total Revenue | $ | 96,599 | $ | 89,662 | $ | 86,673 | $ | 78,050 | $ | 71,603 | |||||||||||
| Year-over-year growth | 40 | % | 20 | % | 20 | % | (14 | ) | % | (26 | ) | % | |||||||||
| Year-over-year growth, excluding FX | 52 | % | 30 | % | 23 | % | (8 | ) | % | (21 | ) | % | |||||||||
| % of Consolidated Revenue | 17 | % | 16 | % | 14 | % | 13 | % | 12 | % | |||||||||||
| Revenue TTM | $ | 333,832 | $ | 349,079 | $ | 363,296 | $ | 350,984 | $ | 325,988 | |||||||||||
| Cost of Revenue | |||||||||||||||||||||
| Local Cost of Revenue | |||||||||||||||||||||
| Third Party | $ | 12,494 | $ | 13,313 | $ | 9,801 | $ | 5,923 | $ | 7,962 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Local Cost of Revenue | $ | 12,494 | $ | 13,313 | $ | 9,801 | $ | 5,923 | $ | 7,962 | |||||||||||
| Goods Cost of Revenue | |||||||||||||||||||||
| Third Party | $ | 4,447 | $ | 5,981 | $ | 7,264 | $ | 11,501 | $ | 5,569 | |||||||||||
| Direct | 1,399 | 4,208 | 7,228 | 6,627 | 6,075 | ||||||||||||||||
| Total Goods Cost of Revenue | $ | 5,846 | $ | 10,189 | $ | 14,492 | $ | 18,128 | $ | 11,644 | |||||||||||
| Travel and Other Cost of Revenue | |||||||||||||||||||||
| Third Party and Other | $ | 2,446 | $ | 2,536 | $ | 1,832 | $ | 1,067 | $ | 1,420 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Cost of Revenue | $ | 2,446 | $ | 2,536 | $ | 1,832 | $ | 1,067 | $ | 1,420 | |||||||||||
| Total Cost of Revenue | |||||||||||||||||||||
| Third Party and Other Cost of Revenue | $ | 19,387 | $ | 21,830 | $ | 18,897 | $ | 18,491 | $ | 14,951 | |||||||||||
| Direct Cost of Revenue | 1,399 | 4,208 | 7,228 | 6,627 | 6,075 | ||||||||||||||||
| Total Cost of Revenue | $ | 20,786 | $ | 26,038 | $ | 26,125 | $ | 25,118 | $ | 21,026 | |||||||||||
| % of Rest of World Total Revenue | 22 | % | 29 | % | 30 | % | 32 | % | 29 | % | |||||||||||
| Gross Profit | |||||||||||||||||||||
| Local Gross Profit | |||||||||||||||||||||
| Third Party | $ | 47,298 | $ | 41,319 | $ | 36,365 | $ | 39,162 | $ | 35,361 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Local Gross Profit | $ | 47,298 | $ | 41,319 | $ | 36,365 | $ | 39,162 | $ | 35,361 | |||||||||||
| % of Rest of World Total Local Revenue | 79.1 | % | 75.6 | % | 78.8 | % | 86.9 | % | 81.6 | % | |||||||||||
| % of Rest of World Total Local Gross Billings | 31.0 | % | 28.5 | % | 28.2 | % | 32.6 | % | 30.8 | % | |||||||||||
| Goods Gross Profit | |||||||||||||||||||||
| Third Party | $ | 17,325 | $ | 15,680 | $ | 18,265 | $ | 6,561 | $ | 9,416 | |||||||||||
| Direct | 300 | (2,158 | ) | (648 | ) | 151 | (450 | ) | |||||||||||||
| Total Goods Gross Profit | $ | 17,625 | $ | 13,522 | $ | 17,617 | $ | 6,712 | $ | 8,966 | |||||||||||
| % of Rest of World Total Goods Revenue | 75.1 | % | 57.0 | % | 54.9 | % | 27.0 | % | 43.5 | % | |||||||||||
| % of Rest of World Total Goods Gross Billings | 23.4 | % | 17.7 | % | 18.3 | % | 8.6 | % | 12.4 | % | |||||||||||
| Travel and Other Gross Profit | |||||||||||||||||||||
| Third Party and Other | $ | 10,890 | $ | 8,783 | $ | 6,566 | $ | 7,058 | $ | 6,250 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Gross Profit | $ | 10,890 | $ | 8,783 | $ | 6,566 | $ | 7,058 | $ | 6,250 | |||||||||||
| % of Rest of World Total Travel and Other Revenue | 81.7 | % | 77.6 | % | 78.2 | % | 86.9 | % | 81.5 | % | |||||||||||
| % of Rest of World Total Travel and Other Gross Billings | 22.5 | % | 18.2 | % | 14.9 | % | 19.4 | % | 19.3 | % | |||||||||||
| Total Gross Profit | |||||||||||||||||||||
| Third Party and Other | $ | 75,513 | $ | 65,782 | $ | 61,196 | $ | 52,781 | $ | 51,027 | |||||||||||
| Direct | 300 | (2,158 | ) | (648 | ) | 151 | (450 | ) | |||||||||||||
| Total Gross Profit | $ | 75,813 | $ | 63,624 | $ | 60,548 | $ | 52,932 | $ | 50,577 | |||||||||||
| % of Rest of World Total Revenue | 78.5 | % | 71.0 | % | 69.9 | % | 67.8 | % | 70.6 | % | |||||||||||
| % of Rest of World Total Gross Billings | 27.5 | % | 23.6 | % | 22.5 | % | 22.6 | % | 23.1 | % | |||||||||||
| Operating Loss Excl SBC, Acq-Related | $ | (3,289 | ) | $ | (17,712 | ) | $ | (12,105 | ) | $ | (24,389 | ) | $ | (14,173 | ) | ||||||
| Year-over-year growth | (95 | ) | % | (62 | ) | % | (68 | ) | % | 174 | % | (331 | ) | % | |||||||
| % of Consolidated Operating Income Excl SBC, Acq-Related | (5 | ) | % | (35 | ) | % | (88 | ) | % | (48 | ) | % | (24 | ) | % | ||||||
| Operating Margin Excl SBC, Acq-Related (% of Rest of World Total revenue) | (3.4 | ) | % | (19.8 | ) | % | (14.0 | ) | % | (31.2 | ) | % | (19.8 | ) | % | ||||||
| Year-over-year growth (bps) | 9,391 | 4,222 | 3,848 | (2,139 | ) | (1,640 | ) | ||||||||||||||
| Operating Loss TTM Excl SBC, Acq-Related | $ | (96,318 | ) | $ | (67,914 | ) | $ | (42,016 | ) | $ | (57,495 | ) | $ | (68,379 | ) | ||||||
| Operating Margin TTM Excl SBC, Acq-Related (% of Rest of World Total TTM revenue) | (28.9 | ) | % | (19.5 | ) | % | (11.6 | ) | % | (16.4 | ) | % | (21.0 | ) | % | ||||||
| Year-over-year growth (bps)(7) | N/A | N/A | N/A | 3,590 | 788 | ||||||||||||||||
| Q2 2012 | Q3 2012 | Q4 2012 | Q1 2013 | Q2 2013 | |||||||||||||||||
| Consolidated Results of Operations | |||||||||||||||||||||
| Gross Billings | |||||||||||||||||||||
| Local Gross Billings | |||||||||||||||||||||
| Third Party | $ | 835,661 | $ | 677,337 | $ | 799,153 | $ | 829,553 | $ | 805,508 | |||||||||||
| Direct | 288 | 6,450 | – | – | 693 | ||||||||||||||||
| Total Local Gross Billings | $ | 835,949 | $ | 683,787 | $ | 799,153 | $ | 829,553 | $ | 806,201 | |||||||||||
| Goods Gross Billings | |||||||||||||||||||||
| Third Party | $ | 227,072 | $ | 236,972 | $ | 316,327 | $ | 230,030 | $ | 247,688 | |||||||||||
| Direct | 65,061 | 138,538 | 225,176 | 162,294 | 189,183 | ||||||||||||||||
| Total Goods Gross Billings | $ | 292,133 | $ | 375,510 | $ | 541,503 | $ | 392,324 | $ | 436,871 | |||||||||||
| Travel and Other Gross Billings | |||||||||||||||||||||
| Third Party and Other | $ | 158,594 | $ | 158,959 | $ | 179,796 | $ | 185,892 | $ | 170,734 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Gross Billings | $ | 158,594 | $ | 158,959 | $ | 179,796 | $ | 185,892 | $ | 170,734 | |||||||||||
| Total Gross Billings | |||||||||||||||||||||
| Third Party and Other | $ | 1,221,327 | $ | 1,073,268 | $ | 1,295,276 | $ | 1,245,475 | $ | 1,223,930 | |||||||||||
| Direct | 65,349 | 144,988 | 225,176 | 162,294 | 189,876 | ||||||||||||||||
| Total Gross Billings | $ | 1,286,676 | $ | 1,218,256 | $ | 1,520,452 | $ | 1,407,769 | $ | 1,413,806 | |||||||||||
| Year-over-year growth | 38 | % | 5 | % | 24 | % | 4 | % | 10 | % | |||||||||||
| Year-over-year growth, excluding FX | 47 | % | 11 | % | 25 | % | 5 | % | 11 | % | |||||||||||
| Gross Billings (TTM) | $ | 5,029,554 | $ | 5,090,600 | $ | 5,380,184 | $ | 5,433,153 | $ | 5,560,283 | |||||||||||
| Year-over-year growth | 128 | % | 61 | % | 35 | % | 16 | % | 11 | % | |||||||||||
| Revenue | |||||||||||||||||||||
| Local Revenue | |||||||||||||||||||||
| Third Party | $ | 378,050 | $ | 299,177 | $ | 287,288 | $ | 327,393 | $ | 326,921 | |||||||||||
| Direct | 288 | 6,450 | – | – | 693 | ||||||||||||||||
| Total Local Revenue | $ | 378,338 | $ | 305,627 | $ | 287,288 | $ | 327,393 | $ | 327,614 | |||||||||||
| Goods Revenue | |||||||||||||||||||||
| Third Party | $ | 78,251 | $ | 84,374 | $ | 86,579 | $ | 67,081 | $ | 52,574 | |||||||||||
| Direct | 65,062 | 138,538 | 225,175 | 162,294 | 189,183 | ||||||||||||||||
| Total Goods Revenue | $ | 143,313 | $ | 222,912 | $ | 311,754 | $ | 229,375 | $ | 241,757 | |||||||||||
| Travel and Other Revenue | |||||||||||||||||||||
| Third Party and Other | $ | 46,684 | $ | 40,013 | $ | 39,260 | $ | 44,634 | $ | 39,376 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Revenue | $ | 46,684 | $ | 40,013 | $ | 39,260 | $ | 44,634 | $ | 39,376 | |||||||||||
| Total Revenue | |||||||||||||||||||||
| Third Party and Other Revenue | $ | 502,985 | $ | 423,564 | $ | 413,127 | $ | 439,108 | $ | 418,871 | |||||||||||
| Direct Revenue | 65,350 | 144,988 | 225,175 | 162,294 | 189,876 | ||||||||||||||||
| Total Revenue | $ | 568,335 | $ | 568,552 | $ | 638,302 | $ | 601,402 | $ | 608,747 | |||||||||||
| Year-over-year growth | 45 | % | 32 | % | 30 | % | 8 | % | 7 | % | |||||||||||
| Year-over-year growth, excluding FX | 53 | % | 38 | % | 31 | % | 8 | % | 8 | % | |||||||||||
| Total Consolidated Revenue TTMYear-over-year growth, excluding FX (1) | $ | 2,049,943 | $ | 2,188,334 | $ | 2,334,472 | $ | 2,376,591 | $ | 2,417,003 | |||||||||||
| Year-over-year growth | 118 | % | 70 | % | 45 | % | 27 | % | 18 | % | |||||||||||
| Cost of Revenue | |||||||||||||||||||||
| Local Cost of Revenue | |||||||||||||||||||||
| Third Party | $ | 59,872 | $ | 36,905 | $ | 43,626 | $ | 46,030 | $ | 38,678 | |||||||||||
| Direct | 234 | 5,231 | – | – | 636 | ||||||||||||||||
| Total Local Cost of Revenue | $ | 60,106 | $ | 42,136 | $ | 43,626 | $ | 46,030 | $ | 39,314 | |||||||||||
| Goods Cost of Revenue | |||||||||||||||||||||
| Third Party | $ | 10,473 | $ | 11,977 | $ | 14,493 | $ | 17,856 | $ | 10,796 | |||||||||||
| Direct | 57,918 | 122,382 | 218,567 | 152,377 | 167,910 | ||||||||||||||||
| Total Goods Cost of Revenue | $ | 68,391 | $ | 134,359 | $ | 233,060 | $ | 170,233 | $ | 178,706 | |||||||||||
| Travel and Other Cost of Revenue | |||||||||||||||||||||
| Third Party and Other | $ | 6,687 | $ | 5,291 | $ | 5,786 | $ | 6,130 | $ | 6,033 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Cost of Revenue | $ | 6,687 | $ | 5,291 | $ | 5,786 | $ | 6,130 | $ | 6,033 | |||||||||||
| Total Cost of Revenue | |||||||||||||||||||||
| Third Party and Other Cost of Revenue | $ | 77,032 | $ | 54,173 | $ | 63,905 | $ | 70,016 | $ | 55,507 | |||||||||||
| Direct Cost of Revenue | 58,152 | 127,613 | 218,567 | 152,377 | 168,546 | ||||||||||||||||
| Total Cost of Revenue | $ | 135,184 | $ | 181,786 | $ | 282,472 | $ | 222,393 | $ | 224,053 | |||||||||||
| % of Total Consolidated Revenue | 24 | % | 32 | % | 44 | % | 37 | % | 37 | % | |||||||||||
| Gross Profit | |||||||||||||||||||||
| Local Gross Profit | |||||||||||||||||||||
| Third Party | $ | 318,178 | $ | 262,272 | $ | 243,662 | $ | 281,363 | $ | 288,243 | |||||||||||
| Direct | 54 | 1,219 | – | – | 57 | ||||||||||||||||
| Total Local Gross Profit | $ | 318,232 | $ | 263,491 | $ | 243,662 | $ | 281,363 | $ | 288,300 | |||||||||||
| % of Total Consolidated Local Revenue | 84.1 | % | 86.2 | % | 84.8 | % | 85.9 | % | 88.0 | % | |||||||||||
| % of Total Consolidated Local Gross Billings | 38.1 | % | 38.5 | % | 30.5 | % | 33.9 | % | 35.8 | % | |||||||||||
| Goods Gross Profit | |||||||||||||||||||||
| Third Party | $ | 67,778 | $ | 72,397 | $ | 72,086 | $ | 49,225 | $ | 41,778 | |||||||||||
| Direct | 7,144 | 16,156 | 6,608 | 9,917 | 21,273 | ||||||||||||||||
| Total Goods Gross Profit | $ | 74,922 | $ | 88,553 | $ | 78,694 | $ | 59,142 | $ | 63,051 | |||||||||||
| % of Total Consolidated Goods Revenue | 52.3 | % | 39.7 | % | 25.2 | % | 25.8 | % | 26.1 | % | |||||||||||
| % of Total Consolidated Goods Gross Billings | 25.6 | % | 23.6 | % | 14.5 | % | 15.1 | % | 14.4 | % | |||||||||||
| Travel and Other Gross Profit | |||||||||||||||||||||
| Third Party and Other | $ | 39,997 | $ | 34,722 | $ | 33,474 | $ | 38,504 | $ | 33,343 | |||||||||||
| Direct | – | – | – | – | – | ||||||||||||||||
| Total Travel and Other Gross Profit | $ | 39,997 | $ | 34,722 | $ | 33,474 | $ | 38,504 | $ | 33,343 | |||||||||||
| % of Total Consolidated Travel and Other Revenue | 85.7 | % | 86.8 | % | 85.3 | % | 86.3 | % | 84.7 | % | |||||||||||
| % of Total Consolidated Travel and Other Gross Billings | 25.2 | % | 21.8 | % | 18.6 | % | 20.7 | % | 19.5 | % | |||||||||||
| Total Gross Profit | |||||||||||||||||||||
| Third Party and Other | $ | 425,953 | $ | 369,391 | $ | 349,222 | $ | 369,092 | $ | 363,364 | |||||||||||
| Direct | 7,198 | 17,375 | 6,608 | 9,917 | 21,330 | ||||||||||||||||
| Total Gross Profit | $ | 433,151 | $ | 386,766 | $ | 355,830 | $ | 379,009 | $ | 384,694 | |||||||||||
| % of Total Consolidated Revenue | 76.2 | % | 68.0 | % | 55.7 | % | 63.0 | % | 63.2 | % | |||||||||||
| % of Total Consolidated Gross Billings | 33.7 | % | 31.7 | % | 23.4 | % | 26.9 | % | 27.2 | % | |||||||||||
| Operating Income Excl SBC, Acq-Related | $ | 71,934 | $ | 50,488 | $ | 13,703 | $ | 51,153 | $ | 59,043 | |||||||||||
| Year-over-year growth | N/A | N/A | (24 | ) | % | (24 | ) | % | (18 | ) | % | ||||||||||
| Operating Margin Excl SBC, Acq-Related (% of Total Consolidated revenue) | 12.7 | % | 8.9 | % | 2.1 | % | 8.5 | % | 9.7 | % | |||||||||||
| Year-over-year growth (bps) | 2,853 | 930 | (150 | ) | (360 | ) | (300 | ) | |||||||||||||
| Operating Income TTM Excl SBC, Acq-Related | $ | 155,784 | $ | 207,964 | $ | 203,715 | $ | 187,278 | $ | 174,387 | |||||||||||
| Operating Margin TTM Excl SBC, Acq-Related (% of Total Consolidated TTM revenue) | 7.6 | % | 9.5 | % | 8.7 | % | 7.9 | % | 7.2 | % | |||||||||||
| Year-over-year growth (bps) | 4,229 | 3,320 | 1,770 | 680 | (40 | ) | |||||||||||||||
| Operating Income (Loss) | $ | 46,485 | $ | 25,438 | $ | (12,861 | ) | $ | 21,178 | $ | 27,412 | ||||||||||
| Year-over-year growth | N/A | N/A | 14 | % | (47 | ) | % | (41 | ) | % | |||||||||||
| Operating Margin (% of Total Consolidated revenue) | 8.2 | % | 4.5 | % | (2.0 | ) | % | 3.5 | % | 4.5 | % | ||||||||||
| Year-over-year growth (bps) | 3,391 | 457 | 100 | (360 | ) | (370 | ) | ||||||||||||||
| Operating Income TTM | $ | 70,913 | $ | 96,590 | $ | 98,701 | $ | 80,240 | $ | 61,167 | |||||||||||
| Operating Margin TTM (% of Total Consolidated TTM revenue) | 3.5 | % | 4.4 | % | 4.2 | % | 3.4 | % | 2.5 | % | |||||||||||
| Year-over-year growth (bps) | 6,824 | 4,740 | 1,870 | 750 | (100 | ) | |||||||||||||||
| Net Income (Loss) Attributable to Common Stockholders | 28,386 | (2,979 | ) | (81,089 | ) | (3,992 | ) | (7,574 | ) | ||||||||||||
| Weighted Average Basic Shares Outstanding | 647,150 | 653,224 | 655,678 | 658,800 | 662,361 | ||||||||||||||||
| Weighted Average Diluted Shares Outstanding (6) | 663,123 | 653,224 | 655,678 | 658,800 | 662,361 | ||||||||||||||||
| Net Earnings (Loss) per Share | |||||||||||||||||||||
| Basic | $ | 0.04 | $ | (0.00 | ) | $ | (0.12 | ) | $ | (0.01 | ) | $ | (0.01 | ) | |||||||
| Diluted | $ | 0.04 | $ | (0.00 | ) | $ | (0.12 | ) | $ | (0.01 | ) | $ | (0.01 | ) | |||||||
| Q2 2012 | Q3 2012 | Q4 2012 | Q1 2013 | Q2 2013 | |||||||||||||||||
| The following is a quarterly reconciliation of Adjusted EBITDA to the most comparable U.S. GAAP financial measure, “Net income (loss)” and a quarterly reconciliation of operating income, excluding stock-based compensation and acquisition-related benefit (expense), net, to the most comparable U.S. GAAP financial measure, “Operating income (loss).” (8) | |||||||||||||||||||||
| Adjusted EBITDA | $ | 84,744 | $ | 65,798 | $ | 29,668 | $ | 71,853 | $ | 80,511 | |||||||||||
| Depreciation and amortization | (12,810 | ) | (15,310 | ) | (15,965 | ) | (20,700 | ) | (21,468 | ) | |||||||||||
| Operating income, excluding stock-based compensation and acquisition-related benefit (expense), net | 71,934 | 50,488 | 13,703 | 51,153 | 59,043 | ||||||||||||||||
| Stock-based compensation | (27,084 | ) | (22,619 | ) | (26,411 | ) | (29,907 | ) | (32,446 | ) | |||||||||||
| Acquisition-related benefit (expense), net | 1,635 | (2,431 | ) | (153 | ) | (68 | ) | 815 | |||||||||||||
| Operating income (loss) | 46,485 | 25,438 | (12,861 | ) | 21,178 | 27,412 | |||||||||||||||
| Non Operating Items | |||||||||||||||||||||
| Loss on equity method investments | (3,428 | ) | (138 | ) | (1,231 | ) | (19 | ) | (14 | ) | |||||||||||
| Other income (expense), net | 57,367 | 617 | (48,279 | ) | (5,064 | ) | (5,565 | ) | |||||||||||||
| Provision for income taxes | (66,875 | ) | (26,857 | ) | (17,676 | ) | (19,337 | ) | (27,384 | ) | |||||||||||
| Net income (loss) | $ | 33,549 | $ | (940 | ) | $ | (80,047 | ) | $ | (3,242 | ) | $ | (5,551 | ) | |||||||
| The following is a trailing twelve months reconciliation of Operating income, excluding stock-based compensation and acquisition-related benefit (expense), net, to the most comparable U.S. GAAP financial measure, “Operating Income.” (8) | |||||||||||||||||||||
| Operating income, excluding stock-based compensation and acquisition-related benefit (expense), net TTM | $ | 155,784 | $ | 207,964 | $ | 203,715 | $ | 187,278 | $ | 174,387 | |||||||||||
| Stock-based compensation | (91,095 | ) | (110,374 | ) | (104,117 | ) | (106,021 | ) | (111,383 | ) | |||||||||||
| Acquisition-related benefit (expense), net | 6,224 | (1,000 | ) | (897 | ) | (1,017 | ) | (1,837 | ) | ||||||||||||
| Operating income TTM | $ | 70,913 | $ | 96,590 | $ | 98,701 | $ | 80,240 | $ | 61,167 | |||||||||||
| The following is a quarterly reconciliation of foreign exchange rate neutral Gross Billings growth from the comparable quarterly periods of the prior year to reported Gross Billings growth from the comparable quarterly periods of the prior year.(9) | |||||||||||||||||||||
| EMEA Gross Billings growth, excluding FX | 41 | % | (13 | ) | % | 4 | % | (9 | ) | % | 4 | % | |||||||||
| FX Effect | (14 | ) | % | (8 | ) | % | (2 | ) | % | 1 | % | – | % | ||||||||
| EMEA Gross Billings growth | 27 | % | (21 | ) | % | 2 | % | (8 | ) | % | 4 | % | |||||||||
| Rest of World Gross Billings growth, excluding FX | 53 | % | 15 | % | 20 | % | (6 | ) | % | (16 | ) | % | |||||||||
| FX Effect | (12 | ) | % | (9 | ) | % | (3 | ) | % | (5 | ) | % | (5 | ) | % | ||||||
| Rest of World Gross Billings growth | 41 | % | 6 | % | 17 | % | (11 | ) | % | (21 | ) | % | |||||||||
| Consolidated Gross Billings growth, excluding FX | 47 | % | 11 | % | 25 | % | 5 | % | 11 | % | |||||||||||
| FX Effect | (9 | ) | % | (6 | ) | % | (1 | ) | % | (1 | ) | % | (1 | ) | % | ||||||
| Consolidated Gross Billings growth | 38 | % | 5 | % | 24 | % | 4 | % | 10 | % | |||||||||||
| The following is a quarterly reconciliation of foreign exchange rate neutral Revenue growth from the comparable quarterly periods of the prior year to reported Revenue growth from the comparable quarterly periods of the prior year.(9) | |||||||||||||||||||||
| EMEA Revenue growth, excluding FX | 41 | % | 6 | % | (25 | ) | % | (20 | ) | % | (25 | ) | % | ||||||||
| FX Effect | (14 | ) | % | (10 | ) | % | (2 | ) | % | – | % | 1 | % | ||||||||
| EMEA Revenue growth | 27 | % | (4 | ) | % | (27 | ) | % | (20 | ) | % | (24 | ) | % | |||||||
| Rest of World Revenue growth, excluding FX | 52 | % | 30 | % | 23 | % | (8 | ) | % | (21 | ) | % | |||||||||
| FX Effect | (12 | ) | % | (10 | ) | % | (3 | ) | % | (6 | ) | % | (5 | ) | % | ||||||
| Rest of World Revenue growth | 40 | % | 20 | % | 20 | % | (14 | ) | % | (26 | ) | % | |||||||||
| Consolidated Revenue growth, excluding FX | 53 | % | 38 | % | 31 | % | 8 | % | 8 | % | |||||||||||
| FX Effect | (8 | ) | % | (6 | ) | % | (1 | ) | % | – | % | (1 | ) | % | |||||||
| Consolidated Revenue growth | 45 | % | 32 | % | 30 | % | 8 | % | 7 | % | |||||||||||
| The following is a reconciliation of free cash flow to the most comparable U.S. GAAP financial measure, “Net cash provided by operating activities.” | |||||||||||||||||||||
| Net cash provided by operating activities | $ | 75,315 | $ | 42,088 | $ | 65,717 | $ | 8,760 | $ | 43,302 | |||||||||||
| Purchases of property and equipment and capitalized software | (26,709 | ) | (16,010 | ) | (40,034 | ) | (14,468 | ) | (14,042 | ) | |||||||||||
| Free cash flow (10) | $ | 48,606 | $ | 26,078 | $ | 25,683 | $ | (5,708 | ) | $ | 29,260 | ||||||||||
| Net cash provided by operating activities (TTM) | $ | 392,517 | $ | 370,194 | $ | 266,834 | $ | 191,880 | $ | 159,867 | |||||||||||
| Purchases of property and equipment and capitalized software (TTM) | (62,401 | ) | (69,788 | ) | (95,836 | ) | (97,221 | ) | (84,554 | ) | |||||||||||
| Free cash flow (TTM) | $ | 330,116 | $ | 300,406 | $ | 170,998 | $ | 94,659 | $ | 75,313 | |||||||||||
| Net cash used in investing activities | $ | (60,153 | ) | $ | (35,629 | ) | $ | (52,753 | ) | $ | (30,679 | ) | $ | (15,862 | ) | ||||||
| Net cash provided by (used in) financing activities | $ | 24,158 | $ | 2,707 | $ | (6,495 | ) | $ | (9,342 | ) | $ | (7,941 | ) | ||||||||
| Net cash used in investing activities (TTM) | $ | (184,552 | ) | $ | (177,133 | ) | $ | (194,979 | ) | $ | (179,214 | ) | $ | (134,923 | ) | ||||||
| Net cash provided by (used in) financing activities (TTM) | $ | 771,404 | $ | 765,503 | $ | 12,095 | $ | 11,028 | $ | (21,071 | ) | ||||||||||
| Other Metrics | |||||||||||||||||||||
| Active Customers (11) | |||||||||||||||||||||
| North America | 15.1 | 16.0 | 17.2 | 18.2 | 19.1 | ||||||||||||||||
| EMEA | 14.2 | 14.4 | 14.3 | 14.0 | 13.9 | ||||||||||||||||
| Rest of World | 8.7 | 9.1 | 9.5 | 9.5 | 9.6 | ||||||||||||||||
| Total Active Customers | 38.0 | 39.5 | 41.0 | 41.7 | 42.6 | ||||||||||||||||
| TTM Gross Billings / Average Active Customer (12) | |||||||||||||||||||||
| North America | $ | 151 | $ | 148 | $ | 152 | $ | 151 | $ | 156 | |||||||||||
| EMEA | $ | 189 | $ | 160 | $ | 146 | $ | 137 | $ | 135 | |||||||||||
| Rest of World | $ | 152 | $ | 133 | $ | 126 | $ | 116 | $ | 108 | |||||||||||
| Consolidated | $ | 165 | $ | 149 | $ | 144 | $ | 138 | $ | 138 | |||||||||||
| Headcount | |||||||||||||||||||||
| Sales (13) | 5,587 | 5,087 | 4,677 | 4,566 | 4,679 | ||||||||||||||||
| % North America | 20 | % | 24 | % | 25 | % | 28 | % | 26 | % | |||||||||||
| % EMEA | 45 | % | 43 | % | 42 | % | 38 | % | 39 | % | |||||||||||
| % Rest of World | 35 | % | 33 | % | 33 | % | 34 | % | 35 | % | |||||||||||
| Other | 7,233 | 6,779 | 6,717 | 6,433 | 6,306 | ||||||||||||||||
| Total Headcount | 12,820 | 11,866 | 11,394 | 10,999 | 10,985 | ||||||||||||||||
| (1) Represents the total dollar value of customer purchases of goods and services, excluding any applicable taxes and net of estimated refunds. Includes direct billings and third party and other billings. | |||||||||||||||||||||
| (2) Local represents deals from local merchants, deals with national merchants, and deals through local events (i.e., GrouponLive deals). | |||||||||||||||||||||
| (3) Third party revenue is related to sales for which the Company acts as a marketing agent for the merchant. This revenue is recorded on a net basis. Direct revenue is primarily related to the sale of products for which the Company is the merchant of record. These revenues are accounted for on a gross basis, with the cost of inventory included in cost of revenue. | |||||||||||||||||||||
| (4) Cost of revenue is comprised of direct and certain indirect costs incurred to generate revenue. Direct cost of revenue includes the cost of inventory, shipping and fulfillment costs and inventory markdowns. Third party cost of revenue includes estimated refunds for which the merchant’s share is not recoverable. Other costs incurred to generate revenue are allocated to cost of third party and other revenue and direct revenue for each of our categories (Local, Goods, and Travel and Other) in proportion to relative gross billings during the period. | |||||||||||||||||||||
| (5) Represents the change in financial measures that would have resulted had average exchange rates in the reporting period been the same as those in effect in the prior year period. | |||||||||||||||||||||
| (6) The weighted-average diluted shares outstanding is calculated using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock units and restricted shares, as calculated using the treasury stock method. | |||||||||||||||||||||
| (7) International operating margin information broken out between EMEA and Rest of World is not readily available for quarterly periods during the year ended December 31, 2010. Therefore, the Company is presenting year-over-year basis point (bps) growth for operating margin TTM excluding stock-based compensation and acquisition-related expense (benefit), net beginning in the first quarter of 2013. | |||||||||||||||||||||
| (8) Adjusted EBITDA and Operating income excluding stock-based compensation and acquisition-related benefit (expense), net are non-GAAP financial measures. The Company reconciles Adjusted EBITDA to the most comparable U.S. GAAP financial measure, “Net income (loss)” for the periods presented, and the Company reconciles Operating income excluding stock-based compensation and acquisition-related benefit (expense), net to the most comparable U.S. GAAP financial measure, “Operating income (loss),” for the periods presented. | |||||||||||||||||||||
| (9) Foreign Exchange Rate neutral operating results are non-GAAP financial measures. The Company reconciles “foreign exchange rate neutral Gross Billings growth” and “foreign exchange rate neutral Revenue growth” to year-over-year growth rates for the most comparable U.S. GAAP financial measures, ‘‘Gross Billings” and “Revenue,” respectively for the periods presented. | |||||||||||||||||||||
| (10) Free cash flow is a non-GAAP financial measure. The Company reconciles this measure to the most comparable U.S. GAAP financial measure, ‘‘Net cash provided by operating activities,” for the periods presented. | |||||||||||||||||||||
| (11) Reflects the total number of unique user accounts who have purchased a Groupon during the trailing twelve months. | |||||||||||||||||||||
| (12) Reflects the total gross billings generated in the trailing twelve months per average active customer over that period. | |||||||||||||||||||||
| (13) Includes inside and outside merchant sales representatives, as well as sales support. | |||||||||||||||||||||
| (14) The definition, methodology, and appropriateness of each of our supplemental metrics is reviewed periodically. As a result, metrics are subject to removal and/or change. | |||||||||||||||||||||
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