Delaware (State or other jurisdiction of incorporation) | 001-35335 (Commission File Number) | 27-0903295 (I.R.S. Employer Identification No.) |
600 West Chicago Avenue Suite 620 Chicago, Illinois (Address of principal executive offices) | 60654 (Zip Code) |
Item 2.02 | Results of Operations and Financial Condition.* |
Item 9.01 | Financial Statements and Exhibits. | |||
(d) | Exhibits: | |||
Exhibit No. | Description | |||
99.1* | Press Release dated August 13, 2012 |
GROUPON, INC. | ||
August 13, 2012 | By: | /s/ Jason E. Child |
Name: | Jason E. Child | |
Title: | Chief Financial Officer |
Exhibit No. | Description | |
99.1* | Press Release dated August 13, 2012. |
• | Consolidated revenue of $568.3 million, up 45% year-over-year |
• | Operating income of $46.5 million versus operating loss of $101.0 million in second quarter 2011 |
• | GAAP EPS of $0.04, non-GAAP EPS of $0.08; includes $0.04 per share gain from non-operating items |
Three Months Ended June 30, | Y/Y % Growth | Six Months Ended June 30, | Y/Y % Growth | ||||||||||||||||||||||||||
2011 | 2012 | Y/Y % Growth | excluding FX(1) | 2011 | 2012 | Y/Y % Growth | excluding FX(1) | ||||||||||||||||||||||
(dollars in thousands, except share and per share data) | (dollars in thousands, except share and per share data) | ||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||
North America | $ | 157,205 | $ | 260,181 | 65.5 | % | 66.0 | % | $ | 293,817 | $ | 498,746 | 69.7 | % | 70.3 | % | |||||||||||||
International | 235,377 | 308,154 | 30.9 | % | 44.1 | % | 394,288 | 628,872 | 59.5 | % | 74.5 | % | |||||||||||||||||
Consolidated revenue | $ | 392,582 | $ | 568,335 | 44.8 | % | 53.0 | % | $ | 688,105 | $ | 1,127,618 | 63.9 | % | 72.6 | % | |||||||||||||
Operating (loss) income | $ | (101,027 | ) | $ | 46,485 | N/A | N/A | $ | (218,175 | ) | $ | 86,124 | N/A | N/A | |||||||||||||||
Net (loss) income attributable to common stockholders | $ | (107,406 | ) | $ | 28,386 | N/A | N/A | $ | (253,886 | ) | $ | 16,691 | N/A | N/A | |||||||||||||||
Non-GAAP net (loss) income attributable to common stockholders(2) | $ | (68,688 | ) | $ | 53,835 | N/A | N/A | $ | (196,304 | ) | $ | 70,092 | N/A | N/A | |||||||||||||||
Net (loss) earnings per share attributable to common stockholders | |||||||||||||||||||||||||||||
Basic | $ | (0.35 | ) | $ | 0.04 | $ | (0.83 | ) | $ | 0.03 | |||||||||||||||||||
Diluted | $ | (0.35 | ) | $ | 0.04 | $ | (0.83 | ) | $ | 0.03 | |||||||||||||||||||
Non-GAAP net (loss) earnings per share attributable to common stockholders(2) | $ | (0.23 | ) | $ | 0.08 | $ | (0.64 | ) | $ | 0.11 | |||||||||||||||||||
Weighted average basic shares outstanding | 303,414,676 | 647,149,537 | 305,626,028 | 645,072,582 | |||||||||||||||||||||||||
Weighted average diluted shares outstanding | 303,414,676 | 663,122,709 | 305,626,028 | 663,230,558 | |||||||||||||||||||||||||
Weighted average diluted shares for non-GAAP net (loss) earnings per share (3) | 303,414,676 | 663,122,709 | 305,626,028 | 663,230,558 |
• | Continued North American revenue growth. North American revenues grew 66% year-over-year. |
• | Rapid growth in Groupon Goods. Groupon Goods surpassed the $200 million annual revenue run-rate in the second quarter 2012, in just its third quarter since launch in North America. |
• | Improved marketing efficiencies. Customer acquisition costs improved 43% year-over-year, enabling the reduction of marketing spend by 58% compared with the second quarter 2011. |
• | Solid growth in active customers. As of June 30, 2012, Groupon had 38.0 million active customers, an increase of 65% year-over-year. |
• | Record number of unique merchants featured. For the second straight quarter, Groupon featured more than 100,000 unique merchants, with second quarter 2012 merchants featured achieving a new record level. |
• | Mobile adoption increasing and transaction activity remains high. In July 2012, nearly one third of North American transactions were completed on mobile devices, an increase of over 35% compared with July 2011. |
• | Merchant support tools gaining traction. In the second quarter 2012, nearly 20% of merchants featured were utilizing one or more of Groupon's merchant tools, compared with 10% in the first quarter 2012. |
• | Launched new GrouponWorks site. The Company recently launched an updated site for merchants, featuring over 500 merchant videos on how to work with Groupon. (http://www.grouponworks.com/) |
Contacts: | ||
Groupon Investor Relations | Groupon Public Relations | |
Kartik Ramachandran | Julie Mossler | |
Genny Konz | 312-242-2033 | |
312-999-3098 | ||
ir@groupon.com |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2011 | 2012 | 2011 | 2012 | ||||||||||||
(in thousands) | (in thousands) | ||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
Operating activities | |||||||||||||||
Net (loss) income | $ | (109,776 | ) | $ | 33,549 | $ | (223,667 | ) | $ | 29,956 | |||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 8,098 | 12,810 | 15,696 | 24,526 | |||||||||||
Stock-based compensation | 38,718 | 27,084 | 57,582 | 55,087 | |||||||||||
Deferred income taxes | 1,147 | 13,873 | (2,237 | ) | 12,997 | ||||||||||
Excess tax benefits on stock based compensation | (3,532 | ) | (18,869 | ) | (3,532 | ) | (21,750 | ) | |||||||
Loss on equity method investees | 7,881 | 3,428 | 8,763 | 8,556 | |||||||||||
Acquisition-related | — | (1,739 | ) | — | (1,687 | ) | |||||||||
Gain on E-Commerce transaction (see Note 5) | — | (56,032 | ) | — | (56,032 | ) | |||||||||
Change in assets and liabilities, net of acquisitions: | |||||||||||||||
Restricted cash | (1,025 | ) | (1,471 | ) | (1,025 | ) | (2,828 | ) | |||||||
Accounts receivable | (37,023 | ) | 19,963 | (53,072 | ) | 8,085 | |||||||||
Prepaid expenses and other current assets | (8,933 | ) | (17,624 | ) | (17,221 | ) | (21,745 | ) | |||||||
Accounts payable | 8,091 | 20,089 | (14,374 | ) | 18,268 | ||||||||||
Accrued merchant payable | 95,697 | (13,979 | ) | 216,870 | 32,021 | ||||||||||
Accrued expenses and other current liabilities | 38,508 | 49,657 | 74,756 | 63,077 | |||||||||||
Other, net | 1,168 | 4,576 | (1,580 | ) | 10,498 | ||||||||||
Net cash provided by operating activities | 39,019 | 75,315 | 56,959 | 159,029 | |||||||||||
Investing activities | |||||||||||||||
Purchases of property and equipment | (10,240 | ) | (26,709 | ) | (21,202 | ) | (39,792 | ) | |||||||
Acquisitions of businesses, net of acquired cash | (878 | ) | (17,267 | ) | (3,696 | ) | (40,271 | ) | |||||||
Purchases of intangible assets | (58 | ) | — | (272 | ) | (10 | ) | ||||||||
Purchases of investments in subsidiaries | (9,387 | ) | (6,080 | ) | (34,387 | ) | (13,427 | ) | |||||||
Purchases of cost and equity method investments | (4,621 | ) | (10,097 | ) | (9,921 | ) | (13,097 | ) | |||||||
Net cash used in investing activities | (25,184 | ) | (60,153 | ) | (69,478 | ) | (106,597 | ) | |||||||
Financing activities | |||||||||||||||
Proceeds from issuance of stock, net of issuance costs | — | — | 509,692 | — | |||||||||||
Excess tax benefits on stock based compensation | 3,532 | 18,869 | 3,532 | 21,750 | |||||||||||
Tax withholdings related to net share settlements of restricted stock units | — | 964 | — | (5,668 | ) | ||||||||||
Payments of contingent acquisition liability | — | — | — | (4,250 | ) | ||||||||||
Repayments of loans to related parties | — | — | (14,358 | ) | — | ||||||||||
Repurchase of common stock | (5,000 | ) | — | (353,550 | ) | — | |||||||||
Proceeds from exercise of stock options | 909 | 5,279 | 1,234 | 5,657 | |||||||||||
Proceeds from the sale of common stock | 137 | — | 137 | — | |||||||||||
Partnership distributions to noncontrolling interest holders | — | (954 | ) | — | (1,606 | ) | |||||||||
Redemption of preferred stock | — | — | (35,003 | ) | — | ||||||||||
Net cash provided by financing activities | (422 | ) | 24,158 | 111,684 | 15,883 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | 2,992 | (14,511 | ) | 7,095 | (5,452 | ) | |||||||||
Net increase in cash and cash equivalents | 16,405 | 24,809 | 106,260 | 62,863 | |||||||||||
Cash and cash equivalents, beginning of the period | 208,688 | 1,160,989 | 118,833 | 1,122,935 | |||||||||||
Cash and cash equivalents, end of the period | $ | 225,093 | $ | 1,185,798 | $ | 225,093 | $ | 1,185,798 | |||||||
Supplemental disclosure of cash flow information | |||||||||||||||
Non-cash investing activity | |||||||||||||||
Contingent consideration in connection with acquisitions | $ | — | $ | — | $ | 15,920 | $ | 421 | |||||||
Contribution of investment in E-Commerce transaction | $ | — | $ | 47,042 | $ | — | $ | 47,042 | |||||||
Liability incurred in E-Commerce transaction | $ | — | $ | 20,000 | $ | — | $ | 20,000 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2011 | 2012 | 2011 | 2012 | |||||||||||||
(dollars in thousands, except share and per share data) | (dollars in thousands, except share and per share data) | |||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
(Restated) (1) | ||||||||||||||||
Third party and other revenue | $ | 392,582 | $ | 502,985 | $ | 688,105 | $ | 1,043,038 | ||||||||
Direct revenue | — | 65,350 | — | 84,580 | ||||||||||||
Total revenue | 392,582 | 568,335 | 688,105 | 1,127,618 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenue | 54,803 | 135,184 | 94,568 | 254,682 | ||||||||||||
Marketing | 212,739 | 88,407 | 442,824 | 205,022 | ||||||||||||
Selling, general and administrative | 226,067 | 299,894 | 368,888 | 583,477 | ||||||||||||
Acquisition-related | — | (1,635 | ) | — | (1,687 | ) | ||||||||||
Total operating expenses | 493,609 | 521,850 | 906,280 | 1,041,494 | ||||||||||||
(Loss) income from operations | (101,027 | ) | 46,485 | (218,175 | ) | 86,124 | ||||||||||
Interest and other income, net | 479 | 57,367 | 1,539 | 53,828 | ||||||||||||
Loss on equity method investees | (7,881 | ) | (3,428 | ) | (8,763 | ) | (8,556 | ) | ||||||||
(Loss) income before provision for income taxes | (108,429 | ) | 100,424 | (225,399 | ) | 131,396 | ||||||||||
Provision (benefit) for income taxes | 1,347 | 66,875 | (1,732 | ) | 101,440 | |||||||||||
Net (loss) income | (109,776 | ) | 33,549 | (223,667 | ) | 29,956 | ||||||||||
Less: Net loss (income) attributable to noncontrolling interests | 8,536 | (1,220 | ) | 19,759 | (2,100 | ) | ||||||||||
Net (loss) income attributable to Groupon, Inc. | $ | (101,240 | ) | $ | 32,329 | $ | (203,908 | ) | $ | 27,856 | ||||||
Redemption of preferred stock in excess of carrying value | — | — | (34,327 | ) | — | |||||||||||
Adjustment of redeemable noncontrolling interests to redemption value | (6,166 | ) | (3,943 | ) | (56,561 | ) | (11,165 | ) | ||||||||
Net (loss) income attributable to common stockholders | $ | (107,406 | ) | $ | 28,386 | $ | (253,886 | ) | $ | 16,691 | ||||||
Net (loss) earnings per share | ||||||||||||||||
Basic | $ | (0.35 | ) | $ | 0.04 | $ | (0.83 | ) | $ | 0.03 | ||||||
Diluted | $ | (0.35 | ) | $ | 0.04 | $ | (0.83 | ) | $ | 0.03 | ||||||
Weighted average number of shares outstanding | ||||||||||||||||
Basic | 303,414,676 | 647,149,537 | 305,626,028 | 645,072,582 | ||||||||||||
Diluted | 303,414,676 | 663,122,709 | 305,626,028 | 663,230,558 |
December 31, | June 30, | |||||||
2011 | 2012 | |||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,122,935 | $ | 1,185,798 | ||||
Accounts receivable, net | 108,747 | 98,673 | ||||||
Prepaid expenses and other current assets | 91,645 | 116,141 | ||||||
Total current assets | 1,323,327 | 1,400,612 | ||||||
Property and equipment, net of accumulated depreciation of $14,627 and $28,147, respectively | 51,800 | 83,293 | ||||||
Goodwill | 166,903 | 192,018 | ||||||
Intangible assets, net | 45,667 | 54,303 | ||||||
Investments in equity interests | 56,604 | 131,177 | ||||||
Deferred income taxes, non-current | 46,104 | 45,517 | ||||||
Other non-current assets | 90,071 | 76,178 | ||||||
Total Assets | $ | 1,774,476 | $ | 1,983,098 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 40,918 | $ | 60,364 | ||||
Accrued merchant payables | 520,723 | 543,840 | ||||||
Accrued expenses | 212,007 | 258,343 | ||||||
Deferred income taxes, current | 76,841 | 73,942 | ||||||
Other current liabilities | 144,673 | 163,692 | ||||||
Total current liabilities | 995,162 | 1,100,181 | ||||||
Deferred income taxes, non-current | 7,428 | 25,837 | ||||||
Other non-current liabilities | 70,766 | 74,773 | ||||||
Total Liabilities | 1,073,356 | 1,200,791 | ||||||
Redeemable noncontrolling interests | 1,653 | 5,943 | ||||||
Groupon, Inc. Stockholders' Equity | ||||||||
Class A common stock, par value $0.0001 per share, 2,000,000,000 shares authorized, 641,745,225 shares issued and outstanding at December 31, 2011; 2,000,000,000 shares authorized, 649,165,744 shares issued and outstanding at June 30, 2012 | 64 | 65 | ||||||
Class B common stock, par value $0.0001 per share, 10,000,000 shares authorized, 2,399,976 shares issued and outstanding at December 31, 2011 and June 30, 2012 | — | — | ||||||
Common stock, par value $0.0001 per share, 2,010,000 shares authorized, and no shares issued and outstanding as of December 31, 2011 and June 30, 2012 | — | — | ||||||
Additional paid-in capital | 1,388,253 | 1,437,327 | ||||||
Stockholder receivable | — | (166 | ) | |||||
Accumulated deficit | (698,704 | ) | (670,848 | ) | ||||
Accumulated other comprehensive income | 12,928 | 12,937 | ||||||
Total Groupon, Inc. Stockholders' Equity | 702,541 | 779,315 | ||||||
Noncontrolling interests | (3,074 | ) | (2,951 | ) | ||||
Total Equity | 699,467 | 776,364 | ||||||
Total Liabilities and Equity | $ | 1,774,476 | $ | 1,983,098 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2011 | 2012 | 2011 | 2012 | ||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
North America | |||||||||||||||||
Revenue | $ | 157,205 | $ | 260,181 | $ | 293,817 | $ | 498,746 | |||||||||
Segment operating expenses(1) | 167,706 | 216,752 | 326,096 | 415,145 | |||||||||||||
Segment operating (loss) income | (10,501 | ) | 43,429 | (32,279 | ) | 83,601 | |||||||||||
Segment (loss) income as a percent of segment revenue | (6.7 | ) | % | 16.7 | % | (11.0 | ) | % | 16.8 | % | |||||||
International | |||||||||||||||||
Revenue | $ | 235,377 | $ | 308,154 | $ | 394,288 | $ | 628,872 | |||||||||
Segment operating expenses(1) | 287,185 | 279,649 | 522,602 | 572,949 | |||||||||||||
Segment operating (loss) income | (51,808 | ) | 28,505 | (128,314 | ) | 55,923 | |||||||||||
Segment (loss) income as a percent of segment revenue | (22.0 | ) | % | 9.3 | % | (32.5 | ) | % | 8.9 | % | |||||||
Consolidated | |||||||||||||||||
Revenue | $ | 392,582 | $ | 568,335 | $ | 688,105 | $ | 1,127,618 | |||||||||
Segment operating expenses(1) | 454,891 | 496,401 | 848,698 | 988,094 | |||||||||||||
Segment operating (loss) income | (62,309 | ) | 71,934 | (160,593 | ) | 139,524 | |||||||||||
Segment (loss) income as a percent of segment revenue | (15.9 | ) | % | 12.7 | % | (23.3 | ) | % | 12.4 | % | |||||||
Stock-based compensation | (38,718 | ) | (27,084 | ) | (57,582 | ) | (55,087 | ) | |||||||||
Acquisition-related | — | 1,635 | — | 1,687 | |||||||||||||
Operating (loss) income | (101,027 | ) | 46,485 | (218,175 | ) | 86,124 | |||||||||||
Interest and other income, net | 479 | 57,367 | 1,539 | 53,828 | |||||||||||||
Loss on equity method investees | (7,881 | ) | (3,428 | ) | (8,763 | ) | (8,556 | ) | |||||||||
(Loss) income before provision for income taxes | (108,429 | ) | 100,424 | (225,399 | ) | 131,396 | |||||||||||
Provision (benefit) for income taxes | 1,347 | 66,875 | (1,732 | ) | 101,440 | ||||||||||||
Net (loss) income | $ | 109,776 | $ | 33,549 | $ | (223,667 | ) | $ | 29,956 |
Three Months Ended June 30, 2012 | Three Months Ended June 30, 2012 | |||||||||||||||||||||||
At Avg. | Exchange | At Avg. | Exchange | |||||||||||||||||||||
Q2 2011 Rates (1) | Rate Effect (2) | As Reported | Q1 2012 Rates (3) | Rate Effect (2) | As Reported | |||||||||||||||||||
(in thousands) (unaudited) | (in thousands) (unaudited) | |||||||||||||||||||||||
Revenue | $ | 600,764 | $ | (32,429 | ) | $ | 568,335 | $ | 576,626 | $ | (8,291 | ) | $ | 568,335 | ||||||||||
Income from operations | $ | 46,688 | $ | (203 | ) | $ | 46,485 | $ | 45,519 | $ | 966 | $ | 46,485 |
Six Months Ended June 30, 2012 | Six Months Ended June 30, 2012 | |||||||||||||||||||||||
At Avg. | Exchange | At Avg. | Exchange | |||||||||||||||||||||
Q2 2011 YTD Rates (1) | Rate Effect (2) | As Reported | Q4'11 - Q1'12 Rates (3) | Rate Effect (2) | As Reported | |||||||||||||||||||
(in thousands) (unaudited) | (in thousands) (unaudited) | |||||||||||||||||||||||
Revenue | $ | 1,187,851 | $ | (60,233 | ) | $ | 1,127,618 | $ | 1,138,103 | $ | (10,485 | ) | $ | 1,127,618 | ||||||||||
Income from operations | $ | 87,368 | $ | (1,244 | ) | $ | 86,124 | $ | 85,599 | $ | 525 | $ | 86,124 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2011 | 2012 | 2011 | 2012 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
Net cash provided by operating activities | $ | 39,019 | $ | 75,315 | $ | 56,959 | $ | 159,029 | ||||||||
Purchases of property and equipment | (10,240 | ) | (26,709 | ) | (21,202 | ) | (39,792 | ) | ||||||||
Free cash flow | $ | 28,779 | $ | 48,606 | $ | 35,757 | $ | 119,237 | ||||||||
Net cash used in investing activities | $ | (25,184 | ) | $ | (60,153 | ) | $ | (69.478 | ) | $ | (106.597 | ) | ||||
Net cash provided in financing activities | $ | (422 | ) | $ | 24,158 | $ | 111.684 | $ | 15.883 |
Revenue | Cost of Revenue | Marketing | SG&A | Acq-Related | Total OpEx | Operating Income (Loss) | Net Income (Loss) attributable to common stockholders | Sharecount | Diluted EPS (1) | |||||||||||||||||||||||||||||||
Three months ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 568,335 | $ | 135,184 | $ | 88,407 | $ | 299,894 | $ | (1,635 | ) | $ | 521,850 | $ | 46,485 | $ | 28,386 | 663,122,709 | $ | 0.04 | ||||||||||||||||||||
Stock-based compensation (2) | — | (1,015 | ) | (646 | ) | (25,423 | ) | — | (27,084 | ) | 27,084 | 27,084 | — | 0.04 | ||||||||||||||||||||||||||
Acquisition-related charges (3) | — | — | — | — | 1,635 | 1,635 | (1,635 | ) | (1,635 | ) | — | — | ||||||||||||||||||||||||||||
Non-GAAP | $ | 568,335 | $ | 134,169 | $ | 87,761 | $ | 274,471 | $ | — | $ | 496,401 | $ | 71,934 | $ | 53,835 | 663,122,709 | $ | 0.08 | |||||||||||||||||||||
Three months ended March 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 559,283 | $ | 119,498 | $ | 116,615 | $ | 283,583 | $ | (52 | ) | $ | 519,644 | $ | 39,639 | $ | (11,695 | ) | 644,097,375 | $ | (0.02 | ) | ||||||||||||||||||
Stock-based compensation (2) | — | (482 | ) | (726 | ) | (26,795 | ) | — | (28,003 | ) | 28,003 | 28,003 | — | 0.04 | ||||||||||||||||||||||||||
Acquisition-related charges (3) | — | — | — | — | 52 | 52 | (52 | ) | (52 | ) | — | — | ||||||||||||||||||||||||||||
Non-GAAP | $ | 559,283 | $ | 119,016 | $ | 115,889 | $ | 256,788 | $ | — | $ | 491,693 | $ | 67,590 | $ | 16,256 | 663,665,615 | (1 | ) | $ | 0.02 | |||||||||||||||||||
Three months ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 492,164 | $ | 96,265 | $ | 155,299 | $ | 255,316 | $ | 256 | $ | 507,136 | $ | (14,972 | ) | $ | (65,379 | ) | 528,421,712 | $ | (0.12 | ) | ||||||||||||||||||
Stock-based compensation (2) | — | (650 | ) | (1,492 | ) | (30,526 | ) | — | (32,668 | ) | 32,668 | 32,668 | — | 0.06 | ||||||||||||||||||||||||||
Acquisition-related charges (3) | — | — | — | — | (256 | ) | (256 | ) | 256 | 256 | — | — | ||||||||||||||||||||||||||||
Non-GAAP | $ | 492,164 | $ | 95,615 | $ | 153,807 | $ | 224,790 | $ | — | $ | 474,212 | $ | 17,952 | $ | (32,455 | ) | 528,421,712 | $ | (0.06 | ) | |||||||||||||||||||
Three months ended September 30, 2011 | ||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 430,161 | $ | 68,046 | $ | 170,349 | $ | 196,798 | $ | (4,793 | ) | $ | 430,400 | $ | (239 | ) | $ | (54,229 | ) | 307,605,060 | $ | (0.18 | ) | |||||||||||||||||
Stock-based compensation (2) | — | (56 | ) | (53 | ) | (3,231 | ) | — | (3,340 | ) | 3,340 | 3,340 | — | 0.01 | ||||||||||||||||||||||||||
Acquisition-related charges (3) | — | — | — | — | 4,793 | 4,793 | (4,793 | ) | (4,793 | ) | — | (0.01 | ) | |||||||||||||||||||||||||||
Non-GAAP | $ | 430,161 | $ | 67,990 | $ | 170,296 | $ | 193,567 | $ | — | $ | 431,853 | $ | (1,692 | ) | $ | (55,682 | ) | 307,605,060 | $ | (0.18 | ) | ||||||||||||||||||
Three months ended June 30, 2011 | ||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 392,582 | $ | 54,803 | $ | 212,739 | $ | 226,067 | $ | — | $ | 493,609 | $ | (101,027 | ) | $ | (107,406 | ) | 303,414,676 | $ | (0.35 | ) | ||||||||||||||||||
Stock-based compensation (2) | — | (212 | ) | (493 | ) | (38,013 | ) | — | (38,718 | ) | 38,718 | 38,718 | — | 0.12 | ||||||||||||||||||||||||||
Acquisition-related charges (3) | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Non-GAAP | $ | 392,582 | $ | 54,591 | $ | 212,246 | $ | 188,054 | $ | — | $ | 454,891 | $ | (62,309 | ) | $ | (68,688 | ) | 303,414,676 | $ | (0.23 | ) | ||||||||||||||||||
Three months ended March 31, 2011 (Restated)(4) | ||||||||||||||||||||||||||||||||||||||||
GAAP | $ | 295,523 | $ | 39,765 | $ | 230,085 | $ | 142,821 | $ | — | $ | 412,671 | $ | (117,148 | ) | $ | (146,480 | ) | 307,849,412 | $ | (0.48 | ) | ||||||||||||||||||
Stock-based compensation (2) | — | (212 | ) | (493 | ) | (18,159 | ) | — | (18,864 | ) | 18,864 | 18,864 | — | 0.07 | ||||||||||||||||||||||||||
Acquisition-related charges (3) | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Non-GAAP | $ | 295,523 | $ | 39,553 | $ | 229,592 | $ | 124,662 | $ | — | $ | 393,807 | $ | (98,284 | ) | $ | (127,616 | ) | 307,849,412 | $ | (0.41 | ) |
Revenue | Cost of Revenue | Marketing | SG&A | Acq-Related | Total OpEx | Operating Income (Loss) | Net Income (Loss) attributable to common stockholders | Sharecount | Diluted EPS (1) | ||||||||||||||||||||||||||||||
Six months ended June 30, 2012 | |||||||||||||||||||||||||||||||||||||||
GAAP | $ | 1,127,618 | $ | 254,682 | $ | 205,022 | $ | 583,477 | $ | (1,687 | ) | $ | 1,041,494 | $ | 86,124 | $ | 16,691 | 663,230,558 | $ | 0.03 | |||||||||||||||||||
Stock-based compensation (2) | — | (1,497 | ) | (1,372 | ) | (52,218 | ) | — | (55,087 | ) | 55,087 | 55,087 | — | 0.08 | |||||||||||||||||||||||||
Acquisition-related charges (3) | — | — | — | — | 1,687 | 1,687 | (1,687 | ) | (1,687 | ) | — | — | |||||||||||||||||||||||||||
Non-GAAP | $ | 1,127,618 | $ | 253,185 | $ | 203,650 | $ | 531,259 | $ | — | $ | 988,094 | $ | 139,524 | $ | 70,091 | 663,230,558 | $ | 0.11 | ||||||||||||||||||||
Six months ended June 30, 2011 (Restated)(4) | |||||||||||||||||||||||||||||||||||||||
GAAP | $ | 688,105 | $ | 94,568 | $ | 442,824 | $ | 368,888 | $ | — | $ | 906,280 | $ | (218,175 | ) | $ | (253,886 | ) | 305,626,028 | $ | (0.83 | ) | |||||||||||||||||
Stock-based compensation (2) | — | (424 | ) | (986 | ) | (56,172 | ) | — | (57,582 | ) | 57,582 | 57,582 | — | 0.19 | |||||||||||||||||||||||||
Acquisition-related charges (3) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Non-GAAP | $ | 688,105 | $ | 94,144 | $ | 441,838 | $ | 312,716 | $ | — | $ | 848,698 | $ | (160,593 | ) | $ | (196,304 | ) | 305,626,028 | $ | (0.64 | ) |
Revenue | Cost of Revenue | Marketing | SG&A | Acq-Related | Total OpEx | Operating Income (Loss) | Net Income (Loss) attributable to common stockholders | Sharecount | Diluted EPS(1) | ||||||||||||||||||||||||||||||
Twelve months ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||
GAAP | $ | 1,610,430 | $ | 258,879 | $ | 768,472 | $ | 821,002 | $ | (4,537 | ) | $ | 1,843,816 | $ | (233,386 | ) | $ | (373,494 | ) | 362,261,324 | $ | (1.03 | ) | ||||||||||||||||
Stock-based compensation (2) | — | (1,130 | ) | (2,531 | ) | (89,929 | ) | — | (93,590 | ) | 93,590 | 93,590 | — | 0.25 | |||||||||||||||||||||||||
Acquisition-related charges (3) | — | — | — | — | 4,537 | 4,537 | (4,537 | ) | (4,537 | ) | — | (0.01 | ) | ||||||||||||||||||||||||||
Non-GAAP | $ | 1,610,430 | $ | 257,749 | $ | 765,941 | $ | 731,073 | $ | — | $ | 1,754,763 | $ | (144,333 | ) | $ | (284,441 | ) | 362,261,324 | $ | (0.79 | ) | |||||||||||||||||
Twelve months ended December 31, 2010 | |||||||||||||||||||||||||||||||||||||||
GAAP | $ | 312,941 | $ | 42,896 | $ | 290,569 | $ | 196,637 | $ | 203,183 | $ | 733,285 | $ | (420,344 | ) | $ | (456,320 | ) | 342,698,772 | $ | (1.33 | ) | |||||||||||||||||
Stock-based compensation (2) | — | (157 | ) | (129 | ) | (35,882 | ) | — | (36,168 | ) | 36,168 | 36,168 | — | 0.11 | |||||||||||||||||||||||||
Acquisition-related charges (3) | — | — | — | — | (203,183 | ) | (203,183 | ) | 203,183 | 203,183 | — | 0.59 | |||||||||||||||||||||||||||
Non-GAAP | $ | 312,941 | $ | 42,739 | $ | 290,440 | $ | 160,755 | $ | — | $ | 493,934 | $ | (180,993 | ) | $ | (216,969 | ) | 342,698,772 | $ | (0.63 | ) | |||||||||||||||||
Twelve months ended December 31, 2009 | |||||||||||||||||||||||||||||||||||||||
GAAP | $ | 14,540 | $ | 4,716 | $ | 5,053 | $ | 5,848 | $ | — | $ | 15,617 | $ | (1,077 | ) | $ | (6,916 | ) | 337,208,284 | $ | (0.02 | ) | |||||||||||||||||
Stock-based compensation (2) | — | (115 | ) | — | (115 | ) | 115 | 115 | — | — | |||||||||||||||||||||||||||||
Acquisition-related charges (3) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Non-GAAP | $ | 14,540 | $ | 4,716 | $ | 5,053 | $ | 5,733 | $ | — | $ | 15,502 | $ | (962 | ) | $ | (6,801 | ) | 337,208,284 | $ | (0.02 | ) |
Q1 2011 (7) | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 | Q2 2012 | ||||||||||||||||||||
(Restated) (12) | |||||||||||||||||||||||||
Consolidated Results of Operations | |||||||||||||||||||||||||
Gross Billings | $ | 668,174 | $ | 929,249 | $ | 1,157,210 | $ | 1,230,868 | $ | 1,354,800 | $ | 1,286,676 | |||||||||||||
Year-over-year growth | 1,405 | % | 916 | % | 496 | % | 196 | % | 103 | % | 38 | % | |||||||||||||
Year-over-year growth, excluding FX (2) | 1,378 | % | 859 | % | 496 | % | 198 | % | 108 | % | 47 | % | |||||||||||||
Gross Billings Trailing Twelve Months (TTM) | $ | 1,369,139 | $ | 2,206,964 | $ | 3,169,902 | $ | 3,985,501 | $ | 4,672,127 | $ | 5,029,554 | |||||||||||||
Year-over-year growth | 1,651 | % | 1,227 | % | 804 | % | 435 | % | 241 | % | 128 | % | |||||||||||||
Third Party and Other Revenue (1) | $ | 295,523 | $ | 392,582 | $ | 422,989 | $ | 478,510 | $ | 540,053 | $ | 502,985 | |||||||||||||
Direct Revenue (1) | — | — | 7,172 | 13,654 | 19,230 | 65,350 | |||||||||||||||||||
Total Consolidated Revenue | $ | 295,523 | $ | 392,582 | $ | 430,161 | $ | 492,164 | $ | 559,283 | $ | 568,335 | |||||||||||||
Year-over-year growth | 1,358 | % | 915 | % | 426 | % | 186 | % | 89 | % | 45 | % | |||||||||||||
Year-over-year growth, excluding FX (2) | 1,332 | % | 858 | % | 401 | % | 188 | % | 95 | % | 53 | % | |||||||||||||
Consolidated Revenue TTM | $ | 588,192 | $ | 942,108 | $ | 1,290,490 | $ | 1,610,430 | $ | 1,874,190 | $ | 2,049,943 | |||||||||||||
Year-over-year growth | 1,594 | % | 1,205 | % | 761 | % | 415 | % | 219 | % | 118 | % | |||||||||||||
Operating (Loss) Income | $ | (117,148 | ) | $ | (101,027 | ) | $ | (239 | ) | $ | (14,972 | ) | $ | 39,639 | $ | 46,485 | |||||||||
Year-over-year growth | N/A | (174 | ) | % | 100 | % | 96 | % | N/A | N/A | |||||||||||||||
Operating Margin (% of revenue) | (39.6 | ) | % | (25.7 | ) | % | (0.1 | ) | % | (3.0 | ) | % | 7.1 | % | 8.2 | % | |||||||||
Year-over-year growth (bps) | (8,192 | ) | 6,949 | 6,838 | 19,213 | 4,673 | 3,391 | ||||||||||||||||||
Operating (Loss) Income TTM | $ | (546,064 | ) | $ | (610,272 | ) | $ | (554,543 | ) | $ | (233,386 | ) | $ | (76,599 | ) | $ | 70,913 | ||||||||
Operating Margin TTM (% of TTM revenue) | (92.8 | ) | % | (64.8 | ) | % | (43.0 | ) | % | (14.5 | ) | % | (4.1 | ) | % | 3.5 | % | ||||||||
Year-over-year growth (bps) | (11,533 | ) | (2,457 | ) | 1,427 | 11,983 | 8,875 | 6,824 | |||||||||||||||||
Net Loss Attributable to Common Stockholders | $ | (146,480 | ) | $ | (107,406 | ) | $ | (54,229 | ) | $ | (65,379 | ) | $ | (11,695 | ) | $ | 28,386 | ||||||||
Weighted Average Basic Shares Outstanding | 307,849 | 303,415 | 307,605 | 528,422 | 644,097 | 647,150 | |||||||||||||||||||
Weighted Average Diluted Shares Outstanding (3) | 307,849 | 303,415 | 307,605 | 528,422 | 644,097 | 663,123 | |||||||||||||||||||
Net (Loss) Earnings per Share Attributable to Common Stockholders | |||||||||||||||||||||||||
Basic | $ | (0.48 | ) | $ | (0.35 | ) | $ | (0.18 | ) | $ | (0.12 | ) | $ | (0.02 | ) | $ | 0.04 | ||||||||
Diluted | $ | (0.48 | ) | $ | (0.35 | ) | $ | (0.18 | ) | $ | (0.12 | ) | $ | (0.02 | ) | $ | 0.04 | ||||||||
Operating (Loss) Income Excl Stock-Based Compensation (SBC), Acquisition-Related Expenses (4) | $ | (98,284 | ) | $ | (62,309 | ) | $ | (1,692 | ) | $ | 17,952 | $ | 67,590 | $ | 71,934 | ||||||||||
Year-over-year growth | N/A | (166 | ) | % | 93 | % | N/A | N/A | N/A | ||||||||||||||||
Operating Margin Excl SBC, Acq-Related (% of revenue) (4) | (33.3 | ) | % | (15.9 | ) | % | (0.4 | ) | % | 3.6 | % | 12.1 | % | 12.7 | % | ||||||||||
Year-over-year growth (bps) | (7,611 | ) | 4,471 | 2,760 | 8,689 | 4,534 | 2,853 | ||||||||||||||||||
Operating (Loss) Income TTM Excl SBC, Acq-Related (4) | $ | (287,964 | ) | $ | (326,848 | ) | $ | (305,646 | ) | $ | (144,333 | ) | $ | 21,541 | $ | 155,784 | |||||||||
Operating Margin TTM Excl SBC, Acq-Related (% of TTM revenue) (4) | (49.0 | ) | % | (34.7 | ) | % | (23.7 | ) | % | (9.0 | ) | % | 1.1 | % | 7.6 | % | |||||||||
Year-over-year growth (bps) | (7,208 | ) | (1,333 | ) | 245 | 4,887 | 5,011 | 4,229 | |||||||||||||||||
Non-GAAP Net (Loss) Earnings Attributable to Common Stockholders (5) | $ | (127,616 | ) | $ | (68,688 | ) | $ | (55,682 | ) | $ | (32,455 | ) | $ | 16,256 | $ | 53,835 | |||||||||
Weighted Average Diluted Shares for non-GAAP Net (Loss) Income per Share (3) | 307,849 | 303,415 | 307,605 | 528,422 | 663,666 | 663,123 | |||||||||||||||||||
Non-GAAP Net (Loss) Earnings per Share Attributable to Common Stockholders (5) | $ | (0.41 | ) | $ | (0.23 | ) | $ | (0.18 | ) | $ | (0.06 | ) | $ | 0.02 | $ | 0.08 | |||||||||
Segments | |||||||||||||||||||||||||
North America Segment: | |||||||||||||||||||||||||
Revenue | $ | 136,612 | $ | 157,205 | $ | 161,525 | $ | 179,638 | $ | 238,565 | $ | 260,181 | |||||||||||||
Year-over-year growth | 574 | % | 341 | % | 188 | % | 103 | % | 75 | % | 66 | % | |||||||||||||
% of Consolidated Revenue | 46 | % | 40 | % | 38 | % | 36 | % | 43 | % | 46 | % | |||||||||||||
Revenue TTM | $ | 316,752 | $ | 438,305 | $ | 543,705 | $ | 634,980 | $ | 736,933 | $ | 839,909 | |||||||||||||
Segment Operating (Loss) Income (6) | $ | (21,778 | ) | $ | (10,501 | ) | $ | 18,836 | $ | 18,239 | $ | 40,172 | $ | 43,429 | |||||||||||
Year-over-year growth | N/A | (2,678 | ) | % | 496 | % | N/A | N/A | N/A | ||||||||||||||||
% of Consolidated Segment Operating Income | 22 | % | 17 | % | 1,113 | % | 102 | % | 59 | % | 60 | % | |||||||||||||
Segment Operating Margin (% of North America revenue) (6) | (15.9 | ) | % | (6.7 | ) | % | 11.7 | % | 10.2 | % | 16.8 | % | 16.7 | % | |||||||||||
Year-over-year growth (bps) | (5,879 | ) | (562 | ) | 603 | 3,494 | 3,278 | 2,337 | |||||||||||||||||
Segment Operating (Loss) Income TTM (6) | $ | (40,901 | ) | $ | (51,024 | ) | $ | (35,348 | ) | $ | 4,796 | $ | 66,746 | $ | 120,676 | ||||||||||
Segment Operating Margin TTM (% of North America TTM revenue) (6) | (12.9 | ) | % | (11.6 | ) | % | (6.5 | ) | % | 0.8 | % | 9.1 | % | 14.4 | % | ||||||||||
Year-over-year growth (bps) | (3,604 | ) | (2,266 | ) | (1,467 | ) | 596 | 2,197 | 2,601 | ||||||||||||||||
International Segment: | |||||||||||||||||||||||||
Revenue | $ | 158,911 | $ | 235,377 | $ | 268,636 | $ | 312,526 | $ | 320,718 | $ | 308,154 | |||||||||||||
Year-over-year growth | N/A | 7,709 | % | 947 | % | 273 | % | 102 | % | 31 | % | ||||||||||||||
Year-over-year growth, excluding FX (2) | N/A | 7,013 | % | 868 | % | 276 | % | 112 | % | 44 | % | ||||||||||||||
% of Consolidated Revenue | 54 | % | 60 | % | 62 | % | 64 | % | 57 | % | 54 | % | |||||||||||||
Revenue TTM | $ | 271,440 | $ | 503,803 | $ | 746,785 | $ | 975,450 | $ | 1,137,257 | $ | 1,210,034 | |||||||||||||
Segment Operating (Loss) Income (6) | $ | (76,506 | ) | $ | (51,808 | ) | $ | (20,528 | ) | $ | (287 | ) | $ | 27,418 | $ | 28,505 | |||||||||
Year-over-year growth | N/A | (125 | ) | % | 21 | % | 100 | % | N/A | 155 | % | ||||||||||||||
% of Consolidated Segment Operating Income | 78 | % | 83 | % | (1,213 | ) | % | (2 | ) | % | 41 | % | 40 | % | |||||||||||
Segment Operating Margin (% of International revenue) (6) | (48.1 | ) | % | (22.0 | ) | % | (7.6 | ) | % | (0.1 | ) | % | 8.5 | % | 9.3 | % | |||||||||
Year-over-year growth (bps) | N/A | 74,265 | 9,392 | 14,474 | 5,669 | 3,126 | |||||||||||||||||||
Segment Operating (Loss) Income TTM (6) | $ | (247,063 | ) | $ | (275,824 | ) | $ | (270,298 | ) | $ | (149,129 | ) | $ | (45,205 | ) | $ | 35,108 | ||||||||
Segment Operating Margin TTM (% of International TTM revenue) (6) | (91.0 | ) | % | (54.7 | ) | % | (36.2 | ) | % | (15.3 | ) | % | (4.0 | ) | % | 2.9 | % | ||||||||
Year-over-year growth (bps) | N/A | 70,992 | 13,508 | 13,628 | 8,704 | 5,765 |
Q1 2011 (7) | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 | Q2 2012 | ||||||||||||||||||||
(Restated) (12) | |||||||||||||||||||||||||
Cash Flow | |||||||||||||||||||||||||
Operating cash flow (TTM) | $ | 91,928 | $ | 128,316 | $ | 173,291 | $ | 290,447 | $ | 356,221 | $ | 392,517 | |||||||||||||
Purchases of Property and Equipment (TTM) | (24,780 | ) | (31,949 | ) | (38,414 | ) | (43,811 | ) | (45,932 | ) | (62,401 | ) | |||||||||||||
Free cash flow (TTM) (8) | $ | 67,148 | $ | 96,367 | $ | 134,877 | $ | 246,636 | $ | 310,289 | $ | 330,116 | |||||||||||||
Other Metrics: | |||||||||||||||||||||||||
Active Customers(9) | 15,376 | 23,037 | 28,906 | 33,742 | 36,850 | 38,046 | |||||||||||||||||||
TTM Gross Billings / Average Active Customer (10) | $ | 169 | $ | 174 | $ | 189 | $ | 187 | $ | 179 | $ | 165 | |||||||||||||
Headcount | |||||||||||||||||||||||||
Sales (11) | 3,556 | 4,850 | 4,853 | 5,196 | 5,735 | 5,587 | |||||||||||||||||||
% North America | 19 | % | 20 | % | 21 | % | 20 | % | 21 | % | 20 | % | |||||||||||||
% International | 81 | % | 80 | % | 79 | % | 80 | % | 79 | % | 80 | % | |||||||||||||
Other | 3,551 | 4,775 | 5,565 | 6,275 | 6,813 | 7,233 | |||||||||||||||||||
Total Headcount | 7,107 | 9,625 | 10,418 | 11,471 | 12,548 | 12,820 |