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 400 Chicago, Illinois (Address of principal executive offices) | 60654 (Zip Code) |
Item 9.01. | Financial Statements and Exhibits. | |
(d) Exhibits |
Exhibit No. | Description | |
99.1* | Earnings Press Release dated October 30, 2014 |
GROUPON, INC. | ||
Dated: October 30, 2014 | By: | /s/ Jason E. Child |
Name: | Jason E. Child | |
Title: | Chief Financial Officer |
Exhibit No. | Description | |
99.1* | Earnings Press Release dated October 30, 2014 |
• | Gross billings of $1.86 billion |
• | Revenue of $757.1 million |
• | Adjusted EBITDA of $67.0 million |
• | GAAP loss per share of $0.03; non-GAAP earnings per share of $0.03 |
• | Gross billings, which reflect the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds, increased 39% globally to $1.86 billion in the third quarter 2014, compared with $1.34 billion in the third quarter 2013. North America billings increased 16%, EMEA increased 10% and Rest of World increased 155%, driven by the first-quarter acquisition of Ticket Monster. |
• | Revenue increased 27%, to $757.1 million in the third quarter 2014, compared with $595.1 million in the third quarter 2013. North America revenue increased 16%, EMEA increased 56% and Rest of World increased 26%. |
• | Gross profit was $380.1 million in the third quarter 2014, compared with $359.6 million in the third quarter 2013. |
• | Adjusted EBITDA, a non-GAAP financial measure, was $67.0 million in the third quarter 2014, compared with $62.3 million in the third quarter 2013, reflecting SG&A expense related to the Ticket Monster and ideel acquisitions, as well as an increase in overall marketing expense. |
• | Third quarter 2014 net loss attributable to common stockholders was $21.2 million, or $0.03 per share. Earnings per share excluding stock compensation, amortization of acquired intangible assets, and acquisition-related costs of $46.1 million (or $38.7 million net of tax), a non-GAAP financial measure, was $0.03 per share. |
• | Third quarter results included $18.6 million of pre-tax non-operating foreign currency losses and a $7.7 million decrease in liabilities for uncertain tax positions. |
• | Operating cash flow for the trailing twelve months ended September 30, 2014 was $180.3 million. Free cash flow, a non-GAAP financial measure, was $25.4 million in the third quarter 2014, bringing free cash flow for the trailing twelve months ended September 30, 2014 to $92.9 million. |
• | At the end of the quarter, Groupon had $855.2 million in cash and cash equivalents. |
• | Units: Global units, defined as vouchers and products sold before cancellations and refunds, increased 92% year-over-year to 88 million in the third quarter 2014. North America units increased 11%, EMEA units increased 30% and Rest of World units increased 316%. |
• | Active deals: At the end of the third quarter 2014, on average, active deals were approximately 300,000 globally, compared with more than 240,000 at the end of the second quarter 2014. North American active deals increased to over 120,000. |
• | Active customers: Active customers, or customers that have purchased a voucher or product within the last twelve months, grew 24% year-over-year, to 52.7 million as of September 30, 2014, comprising 23.5 million in North America, 14.9 million in EMEA, and 14.3 million in Rest of World. |
• | Customer spend: Third quarter 2014 trailing twelve month billings per average active customer was $149, compared with $141 in the second quarter 2014. |
• | Mobile: Mobile mix, as measured by transactions completed on mobile devices, remains over half of the business. Over 100 million people have now downloaded Groupon mobile apps worldwide. |
• | Marketplace: The rollout of Groupon’s marketplace (“Pull”) continued to gain traction. In the third quarter 2014, approximately 10% of total traffic in North America searched, with customers who searched spending significantly more than those who did not. |
• | Rest of World: Rest of World billings grew 155% in the third quarter 2014, driven by Ticket Monster. As a result of the significant growth opportunities that exist for Ticket Monster, as well as for the Asian business more broadly, the company has hired financial advisers to evaluate a range of financing and strategic alternatives for those businesses that would, if pursued, unlock shareholder value. |
Contacts: | |
Investor Relations | Public Relations |
Genny Konz | Paul Taaffe |
312-999-3098 | 312-999-3964 |
ir@groupon.com | |
Three Months Ended September 30, | Y/Y % Growth | Y/Y % Growth excluding FX(2) | Nine Months Ended September 30, | Y/Y % Growth | Y/Y % Growth excluding FX(2) | |||||||||||||||||||||||||||||||||||
2014 | 2013 | FX Effect(2) | 2014 | 2013 | FX Effect(2) | |||||||||||||||||||||||||||||||||||
Gross Billings(1): | ||||||||||||||||||||||||||||||||||||||||
North America | $ | 774,286 | $ | 664,999 | 16.4 | % | $ | (484 | ) | 16.5 | % | $ | 2,354,900 | $ | 2,058,523 | 14.4 | % | $ | (1,995 | ) | 14.5 | % | ||||||||||||||||||
EMEA | 489,423 | 443,318 | 10.4 | % | 2,156 | 9.9 | % | 1,486,266 | 1,417,886 | 4.8 | % | 38,788 | 2.1 | % | ||||||||||||||||||||||||||
Rest of World | 597,026 | 234,331 | 154.8 | % | 18,080 | 147.1 | % | 1,655,826 | 687,814 | 140.7 | % | 1,949 | 140.5 | % | ||||||||||||||||||||||||||
Consolidated gross billings | $ | 1,860,735 | $ | 1,342,648 | 38.6 | % | $ | 19,752 | 37.1 | % | $ | 5,496,992 | $ | 4,164,223 | 32.0 | % | $ | 38,742 | 31.1 | % | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||||
North America | $ | 418,494 | $ | 360,838 | 16.0 | % | $ | (109 | ) | 16.0 | % | $ | 1,273,487 | $ | 1,077,574 | 18.2 | % | $ | (601 | ) | 18.2 | % | ||||||||||||||||||
EMEA | 230,072 | 147,950 | 55.5 | % | 881 | 54.9 | % | 688,655 | 491,710 | 40.1 | % | 18,079 | 36.4 | % | ||||||||||||||||||||||||||
Rest of World | 108,488 | 86,271 | 25.8 | % | (430 | ) | 26.3 | % | 304,125 | 235,924 | 28.9 | % | (12,854 | ) | 34.4 | % | ||||||||||||||||||||||||
Consolidated revenue | $ | 757,054 | $ | 595,059 | 27.2 | % | $ | 342 | 27.2 | % | $ | 2,266,267 | $ | 1,805,208 | 25.5 | % | $ | 4,624 | 25.3 | % | ||||||||||||||||||||
(Loss) income from operations | $ | (5,429 | ) | $ | 13,812 | (139.3 | ) | % | $ | (159 | ) | (138.2 | ) | % | $ | (33,236 | ) | $ | 62,402 | (153.3 | ) | % | $ | 2,325 | (157.0 | ) | % | |||||||||||||
Net loss attributable to Groupon, Inc. | $ | (21,208 | ) | $ | (2,580 | ) | $ | (81,878 | ) | $ | (14,146 | ) | ||||||||||||||||||||||||||||
Net loss per share | ||||||||||||||||||||||||||||||||||||||||
Basic | $ | (0.03 | ) | $ (0.00) | $ | (0.12 | ) | $ | (0.02 | ) | ||||||||||||||||||||||||||||||
Diluted | $ | (0.03 | ) | $ (0.00) | $ | (0.12 | ) | $ | (0.02 | ) | ||||||||||||||||||||||||||||||
Weighted average number of shares outstanding | ||||||||||||||||||||||||||||||||||||||||
Basic | 669,526,524 | 666,432,848 | 675,814,535 | 662,531,567 | ||||||||||||||||||||||||||||||||||||
Diluted | 669,526,524 | 666,432,848 | 675,814,535 | 662,531,567 |
(1) | Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. |
(2) | Represents the change in financial measures that would have resulted had average exchange rates in the reporting periods been the same as those in effect during the three and nine months ended September 30, 2013. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Operating activities | |||||||||||||||
Net loss | $ | (19,018 | ) | $ | (1,292 | ) | $ | (75,303 | ) | $ | (10,085 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||||||
Depreciation and amortization of property, equipment and software | 26,317 | 17,816 | 71,476 | 49,186 | |||||||||||
Amortization of acquired intangible assets | 11,829 | 5,333 | 36,068 | 16,131 | |||||||||||
Stock-based compensation | 34,574 | 26,870 | 89,958 | 89,223 | |||||||||||
Deferred income taxes | (2,472 | ) | (659 | ) | (1,956 | ) | (1,225 | ) | |||||||
Excess tax benefits on stock-based compensation | (2,641 | ) | (8,348 | ) | (12,573 | ) | (12,116 | ) | |||||||
Loss on equity method investments | 91 | 25 | 459 | 58 | |||||||||||
Net gain from changes in fair value of contingent consideration | (1,020 | ) | (1,529 | ) | (1,059 | ) | (2,276 | ) | |||||||
Impairment of investments | 1,448 | — | 2,036 | — | |||||||||||
Change in assets and liabilities, net of acquisitions: | |||||||||||||||
Restricted cash | 6,040 | (3,348 | ) | 6,961 | (81 | ) | |||||||||
Accounts receivable | (2,002 | ) | 11,940 | (29,267 | ) | 8,999 | |||||||||
Prepaid expenses and other current assets | (26,499 | ) | (2,846 | ) | (32,397 | ) | 13,146 | ||||||||
Accounts payable | (3,811 | ) | (3,036 | ) | (8,964 | ) | (25,867 | ) | |||||||
Accrued merchant and supplier payables | (19,274 | ) | (34,315 | ) | (61,219 | ) | (72,290 | ) | |||||||
Accrued expenses and other current liabilities | 9,790 | (20,553 | ) | (27,091 | ) | (27,790 | ) | ||||||||
Other, net | 32,114 | 2,037 | 44,873 | 15,144 | |||||||||||
Net cash provided by (used in) operating activities | 45,466 | (11,905 | ) | 2,002 | 40,157 | ||||||||||
Net cash used in investing activities | (20,461 | ) | (26,444 | ) | (193,567 | ) | (72,985 | ) | |||||||
Net cash used in financing activities | (16,823 | ) | (8,970 | ) | (173,068 | ) | (26,253 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (21,102 | ) | 5,165 | (20,671 | ) | (10,351 | ) | ||||||||
Net decrease in cash and cash equivalents | (12,920 | ) | (42,154 | ) | (385,304 | ) | (69,432 | ) | |||||||
Cash and cash equivalents, beginning of period | 868,088 | 1,182,011 | 1,240,472 | 1,209,289 | |||||||||||
Cash and cash equivalents, end of period | $ | 855,168 | $ | 1,139,857 | $ | 855,168 | $ | 1,139,857 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
Third party and other | $ | 399,803 | $ | 394,987 | $ | 1,232,173 | $ | 1,252,966 | ||||||||
Direct | 357,251 | 200,072 | 1,034,094 | 552,242 | ||||||||||||
Total revenue | 757,054 | 595,059 | 2,266,267 | 1,805,208 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Third party and other | 61,497 | 54,001 | 182,226 | 179,524 | ||||||||||||
Direct | 315,413 | 181,436 | 928,314 | 502,359 | ||||||||||||
Total cost of revenue | 376,910 | 235,437 | 1,110,540 | 681,883 | ||||||||||||
Gross profit | 380,144 | 359,622 | 1,155,727 | 1,123,325 | ||||||||||||
Operating expenses: | ||||||||||||||||
Marketing | 59,935 | 53,265 | 203,134 | 158,319 | ||||||||||||
Selling, general and administrative | 325,942 | 294,074 | 983,751 | 904,880 | ||||||||||||
Acquisition-related (benefit) expense, net | (304 | ) | (1,529 | ) | 2,078 | (2,276 | ) | |||||||||
Total operating expenses | 385,573 | 345,810 | 1,188,963 | 1,060,923 | ||||||||||||
(Loss) income from operations | (5,429 | ) | 13,812 | (33,236 | ) | 62,402 | ||||||||||
Other (expense) income, net(1) | (20,023 | ) | 832 | (21,886 | ) | (9,830 | ) | |||||||||
(Loss) income before (benefit) provision for income taxes | (25,452 | ) | 14,644 | (55,122 | ) | 52,572 | ||||||||||
(Benefit) provision for income taxes | (6,434 | ) | 15,936 | 20,181 | 62,657 | |||||||||||
Net loss | (19,018 | ) | (1,292 | ) | (75,303 | ) | (10,085 | ) | ||||||||
Net income attributable to noncontrolling interests | (2,190 | ) | (1,288 | ) | (6,575 | ) | (4,061 | ) | ||||||||
Net loss attributable to Groupon, Inc. | $ | (21,208 | ) | $ | (2,580 | ) | $ | (81,878 | ) | $ | (14,146 | ) | ||||
Net loss per share | ||||||||||||||||
Basic | $ | (0.03 | ) | $ (0.00) | $ | (0.12 | ) | $ | (0.02 | ) | ||||||
Diluted | $ | (0.03 | ) | $ (0.00) | $ | (0.12 | ) | $ | (0.02 | ) | ||||||
Weighted average number of shares outstanding | ||||||||||||||||
Basic | 669,526,524 | 666,432,848 | 675,814,535 | 662,531,567 | ||||||||||||
Diluted | 669,526,524 | 666,432,848 | 675,814,535 | 662,531,567 |
(1) | Other (expense) income, net includes foreign currency (losses) gains of ($18,638) and $326 for the three months ended September 30, 2014 and 2013, respectively, and ($20,108) and ($11,156) for the nine months ended September 30, 2014 and 2013, respectively. |
September 30, 2014 | December 31, 2013 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 855,168 | $ | 1,240,472 | ||||
Accounts receivable, net | 124,598 | 83,673 | ||||||
Deferred income taxes | 26,564 | 27,938 | ||||||
Prepaid expenses and other current assets | 243,750 | 210,415 | ||||||
Total current assets | 1,250,080 | 1,562,498 | ||||||
Property, equipment and software, net | 170,534 | 134,423 | ||||||
Goodwill | 441,290 | 220,827 | ||||||
Intangible assets, net | 119,810 | 28,443 | ||||||
Investments | 23,639 | 20,652 | ||||||
Deferred income taxes, non-current | 44,709 | 35,941 | ||||||
Other non-current assets | 22,103 | 39,226 | ||||||
Total Assets | $ | 2,072,165 | $ | 2,042,010 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 25,848 | $ | 27,573 | ||||
Accrued merchant and supplier payables | 754,628 | 752,943 | ||||||
Accrued expenses | 223,677 | 226,986 | ||||||
Deferred income taxes | 44,787 | 47,558 | ||||||
Other current liabilities | 134,116 | 132,718 | ||||||
Total current liabilities | 1,183,056 | 1,187,778 | ||||||
Deferred income taxes, non-current | 9,668 | 10,853 | ||||||
Other non-current liabilities | 151,486 | 131,697 | ||||||
Total Liabilities | 1,344,210 | 1,330,328 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Equity | ||||||||
Class A common stock, par value $0.0001 per share, 2,000,000,000 shares authorized, 694,272,530 shares issued and 668,185,526 shares outstanding at September 30, 2014 and 670,149,976 shares issued and 665,717,176 shares outstanding at December 31, 2013 | 70 | 67 | ||||||
Class B common stock, par value $0.0001 per share, 10,000,000 shares authorized, 2,399,976 shares issued and outstanding at September 30, 2014 and December 31, 2013 | — | — | ||||||
Common stock, par value $0.0001 per share, 2,010,000,000 shares authorized, no shares issued and outstanding at September 30, 2014 and December 31, 2013 | — | — | ||||||
Additional paid-in capital | 1,814,040 | 1,584,211 | ||||||
Treasury stock, at cost, 26,087,004 shares at September 30, 2014 and 4,432,800 shares at December 31, 2013 | (190,355 | ) | (46,587 | ) | ||||
Accumulated deficit | (930,748 | ) | (848,870 | ) | ||||
Accumulated other comprehensive income | 34,948 | 24,830 | ||||||
Total Groupon, Inc. Stockholders' Equity | 727,955 | 713,651 | ||||||
Noncontrolling interests | — | (1,969 | ) | |||||
Total Equity | 727,955 | 711,682 | ||||||
Total Liabilities and Equity | $ | 2,072,165 | $ | 2,042,010 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
North America | |||||||||||||||||
Gross billings (1) | $ | 774,286 | $ | 664,999 | $ | 2,354,900 | $ | 2,058,523 | |||||||||
Revenue | $ | 418,494 | $ | 360,838 | $ | 1,273,487 | $ | 1,077,574 | |||||||||
Segment cost of revenue and operating expenses (2) | 405,910 | 335,670 | 1,234,973 | 962,532 | |||||||||||||
Segment operating income (2) | $ | 12,584 | $ | 25,168 | $ | 38,514 | $ | 115,042 | |||||||||
Segment operating income as a percent of segment gross billings | 1.6 | % | 3.8 | % | 1.6 | % | 5.6 | % | |||||||||
Segment operating income as a percent of segment revenue | 3.0 | % | 7.0 | % | 3.0 | % | 10.7 | % | |||||||||
EMEA | |||||||||||||||||
Gross billings (1) | $ | 489,423 | $ | 443,318 | $ | 1,486,266 | $ | 1,417,886 | |||||||||
Revenue | $ | 230,072 | $ | 147,950 | $ | 688,655 | $ | 491,710 | |||||||||
Segment cost of revenue and operating expenses (2) | 207,643 | 132,346 | 619,594 | 417,222 | |||||||||||||
Segment operating income (2) | $ | 22,429 | $ | 15,604 | $ | 69,061 | $ | 74,488 | |||||||||
Segment operating income as a percent of segment gross billings | 4.6 | % | 3.5 | % | 4.6 | % | 5.3 | % | |||||||||
Segment operating income as a percent of segment revenue | 9.7 | % | 10.5 | % | 10.0 | % | 15.1 | % | |||||||||
Rest of World | |||||||||||||||||
Gross billings (1) | $ | 597,026 | $ | 234,331 | $ | 1,655,826 | $ | 687,814 | |||||||||
Revenue | $ | 108,488 | $ | 86,271 | $ | 304,125 | $ | 235,924 | |||||||||
Segment cost of revenue and operating expenses (2) | 114,660 | 87,890 | 352,900 | 276,105 | |||||||||||||
Segment operating loss (2) | $ | (6,172 | ) | $ | (1,619 | ) | $ | (48,775 | ) | $ | (40,181 | ) | |||||
Segment operating loss as a percent of segment gross billings | (1.0 | ) | % | (0.7 | ) | % | (2.9 | ) | % | (5.8 | ) | % | |||||
Segment operating loss as a percent of segment revenue | (5.7 | ) | % | (1.9 | ) | % | (16.0 | ) | % | (17.0 | ) | % |
(1) | Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. |
(2) | Segment cost of revenue and operating expenses and segment operating income (loss) exclude stock-based compensation and acquisition-related (benefit) expense, net. |
Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | ||||||||||||||||
Net loss | $ | (1,292 | ) | $ | (78,861 | ) | $ | (35,363 | ) | $ | (20,922 | ) | $ | (19,018 | ) | |||||
Adjustments: | ||||||||||||||||||||
Stock-based compensation | 26,870 | 32,239 | 23,729 | 31,655 | 34,574 | |||||||||||||||
Acquisition-related (benefit) expense, net | (1,529 | ) | 2,265 | 1,785 | 597 | (304 | ) | |||||||||||||
Depreciation and amortization | 23,149 | 24,132 | 34,740 | 34,658 | 38,146 | |||||||||||||||
Other (income) expense, net | (832 | ) | 84,833 | 840 | 1,023 | 20,023 | ||||||||||||||
Provision (benefit) for income taxes | 15,936 | 7,380 | 14,570 | 12,045 | (6,434 | ) | ||||||||||||||
Total adjustments | 63,594 | 150,849 | 75,664 | 79,978 | 86,005 | |||||||||||||||
Adjusted EBITDA | $ | 62,302 | $ | 71,988 | $ | 40,301 | $ | 59,056 | $ | 66,987 |
Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | |||||||
Net loss attributable to common stockholders | $ | (21,208 | ) | $ | (81,878 | ) | ||
Stock-based compensation | 34,574 | 89,958 | ||||||
Amortization of acquired intangible assets | 11,829 | 36,068 | ||||||
Acquisition-related (benefit) expense, net | (304 | ) | 2,078 | |||||
Income tax effect of adjustments | (7,361 | ) | (31,090 | ) | ||||
Net earnings attributable to common stockholders excluding stock-based compensation, amortization of acquired intangible assets and acquisition-related (benefit) expense, net | $ | 17,530 | $ | 15,136 | ||||
Diluted shares | 669,526,524 | 675,814,535 | ||||||
Incremental diluted shares | 8,907,050 | 10,317,632 | ||||||
Adjusted diluted shares | 678,433,574 | 686,132,167 | ||||||
Diluted net loss per share | $ | (0.03 | ) | $ | (0.12 | ) | ||
Impact of stock-based compensation, amortization of acquired intangible assets and acquisition-related (benefit) expense, net(1) | 0.06 | 0.14 | ||||||
Diluted earnings per share excluding stock-based compensation, amortization of acquired intangible assets and acquisition-related (benefit) expense, net(1) | $ | 0.03 | $ | 0.02 |
(1) | The sum of per share amounts for quarterly periods may not equal year-to-date amounts due to rounding. |
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2014 | |||||||||||||||||||||||
At Avg. Q3 2013 Rates(1) | Exchange Rate Effect(2) | As Reported | At Avg. Q2 2014 Rates(3) | Exchange Rate Effect(2) | As Reported | |||||||||||||||||||
Gross billings | $ | 1,840,983 | $ | 19,752 | $ | 1,860,735 | $ | 1,877,385 | $ | (16,650 | ) | $ | 1,860,735 | |||||||||||
Revenue | $ | 756,712 | $ | 342 | $ | 757,054 | $ | 765,015 | $ | (7,961 | ) | $ | 757,054 | |||||||||||
Loss from operations | $ | (5,270 | ) | $ | (159 | ) | $ | (5,429 | ) | $ | (5,335 | ) | $ | (94 | ) | $ | (5,429 | ) |
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | |||||||||||||||||||||||
At Avg. Q3 2013 YTD Rates(1) | Exchange Rate Effect(2) | As Reported | At Avg. Q4'13 - Q2'14 Rates(3) | Exchange Rate Effect(2) | As Reported | |||||||||||||||||||
Gross billings | $ | 5,458,250 | $ | 38,742 | $ | 5,496,992 | $ | 5,503,487 | $ | (6,495 | ) | $ | 5,496,992 | |||||||||||
Revenue | $ | 2,261,643 | $ | 4,624 | $ | 2,266,267 | $ | 2,273,122 | $ | (6,855 | ) | $ | 2,266,267 | |||||||||||
(Loss) income from operations | $ | (35,561 | ) | $ | 2,325 | $ | (33,236 | ) | $ | (33,353 | ) | $ | 117 | $ | (33,236 | ) |
(1) | Represents the financial statement balances that would have resulted had average exchange rates in the reporting period been the same as those in effect during the three and nine months ended September 30, 2013. |
(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 reporting periods been the same as those in effect during the three and nine months ended June 30, 2014. |
Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | ||||||||||||
EMEA Gross billings growth, excluding FX | 9 | % | 3 | % | 1 | % | (4 | ) | % | 10 | % | |||||
FX Effect | 3 | % | 3 | % | 3 | % | 4 | % | — | % | ||||||
EMEA Gross billings growth | 12 | % | 6 | % | 4 | % | — | % | 10 | % | ||||||
Rest of World Gross billings growth, excluding FX | (4 | ) | % | (2 | ) | % | 133 | % | 141 | % | 147 | % | ||||
FX Effect | (9 | ) | % | (9 | ) | % | (10 | ) | % | 4 | % | 8 | % | |||
Rest of World Gross billings growth | (13 | ) | % | (11 | ) | % | 123 | % | 145 | % | 155 | % | ||||
Consolidated Gross billings growth, excluding FX | 11 | % | 5 | % | 30 | % | 27 | % | 37 | % | ||||||
FX Effect | (1 | ) | % | — | % | (1 | ) | % | 2 | % | 2 | % | ||||
Consolidated Gross billings growth | 10 | % | 5 | % | 29 | % | 29 | % | 39 | % |
Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | ||||||||||||
EMEA Revenue growth, excluding FX | (23 | ) | % | 38 | % | 22 | % | 36 | % | 55 | % | |||||
FX Effect | 2 | % | 5 | % | 4 | % | 6 | % | 1 | % | ||||||
EMEA Revenue growth | (21 | ) | % | 43 | % | 26 | % | 42 | % | 56 | % | |||||
Rest of World Revenue growth, excluding FX | 7 | % | (6 | ) | % | 35 | % | 44 | % | 26 | % | |||||
FX Effect | (11 | ) | % | (9 | ) | % | (12 | ) | % | (4 | ) | % | — | % | ||
Rest of World Revenue growth | (4 | ) | % | (15 | ) | % | 23 | % | 40 | % | 26 | % | ||||
Consolidated Revenue growth, excluding FX | 6 | % | 20 | % | 26 | % | 22 | % | 27 | % | ||||||
FX Effect | (1 | ) | % | — | % | — | % | 2 | % | — | % | |||||
Consolidated Revenue growth | 5 | % | 20 | % | 26 | % | 24 | % | 27 | % |
Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | |||||||||||||||||
Segments | |||||||||||||||||||||
North America Segment: | |||||||||||||||||||||
Gross Billings (1): | |||||||||||||||||||||
Local(2) Gross Billings | $ | 405,913 | $ | 439,131 | $ | 456,952 | $ | 461,366 | $ | 446,573 | |||||||||||
Goods Gross Billings | 194,565 | 286,039 | 242,896 | 247,618 | 242,893 | ||||||||||||||||
Travel(2) Gross Billings | 64,521 | 63,551 | 81,921 | 89,861 | 84,820 | ||||||||||||||||
Total Gross Billings | $ | 664,999 | $ | 788,721 | $ | 781,769 | $ | 798,845 | $ | 774,286 | |||||||||||
Year-over-year growth | 20 | % | 10 | % | 15 | % | 12 | % | 16 | % | |||||||||||
% Third Party and Other | 72 | % | 67 | % | 70 | % | 70 | % | 69 | % | |||||||||||
% Direct | 28 | % | 33 | % | 30 | % | 30 | % | 31 | % | |||||||||||
Gross Billings Trailing Twelve Months (TTM) | $ | 2,777,475 | $ | 2,847,244 | $ | 2,947,694 | $ | 3,034,334 | $ | 3,143,621 | |||||||||||
Revenue (3): | |||||||||||||||||||||
Local Revenue | $ | 162,346 | $ | 161,601 | $ | 177,247 | $ | 164,500 | $ | 161,912 | |||||||||||
Goods Revenue | 185,914 | 268,281 | 237,435 | 241,626 | 238,955 | ||||||||||||||||
Travel Revenue | 12,578 | 13,902 | 16,380 | 17,805 | 17,627 | ||||||||||||||||
Total Revenue | $ | 360,838 | $ | 443,784 | $ | 431,062 | $ | 423,931 | $ | 418,494 | |||||||||||
Year-over-year growth | 24 | % | 18 | % | 27 | % | 12 | % | 16 | % | |||||||||||
% Third Party and Other | 49 | % | 41 | % | 45 | % | 43 | % | 43 | % | |||||||||||
% Direct | 51 | % | 59 | % | 55 | % | 57 | % | 57 | % | |||||||||||
Revenue TTM | $ | 1,452,925 | $ | 1,521,358 | $ | 1,612,866 | $ | 1,659,615 | $ | 1,717,271 | |||||||||||
Gross Profit (4): | |||||||||||||||||||||
Local Gross Profit | $ | 138,890 | $ | 140,944 | $ | 152,622 | $ | 142,674 | $ | 138,189 | |||||||||||
% of North America Total Local Gross Billings | 34.2 | % | 32.1 | % | 33.4 | % | 30.9 | % | 30.9 | % | |||||||||||
Goods Gross Profit | 21,609 | 21,030 | 12,604 | 22,961 | 23,953 | ||||||||||||||||
% of North America Total Goods Gross Billings | 11.1 | % | 7.4 | % | 5.2 | % | 9.3 | % | 9.9 | % | |||||||||||
Travel Gross Profit | 11,070 | 12,352 | 14,442 | 14,365 | 14,000 | ||||||||||||||||
% of North America Total Travel Gross Billings | 17.2 | % | 19.4 | % | 17.6 | % | 16.0 | % | 16.5 | % | |||||||||||
Total Gross Profit | $ | 171,569 | $ | 174,326 | $ | 179,668 | $ | 180,000 | $ | 176,142 | |||||||||||
Year-over-year growth | 7 | % | 15 | % | 4 | % | (7 | ) | % | 3 | % | ||||||||||
% Third Party and Other | 90 | % | 91 | % | 94 | % | 88 | % | 87 | % | |||||||||||
% Direct | 10 | % | 9 | % | 6 | % | 12 | % | 13 | % | |||||||||||
% of North America Total Gross Billings | 25.8 | % | 22.1 | % | 23.0 | % | 22.5 | % | 22.7 | % | |||||||||||
EMEA Segment: | |||||||||||||||||||||
Gross Billings: | |||||||||||||||||||||
Local Gross Billings | $ | 207,803 | $ | 277,472 | $ | 262,141 | $ | 227,266 | $ | 218,615 | |||||||||||
Goods Gross Billings | 169,849 | 219,880 | 183,013 | 190,957 | 191,006 | ||||||||||||||||
Travel Gross Billings | 65,666 | 68,361 | 68,434 | 65,032 | 79,802 | ||||||||||||||||
Total Gross Billings | $ | 443,318 | $ | 565,713 | $ | 513,588 | $ | 483,255 | $ | 489,423 | |||||||||||
Year-over-year growth | 12 | % | 6 | % | 4 | % | — | % | 10 | % | |||||||||||
Year-over-year growth, excluding FX (5) | 9 | % | 3 | % | 1 | % | (4 | ) | % | 10 | % | ||||||||||
% Third Party and Other | 98 | % | 83 | % | 83 | % | 80 | % | 78 | % | |||||||||||
% Direct | 2 | % | 17 | % | 17 | % | 20 | % | 22 | % | |||||||||||
Gross Billings TTM | $ | 1,950,367 | $ | 1,983,599 | $ | 2,004,869 | $ | 2,005,874 | $ | 2,051,979 | |||||||||||
Revenue: | |||||||||||||||||||||
Local Revenue | $ | 92,141 | $ | 116,061 | $ | 109,120 | $ | 96,485 | $ | 90,002 | |||||||||||
Goods Revenue | 41,279 | 119,274 | 106,889 | 115,413 | 123,110 | ||||||||||||||||
Travel Revenue | 14,530 | 15,870 | 14,884 | 15,792 | 16,960 | ||||||||||||||||
Total Revenue | $ | 147,950 | $ | 251,205 | $ | 230,893 | $ | 227,690 | $ | 230,072 | |||||||||||
Year-over-year growth | (21 | ) | % | 43 | % | 26 | % | 42 | % | 56 | % | ||||||||||
Year-over-year growth, excluding FX | (23 | ) | % | 38 | % | 22 | % | 36 | % | 55 | % | ||||||||||
% Third Party and Other | 94 | % | 61 | % | 61 | % | 57 | % | 53 | % | |||||||||||
% Direct | 6 | % | 39 | % | 39 | % | 43 | % | 47 | % | |||||||||||
Revenue TTM | $ | 667,988 | $ | 742,915 | $ | 790,010 | $ | 857,738 | $ | 939,860 | |||||||||||
Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | |||||||||||||||||
Gross Profit: | |||||||||||||||||||||
Local Gross Profit | $ | 81,808 | $ | 105,210 | $ | 100,066 | $ | 90,373 | $ | 83,956 | |||||||||||
% of EMEA Total Local Gross Billings | 39.4 | % | 37.9 | % | 38.2 | % | 39.8 | % | 38.4 | % | |||||||||||
Goods Gross Profit | 28,943 | 33,526 | 27,302 | 35,432 | 32,252 | ||||||||||||||||
% of EMEA Total Goods Gross Billings | 17.0 | % | 15.2 | % | 14.9 | % | 18.6 | % | 16.9 | % | |||||||||||
Travel Gross Profit | 12,930 | 14,457 | 13,669 | 14,894 | 15,440 | ||||||||||||||||
% of EMEA Total Travel Gross Billings | 19.7 | % | 21.1 | % | 20.0 | % | 22.9 | % | 19.3 | % | |||||||||||
Total Gross Profit | $ | 123,681 | $ | 153,193 | $ | 141,037 | $ | 140,699 | $ | 131,648 | |||||||||||
Year-over-year growth | (24 | ) | % | 7 | % | (8 | ) | % | 1 | % | 6 | % | |||||||||
% Third Party and Other | 99 | % | 91 | % | 92 | % | 85 | % | 85 | % | |||||||||||
% Direct | 1 | % | 9 | % | 8 | % | 15 | % | 15 | % | |||||||||||
% of EMEA Total Gross Billings | 27.9 | % | 27.1 | % | 27.5 | % | 29.1 | % | 26.9 | % | |||||||||||
Rest of World Segment: | |||||||||||||||||||||
Gross Billings: | |||||||||||||||||||||
Local Gross Billings | $ | 118,718 | $ | 116,824 | $ | 167,833 | $ | 170,237 | $ | 190,254 | |||||||||||
Goods Gross Billings | 78,973 | 89,451 | 283,091 | 281,300 | 289,210 | ||||||||||||||||
Travel Gross Billings | 36,640 | 32,398 | 70,930 | 85,409 | 117,562 | ||||||||||||||||
Total Gross Billings | $ | 234,331 | $ | 238,673 | $ | 521,854 | $ | 536,946 | $ | 597,026 | |||||||||||
Year-over-year growth | (13 | ) | % | (11 | ) | % | 123 | % | 145 | % | 155 | % | |||||||||
Year-over-year growth, excluding FX | (4 | ) | % | (2 | ) | % | 133 | % | 141 | % | 147 | % | |||||||||
% Third Party and Other | 97 | % | 97 | % | 99 | % | 99 | % | 98 | % | |||||||||||
% Direct | 3 | % | 3 | % | 1 | % | 1 | % | 2 | % | |||||||||||
Gross Billings TTM | $ | 956,833 | $ | 926,487 | $ | 1,214,209 | $ | 1,531,804 | $ | 1,894,499 | |||||||||||
Revenue: | |||||||||||||||||||||
Local Revenue | $ | 51,900 | $ | 40,847 | $ | 43,814 | $ | 42,711 | $ | 45,085 | |||||||||||
Goods Revenue | 25,061 | 26,158 | 41,855 | 45,537 | 48,889 | ||||||||||||||||
Travel Revenue | 9,310 | 6,453 | 10,013 | 11,707 | 14,514 | ||||||||||||||||
Total Revenue | $ | 86,271 | $ | 73,458 | $ | 95,682 | $ | 99,955 | $ | 108,488 | |||||||||||
Year-over-year growth | (4 | ) | % | (15 | ) | % | 23 | % | 40 | % | 26 | % | |||||||||
Year-over-year growth, excluding FX | 7 | % | (6 | ) | % | 35 | % | 44 | % | 26 | % | ||||||||||
% Third Party and Other | 91 | % | 90 | % | 94 | % | 93 | % | 90 | % | |||||||||||
% Direct | 9 | % | 10 | % | 6 | % | 7 | % | 10 | % | |||||||||||
Revenue TTM | $ | 322,597 | $ | 309,382 | $ | 327,014 | $ | 355,366 | $ | 377,583 | |||||||||||
Gross Profit: | |||||||||||||||||||||
Local Gross Profit | $ | 44,435 | $ | 33,596 | $ | 34,748 | $ | 35,618 | $ | 38,592 | |||||||||||
% of Rest of World Total Local Gross Billings | 37.4 | % | 28.8 | % | 20.7 | % | 20.9 | % | 20.3 | % | |||||||||||
Goods Gross Profit | 12,016 | 11,781 | 22,135 | 24,623 | 22,877 | ||||||||||||||||
% of Rest of World Total Goods Gross Billings | 15.2 | % | 13.2 | % | 7.8 | % | 8.8 | % | 7.9 | % | |||||||||||
Travel Gross Profit | 7,921 | 5,312 | 8,133 | 8,922 | 10,885 | ||||||||||||||||
% of Rest of World Total Travel Gross Billings | 21.6 | % | 16.4 | % | 11.5 | % | 10.4 | % | 9.3 | % | |||||||||||
Total Gross Profit | $ | 64,372 | $ | 50,689 | $ | 65,016 | $ | 69,163 | $ | 72,354 | |||||||||||
Year-over-year growth | 1 | % | (16 | ) | % | 23 | % | 37 | % | 12 | % | ||||||||||
% Third Party and Other | 99 | % | 101 | % | 102 | % | 100 | % | 102 | % | |||||||||||
% Direct | 1 | % | (1 | ) | % | (2 | ) | % | — | % | (2 | ) | % | ||||||||
% of Rest of World Total Gross Billings | 27.5 | % | 21.2 | % | 12.5 | % | 12.9 | % | 12.1 | % | |||||||||||
Consolidated Results of Operations: | |||||||||||||||||||||
Gross Billings: | |||||||||||||||||||||
Local Gross Billings | $ | 732,434 | $ | 833,427 | $ | 886,926 | $ | 858,869 | $ | 855,442 | |||||||||||
Goods Gross Billings | 443,387 | 595,370 | 709,000 | 719,875 | 723,109 | ||||||||||||||||
Travel Gross Billings | 166,827 | 164,310 | 221,285 | 240,302 | 282,184 | ||||||||||||||||
Total Gross Billings | $ | 1,342,648 | $ | 1,593,107 | $ | 1,817,211 | $ | 1,819,046 | $ | 1,860,735 | |||||||||||
Year-over-year growth | 10 | % | 5 | % | 29 | % | 29 | % | 39 | % | |||||||||||
Year-over-year growth, excluding FX | 11 | % | 5 | % | 30 | % | 27 | % | 37 | % | |||||||||||
% Third Party and Other | 85 | % | 77 | % | 82 | % | 81 | % | 81 | % | |||||||||||
% Direct | 15 | % | 23 | % | 18 | % | 19 | % | 19 | % | |||||||||||
Gross Billings TTM | $ | 5,684,675 | $ | 5,757,330 | $ | 6,166,772 | $ | 6,572,012 | $ | 7,090,099 | |||||||||||
Year-over-year growth | 12 | % | 7 | % | 14 | % | 18 | % | 25 | % | |||||||||||
Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | |||||||||||||||||
Revenue: | |||||||||||||||||||||
Local Revenue | $ | 306,387 | $ | 318,509 | $ | 330,181 | $ | 303,696 | $ | 296,999 | |||||||||||
Goods Revenue | 252,254 | 413,713 | 386,179 | 402,576 | 410,954 | ||||||||||||||||
Travel Revenue | 36,418 | 36,225 | 41,277 | 45,304 | 49,101 | ||||||||||||||||
Total Revenue | $ | 595,059 | $ | 768,447 | $ | 757,637 | $ | 751,576 | $ | 757,054 | |||||||||||
Year-over-year growth | 5 | % | 20 | % | 26 | % | 23 | % | 27 | % | |||||||||||
Year-over-year growth, excluding FX | 6 | % | 20 | % | 26 | % | 22 | % | 27 | % | |||||||||||
% Third Party and Other | 66 | % | 52 | % | 56 | % | 54 | % | 53 | % | |||||||||||
% Direct | 34 | % | 48 | % | 44 | % | 46 | % | 47 | % | |||||||||||
Revenue TTM | $ | 2,443,510 | $ | 2,573,655 | $ | 2,729,890 | $ | 2,872,719 | $ | 3,034,714 | |||||||||||
Year-over-year growth | 12 | % | 10 | % | 15 | % | 19 | % | 24 | % | |||||||||||
Gross Profit: | |||||||||||||||||||||
Local Gross Profit | $ | 265,133 | $ | 279,750 | $ | 287,436 | $ | 268,665 | $ | 260,737 | |||||||||||
% of Total Consolidated Local Gross Billings | 36.2 | % | 33.6 | % | 32.4 | % | 31.3 | % | 30.5 | % | |||||||||||
Goods Gross Profit | 62,568 | 66,337 | 62,041 | 83,016 | 79,082 | ||||||||||||||||
% of Total Consolidated Goods Gross Billings | 14.1 | % | 11.1 | % | 8.8 | % | 11.5 | % | 10.9 | % | |||||||||||
Travel Gross Profit | 31,921 | 32,121 | 36,244 | 38,181 | 40,325 | ||||||||||||||||
% of Total Consolidated Travel Gross Billings | 19.1 | % | 19.5 | % | 16.4 | % | 15.9 | % | 14.3 | % | |||||||||||
Total Gross Profit | $ | 359,622 | $ | 378,208 | $ | 385,721 | $ | 389,862 | $ | 380,144 | |||||||||||
Year-over-year growth | (7 | ) | % | 6 | % | 2 | % | 1 | % | 6 | % | ||||||||||
% Third Party and Other | 95 | % | 92 | % | 94 | % | 89 | % | 89 | % | |||||||||||
% Direct | 5 | % | 8 | % | 6 | % | 11 | % | 11 | % | |||||||||||
% of Total Consolidated Gross Billings | 26.8 | % | 23.7 | % | 21.2 | % | 21.4 | % | 20.4 | % | |||||||||||
Adjusted EBITDA | $ | 62,302 | $ | 71,988 | $ | 40,301 | $ | 59,056 | $ | 66,987 | |||||||||||
% of Total Consolidated Gross Billings | 4.6 | % | 4.5 | % | 2.2 | % | 3.2 | % | 3.6 | % | |||||||||||
% of Total Consolidated Revenue | 10.5 | % | 9.4 | % | 5.3 | % | 7.9 | % | 8.8 | % |
Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | ||||||||||||||||
Net cash (used in) provided by operating activities | $ | (11,905 | ) | $ | 178,275 | $ | (20,717 | ) | $ | (22,747 | ) | $ | 45,466 | |||||||
Purchases of property and equipment and capitalized software | (15,064 | ) | (19,931 | ) | (16,355 | ) | (31,053 | ) | (20,053 | ) | ||||||||||
Free cash flow | $ | (26,969 | ) | $ | 158,344 | $ | (37,072 | ) | $ | (53,800 | ) | $ | 25,413 | |||||||
Net cash provided by operating activities (TTM) | $ | 105,874 | $ | 218,432 | $ | 188,955 | $ | 122,906 | $ | 180,277 | ||||||||||
Purchases of property and equipment and capitalized software (TTM) | (83,608 | ) | (63,505 | ) | (65,392 | ) | (82,403 | ) | (87,392 | ) | ||||||||||
Free cash flow (TTM) | $ | 22,266 | $ | 154,927 | $ | 123,563 | $ | 40,503 | $ | 92,885 | ||||||||||
Net cash used in investing activities | $ | (26,444 | ) | $ | (23,330 | ) | $ | (138,608 | ) | $ | (34,498 | ) | $ | (20,461 | ) | |||||
Net cash used in financing activities | $ | (8,970 | ) | $ | (55,444 | ) | $ | (41,492 | ) | $ | (114,753 | ) | $ | (16,823 | ) | |||||
Net cash used in investing activities (TTM) | $ | (125,738 | ) | $ | (96,315 | ) | $ | (204,244 | ) | $ | (222,880 | ) | $ | (216,897 | ) | |||||
Net cash used in financing activities (TTM) | $ | (32,748 | ) | $ | (81,697 | ) | $ | (113,847 | ) | $ | (220,659 | ) | $ | (228,512 | ) | |||||
Other Metrics: | ||||||||||||||||||||
Active Customers (6) | ||||||||||||||||||||
North America | 19.9 | 20.8 | 21.8 | 22.6 | 23.5 | |||||||||||||||
EMEA | 14.0 | 14.2 | 14.5 | 14.5 | 14.9 | |||||||||||||||
Rest of World(7) | 8.7 | 8.7 | 14.1 | 14.5 | 14.3 | |||||||||||||||
Total Active Customers(8) | 42.6 | 43.7 | 50.4 | 51.6 | 52.7 | |||||||||||||||
TTM Gross Billings / Average Active Customer (9) | ||||||||||||||||||||
North America | $ | 155 | $ | 150 | $ | 147 | $ | 145 | $ | 145 | ||||||||||
EMEA | $ | 137 | $ | 139 | $ | 141 | $ | 141 | $ | 142 | ||||||||||
Rest of World(7) | $ | 109 | $ | 104 | $ | 106 | $ | 132 | $ | 165 | ||||||||||
Consolidated(8) | $ | 139 | $ | 137 | $ | 135 | $ | 141 | $ | 149 | ||||||||||
Headcount | ||||||||||||||||||||
Sales (10) | 4,801 | 4,834 | 5,231 | 5,057 | 4,929 | |||||||||||||||
% North America | 28 | % | 29 | % | 27 | % | 26 | % | 26 | % | ||||||||||
% EMEA | 37 | % | 37 | % | 37 | % | 39 | % | 39 | % | ||||||||||
% Rest of World | 35 | % | 34 | % | 36 | % | 35 | % | 35 | % | ||||||||||
Other | 6,453 | 6,449 | 7,099 | 6,888 | 6,827 | |||||||||||||||
Total Headcount | 11,254 | 11,283 | 12,330 | 11,945 | 11,756 |
(1) | Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. |
(2) | Local represents deals from local merchants, deals with national merchants, and deals through local events. Other revenue transactions, which include advertising, payment processing, point of sale and commission revenue, were previously aggregated with our Travel category. During the three months ended March 31, 2014, the Company updated its presentation of category information to include gross billings, revenue and gross profit from those other revenue sources within the Local category, and prior period category information has been retrospectively adjusted to conform to the current period presentation. |
(3) | Includes third party revenue, direct revenue and other revenue. 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. Other revenue primarily consists of advertising revenue, payment processing revenue, point of sale revenue and commission revenue. |
(4) | Represents third party revenue, direct revenue and other revenue reduced by cost of revenue. Cost of revenue is comprised of direct and certain indirect costs incurred to generate revenue. Third party cost of revenue includes estimated refunds for which the merchant's share is not recoverable. Direct cost of revenue includes the cost of inventory, shipping and fulfillment costs and inventory markdowns. 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) in proportion to gross billings during the period. |
(5) | Represents the change in financial measures that would have resulted had average exchange rates in the reporting periods been the same as those in effect in the prior year period. |
(6) | Reflects the total number of unique user accounts who have purchased a voucher or product from us during the trailing twelve months. |
(7) | Active customers in our Rest of World segment as of September 30, 2013, December 31, 2013, March 31, 2014, and June 30, 2014 have been reduced by 0.9 million, 1.2 million, 1.4 million, and 1.6 million, respectively, from the amounts previously reported to correct that operational information. Those adjustments increased TTM gross billings per average active customer in our Rest of World segment for the 12-month periods ended September 30, 2013, December 31, 2013, March 31, 2014, and June 30, 2014 by $7, $9, $9, and $13, respectively, from the amounts previously reported. |
(8) | The adjustments of active customers in our Rest of World segment as of September 30, 2013, December 31, 2013, March 31, 2014, and June 30, 2014, described in footnote (7) above, reduced consolidated active customers by the same amounts. Those adjustments increased consolidated TTM gross billings |
(9) | Reflects the total gross billings generated in the trailing twelve months per average active customer over that period. |
(10) | Includes merchant sales representatives, as well as sales support. |
(11) | 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. |