Delaware (State or other jurisdiction of incorporation) | 1-35335 (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 May 5, 2015 |
GROUPON, INC. | ||
Dated: May 5, 2015 | By: | /s/ Jason E. Child |
Name: | Jason E. Child | |
Title: | Chief Financial Officer |
Exhibit No. | Description | |
99.1* | Earnings Press Release dated May 5, 2015 |
• | Gross billings of $1.6 billion |
• | Revenue of $750.4 million |
• | Adjusted EBITDA of $72.4 million |
• | GAAP loss per share of $0.02; non-GAAP earnings per share of $0.03 |
• | Free Cash Flow of $222.0 million for the trailing twelve month period |
• | Gross billings, which reflect the total dollar value of customer purchases of goods and services, increased to $1.6 billion in the first quarter 2015, compared with $1.5 billion in the first quarter 2014. Gross billings grew 10% globally, excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter. On this F/X neutral basis, North America billings increased 14%, EMEA increased 7% and Rest of World declined 1%. Including the $117.7 million unfavorable impact from foreign exchange, billings increased 2% compared with first quarter 2014. |
• | Revenue increased to $750.4 million in the first quarter 2015, compared with $728.4 million in the first quarter 2014. Revenue grew 10%, excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter. On this F/X neutral basis, North America revenue increased 11%, EMEA increased 13% and Rest of World declined 8%. Including the $51.3 million unfavorable impact from foreign exchange, revenue increased 3% compared with first quarter 2014. |
• | Gross profit was $347.4 million in the first quarter 2015, compared with $365.5 million in the first quarter 2014. Excluding the $27.7 million unfavorable impact from year-over-year |
• | Adjusted EBITDA, a non-GAAP financial measure, was $72.4 million in the first quarter 2015, compared with $45.8 million in the first quarter 2014, as lower gross profit was more than offset by lower operating expenses, both reflecting the impact of year-over-year changes in foreign exchange rates. |
• | Net loss attributable to common stockholders was $14.3 million, or $0.02 per share. Non-GAAP net earnings attributable to common stockholders was $21.3 million, or $0.03 per share. |
• | First quarter 2015 results included $19.5 million of pre-tax non-operating foreign currency losses, $17.6 million of which was related to non-cash losses on intercompany balances. |
• | Operating cash flow for the trailing twelve months ended March 31, 2015 was $307.8 million. Free cash flow, a non-GAAP financial measure, was $22.4 million in the first quarter 2015, bringing free cash flow for the trailing twelve months ended March 31, 2015 to $222.0 million. |
• | At the end of the quarter, Groupon had $975.5 million in cash and cash equivalents. |
• | Units: Global units, defined as vouchers and products sold before cancellations and refunds, increased 6% year-over-year to 54 million in the first quarter 2015. North America units increased 8%, EMEA units increased 10% and Rest of World units declined 7%. |
• | Active deals: At the end of the first quarter 2015, on average, active deals were more than 425,000 globally, with over 200,000 in North America. Both include the addition of nearly 60,000 Coupons. |
• | Active customers: Active customers, or customers that have purchased a voucher or product within the last twelve months, grew 7% year-over-year, to 48.1 million as of March 31, 2015, comprising 24.6 million in North America, 15.3 million in EMEA, and 8.2 million in Rest of World. |
• | Customer spend: First quarter 2015 trailing twelve month billings per average active customer was $135, compared with $136 in the first quarter 2014. |
• | Traffic: Approximately 105 million people have now downloaded Groupon mobile apps worldwide. In addition, monthly unique visitors, or the count of users accessing Groupon on both web and mobile devices, was over 160 million globally at the end of the first quarter 2015. |
• | Search: In the first quarter 2015, approximately 27% of total transactions in North America were related to search, compared with 20% in the first quarter 2014. |
Contacts: | |
Investor Relations | Public Relations |
Genny Konz | Bill Roberts |
312-999-3098 | 312-459-5191 |
ir@groupon.com | |
Three Months Ended March 31, | Y/Y % Growth | Y/Y % Growth excluding FX(2) | ||||||||||||||||||
2015 | 2014 | FX Effect(2) | ||||||||||||||||||
Gross Billings(1): | ||||||||||||||||||||
North America | $ | 893,977 | $ | 781,769 | 14.4 | % | $ | (1,100 | ) | 14.5 | % | |||||||||
EMEA | 459,189 | 513,588 | (10.6 | ) | (91,866 | ) | 7.3 | |||||||||||||
Rest of World | 198,835 | 225,349 | (11.8 | ) | (24,772 | ) | (0.8 | ) | ||||||||||||
Consolidated gross billings | $ | 1,552,001 | $ | 1,520,706 | 2.1 | % | $ | (117,738 | ) | 9.8 | % | |||||||||
Revenue: | ||||||||||||||||||||
North America | $ | 479,882 | $ | 431,062 | 11.3 | % | $ | (328 | ) | 11.4 | % | |||||||||
EMEA | 216,220 | 230,893 | (6.4 | ) | (43,894 | ) | 12.7 | |||||||||||||
Rest of World | 54,254 | 66,460 | (18.4 | ) | (7,085 | ) | (7.7 | ) | ||||||||||||
Consolidated revenue | $ | 750,356 | $ | 728,415 | 3.0 | % | $ | (51,307 | ) | 10.1 | % | |||||||||
Income (loss) from operations | $ | 5,295 | $ | (6,364 | ) | 183.2 | % | $ | (1,405 | ) | 205.3 | % | ||||||||
Loss from continuing operations | (16,739 | ) | (21,774 | ) | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | 6,284 | (13,589 | ) | |||||||||||||||||
Net loss attributable to Groupon, Inc. | $ | (14,273 | ) | $ | (37,795 | ) | ||||||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||
Continuing operations | $ | (0.03 | ) | $ | (0.04 | ) | ||||||||||||||
Discontinued operations | 0.01 | (0.02 | ) | |||||||||||||||||
Basic net loss per share | $ | (0.02 | ) | $ | (0.06 | ) | ||||||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||
Continuing operations | $ | (0.03 | ) | $ | (0.04 | ) | ||||||||||||||
Discontinued operations | 0.01 | (0.02 | ) | |||||||||||||||||
Diluted net loss per share | $ | (0.02 | ) | $ | (0.06 | ) | ||||||||||||||
Weighted average number of shares outstanding | ||||||||||||||||||||
Basic | 676,382,937 | 682,378,690 | ||||||||||||||||||
Diluted | 676,382,937 | 682,378,690 |
(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 period been the same as those in effect during the three months ended March 31, 2014. |
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Operating activities | |||||||
Net loss | $ | (10,455 | ) | $ | (35,363 | ) | |
Less: Income (loss) from discontinued operations, net of tax | 6,284 | (13,589 | ) | ||||
Loss from continuing operations | (16,739 | ) | (21,774 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization of property, equipment and software | 26,266 | 21,448 | |||||
Amortization of acquired intangible assets | 5,934 | 5,985 | |||||
Stock-based compensation | 35,144 | 22,911 | |||||
Deferred income taxes | 22 | 573 | |||||
Excess tax benefits on stock-based compensation | (2,896 | ) | (5,855 | ) | |||
Gain on equity method investments | — | (52 | ) | ||||
Gain from changes in fair value of contingent consideration | (279 | ) | (39 | ) | |||
Impairments of investments | — | 397 | |||||
Change in assets and liabilities, net of acquisitions: | |||||||
Restricted cash | 3,245 | 3,536 | |||||
Accounts receivable | (8,901 | ) | (20,835 | ) | |||
Prepaid expenses and other current assets | (2,513 | ) | 3,013 | ||||
Accounts payable | 2,244 | 2,313 | |||||
Accrued merchant and supplier payables | (17,034 | ) | (33,523 | ) | |||
Accrued expenses and other current liabilities | (2,470 | ) | (2,202 | ) | |||
Other, net | 18,688 | 9,530 | |||||
Net cash provided by (used in) operating activities from continuing operations | 40,711 | (14,574 | ) | ||||
Net cash used in operating activities from discontinued operations | (24,355 | ) | (6,143 | ) | |||
Net cash provided by (used in) operating activities | 16,356 | (20,717 | ) | ||||
Net cash used in investing activities from continuing operations | (19,443 | ) | (62,994 | ) | |||
Net cash used in investing activities from discontinued operations | (624 | ) | (75,614 | ) | |||
Net cash used in investing activities | (20,067 | ) | (138,608 | ) | |||
Net cash used in financing activities | (32,942 | ) | (41,492 | ) | |||
Effect of exchange rate changes on cash and cash equivalents, including cash classified within current assets held for sale | (30,199 | ) | (831 | ) | |||
Net decrease in cash and cash equivalents, including cash classified within current assets held for sale | (66,852 | ) | (201,648 | ) | |||
Less: Net (decrease) increase in cash classified within current assets held for sale | (25,722 | ) | 18,006 | ||||
Net decrease in cash and cash equivalents | (41,130 | ) | (219,654 | ) | |||
Cash and cash equivalents, beginning of period | 1,016,634 | 1,240,472 | |||||
Cash and cash equivalents, end of period | $ | 975,504 | $ | 1,020,818 |
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue: | ||||||||
Third party and other | $ | 360,121 | $ | 397,702 | ||||
Direct | 390,235 | 330,713 | ||||||
Total revenue | 750,356 | 728,415 | ||||||
Cost of revenue: | ||||||||
Third party and other | 51,697 | 53,802 | ||||||
Direct | 351,253 | 309,101 | ||||||
Total cost of revenue | 402,950 | 362,903 | ||||||
Gross profit | 347,406 | 365,512 | ||||||
Operating expenses: | ||||||||
Marketing | 52,533 | 69,185 | ||||||
Selling, general and administrative | 289,847 | 300,906 | ||||||
Acquisition-related (benefit) expense, net | (269 | ) | 1,785 | |||||
Total operating expenses | 342,111 | 371,876 | ||||||
Income (loss) from operations | 5,295 | (6,364 | ) | |||||
Other expense, net(1) | (19,927 | ) | (840 | ) | ||||
Loss from continuing operations before provision for income taxes | (14,632 | ) | (7,204 | ) | ||||
Provision for income taxes | 2,107 | 14,570 | ||||||
Loss from continuing operations | (16,739 | ) | (21,774 | ) | ||||
Income (loss) from discontinued operations, net of tax | 6,284 | (13,589 | ) | |||||
Net loss | (10,455 | ) | (35,363 | ) | ||||
Net income attributable to noncontrolling interests | (3,818 | ) | (2,432 | ) | ||||
Net loss attributable to Groupon, Inc. | $ | (14,273 | ) | $ | (37,795 | ) | ||
Basic net income (loss) per share: | ||||||||
Continuing operations | $ | (0.03 | ) | $ | (0.04 | ) | ||
Discontinued operations | 0.01 | (0.02 | ) | |||||
Basic net loss per share | $ | (0.02 | ) | $ | (0.06 | ) | ||
Diluted net income (loss) per share: | ||||||||
Continuing operations | $ | (0.03 | ) | $ | (0.04 | ) | ||
Discontinued operations | 0.01 | (0.02 | ) | |||||
Diluted net loss per share | $ | (0.02 | ) | $ | (0.06 | ) | ||
Weighted average number of shares outstanding | ||||||||
Basic | 676,382,937 | 682,378,690 | ||||||
Diluted | 676,382,937 | 682,378,690 |
(1) | Other expense, net includes foreign currency losses of $19.5 million and $0.7 million for the three months ended March 31, 2015 and 2014, respectively. |
March 31, 2015 | December 31, 2014 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 975,504 | $ | 1,016,634 | ||||
Accounts receivable, net | 92,140 | 90,597 | ||||||
Deferred income taxes | 44,379 | 16,271 | ||||||
Prepaid expenses and other current assets | 184,092 | 192,382 | ||||||
Current assets held for sale | 362,731 | 85,445 | ||||||
Total current assets | 1,658,846 | 1,401,329 | ||||||
Property, equipment and software, net | 169,966 | 176,004 | ||||||
Goodwill | 224,685 | 236,756 | ||||||
Intangible assets, net | 24,854 | 30,609 | ||||||
Investments | 22,970 | 24,298 | ||||||
Deferred income taxes, non-current | 39,453 | 41,323 | ||||||
Other non-current assets | 13,877 | 16,173 | ||||||
Non-current assets held for sale | — | 301,105 | ||||||
Total Assets | $ | 2,154,651 | $ | 2,227,597 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 17,539 | $ | 13,822 | ||||
Accrued merchant and supplier payables | 723,593 | 772,156 | ||||||
Accrued expenses | 194,311 | 214,260 | ||||||
Deferred income taxes | 29,077 | 31,998 | ||||||
Other current liabilities | 125,243 | 127,121 | ||||||
Current liabilities held for sale | 172,375 | 166,239 | ||||||
Total current liabilities | 1,262,138 | 1,325,596 | ||||||
Deferred income taxes, non-current | 719 | 773 | ||||||
Other non-current liabilities | 122,781 | 129,531 | ||||||
Non-current liabilities held for sale | — | 6,753 | ||||||
Total Liabilities | 1,385,638 | 1,462,653 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Equity | ||||||||
Class A common stock, par value $0.0001 per share, 2,000,000,000 shares authorized, 704,655,248 shares issued and 674,998,444 shares outstanding at March 31, 2015 and 699,008,084 shares issued and 671,768,980 shares outstanding at December 31, 2014 | 70 | 70 | ||||||
Class B common stock, par value $0.0001 per share, 10,000,000 shares authorized, 2,399,976 shares issued and outstanding at March 31, 2015 and December 31, 2014 | — | — | ||||||
Common stock, par value $0.0001 per share, 2,010,000,000 shares authorized, no shares issued and outstanding at March 31, 2015 and December 31, 2014 | — | — | ||||||
Additional paid-in capital | 1,873,582 | 1,847,420 | ||||||
Treasury stock, at cost, 29,656,804 shares at March 31, 2015 and 27,239,104 shares at December 31, 2014 | (217,000 | ) | (198,467 | ) | ||||
Accumulated deficit | (936,233 | ) | (921,960 | ) | ||||
Accumulated other comprehensive income | 44,216 | 35,763 | ||||||
Total Groupon, Inc. Stockholders' Equity | 764,635 | 762,826 | ||||||
Noncontrolling interests | 4,378 | 2,118 | ||||||
Total Equity | 769,013 | 764,944 | ||||||
Total Liabilities and Equity | $ | 2,154,651 | $ | 2,227,597 |
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
North America | |||||||||
Gross billings (1) | $ | 893,977 | $ | 781,769 | |||||
Revenue | 479,882 | 431,062 | |||||||
Segment cost of revenue and operating expenses (2) | 455,216 | 419,677 | |||||||
Segment operating income (2) | $ | 24,666 | $ | 11,385 | |||||
Segment operating income as a percent of segment gross billings | 2.8 | % | 1.5 | % | |||||
Segment operating income as a percent of segment revenue | 5.1 | % | 2.6 | % | |||||
EMEA | |||||||||
Gross billings (1) | $ | 459,189 | $ | 513,588 | |||||
Revenue | 216,220 | 230,893 | |||||||
Segment cost of revenue and operating expenses (2) | 196,568 | 211,970 | |||||||
Segment operating income (2) | $ | 19,652 | $ | 18,923 | |||||
Segment operating income as a percent of segment gross billings | 4.3 | % | 3.7 | % | |||||
Segment operating income as a percent of segment revenue | 9.1 | % | 8.2 | % | |||||
Rest of World | |||||||||
Gross billings (1) | $ | 198,835 | $ | 225,349 | |||||
Revenue | 54,254 | 66,460 | |||||||
Segment cost of revenue and operating expenses (2) | 58,402 | 78,436 | |||||||
Segment operating loss (2) | $ | (4,148 | ) | $ | (11,976 | ) | |||
Segment operating loss as a percent of segment gross billings | (2.1 | ) | % | (5.3 | ) | % | |||
Segment operating loss as a percent of segment revenue | (7.6 | ) | % | (18.0 | ) | % |
(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. |
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | ||||||||||||||||
(Loss) income from continuing operations | $ | (21,774 | ) | $ | (10,692 | ) | $ | (12,573 | ) | $ | 26,566 | $ | (16,739 | ) | ||||||
Adjustments: | ||||||||||||||||||||
Stock-based compensation | 22,911 | 29,738 | 32,680 | 29,961 | 35,144 | |||||||||||||||
Acquisition-related expense (benefit), net | 1,785 | 597 | (304 | ) | (809 | ) | (269 | ) | ||||||||||||
Depreciation and amortization | 27,433 | 27,024 | 30,462 | 30,122 | 32,200 | |||||||||||||||
Other expense, net | 840 | 1,023 | 20,056 | 11,531 | 19,927 | |||||||||||||||
Provision (benefit) for income taxes | 14,570 | 12,045 | (6,434 | ) | (4,457 | ) | 2,107 | |||||||||||||
Total adjustments | 67,539 | 70,427 | 76,460 | 66,348 | 89,109 | |||||||||||||||
Adjusted EBITDA | $ | 45,765 | $ | 59,735 | $ | 63,887 | $ | 92,914 | $ | 72,370 |
Three Months Ended March 31, 2015 | ||||
Net income (loss) attributable to common stockholders | $ | (14,273 | ) | |
Stock-based compensation | 35,144 | |||
Amortization of acquired intangible assets | 5,934 | |||
Acquisition-related (benefit) expense, net | (269 | ) | ||
Intercompany foreign currency losses (gains) | 17,638 | |||
Income tax effect of above adjustments | (16,559 | ) | ||
Income from discontinued operations, net of tax | (6,284 | ) | ||
Non-GAAP net income (loss) attributable to common stockholders | $ | 21,331 | ||
Diluted shares | 676,382,937 | |||
Incremental diluted shares | 8,715,925 | |||
Adjusted diluted shares | 685,098,862 | |||
Diluted net income (loss) per share | $ | (0.02 | ) | |
Impact of stock-based compensation, amortization of acquired intangible assets, acquisition-related (benefit) expense, net, intercompany foreign currency losses (gains), income from discontinued operations and related tax effects | 0.05 | |||
Non-GAAP net income (loss) per share | $ | 0.03 |
Three Months Ended March 31, 2015 | Three Months Ended March 31, 2015 | |||||||||||||||||||||||
At Avg. Q1 2014 Rates(1) | Exchange Rate Effect(2) | As Reported | At Avg. Q4 2014 Rates(3) | Exchange Rate Effect(2) | As Reported | |||||||||||||||||||
Gross billings | $ | 1,669,739 | $ | (117,738 | ) | $ | 1,552,001 | $ | 1,609,255 | $ | (57,254 | ) | $ | 1,552,001 | ||||||||||
Revenue | 801,663 | (51,307 | ) | 750,356 | 775,503 | (25,147 | ) | 750,356 | ||||||||||||||||
Income (loss) from operations | $ | 6,700 | $ | (1,405 | ) | $ | 5,295 | $ | 6,460 | $ | (1,165 | ) | $ | 5,295 |
(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 months ended March 31, 2014. |
(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 period been the same as those in effect during the three months ended December 31, 2014. |
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | ||||||||||||
EMEA Gross billings growth, excluding FX | 1 | % | (4 | ) | % | 10 | % | 8 | % | 7 | % | |||||
FX Effect | 3 | 4 | — | (9 | ) | (18 | ) | |||||||||
EMEA Gross billings growth | 4 | % | — | % | 10 | % | (1 | ) | % | (11 | ) | % | ||||
Rest of World Gross billings growth, excluding FX | 9 | % | 8 | % | 1 | % | — | % | (1 | ) | % | |||||
FX Effect | (13 | ) | (8 | ) | (4 | ) | (10 | ) | (11 | ) | ||||||
Rest of World Gross billings growth | (4 | ) | % | — | % | (3 | ) | % | (10 | ) | % | (12 | ) | % | ||
Consolidated Gross billings growth, excluding FX | 9 | % | 6 | % | 12 | % | 13 | % | 10 | % | ||||||
FX Effect | (1 | ) | — | (1 | ) | (5 | ) | (8 | ) | |||||||
Consolidated Gross billings growth | 8 | % | 6 | % | 11 | % | 8 | % | 2 | % |
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | ||||||||||||
EMEA Revenue growth, excluding FX | 22 | % | 36 | % | 55 | % | 18 | % | 13 | % | ||||||
FX Effect | 4 | 6 | 1 | (10 | ) | (19 | ) | |||||||||
EMEA Revenue growth | 26 | % | 42 | % | 56 | % | 8 | % | (6 | ) | % | |||||
Rest of World Revenue growth, excluding FX | (2 | ) | % | (1 | ) | % | (20 | ) | % | (9 | ) | % | (8 | ) | % | |
FX Effect | (13 | ) | (9 | ) | (4 | ) | (10 | ) | (10 | ) | ||||||
Rest of World Revenue growth | (15 | ) | % | (10 | ) | % | (24 | ) | % | (19 | ) | % | (18 | ) | % | |
Consolidated Revenue growth, excluding FX | 22 | % | 17 | % | 21 | % | 19 | % | 10 | % | ||||||
FX Effect | (1 | ) | 1 | (1 | ) | (4 | ) | (7 | ) | |||||||
Consolidated Revenue growth | 21 | % | 18 | % | 20 | % | 15 | % | 3 | % |
At Avg. Q1 2014 Rates (1) | Exchange Rate Effect (2) | March 31, 2015 As Reported | March 31, 2014 As Reported | Y/Y % Growth | Y/Y% Growth excluding FX | |||||||||||||||||
Local: | ||||||||||||||||||||||
Third party and other | $ | 513,222 | $ | (664 | ) | $ | 512,558 | $ | 456,952 | 12.2 | % | 12.3 | % | |||||||||
Goods: | ||||||||||||||||||||||
Third party | 6,677 | (317 | ) | 6,360 | 6,782 | (6.2 | ) | % | (1.5 | ) | % | |||||||||||
Direct | 278,381 | — | 278,381 | 236,114 | 17.9 | 17.9 | ||||||||||||||||
Total | 285,058 | (317 | ) | 284,741 | 242,896 | 17.2 | % | 17.4 | % | |||||||||||||
Travel: | ||||||||||||||||||||||
Third party | 96,797 | (119 | ) | 96,678 | 81,921 | 18.0 | % | 18.2 | % | |||||||||||||
Total gross billings | $ | 895,077 | $ | (1,100 | ) | $ | 893,977 | $ | 781,769 | 14.4 | % | 14.5 | % |
At Avg. Q1 2014 Rates (1) | Exchange Rate Effect (2) | March 31, 2015 As Reported | March 31, 2014 As Reported | Y/Y % Growth | Y/Y% Growth excluding FX | |||||||||||||||||
Local: | ||||||||||||||||||||||
Third party and other | $ | 258,190 | $ | (40,592 | ) | $ | 217,598 | $ | 262,141 | (17.0 | ) | % | (1.5 | ) | % | |||||||
Goods: | ||||||||||||||||||||||
Third party | 83,200 | (13,663 | ) | 69,537 | 93,599 | (25.7 | ) | % | (11.1 | ) | % | |||||||||||
Direct | 129,559 | (22,570 | ) | 106,989 | 89,414 | 19.7 | 44.9 | |||||||||||||||
Total | 212,759 | (36,233 | ) | 176,526 | 183,013 | (3.5 | ) | % | 16.3 | % | ||||||||||||
Travel: | ||||||||||||||||||||||
Third party | 80,106 | (15,041 | ) | 65,065 | 68,434 | (4.9 | ) | % | 17.1 | % | ||||||||||||
Total gross billings | $ | 551,055 | $ | (91,866 | ) | $ | 459,189 | $ | 513,588 | (10.6 | ) | % | 7.3 | % |
At Avg. Q1 2014 Rates (1) | Exchange Rate Effect (2) | March 31, 2015 As Reported | March 31, 2014 As Reported | Y/Y % Growth | Y/Y% Growth excluding FX | |||||||||||||||||
Local: | ||||||||||||||||||||||
Third party and other | $ | 112,736 | $ | (13,001 | ) | $ | 99,735 | $ | 112,660 | (11.5 | ) | % | 0.1 | % | ||||||||
Goods: | ||||||||||||||||||||||
Third party | 67,910 | (6,621 | ) | 61,289 | 74,338 | (17.6 | ) | % | (8.6 | ) | % | |||||||||||
Direct | 5,594 | (729 | ) | 4,865 | 5,185 | (6.2 | ) | 7.9 | ||||||||||||||
Total | 73,504 | (7,350 | ) | 66,154 | 79,523 | (16.8 | ) | % | (7.6 | ) | % | |||||||||||
Travel: | ||||||||||||||||||||||
Third party | 37,367 | (4,421 | ) | 32,946 | 33,166 | (0.7 | ) | % | 12.7 | % | ||||||||||||
Total gross billings | $ | 223,607 | $ | (24,772 | ) | $ | 198,835 | $ | 225,349 | (11.8 | ) | % | (0.8 | ) | % |
At Avg. Q1 2014 Rates (1) | Exchange Rate Effect (2) | March 31, 2015 As Reported | March 31, 2014 As Reported | Y/Y % Growth | Y/Y% Growth excluding FX | |||||||||||||||||
Local: | ||||||||||||||||||||||
Third party and other | $ | 884,148 | $ | (54,257 | ) | $ | 829,891 | $ | 831,753 | (0.2 | ) | % | 6.3 | % | ||||||||
Goods: | ||||||||||||||||||||||
Third party | 157,787 | (20,601 | ) | 137,186 | 174,719 | (21.5 | ) | % | (9.7 | ) | % | |||||||||||
Direct | 413,534 | (23,299 | ) | 390,235 | 330,713 | 18.0 | 25.0 | |||||||||||||||
Total | 571,321 | (43,900 | ) | 527,421 | 505,432 | 4.4 | % | 13.0 | % | |||||||||||||
Travel: | ||||||||||||||||||||||
Third party | 214,270 | (19,581 | ) | 194,689 | 183,521 | 6.1 | % | 16.8 | % | |||||||||||||
Total gross billings | $ | 1,669,739 | $ | (117,738 | ) | $ | 1,552,001 | $ | 1,520,706 | 2.1 | % | 9.8 | % |
(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 months ended March 31, 2014. |
(2) | Represents the increase or decrease in reported amounts resulting from changes in exchange rates from those in effect in the comparable period. |
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | |||||||||||||||||
Segments | |||||||||||||||||||||
North America Segment: | |||||||||||||||||||||
Gross Billings (1): | |||||||||||||||||||||
Local(2) Gross Billings | $ | 456,952 | $ | 461,366 | $ | 446,573 | $ | 499,250 | $ | 512,558 | |||||||||||
Goods Gross Billings | 242,896 | 247,618 | 242,893 | 369,033 | 284,741 | ||||||||||||||||
Travel Gross Billings | 81,921 | 89,861 | 84,820 | 80,296 | 96,678 | ||||||||||||||||
Total Gross Billings | $ | 781,769 | $ | 798,845 | $ | 774,286 | $ | 948,579 | $ | 893,977 | |||||||||||
Year-over-year growth | 15 | % | 12 | % | 16 | % | 20 | % | 14 | % | |||||||||||
% Third Party and Other | 70 | % | 70 | % | 69 | % | 62 | % | 69 | % | |||||||||||
% Direct | 30 | % | 30 | % | 31 | % | 38 | % | 31 | % | |||||||||||
Gross Billings Trailing Twelve Months (TTM) | $ | 2,947,694 | $ | 3,034,334 | $ | 3,143,621 | $ | 3,303,479 | $ | 3,415,687 | |||||||||||
Revenue (3): | |||||||||||||||||||||
Local Revenue | $ | 177,247 | $ | 164,500 | $ | 161,912 | $ | 170,946 | $ | 180,864 | |||||||||||
Goods Revenue | 237,435 | 241,626 | 238,955 | 362,863 | 279,029 | ||||||||||||||||
Travel Revenue | 16,380 | 17,805 | 17,627 | 17,165 | 19,989 | ||||||||||||||||
Total Revenue | $ | 431,062 | $ | 423,931 | $ | 418,494 | $ | 550,974 | $ | 479,882 | |||||||||||
Year-over-year growth | 27 | % | 12 | % | 16 | % | 24 | % | 11 | % | |||||||||||
% Third Party and Other | 45 | % | 43 | % | 43 | % | 35 | % | 42 | % | |||||||||||
% Direct | 55 | % | 57 | % | 57 | % | 65 | % | 58 | % | |||||||||||
Revenue TTM | $ | 1,612,866 | $ | 1,659,615 | $ | 1,717,271 | $ | 1,824,461 | $ | 1,873,281 | |||||||||||
Gross Profit (4): | |||||||||||||||||||||
Local Gross Profit | $ | 152,622 | $ | 142,674 | $ | 138,189 | $ | 147,582 | $ | 154,776 | |||||||||||
% of North America Local Gross Billings | 33.4 | % | 30.9 | % | 30.9 | % | 29.6 | % | 30.2 | % | |||||||||||
Goods Gross Profit | 12,604 | 22,961 | 23,953 | 34,404 | 23,923 | ||||||||||||||||
% of North America Goods Gross Billings | 5.2 | % | 9.3 | % | 9.9 | % | 9.3 | % | 8.4 | % | |||||||||||
Travel Gross Profit | 14,442 | 14,365 | 14,000 | 14,187 | 15,791 | ||||||||||||||||
% of North America Travel Gross Billings | 17.6 | % | 16.0 | % | 16.5 | % | 17.7 | % | 16.3 | % | |||||||||||
Total Gross Profit | $ | 179,668 | $ | 180,000 | $ | 176,142 | $ | 196,173 | $ | 194,490 | |||||||||||
Year-over-year growth | 4 | % | (7 | ) | % | 3 | % | 13 | % | 8 | % | ||||||||||
% Third Party and Other | 94 | % | 88 | % | 87 | % | 83 | % | 88 | % | |||||||||||
% Direct | 6 | % | 12 | % | 13 | % | 17 | % | 12 | % | |||||||||||
% of North America Total Gross Billings | 23.0 | % | 22.5 | % | 22.7 | % | 20.7 | % | 21.8 | % | |||||||||||
EMEA Segment: | |||||||||||||||||||||
Gross Billings: | |||||||||||||||||||||
Local Gross Billings | $ | 262,141 | $ | 227,266 | $ | 218,615 | $ | 242,119 | $ | 217,598 | |||||||||||
Goods Gross Billings | 183,013 | 190,957 | 191,006 | 245,712 | 176,526 | ||||||||||||||||
Travel Gross Billings | 68,434 | 65,032 | 79,802 | 72,710 | 65,065 | ||||||||||||||||
Total Gross Billings | $ | 513,588 | $ | 483,255 | $ | 489,423 | $ | 560,541 | $ | 459,189 | |||||||||||
Year-over-year growth | 4 | % | — | % | 10 | % | (1 | ) | % | (11 | ) | % | |||||||||
Year-over-year growth, excluding FX (5) | 1 | % | (4 | ) | % | 10 | % | 8 | % | 7 | % | ||||||||||
% Third Party and Other | 83 | % | 80 | % | 78 | % | 74 | % | 77 | % | |||||||||||
% Direct | 17 | % | 20 | % | 22 | % | 26 | % | 23 | % | |||||||||||
Gross Billings TTM | $ | 2,004,869 | $ | 2,005,874 | $ | 2,051,979 | $ | 2,046,807 | $ | 1,992,408 | |||||||||||
Revenue: | |||||||||||||||||||||
Local Revenue | $ | 109,120 | $ | 96,485 | $ | 90,002 | $ | 95,572 | $ | 82,536 | |||||||||||
Goods Revenue | 106,889 | 115,413 | 123,110 | 160,582 | 118,967 | ||||||||||||||||
Travel Revenue | 14,884 | 15,792 | 16,960 | 16,321 | 14,717 | ||||||||||||||||
Total Revenue | $ | 230,893 | $ | 227,690 | $ | 230,072 | $ | 272,475 | $ | 216,220 | |||||||||||
Year-over-year growth | 26 | % | 42 | % | 56 | % | 8 | % | (6 | ) | % | ||||||||||
Year-over-year growth, excluding FX | 22 | % | 36 | % | 55 | % | 18 | % | 13 | % | |||||||||||
% Third Party and Other | 61 | % | 57 | % | 53 | % | 46 | % | 51 | % | |||||||||||
% Direct | 39 | % | 43 | % | 47 | % | 54 | % | 49 | % | |||||||||||
Revenue TTM | $ | 790,010 | $ | 857,738 | $ | 939,860 | $ | 961,130 | $ | 946,457 | |||||||||||
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | |||||||||||||||||
Gross Profit: | |||||||||||||||||||||
Local Gross Profit | $ | 100,066 | $ | 90,373 | $ | 83,956 | $ | 90,150 | $ | 77,356 | |||||||||||
% of EMEA Local Gross Billings | 38.2 | % | 39.8 | % | 38.4 | % | 37.2 | % | 35.5 | % | |||||||||||
Goods Gross Profit | 27,302 | 35,432 | 32,252 | 38,154 | 25,481 | ||||||||||||||||
% of EMEA Goods Gross Billings | 14.9 | % | 18.6 | % | 16.9 | % | 15.5 | % | 14.4 | % | |||||||||||
Travel Gross Profit | 13,669 | 14,894 | 15,440 | 15,226 | 12,400 | ||||||||||||||||
% of EMEA Travel Gross Billings | 20.0 | % | 22.9 | % | 19.3 | % | 20.9 | % | 19.1 | % | |||||||||||
Total Gross Profit | $ | 141,037 | $ | 140,699 | $ | 131,648 | $ | 143,530 | $ | 115,237 | |||||||||||
Year-over-year growth | (8 | ) | % | 1 | % | 6 | % | (6 | ) | % | (18 | ) | % | ||||||||
% Third Party and Other | 92 | % | 85 | % | 85 | % | 82 | % | 87 | % | |||||||||||
% Direct | 8 | % | 15 | % | 15 | % | 18 | % | 13 | % | |||||||||||
% of EMEA Total Gross Billings | 27.5 | % | 29.1 | % | 26.9 | % | 25.6 | % | 25.1 | % | |||||||||||
Rest of World Segment: | |||||||||||||||||||||
Gross Billings: | |||||||||||||||||||||
Local Gross Billings | $ | 112,660 | $ | 112,741 | $ | 120,269 | $ | 105,420 | $ | 99,735 | |||||||||||
Goods Gross Billings | 79,523 | 73,876 | 70,615 | 77,816 | 66,154 | ||||||||||||||||
Travel Gross Billings | 33,166 | 33,393 | 35,754 | 32,313 | 32,946 | ||||||||||||||||
Total Gross Billings | $ | 225,349 | $ | 220,010 | $ | 226,638 | $ | 215,549 | $ | 198,835 | |||||||||||
Year-over-year growth | (4 | ) | % | — | % | (3 | ) | % | (10 | ) | % | (12 | ) | % | |||||||
Year-over-year growth, excluding FX | 9 | % | 8 | % | 1 | % | — | % | (1 | ) | % | ||||||||||
% Third Party and Other | 98 | % | 98 | % | 98 | % | 96 | % | 98 | % | |||||||||||
% Direct | 2 | % | 2 | % | 2 | % | 4 | % | 2 | % | |||||||||||
Gross Billings TTM | $ | 917,704 | $ | 918,363 | $ | 910,670 | $ | 887,546 | $ | 861,032 | |||||||||||
Revenue: | |||||||||||||||||||||
Local Revenue | $ | 38,932 | $ | 37,018 | $ | 39,034 | $ | 32,264 | $ | 30,281 | |||||||||||
Goods Revenue | 20,628 | 21,065 | 19,426 | 21,758 | 17,478 | ||||||||||||||||
Travel Revenue | 6,900 | 6,507 | 7,243 | 5,757 | 6,495 | ||||||||||||||||
Total Revenue | $ | 66,460 | $ | 64,590 | $ | 65,703 | $ | 59,779 | $ | 54,254 | |||||||||||
Year-over-year growth | (15 | ) | % | (10 | ) | % | (24 | ) | % | (19 | ) | % | (18 | ) | % | ||||||
Year-over-year growth, excluding FX | (2 | ) | % | (1 | ) | % | (20 | ) | % | (9 | ) | % | (8 | ) | % | ||||||
% Third Party and Other | 92 | % | 92 | % | 92 | % | 86 | % | 91 | % | |||||||||||
% Direct | 8 | % | 8 | % | 8 | % | 14 | % | 9 | % | |||||||||||
Revenue TTM | $ | 297,792 | $ | 290,779 | $ | 270,211 | $ | 256,532 | $ | 244,326 | |||||||||||
Gross Profit: | |||||||||||||||||||||
Local Gross Profit | $ | 31,798 | $ | 31,997 | $ | 34,373 | $ | 27,175 | $ | 26,161 | |||||||||||
% of Rest of World Local Gross Billings | 28.2 | % | 28.4 | % | 28.6 | % | 25.8 | % | 26.2 | % | |||||||||||
Goods Gross Profit | 7,364 | 8,786 | 7,571 | 7,416 | 6,612 | ||||||||||||||||
% of Rest of World Goods Gross Billings | 9.3 | % | 11.9 | % | 10.7 | % | 9.5 | % | 10.0 | % | |||||||||||
Travel Gross Profit | 5,645 | 4,928 | 5,544 | 3,815 | 4,906 | ||||||||||||||||
% of Rest of World Travel Gross Billings | 17.0 | % | 14.8 | % | 15.5 | % | 11.8 | % | 14.9 | % | |||||||||||
Total Gross Profit | $ | 44,807 | $ | 45,711 | $ | 47,488 | $ | 38,406 | $ | 37,679 | |||||||||||
Year-over-year growth | (15 | ) | % | (10 | ) | % | (26 | ) | % | (24 | ) | % | (16 | ) | % | ||||||
% Third Party and Other | 103 | % | 99 | % | 100 | % | 96 | % | 99 | % | |||||||||||
% Direct | (3 | ) | % | 1 | % | — | % | 4 | % | 1 | % | ||||||||||
% of Rest of World Total Gross Billings | 19.9 | % | 20.8 | % | 21.0 | % | 17.8 | % | 18.9 | % | |||||||||||
Consolidated Results of Operations: | |||||||||||||||||||||
Gross Billings: | |||||||||||||||||||||
Local Gross Billings | $ | 831,753 | $ | 801,373 | $ | 785,457 | $ | 846,789 | $ | 829,891 | |||||||||||
Goods Gross Billings | 505,432 | 512,451 | 504,514 | 692,561 | 527,421 | ||||||||||||||||
Travel Gross Billings | 183,521 | 188,286 | 200,376 | 185,319 | 194,689 | ||||||||||||||||
Total Gross Billings | $ | 1,520,706 | $ | 1,502,110 | $ | 1,490,347 | $ | 1,724,669 | $ | 1,552,001 | |||||||||||
Year-over-year growth | 8 | % | 6 | % | 11 | % | 8 | % | 2 | % | |||||||||||
Year-over-year growth, excluding FX | 9 | % | 6 | % | 12 | % | 13 | % | 10 | % | |||||||||||
% Third Party and Other | 78 | % | 77 | % | 76 | % | 70 | % | 75 | % | |||||||||||
% Direct | 22 | % | 23 | % | 24 | % | 30 | % | 25 | % | |||||||||||
Gross Billings TTM | $ | 5,870,267 | $ | 5,958,571 | $ | 6,106,270 | $ | 6,237,832 | $ | 6,269,127 | |||||||||||
Year-over-year growth | 8 | % | 7 | % | 7 | % | 8 | % | 7 | % | |||||||||||
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | |||||||||||||||||
Revenue: | |||||||||||||||||||||
Local Revenue | $ | 325,299 | $ | 298,003 | $ | 290,948 | $ | 298,782 | $ | 293,681 | |||||||||||
Goods Revenue | 364,952 | 378,104 | 381,491 | 545,203 | 415,474 | ||||||||||||||||
Travel Revenue | 38,164 | 40,104 | 41,830 | 39,243 | 41,201 | ||||||||||||||||
Total Revenue | $ | 728,415 | $ | 716,211 | $ | 714,269 | $ | 883,228 | $ | 750,356 | |||||||||||
Year-over-year growth | 21 | % | 18 | % | 20 | % | 15 | % | 3 | % | |||||||||||
Year-over-year growth, excluding FX | 22 | % | 17 | % | 21 | % | 19 | % | 10 | % | |||||||||||
% Third Party and Other | 55 | % | 52 | % | 51 | % | 42 | % | 48 | % | |||||||||||
% Direct | 45 | % | 48 | % | 49 | % | 58 | % | 52 | % | |||||||||||
Revenue TTM | $ | 2,700,668 | $ | 2,808,132 | $ | 2,927,342 | $ | 3,042,123 | $ | 3,064,064 | |||||||||||
Year-over-year growth | 14 | % | 16 | % | 20 | % | 18 | % | 13 | % | |||||||||||
Gross Profit: | |||||||||||||||||||||
Local Gross Profit | $ | 284,486 | $ | 265,044 | $ | 256,518 | $ | 264,907 | $ | 258,293 | |||||||||||
% of Consolidated Local Gross Billings | 34.2 | % | 33.1 | % | 32.7 | % | 31.3 | % | 31.1 | % | |||||||||||
Goods Gross Profit | 47,270 | 67,179 | 63,776 | 79,974 | 56,016 | ||||||||||||||||
% of Consolidated Goods Gross Billings | 9.4 | % | 13.1 | % | 12.6 | % | 11.5 | % | 10.6 | % | |||||||||||
Travel Gross Profit | 33,756 | 34,187 | 34,984 | 33,228 | 33,097 | ||||||||||||||||
% of Consolidated Travel Gross Billings | 18.4 | % | 18.2 | % | 17.5 | % | 17.9 | % | 17.0 | % | |||||||||||
Total Gross Profit | $ | 365,512 | $ | 366,410 | $ | 355,278 | $ | 378,109 | $ | 347,406 | |||||||||||
Year-over-year growth | (4 | ) | % | (5 | ) | % | (1 | ) | % | — | % | (5 | ) | % | |||||||
% Third Party and Other | 94 | % | 88 | % | 88 | % | 84 | % | 89 | % | |||||||||||
% Direct | 6 | % | 12 | % | 12 | % | 16 | % | 11 | % | |||||||||||
% of Total Consolidated Gross Billings | 24.0 | % | 24.4 | % | 23.8 | % | 21.9 | % | 22.4 | % | |||||||||||
Marketing | $ | 69,185 | $ | 57,699 | $ | 55,258 | $ | 59,812 | $ | 52,533 | |||||||||||
Selling, general and administrative | $ | 300,906 | $ | 305,740 | $ | 299,275 | $ | 285,472 | $ | 289,847 | |||||||||||
Adjusted EBITDA | $ | 45,765 | $ | 59,735 | $ | 63,887 | $ | 92,914 | $ | 72,370 | |||||||||||
% of Total Consolidated Gross Billings | 3.0 | % | 4.0 | % | 4.3 | % | 5.4 | % | 4.7 | % | |||||||||||
% of Total Consolidated Revenue | 6.3 | % | 8.3 | % | 8.9 | % | 10.5 | % | 9.6 | % |
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | ||||||||||||||||
Net cash (used in) provided by operating activities from continuing operations | $ | (14,574 | ) | $ | (28,525 | ) | $ | 22,324 | $ | 273,272 | $ | 40,711 | ||||||||
Purchases of property and equipment and capitalized software from continuing operations | (16,093 | ) | (28,712 | ) | (18,638 | ) | (20,117 | ) | (18,294 | ) | ||||||||||
Free cash flow | $ | (30,667 | ) | $ | (57,237 | ) | $ | 3,686 | $ | 253,155 | $ | 22,417 | ||||||||
Net cash provided by operating activities from continuing operations (TTM) | $ | 195,098 | $ | 123,271 | $ | 157,500 | $ | 252,497 | $ | 307,782 | ||||||||||
Purchases of property and equipment and capitalized software from continuing operations (TTM) | (65,130 | ) | (79,800 | ) | (83,374 | ) | (83,560 | ) | (85,761 | ) | ||||||||||
Free cash flow (TTM) | $ | 129,968 | $ | 43,471 | $ | 74,126 | $ | 168,937 | $ | 222,021 | ||||||||||
Net cash used in investing activities from continuing operations | $ | (62,994 | ) | $ | (32,157 | ) | $ | (19,046 | ) | $ | (35,175 | ) | $ | (19,443 | ) | |||||
Net cash used in financing activities | $ | (41,492 | ) | $ | (114,753 | ) | $ | (16,823 | ) | $ | (21,088 | ) | $ | (32,942 | ) | |||||
Net cash used in investing activities from continuing operations (TTM) | $ | (128,630 | ) | $ | (144,925 | ) | $ | (137,527 | ) | $ | (149,372 | ) | $ | (105,821 | ) | |||||
Net cash used in financing activities (TTM) | $ | (113,847 | ) | $ | (220,659 | ) | $ | (228,512 | ) | $ | (194,156 | ) | $ | (185,606 | ) | |||||
Other Metrics: | ||||||||||||||||||||
Active Customers (6) | ||||||||||||||||||||
North America | 21.8 | 22.6 | 23.5 | 24.1 | 24.6 | |||||||||||||||
EMEA | 14.5 | 14.5 | 14.9 | 15.2 | 15.3 | |||||||||||||||
Rest of World | 8.7 | 8.8 | 8.2 | 8.1 | 8.2 | |||||||||||||||
Total Active Customers | 45.0 | 45.9 | 46.6 | 47.4 | 48.1 | |||||||||||||||
TTM Gross Billings / Average Active Customer (7) | ||||||||||||||||||||
North America | $ | 147 | $ | 145 | $ | 145 | $ | 147 | $ | 147 | ||||||||||
EMEA | 141 | 141 | 142 | 139 | 134 | |||||||||||||||
Rest of World | 104 | 104 | 108 | 105 | 101 | |||||||||||||||
Consolidated | 136 | 136 | 137 | 137 | 135 |
Q1 2014 | Q1 2015 | ||
Sales (8) | 4,715 | 4,429 | |
% North America | 30% | 30% | |
% EMEA | 41% | 42% | |
% Rest of World | 29% | 28% | |
Other | 6,503 | 6,386 | |
Total Headcount | 11,218 | 10,815 |
(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 include advertising, payment processing, point of sale and commission revenue. |
(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) | Reflects the total gross billings generated in the trailing twelve months per average active customer over that period. |
(8) | Includes merchant sales representatives, as well as sales support from continuing operations. |
(9) | Financial information and other metrics have been retrospectively adjusted to exclude Ticket Monster, which has been classified as discontinued operations. |
(10) | 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. |