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) |
(d) | Exhibits: | |||||
Exhibit No. | Description | |||||
99.1* | Earnings Press Release dated May 3, 2017 |
GROUPON, INC. | ||
Dated: May 3, 2017 | By: | /s/ Michael Randolfi |
Name: | Michael Randolfi | |
Title: | Chief Financial Officer |
Exhibit No. | Description | |||
99.1* | Earnings Press Release dated May 3, 2017 |
• | Gross profit of $309.5 million |
• | Net loss from continuing operations of $20.9 million |
• | Adjusted EBITDA of $44.8 million |
• | GAAP loss per share of $0.04; non-GAAP income per share of $0.01 |
• | Operating cash flow of $67.5 million for the trailing twelve month period; Free cash flow of $5.0 million for the trailing twelve month period |
• | Added 500 thousand net new customers in North America, bringing North America active customers to 31.6 million; global active customers reached 48.3 million |
• | Maintains 2017 gross profit guidance of $1.30 billion to $1.35 billion and 2017 Adjusted EBITDA guidance of $200 million to $240 million |
• | North America gross profit in the first quarter 2017 increased 2% to $220.9 million from $215.9 million in the first quarter 2016. In Local, gross billings increased 9% and revenue increased 4%, resulting in 3% growth in gross profit as increased transaction volume was partially offset by higher promotional activity. In Goods, gross billings and revenue declined 11% and 12%, respectively, while gross profit increased 1%. Gross billings reflect the total dollar value of customer purchases of goods and services. |
• | We are increasingly focusing the business on initiatives that are intended to maximize gross profit. These changes, including an increasing shift toward offerings in our higher margin Local category from our Goods category, had an unfavorable impact on North America revenue in the first quarter 2017 despite increased overall billings. North America revenue decreased 5% driven by a 12% decline in Goods direct revenue transactions, which are presented on a gross basis. |
• | North America active customers reached 31.6 million as of March 31, 2017, adding 500 thousand during the first quarter 2017. Active customers represent unique user accounts that have made a purchase through one of our online marketplaces during the trailing twelve months. |
• | International gross profit declined 15% (12% FX-neutral) in the first quarter 2017 to $88.5 million as we experienced some execution challenges and short-term disruption from our country exits. Gross profit declined across all categories on an FX-neutral basis, including a 4% decline in Local, 9% decline in Travel, and 31% decline in Goods. We made progress across several supply, marketing, and product initiatives toward the end of Q1 and into Q2, and believe our current initiatives will enable us to stabilize gross profit internationally in the coming quarters. |
• | International active customers were roughly flat sequentially at 16.7 million as of March 31, 2017. |
• | Gross billings were $1.36 billion in the first quarter 2017, down 1% (flat FX-neutral) from $1.37 billion in the first quarter 2016. |
• | Revenue was $673.6 million in the first quarter 2017, down 4% (3% FX-neutral) from $698.4 million in the first quarter 2016. |
• | Gross profit was $309.5 million in the first quarter 2017, down 3% (2% FX-neutral) from $320.1 million in the first quarter 2016. |
• | SG&A declined 12% year-over-year in the first quarter 2017 as we continue to drive operational efficiency through automation and our more streamlined organization, which we expect not only to improve our customer experience but also create greater operating leverage over time. We ended the first quarter 2017 with headcount of 7,120 and took actions in April 2017 to further rationalize our cost structure, reducing headcount by approximately 4%. |
• | Marketing was $86.3 million, down 1% year-over-year. We launched our offline campaign “Save Up to $100 a Week on What You Do Every Day” toward the end of February 2017. |
• | Net loss from continuing operations was $20.9 million in the first quarter 2017, compared with $43.5 million in the first quarter 2016. Net loss attributable to common stockholders was $24.4 million, or $0.04 per share. Non-GAAP net income attributable to common stockholders was $5.2 million, or $0.01 per share. |
• | Adjusted EBITDA, a non-GAAP financial measure, was $44.8 million in the first quarter 2017, compared with $31.5 million in the first quarter 2016. |
• | Global units sold declined 3% year-over-year to 45.7 million. Units in North America were flat driven by high single digit growth in Local and declines in Goods, while International declined 9%. Units are defined as purchases made through our online marketplaces, before refunds and cancellations. |
• | Operating cash flow was $67.5 million for the trailing twelve month period as of the first quarter 2017. Free cash flow, a non-GAAP financial measure, was $5.0 million for the trailing twelve month period as of the first quarter 2017. |
• | Cash and cash equivalents as of March 31, 2017 were $691.0 million, and we had no outstanding borrowings under our $250.0 million revolving credit facility. |
• | For the full year 2017, Groupon expects gross profit to be in the range of $1.30 billion to $1.35 billion. |
• | Groupon expects Adjusted EBITDA to be in the range of $200 million to $240 million in 2017. |
• | stock-based compensation, |
• | amortization of acquired intangible assets, |
• | acquisition-related expense (benefit), net, |
• | special charges and credits, including restructuring charges, |
• | non-cash interest expense on convertible senior notes, |
• | non-operating foreign currency gains and losses related to intercompany balances and reclassifications of cumulative translation adjustments to earnings as a result of business dispositions or country exits, |
• | non-operating gains and losses from minority investments that we have elected to record at fair value with changes in fair value reported in earnings, |
• | income (loss) from discontinued operations, and |
• | the income tax effect of those items. |
March 31, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 690,975 | $ | 862,977 | |||
Accounts receivable, net | 63,732 | 71,272 | |||||
Prepaid expenses and other current assets | 88,512 | 94,441 | |||||
Current assets of discontinued operations | — | 63,246 | |||||
Total current assets | 843,219 | 1,091,936 | |||||
Property, equipment and software, net | 158,222 | 169,452 | |||||
Goodwill | 275,978 | 274,551 | |||||
Intangible assets, net | 37,995 | 42,915 | |||||
Investments (including $112,606 and $110,066 at March 31, 2017 and December 31, 2016, respectively, at fair value) | 145,003 | 141,882 | |||||
Deferred income taxes | 5,118 | 5,151 | |||||
Other non-current assets | 18,300 | 23,484 | |||||
Non-current assets of discontinued operations | — | 12,006 | |||||
Total Assets | $ | 1,483,835 | $ | 1,761,377 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 18,805 | $ | 28,551 | |||
Accrued merchant and supplier payables | 637,693 | 770,992 | |||||
Accrued expenses and other current liabilities | 335,531 | 366,456 | |||||
Current liabilities of discontinued operations | — | 47,052 | |||||
Total current liabilities | 992,029 | 1,213,051 | |||||
Convertible senior notes, net | 181,582 | 178,995 | |||||
Deferred income taxes | 1,745 | 1,714 | |||||
Other non-current liabilities | 97,090 | 99,628 | |||||
Non-current liabilities of discontinued operations | — | 2,927 | |||||
Total Liabilities | 1,272,446 | 1,496,315 | |||||
Commitments and contingencies | |||||||
Stockholders' Equity | |||||||
Common stock, par value $0.0001 per share, 2,010,000,000 shares authorized, 741,388,884 shares issued and 562,356,295 shares outstanding at March 31, 2017 and 736,531,771 shares issued and 564,835,863 shares outstanding at December 31, 2016 | 74 | 74 | |||||
Additional paid-in capital | 2,127,405 | 2,112,728 | |||||
Treasury stock, at cost, 179,032,589 shares at March 31, 2017 and 171,695,908 shares at December 31, 2016 | (833,451 | ) | (807,424 | ) | |||
Accumulated deficit | (1,126,658 | ) | (1,099,010 | ) | |||
Accumulated other comprehensive income (loss) | 42,795 | 58,052 | |||||
Total Groupon, Inc. Stockholders' Equity | 210,165 | 264,420 | |||||
Noncontrolling interests | 1,224 | 642 | |||||
Total Equity | 211,389 | 265,062 | |||||
Total Liabilities and Equity | $ | 1,483,835 | $ | 1,761,377 |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Revenue: | ||||||||
Third-party and other | $ | 301,577 | $ | 309,629 | ||||
Direct | 372,049 | 388,806 | ||||||
Total revenue | 673,626 | 698,435 | ||||||
Cost of revenue: | ||||||||
Third-party and other | 42,873 | 41,060 | ||||||
Direct | 321,302 | 337,273 | ||||||
Total cost of revenue | 364,175 | 378,333 | ||||||
Gross profit | 309,451 | 320,102 | ||||||
Operating expenses: | ||||||||
Marketing | 86,342 | 87,295 | ||||||
Selling, general and administrative | 232,046 | 262,978 | ||||||
Restructuring charges | 2,731 | 11,513 | ||||||
Acquisition-related expense (benefit), net | 12 | 3,464 | ||||||
Total operating expenses | 321,131 | 365,250 | ||||||
Income (loss) from operations | (11,680 | ) | (45,148 | ) | ||||
Other income (expense), net | (4,602 | ) | 2,618 | |||||
Income (loss) from continuing operations before provision (benefit) for income taxes | (16,282 | ) | (42,530 | ) | ||||
Provision (benefit) for income taxes | 4,587 | 1,009 | ||||||
Income (loss) from continuing operations | (20,869 | ) | (43,539 | ) | ||||
Income (loss) from discontinued operations, net of tax | 487 | (2,057 | ) | |||||
Net income (loss) | (20,382 | ) | (45,596 | ) | ||||
Net income attributable to noncontrolling interests | (4,032 | ) | (3,523 | ) | ||||
Net income (loss) attributable to Groupon, Inc. | $ | (24,414 | ) | $ | (49,119 | ) | ||
Basic and diluted net income (loss) per share (1): | ||||||||
Continuing operations | $ | (0.04 | ) | $ | (0.08 | ) | ||
Discontinued operations | — | — | ||||||
Basic and diluted net income (loss) per share | $ | (0.04 | ) | $ | (0.08 | ) | ||
Weighted average number of shares outstanding | ||||||||
Basic | 562,195,243 | 582,751,678 | ||||||
Diluted | 562,195,243 | 582,751,678 |
(1) | The structure of the Company's common stock changed during the year ended December 31, 2016. For additional information, refer to Note 8, Stockholders' Equity and Compensation Arrangements, and Note 12, Income (Loss) per Share, in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Operating activities | |||||||
Net income (loss) | $ | (20,382 | ) | $ | (45,596 | ) | |
Less: Income (loss) from discontinued operations, net of tax | 487 | (2,057 | ) | ||||
Income (loss) from continuing operations | (20,869 | ) | (43,539 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization of property, equipment and software | 28,667 | 29,761 | |||||
Amortization of acquired intangible assets | 5,400 | 4,654 | |||||
Stock-based compensation | 19,701 | 30,093 | |||||
Restructuring-related long-lived asset impairments | — | 45 | |||||
Deferred income taxes | (74 | ) | (2,310 | ) | |||
(Gain) loss, net from changes in fair value of contingent consideration | 12 | 3,442 | |||||
(Gain) loss from changes in fair value of investments | (303 | ) | 1,100 | ||||
Amortization of debt discount on convertible senior notes | 2,587 | — | |||||
Change in assets and liabilities, net of acquisitions and dispositions: | |||||||
Restricted cash | 1,853 | 502 | |||||
Accounts receivable | 10,594 | (5,763 | ) | ||||
Prepaid expenses and other current assets | 5,380 | 18,939 | |||||
Accounts payable | (13,184 | ) | (1,499 | ) | |||
Accrued merchant and supplier payables | (138,238 | ) | (109,264 | ) | |||
Accrued expenses and other current liabilities | (36,040 | ) | 11,967 | ||||
Other, net | (1,719 | ) | (12,905 | ) | |||
Net cash provided by (used in) operating activities from continuing operations | (136,233 | ) | (74,777 | ) | |||
Net cash provided by (used in) operating activities from discontinued operations | (1,098 | ) | (1,948 | ) | |||
Net cash provided by (used in) operating activities | (137,331 | ) | (76,725 | ) | |||
Investing activities | |||||||
Purchases of property and equipment and capitalized software | (14,076 | ) | (19,852 | ) | |||
Cash derecognized upon dispositions of subsidiaries | — | (40 | ) | ||||
Acquisitions of intangible assets and other investing activities | 56 | (786 | ) | ||||
Net cash provided by (used in) investing activities from continuing operations | (14,020 | ) | (20,678 | ) | |||
Net cash provided by (used in) investing activities from discontinued operations | (7,547 | ) | (100 | ) | |||
Net cash provided by (used in) investing activities | (21,567 | ) | (20,778 | ) | |||
Financing activities | |||||||
Payments for purchases of treasury stock | (27,234 | ) | (64,665 | ) | |||
Taxes paid related to net share settlements of stock-based compensation awards | (8,970 | ) | (4,964 | ) | |||
Proceeds from stock option exercises and employee stock purchase plan | 2,468 | 1,933 | |||||
Distributions to noncontrolling interest holders | (3,450 | ) | (3,365 | ) | |||
Payments of capital lease obligations | (8,067 | ) | (6,954 | ) | |||
Other financing activities | (473 | ) | — | ||||
Net cash provided by (used in) financing activities | (45,726 | ) | (78,015 | ) | |||
Effect of exchange rate changes on cash and cash equivalents, including cash classified within current assets of discontinued operations | 3,756 | 10,668 | |||||
Net increase (decrease) in cash and cash equivalents, including cash classified within current assets of discontinued operations | (200,868 | ) | (164,850 | ) | |||
Less: Net increase (decrease) in cash classified within current assets of discontinued operations | (28,866 | ) | 3,993 | ||||
Net increase (decrease) in cash and cash equivalents | (172,002 | ) | (168,843 | ) | |||
Cash and cash equivalents, beginning of period | 862,977 | 824,307 | |||||
Cash and cash equivalents, end of period | $ | 690,975 | $ | 655,464 |
Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | |||||||||||||||||||||||
North America Segment: | Q1 2017 | ||||||||||||||||||||||||||
Gross Billings (2): | Y/Y Growth | ||||||||||||||||||||||||||
Local | $ | 539,623 | $ | 542,439 | $ | 530,768 | $ | 590,684 | $ | 587,766 | 8.9 | % | |||||||||||||||
Travel | 103,390 | 105,388 | 93,564 | 90,059 | 114,163 | 10.4 | |||||||||||||||||||||
Goods | 294,061 | 318,427 | 296,630 | 431,388 | 262,588 | (10.7) | |||||||||||||||||||||
Total Gross Billings | $ | 937,074 | $ | 966,254 | $ | 920,962 | $ | 1,112,131 | $ | 964,517 | 2.9 | % | |||||||||||||||
Revenue: | |||||||||||||||||||||||||||
Local | $ | 192,153 | $ | 184,139 | $ | 176,220 | $ | 209,799 | $ | 200,545 | 4.4 | % | |||||||||||||||
Travel | 20,914 | 21,401 | 21,241 | 19,023 | 20,462 | (2.2) | |||||||||||||||||||||
Goods | 287,746 | 311,382 | 285,820 | 421,931 | 252,350 | (12.3) | |||||||||||||||||||||
Total Revenue | $ | 500,813 | $ | 516,922 | $ | 483,281 | $ | 650,753 | $ | 473,357 | (5.5) | % | |||||||||||||||
Gross Profit: | |||||||||||||||||||||||||||
Local | $ | 164,018 | $ | 158,812 | $ | 152,873 | $ | 185,280 | $ | 169,342 | 3.2 | % | |||||||||||||||
Travel | 15,712 | 16,334 | 17,257 | 15,052 | 15,165 | (3.5) | |||||||||||||||||||||
Goods | 36,213 | 42,028 | 31,531 | 50,437 | 36,430 | 0.6 | |||||||||||||||||||||
Total Gross Profit | $ | 215,943 | $ | 217,174 | $ | 201,661 | $ | 250,769 | $ | 220,937 | 2.3 | % | |||||||||||||||
Operating income (loss) | $ | (41,934 | ) | $ | (31,284 | ) | $ | (24,471 | ) | $ | 12,246 | $ | (14,783 | ) | 64.7 | % | |||||||||||
International Segment: | Q1 2017 | ||||||||||||||||||||||||||
Gross Billings: | Y/Y Growth | FX Effect (3) | Y/Y Growth excluding FX (3) | ||||||||||||||||||||||||
Local | $ | 200,141 | $ | 196,857 | $ | 184,068 | $ | 221,337 | $ | 191,219 | (4.5) | % | 3.4 | (1.1) | % | ||||||||||||
Travel | 63,723 | 56,409 | 58,964 | 60,099 | 53,161 | (16.6) | 1.0 | (15.6) | |||||||||||||||||||
Goods | 168,748 | 170,019 | 158,965 | 211,963 | 149,079 | (11.7) | 3.0 | (8.7) | |||||||||||||||||||
Total Gross Billings | $ | 432,612 | $ | 423,285 | $ | 401,997 | $ | 493,399 | $ | 393,459 | (9.1) | % | 2.9 | (6.2) | % | ||||||||||||
Revenue: | |||||||||||||||||||||||||||
Local | $ | 68,907 | $ | 67,956 | $ | 64,282 | $ | 68,900 | $ | 63,575 | (7.7) | % | 3.8 | (3.9) | % | ||||||||||||
Travel | 12,451 | 11,640 | 13,524 | 12,141 | 11,002 | (11.6) | 1.5 | (10.1) | |||||||||||||||||||
Goods | 116,264 | 127,242 | 125,468 | 173,071 | 125,692 | 8.1 | 3.7 | 11.8 | |||||||||||||||||||
Total Revenue | $ | 197,622 | $ | 206,838 | $ | 203,274 | $ | 254,112 | $ | 200,269 | 1.3 | % | 3.6 | 4.9 | % | ||||||||||||
Gross Profit: | |||||||||||||||||||||||||||
Local | $ | 64,221 | $ | 62,970 | $ | 59,257 | $ | 63,987 | $ | 59,194 | (7.8) | % | 3.9 | (3.9) | % | ||||||||||||
Travel | 11,242 | 10,484 | 12,378 | 11,087 | 10,036 | (10.7) | 1.8 | (8.9) | |||||||||||||||||||
Goods | 28,696 | 24,749 | 19,972 | 26,063 | 19,284 | (32.8) | 2.0 | (30.8) | |||||||||||||||||||
Total Gross Profit | $ | 104,159 | $ | 98,203 | $ | 91,607 | $ | 101,137 | $ | 88,514 | (15.0) | % | 3.2 | (11.8) | % | ||||||||||||
Operating income (loss) | $ | (3,214 | ) | $ | (8,469 | ) | $ | (370 | ) | $ | (2,749 | ) | $ | 3,103 | 196.5 | % | |||||||||||
Consolidated Results of Operations: | |||||||||||||||||||||||||||
Gross Billings: | |||||||||||||||||||||||||||
Local | $ | 739,764 | $ | 739,296 | $ | 714,836 | $ | 812,021 | $ | 778,985 | 5.3 | % | 0.9 | 6.2 | % | ||||||||||||
Travel | 167,113 | 161,797 | 152,528 | 150,158 | 167,324 | 0.1 | 0.4 | 0.5 | |||||||||||||||||||
Goods | 462,809 | 488,446 | 455,595 | 643,351 | 411,667 | (11.1) | 1.1 | (10.0) | |||||||||||||||||||
Total Gross Billings | $ | 1,369,686 | $ | 1,389,539 | $ | 1,322,959 | $ | 1,605,530 | $ | 1,357,976 | (0.9) | % | 0.9 | — | % | ||||||||||||
Revenue: | |||||||||||||||||||||||||||
Local | $ | 261,060 | $ | 252,095 | $ | 240,502 | $ | 278,699 | $ | 264,120 | 1.2 | % | 1.0 | 2.2 | % | ||||||||||||
Travel | 33,365 | 33,041 | 34,765 | 31,164 | 31,464 | (5.7) | 0.6 | (5.1) | |||||||||||||||||||
Goods | 404,010 | 438,624 | 411,288 | 595,002 | 378,042 | (6.4) | 1.0 | (5.4) | |||||||||||||||||||
Total Revenue | $ | 698,435 | $ | 723,760 | $ | 686,555 | $ | 904,865 | $ | 673,626 | (3.6) | % | 1.0 | (2.6) | % | ||||||||||||
Gross Profit: | |||||||||||||||||||||||||||
Local | $ | 228,239 | $ | 221,782 | $ | 212,130 | $ | 249,267 | $ | 228,536 | 0.1 | % | 1.1 | 1.2 | % | ||||||||||||
Travel | 26,954 | 26,818 | 29,635 | 26,139 | 25,201 | (6.5) | 0.7 | (5.8) | |||||||||||||||||||
Goods | 64,909 | 66,777 | 51,503 | 76,500 | 55,714 | (14.2) | 0.9 | (13.3) | |||||||||||||||||||
Total Gross Profit | $ | 320,102 | $ | 315,377 | $ | 293,268 | $ | 351,906 | $ | 309,451 | (3.3) | % | 1.0 | (2.3) | % | ||||||||||||
Operating income (loss) | $ | (45,148 | ) | $ | (39,753 | ) | $ | (24,841 | ) | $ | 9,497 | $ | (11,680 | ) | 74.1 | % | |||||||||||
Net cash provided by (used in) operating activities from continuing operations | $ | (74,777 | ) | $ | (51,009 | ) | $ | (39,879 | ) | $ | 294,593 | $ | (136,233 | ) | (82.2) | % | |||||||||||
Free Cash Flow | $ | (94,629 | ) | $ | (67,508 | ) | $ | (52,561 | ) | $ | 275,339 | $ | (150,309 | ) | (58.8) | % |
Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | |||||||||||||||||
Other Metrics: | |||||||||||||||||||||
Active Customers (4) | |||||||||||||||||||||
North America | 26.9 | 27.9 | 29.1 | 31.1 | 31.6 | ||||||||||||||||
International | 17.3 | 17.0 | 16.6 | 16.8 | 16.7 | ||||||||||||||||
Total Active Customers | 44.2 | 44.9 | 45.7 | 47.9 | 48.3 | ||||||||||||||||
TTM Gross Billings / Average Active Customer | |||||||||||||||||||||
North America | $ | 146 | $ | 145 | $ | 142 | $ | 138 | $ | 136 | |||||||||||
International | 109 | 105 | 103 | 102 | 101 | ||||||||||||||||
Consolidated | 131 | 129 | 127 | 124 | 123 | ||||||||||||||||
TTM Gross Profit / Average Active Customer | |||||||||||||||||||||
North America | $ | 32 | $ | 32 | $ | 31 | $ | 31 | $ | 30 | |||||||||||
International | 26 | 25 | 25 | 23 | 22 | ||||||||||||||||
Consolidated | 30 | 29 | 29 | 28 | 27 | ||||||||||||||||
Consolidated Units | 47.2 | 46.2 | 44.4 | 57.9 | 45.7 | ||||||||||||||||
Year-over-year growth: | |||||||||||||||||||||
North America | 6.0 | % | 5.9 | % | 6.4 | % | 3.2 | % | (0.4 | ) | % | ||||||||||
International | (15.6 | ) | (18.4 | ) | (18.5 | ) | (0.3 | ) | (8.7 | ) | |||||||||||
Consolidated | (2.2 | ) | (3.2 | ) | (2.9 | ) | 2.0 | (3.1 | ) | ||||||||||||
Headcount | |||||||||||||||||||||
Sales (5) | 3,068 | 2,893 | 2,695 | 2,626 | 2,624 | ||||||||||||||||
Other | 4,777 | 4,383 | 4,389 | 4,641 | 4,496 | ||||||||||||||||
Total Headcount | 7,845 | 7,276 | 7,084 | 7,267 | 7,120 |
(1) | The financial results of the exited 11 countries are presented as discontinued operations in the accompanying condensed consolidated financial statements and tables. All prior period financial information and operational metrics have been retrospectively adjusted to reflect this presentation. |
(2) | Represents the total dollar value of customer purchases of goods and services. |
(3) | 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 periods. |
(4) | Reflects the total number of unique user accounts who made a purchase through one of our online marketplaces during the trailing twelve months. North America active customers for the quarter ended March 31, 2017 includes approximately 0.9 million incremental active customers from the acquisition of LivingSocial, Inc. |
(5) | Includes merchant sales representatives, as well as sales support personnel from our continuing operations. |
Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | ||||||||||||||||
Income (loss) from continuing operations | $ | (43,539 | ) | $ | (48,768 | ) | $ | (34,447 | ) | $ | (39,455 | ) | $ | (20,869 | ) | |||||
Adjustments: | ||||||||||||||||||||
Stock-based compensation (1) | 27,293 | 34,210 | 25,457 | 22,563 | 19,650 | |||||||||||||||
Depreciation and amortization | 34,415 | 33,916 | 32,897 | 34,681 | 34,067 | |||||||||||||||
Acquisition-related expense (benefit), net | 3,464 | 850 | (9 | ) | 1,345 | 12 | ||||||||||||||
Restructuring charges | 11,513 | 15,702 | 1,163 | 12,060 | 2,731 | |||||||||||||||
Gains on business dispositions | — | (9,339 | ) | (2,060 | ) | — | — | |||||||||||||
Non-operating expense (income), net | (2,618 | ) | 11,253 | 7,917 | 54,737 | 4,602 | ||||||||||||||
Provision (benefit) for income taxes | 1,009 | (2,238 | ) | 1,690 | (5,779 | ) | 4,587 | |||||||||||||
Total adjustments | 75,076 | 84,354 | 67,055 | 119,607 | 65,649 | |||||||||||||||
Adjusted EBITDA | $ | 31,537 | $ | 35,586 | $ | 32,608 | $ | 80,152 | $ | 44,780 |
(1) | Represents stock-based compensation recorded within cost of revenue, marketing expense, and selling, general and administrative expense. Non-operating expense (income), net, includes $0.2 million, $0.2 million, $0.3 million, $0.2 million and $0.1 million of additional stock-based compensation for the three months ended March 31, 2016, June 30, 2016, September 30, 2016, December 31, 2016 and March 31, 2017, respectively. Restructuring charges includes $2.6 million and $2.1 million of additional stock-based compensation for the three months ended March 31, 2016 and June 30, 3016, respectively. |
Year Ending December 31, 2017 | |||
Expected income (loss) from continuing operations range | $(42,500) to $(17,500) | ||
Expected adjustments: | |||
Stock-based compensation | 80,000 to 90,000 | ||
Depreciation and amortization | 130,000 | ||
Restructuring charges | 5,000 | ||
Non-operating expense (income), net | 20,000 | ||
Provision (benefit) for income taxes | 7,500 to 12,500 | ||
Total expected adjustments | $242,500 to $257,500 | ||
Expected Adjusted EBITDA range | $200,000 to $240,000 |
Three Months Ended March 31, 2017 | ||||
Net income (loss) attributable to common stockholders | $ | (24,414 | ) | |
Stock-based compensation | 19,701 | |||
Amortization of acquired intangible assets | 5,400 | |||
Acquisition-related expense (benefit), net | 12 | |||
Restructuring charges | 2,731 | |||
Losses (gains), net from changes in fair value of investments | (303 | ) | ||
Intercompany foreign currency losses (gains) and reclassifications of translation adjustments to earnings | (110 | ) | ||
Non-cash interest expense on convertible senior notes | 2,587 | |||
Income tax effect of above adjustments | 55 | |||
Income from discontinued operations, net of tax | $ | (487 | ) | |
Non-GAAP net income (loss) attributable to common stockholders | $ | 5,172 | ||
Weighted-average shares of common stock - basic | 562,195,243 | |||
Effect of dilutive securities | 7,527,970 | |||
Weighted-average shares of common stock - diluted | 569,723,213 | |||
Diluted net income (loss) per share | $ | (0.04 | ) | |
Impact of stock-based compensation, amortization of acquired intangible assets, acquisition-related expense (benefit), net, intercompany foreign currency losses (gains), special charges and credits, income from discontinued operations and related tax effects | 0.05 | |||
Non-GAAP net income (loss) per share | $ | 0.01 |
Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | ||||||||||||||||
Net cash provided by (used in) operating activities from continuing operations | $ | (74,777 | ) | $ | (51,009 | ) | $ | (39,879 | ) | $ | 294,593 | $ | (136,233 | ) | ||||||
Purchases of property and equipment and capitalized software from continuing operations | (19,852 | ) | (16,499 | ) | (12,682 | ) | (19,254 | ) | (14,076 | ) | ||||||||||
Free cash flow | $ | (94,629 | ) | $ | (67,508 | ) | $ | (52,561 | ) | $ | 275,339 | $ | (150,309 | ) | ||||||
Net cash provided by (used in) investing activities from continuing operations | $ | (20,678 | ) | $ | (18,957 | ) | $ | (11,902 | ) | $ | (4,049 | ) | $ | (14,020 | ) | |||||
Net cash provided by (used in) financing activities | $ | (78,015 | ) | $ | 169,225 | $ | (38,342 | ) | $ | (67,533 | ) | $ | (45,726 | ) |