CHICAGO--(BUSINESS WIRE)--Groupon, Inc. (NASDAQ: GRPN) today announced financial results for the quarter ended March 31, 2015.
“Q1 was a strong quarter, despite significant headwinds from foreign exchange rates, as we delivered 58% year-over-year growth in Adjusted EBITDA,” said Eric Lefkofsky, CEO of Groupon. “Our North America business saw its third-straight quarter of double digit billings increases in all three categories, and we made continued progress in our mission to connect local commerce through our predominantly mobile marketplace.”
Groupon previously announced that it has entered into an agreement to sell a controlling stake in Ticket Monster, its South Korean e-commerce business, to a partnership formed by KKR and Anchor Equity Partners. As a result, Ticket Monster will be presented as a discontinued operation in the Company’s consolidated financial statements for all historical periods, effective in the first quarter 2015. Results have been retrospectively adjusted to exclude Ticket Monster in this release and in the tables accompanying this release. As such, all financial information and operational metrics herein pertain to continuing operations, unless otherwise noted.
First Quarter 2015 Summary
- 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 changes in foreign exchange rates throughout the quarter, gross profit would have been $375.1 million.
- 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.
Definitions and reconciliations of all non-GAAP financial measures are included below in the section titled “Non-GAAP Financial Measures” and in the accompanying tables.
Highlights
- 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.
Ticket Monster Sale
As previously disclosed, on April 20, 2015, Groupon announced the sale of a controlling stake in Ticket Monster, its South Korean e-commerce business, for $360 million, to a partnership formed by KKR and Hong-Kong-based Anchor Equity Partners. Groupon will ultimately retain a 41% fully diluted stake in Ticket Monster, upon vesting of management’s interest. The transaction is expected to close in the second quarter 2015, subject to regulatory and customary closing conditions. The company continues to explore a range of financing and strategic alternatives for its other Asian businesses, as announced in the third quarter 2014.
Share Repurchase
During the first quarter 2015, under its existing $300 million share repurchase program, Groupon repurchased 2,417,700 shares of its Class A common stock at an average price of $7.67 per share, for an aggregate purchase price of $18.5 million. Up to $83.0 million of Class A common stock remains available for repurchase under this program, through August 2015. In April 2015, Groupon announced that its Board approved a new $300 million share repurchase program. The new share repurchase program is subject to, and will be effective upon, the closing of the proposed Ticket Monster transaction, through August 2017. The timing and amount of any share repurchases are determined based on market conditions, share price and other factors, and the programs may be discontinued or suspended at any time.
Outlook
For the second quarter 2015, reflecting current foreign exchange rates and the exclusion of Ticket Monster, Groupon expects revenue of between $700 million and $750 million. This guidance anticipates approximately 800 basis points of unfavorable impact on the year-over-year growth rate from changes in foreign exchange rates.
Based on current foreign exchange rates, Groupon expects Adjusted EBITDA for the second quarter 2015 of between $55 million and $75 million, and non-GAAP earnings per share from continuing operations of between $0.01 and $0.03.
For the full year 2015, based on current foreign exchange rates and the exclusion of Ticket Monster, Groupon expects revenue of between $3.15 billion and $3.3 billion. This guidance anticipates approximately 700 basis points of unfavorable impact on the year-over-year growth rate from changes in foreign exchange rates.
In addition, based on current foreign exchange rates, Groupon continues to expect Adjusted EBITDA for the full year 2015 of greater than $315 million.
Conference Call
A conference call will be webcast live today at 4:00 p.m. CT / 5:00 p.m. ET, and will be available on Groupon’s investor relations website at http://investor.groupon.com. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.
Groupon encourages investors to use its investor relations website as a way of easily finding information about the company. Groupon promptly makes available on this website, free of charge, the reports that the company files or furnishes with the SEC, corporate governance information (including Groupon’s Global Code of Conduct), and select press releases and social media postings.
Non-GAAP Financial Measures
In addition to financial results reported in accordance with U.S. generally accepted accounting principles (U.S. GAAP), we have provided the following non-GAAP financial measures in this release and the accompanying tables: foreign exchange rate neutral operating results, adjusted EBITDA, free cash flow and non-GAAP earnings (loss) per share. These non-GAAP financial measures are presented to aid investors in better understanding Groupon's performance and to facilitate comparisons to many of our peers who present similar measures. However, these measures are not intended to be a substitute for those reported in accordance with U.S. GAAP. These measures may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures. For reconciliations of these measures to the most applicable financial measures under U.S. GAAP, see "Non-GAAP Reconciliation Schedules" and "Supplemental Financial Information and Business Metrics" included in the tables accompanying this release.
We exclude the following items from one or more of our non-GAAP financial measures:
Stock-based compensation. We exclude stock-based compensation because it is primarily non-cash in nature and we believe that non-GAAP financial measures excluding this item provide meaningful supplemental information about our operating performance and liquidity.
Acquisition-related expense (benefit), net. Acquisition-related expense (benefit), net is comprised of the change in the fair value of contingent consideration arrangements and external transaction costs related to business combinations, primarily consisting of legal and advisory fees. The composition of our contingent consideration arrangements and the impact of those arrangements on our operating results vary over time based on a number of factors, including the terms of our business combinations and the timing of those transactions. We exclude acquisition-related expense (benefit), net because we believe that non-GAAP financial measures excluding this item provide meaningful supplemental information about our operating performance and facilitate comparisons to our historical operating results.
Depreciation and amortization. We exclude depreciation and amortization expenses because they are non-cash in nature and we believe that non-GAAP financial measures excluding these items provide meaningful supplemental information about our operating performance and liquidity.
Descriptions of the non-GAAP financial measures included in this release and the accompanying tables are as follows:
Foreign exchange rate neutral operating results show our current period operating results as if foreign currency exchange rates had remained the same as those in effect in the comparable prior-year period. We present foreign exchange rate neutral information to facilitate comparisons to our historical operating results.
Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) from continuing operations excluding income taxes, interest and other non-operating items, depreciation and amortization, stock-based compensation, and acquisition-related expense (benefit), net. Our definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Adjusted EBITDA is a key measure used by our management and Board of Directors to evaluate operating performance, generate future plans and make strategic decisions regarding the allocation of capital. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors.
Non-GAAP earnings (loss) attributable to common stockholders and non-GAAP earnings (loss) per share adjust our net loss attributable to common stockholders and earnings (loss) per share to exclude the impact of stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expense (benefit), net, non-operating foreign currency gains and losses on intercompany balances and income (loss) from discontinued operations, and the income tax effect of those items. We believe that these non-GAAP financial measures provide useful supplemental information for evaluating our operating performance.
Beginning in the first quarter 2015, we have updated our non-GAAP earnings (loss) attributable to common stockholders and non-GAAP earnings (loss) per share measures to exclude non-operating foreign currency gains and losses on intercompany balances and income (loss) from discontinued operations, in addition to stock compensation, acquisition-related expense (benefit), net, and amortization of acquired intangibles, which we have excluded historically. We believe that excluding non-operating foreign currency gains and losses on intercompany balances provides meaningful supplemental information about our operating performance because those gains and losses are driven by changes in currency exchange rates. Additionally, we believe that excluding income (loss) from discontinued operations provides meaningful information for evaluating the operating performance of our ongoing business by excluding the results of operations that are being sold.
Free cash flow is a non-GAAP financial measure that comprises net cash provided by (used in) operating activities from continuing operations less purchases of property and equipment and capitalized software from continuing operations. We use free cash flow, and ratios based on it, to conduct and evaluate our business because, although it is similar to cash flow from operations, we believe that it typically represents a more useful measure of cash flows because purchases of fixed assets, software developed for internal-use and website development costs are necessary components of our ongoing operations. Free cash flow is not intended to represent the total increase or decrease in Groupon's cash balance for the applicable period.
Note on Forward-Looking Statements
The statements contained in this release that refer to plans and expectations for the next quarter, the full year or the future are forward-looking statements that involve a number of risks and uncertainties, and actual results could differ materially from those discussed. The risks and uncertainties that could cause our results to differ materially from those included in the forward-looking statements include, but are not limited to, volatility in our revenue and operating results; risks related to our business strategy including our marketing strategy and spend; effectively dealing with challenges arising from our international operations including fluctuations in currency exchange rates; retaining existing customers and adding new customers; retaining and adding new and high quality merchants; cyber security breaches; incurring expenses as we expand our business; competing successfully in our industry; maintaining favorable payment terms with our business partners; providing a strong mobile experience for our customers; delivery and routing of our emails; maintaining a strong brand; managing inventory and order fulfillment risks; integrating our technology platforms; managing refund risks; retaining our executive team; litigation; compliance with domestic and foreign laws and regulations, including the CARD Act and regulation of the Internet and e-commerce; tax liabilities; tax legislation; maintaining our information technology infrastructure; protecting our intellectual property; completing and realizing the anticipated benefits from acquisitions, dispositions, joint ventures and strategic investments, including our proposed Ticket Monster transaction; seasonality; payment-related risks; customer and merchant fraud; global economic uncertainty; and our ability to raise capital if necessary. For additional information regarding these and other risks and uncertainties, we urge you to refer to the factors included under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the company's Investor Relations web site at http://investor.groupon.com or the SEC's web site at www.sec.gov. Groupon's actual results could differ materially from those predicted or implied and reported results should not be considered an indication of future performance.
You should not rely upon forward-looking statements as predictions of future events. Although Groupon believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither the company nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. The forward-looking statements reflect Groupon’s expectations as of May 5, 2015. Groupon undertakes no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in its expectations.
About Groupon
Groupon (NASDAQ: GRPN) is a global leader of local commerce and the place you start when you want to buy just about anything, anytime, anywhere. By leveraging the company’s global relationships and scale, Groupon offers consumers a vast marketplace of unbeatable deals all over the world. Shoppers discover the best a city has to offer on the web or on mobile with Groupon Local, enjoy vacations with Groupon Getaways, and find a curated selection of electronics, fashion, home furnishings and more with Groupon Goods.
Groupon is redefining how traditional small businesses attract, retain and interact with customers by providing merchants with a suite of products and services, including customizable deal campaigns, credit card payment processing capabilities, and point-of-sale solutions that help businesses grow and operate more effectively. To search for great deals or subscribe to Groupon emails, visit www.Groupon.com. To download Groupon's top-rated mobile apps, visit www.groupon.com/mobile. To learn more about the company’s merchant solutions and how to work with Groupon, visit www.GrouponWorks.com
| Groupon, Inc. | ||||||||||||||||||||||
| Summary Consolidated and Segment Results | ||||||||||||||||||||||
| (in thousands, except share and per share amounts) | ||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||
| The financial results of Ticket Monster are presented as discontinued operations and its assets and liabilities are presented as held for sale in the condensed consolidated financial statements and accompanying tables. All prior period financial information and operational metrics have been retrospectively adjusted to reflect this presentation. | ||||||||||||||||||||||
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Three Months Ended March 31, |
FX |
Y/Y % Growth |
||||||||||||||||||||
| 2015 | 2014 | Y/Y % Growth |
Effect(2) |
excluding FX(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. | |
| Groupon, Inc. | ||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||
| (in thousands) | ||||||||||
| (unaudited) | ||||||||||
| 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 | ||||||
| Groupon, Inc. | ||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||
| (in thousands, except share and per share amounts) | ||||||||||
| (unaudited) | ||||||||||
| 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 | (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. | |
| Groupon, Inc. | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| (in thousands, except share and per share amounts) | ||||||||||
| 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 | ||||||
| Groupon, Inc. | ||||||||||||
| Segment Information | ||||||||||||
| (in thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| 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. | |
| Groupon, Inc. | |||||||||||||||||||||||||||||
| Non-GAAP Reconciliation Schedules | |||||||||||||||||||||||||||||
| (in thousands, except share and per share amounts) | |||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||
|
Adjusted EBITDA, non-GAAP earnings attributable to common stockholders and non-GAAP earnings per share are non-GAAP financial measures. The Company reconciles Adjusted EBITDA to the most comparable U.S. GAAP financial measure, "Net (loss) income from continuing operations" for the periods presented and the Company reconciles non-GAAP earnings per share to the most comparable U.S. GAAP financial measure, "Diluted net income (loss) per share," for the periods presented. |
|||||||||||||||||||||||||||||
| The following is a quarterly reconciliation of Adjusted EBITDA to the most comparable U.S. GAAP financial measure, "Net (loss) income from continuing operations." | |||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||
| The following is a reconciliation of net income (loss) attributable to common stockholders to non-GAAP net income (loss) attributable to common stockholders and a reconciliation of diluted net income (loss) per share to non-GAAP net income (loss) per share for the three months ended March 31, 2015: | |||||||||||||||||||||||||||||
|
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 | |||||||||||||||||||||||||||
| Foreign exchange rate neutral operating results are non-GAAP financial measures. The Company reconciles foreign exchange rate neutral operating results to the most comparable U.S. GAAP financial measures, "Gross billings," "Revenue" and "Income (loss) from continuing operations," respectively, for the periods presented. The Company reconciles "foreign exchange rate neutral Gross billings growth" and "foreign exchange rate neutral Revenue growth" to year-over-year growth rates for the most comparable U.S. GAAP financial measures, "Gross billings growth" and "Revenue growth," respectively, for the periods presented. | |||||||||||||||||||||||||||||
| The effect on the Company's gross billings, revenue and income (loss) from changes in exchange rates versus the U.S. Dollar for the three months ended March 31, 2015 was as follows: | |||||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||
| The following is a quarterly reconciliation of foreign exchange rate neutral Gross billings growth from the comparable quarterly periods of the prior year to reported Gross billings growth from the comparable quarterly periods of the prior year. | |||||||||||||||||||||||||||||
| 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 | % | |||||||||||||||||||
| The following is a quarterly reconciliation of foreign exchange rate neutral Revenue growth from the comparable quarterly periods of the prior year to reported Revenue growth from the comparable quarterly periods of the prior year. | |||||||||||||||||||||||||||||
| 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 | % | |||||||||||||||||||
| The effect on North America's gross billings by category from changes in foreign exchange rates versus the U.S. Dollar for the three months ended March 31, 2015 was as follows: | ||||||||||||||||||||
|
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% |
|||||||||||||||
| 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 | % | |||||||
| The effect on EMEA's gross billings by category from changes in foreign exchange rates versus the U.S. Dollar for the three months ended March 31, 2015 was as follows: | ||||||||||||||||||||
|
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% |
|||||||||||||||
| 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 | % | ||||||
| The effect on Rest of World's gross billings by category from changes in foreign exchange rates versus the U.S. Dollar for the three months ended March 31, 2015 was as follows: | ||||||||||||||||||||
|
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% |
|||||||||||||||
| 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 | ) | % | |||||
| The effect on consolidated gross billings by category from changes in foreign exchange rates versus the U.S. Dollar for the three months ended March 31, 2015 was as follows: | ||||||||||||||||||||
|
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% |
|||||||||||||||
| 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. | |
| Groupon, Inc. | |||||||||||||||||||||||||
|
Supplemental Financial Information and Business Metrics (9)(10) |
|||||||||||||||||||||||||
| (financial data in thousands; active customers in millions) | |||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||
| 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 | |||||||||||||||
| 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 | % | |||||||||||||||
| 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 | % | |||||||||||||||
| Free cash flow is a non-GAAP financial measure. The following is a reconciliation of free cash flow to the most comparable U.S. GAAP financial measure, "Net cash provided by (used in) operating activities from continuing operations." | |||||||||||||||||||||||||
| 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 | ||||||||||||||||||||
| Global headcount as of March 31, 2015 and 2014 was as follows: | |||||||||||||||||||||||||
| 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. |
