CHICAGO--(BUSINESS WIRE)--Groupon, Inc. (NASDAQ: GRPN) today announced financial results for the quarter and fiscal year ended December 31, 2015.
“2015 saw sustained progress toward our vision of making Groupon the daily habit in local commerce,” said CEO Rich Williams. “Following a stronger than expected fourth quarter, we enter 2016 with a continued focus on streamlining our global operations, reducing our reliance on low margin products in our shopping business and rekindling our customer acquisition efforts to set the stage for accelerated growth.”
Fourth Quarter 2015 Summary
- Gross billings, which reflect the total dollar value of customer purchases of goods and services, was $1.71 billion in the fourth quarter 2015, compared with $1.72 billion in the fourth quarter 2014. Gross billings declined 1% globally, but grew 4% 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 11%, EMEA declined 2% and Rest of World declined 7%.
- Revenue was $917.2 million in the fourth quarter 2015, compared with $883.2 million in the fourth quarter 2014. Revenue increased 4% globally, or 9% 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 13%, EMEA increased 3% and Rest of World declined 8%.
- Gross profit was $371.7 million in the fourth quarter 2015, compared with $378.1 million in the fourth quarter 2014. Gross profit declined 2% globally, but grew 4% excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter.
- Adjusted EBITDA, a non-GAAP financial measure, was $67.0 million in the fourth quarter 2015, compared with $92.9 million in the fourth quarter 2014.
- Net loss attributable to common stockholders was $46.5 million, or $0.08 per share. Non-GAAP earnings attributable to common stockholders was $23.3 million, or $0.04 per share.
- Operating cash flow for the trailing twelve months ended December 31, 2015 was $292.1 million. Free cash flow, a non-GAAP financial measure, was $233.5 million in the fourth quarter 2015, bringing free cash flow for the trailing twelve months ended December 31, 2015 to $208.1 million.
- Cash and cash equivalents as of December 31, 2015 was $853.4 million and we had no outstanding borrowings under our revolving credit facility.
Full Year 2015 Summary
- Gross billings was $6.3 billion in 2015, compared with $6.2 billion in 2014. Gross billings was approximately flat, but grew 8% excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the year. On this F/X neutral basis, North America billings increased 12%, EMEA increased 3% and Rest of World was approximately flat.
- Revenue was $3.1 billion in 2015, compared with $3.0 billion in 2014. Revenue grew 3% globally, or 9% excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the year. On this F/X neutral basis, North America revenue increased 12%, EMEA increased 7% and Rest of World declined 6%.
- Gross profit was $1.4 billion in 2015, compared with $1.5 billion in 2014. Gross profit declined 5%, but grew 2% excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the year.
- Adjusted EBITDA was $256.8 million in 2015, compared with $262.3 million in 2014.
- Net earnings attributable to common stockholders were $20.7 million, or $0.03 per share. Earnings per share includes $0.19 from discontinued operations, which was driven by the gain on our sale of a controlling stake in Ticket Monster. Non-GAAP earnings attributable to common stockholders was $91.0 million, or $0.14 per share.
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, were approximately flat year-over-year at 62 million for the fourth quarter 2015. North America units increased 12%, EMEA units declined 3% and Rest of World units declined 31%.
- Active deals: At the end of the fourth quarter 2015, on average, active deals were approximately 650,000 globally, with nearly 350,000 in North America. Both include approximately 70,000 Coupons.
- Active customers: Active customers, or customers that have purchased a voucher or product within the last twelve months, grew 3% year-over-year, to 48.9 million as of December 31, 2015, comprising 25.9 million in North America, 15.4 million in EMEA, and 7.6 million in Rest of World.
- Customer spend: Fourth quarter 2015 trailing twelve month billings per average active customer was $130, compared with $137 in the fourth quarter 2014.
Share Repurchase
During the fourth quarter 2015, Groupon repurchased 35,326,954 shares of its Class A common stock for an aggregate purchase price of $112.5 million, as of December 31, 2015. Up to $156.8 million of Class A common stock remained available for repurchase under Groupon’s share repurchase program 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
Groupon’s outlook for 2016 reflects current foreign exchange rates, as well as expected marketing investments, continued progress on increasing Shopping margins, and a reduction of our international footprint. We continue to expect revenue of between $2.75 and $3.05 billion for the full year, and we are increasing the company’s expected 2016 adjusted EBITDA range to between $80 million and $130 million. Moving forward, we are only providing annual Revenue and adjusted EBITDA guidance, which we will update quarterly.
Conference Call
A conference call will be webcast live today at 4:00 p.m. CST / 5:00 p.m. EST, 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. Groupon uses its investor relations site (investor.groupon.com) and its blog (https://www.groupon.com/blog) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
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, non-GAAP net income attributable to common stockholders, non-GAAP earnings per share and free cash flow. These non-GAAP financial measures, which are presented on a continuing operations basis, are intended to aid investors in better understanding Groupon's current financial performance and its prospects for the future as seen through the eyes of management. We believe that these non-GAAP financial measures facilitate comparisons with our historical results and with the results of peer companies who present similar measures (although other companies may define non-GAAP measures differently than we define them, even when similar terms are used to identify such measures). However, non-GAAP financial measures are not intended to be a substitute for those reported in accordance with U.S. GAAP. 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.
Interest and Other Non-Operating Items. Interest and other non-operating items include: interest income, interest expense, gains and losses related to minority investments, and foreign currency gains and losses. We exclude interest and other non-operating items from certain of our non-GAAP financial measures because we believe that excluding these items provides meaningful supplemental information about our core operating performance and facilitates comparisons to our historical operating results.
Items That Are Unusual in Nature or Infrequently Occurring. During the twelve months ended December 31, 2015, items that we believe to be unusual in nature or infrequently occurring were (a) charges related to our restructuring program, (b) the gain on our disposition of Groupon India, (c) the write-off of a prepaid asset related to a marketing program that was discontinued because the counterparty ceased operations and (d) the expense related to a significant increase in the contingent liability for our securities litigation matter. We exclude items that are unusual in nature or infrequently occurring because we believe that excluding those items provides meaningful supplemental information about our core operating performance and facilitates comparisons to our historical results.
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 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, acquisition-related expense (benefit), net and other items that are unusual in nature or infrequently occurring. 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 operating 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 net income (loss) attributable to common stockholders and non-GAAP earnings (loss) per share adjust our net income (loss) attributable to common stockholders and earnings (loss) per share to exclude the impact of:
- stock-based compensation,
- amortization of acquired intangible assets,
- acquisition-related expense (benefit), net,
- items that are unusual in nature or infrequently occurring,
- 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.
We believe that excluding these items from our measures of non-GAAP net income (loss) attributable to common stockholders and non-GAAP earnings (loss) per share provides useful supplemental information for evaluating our operating performance and facilitates comparisons to our historical results by eliminating items that are non-cash in nature, relate to discrete events or are otherwise not indicative of the core operating performance of our ongoing business.
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 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 within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve a number of risks and uncertainties, and actual results could differ materially from those discussed. The words ''may,'' will,'' should,'' ''could,'' ''expect,'' anticipate,'' ''believe,'' ''estimate,'' intend,'' ''continue'' and other similar expressions are intended to identify forward-looking statements. 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 strategy to grow our local marketplaces, marketing strategy and spend and the productivity of those marketing investments and the impact of our shift away from lower margin products in our Goods category; effectively dealing with challenges arising from our international operations, including fluctuations in currency exchange rates; retaining existing customers and adding new customers, including as we increase our marketing spend and shift away from lower margin products in our Goods category; retaining and adding 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; product liability claims; managing inventory and order fulfillment risks; integrating our technology platforms; litigation; managing refund risks; retaining, attracting and integrating members of our executive team; difficulties, delays or our inability to successfully complete all or part of the announced restructuring actions or to realize the operating efficiencies and other benefits of such restructuring actions; higher than anticipated restructuring charges or changes in the timing of such restructuring charges; completing and realizing the anticipated benefits from acquisitions, dispositions, joint ventures and strategic investments; tax liabilities; tax legislation; compliance with domestic and foreign laws and regulations, including the CARD Act and regulation of the Internet and e-commerce; classification of our independent contractors; maintaining our information technology infrastructure; protecting our intellectual property; maintaining a strong brand; seasonality; customer and merchant fraud; payment-related risks; our ability to raise capital if necessary and our outstanding indebtedness; global economic uncertainty; the impact of our ongoing strategic review and any potential strategic alternatives we may choose to pursue. 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 for the ended December 31, 2015 and our other filings with the Securities and Exchange Commission, 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 February 11, 2016. 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, including the gain on disposition and related tax effects, are presented as discontinued operations in the accompanying condensed consolidated financial statements and tables for the three months and year ended December 31, 2015. Additionally, the assets and liabilities of Ticket Monster are presented as held for sale in the accompanying condensed consolidated balance sheet as of December 31, 2014. All prior period financial information and operational metrics have been retrospectively adjusted to reflect this presentation. | |
| Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||
| Y/Y % Growth | Y/Y % Growth | |||||||||||||||||||||||||||||||||||||||
| FX Effect | excluding | FX Effect | excluding | |||||||||||||||||||||||||||||||||||||
| 2015 | 2014 | Y/Y % Growth |
(2) |
FX (2) |
2015 | 2014 | Y/Y % Growth |
(2) |
FX (2) |
|||||||||||||||||||||||||||||||
| Gross Billings(1): | ||||||||||||||||||||||||||||||||||||||||
| North America | $ | 1,050,361 | $ | 948,579 | 10.7 | % | $ | (1,511 | ) | 10.9 | % | $ | 3,709,797 | $ | 3,303,479 | 12.3 | % | $ | (5,415 | ) | 12.5 | % | ||||||||||||||||||
| EMEA | 487,147 | 560,541 | (13.1 | ) | (61,482 | ) | (2.1 | ) | 1,794,354 | 2,046,807 | (12.3 | ) | (317,640 | ) | 3.2 | |||||||||||||||||||||||||
| Rest of World | 169,484 | 215,549 | (21.4 | ) | (31,574 | ) | (6.7 | ) | 751,389 | 887,546 | (15.3 | ) | (132,679 | ) | (0.4 | ) | ||||||||||||||||||||||||
| Consolidated gross billings | $ | 1,706,992 | $ | 1,724,669 | (1.0 | ) | % | $ | (94,567 | ) | 4.5 | % | $ | 6,255,540 | $ | 6,237,832 | 0.3 | % | $ | (455,734 | ) | 7.6 | % | |||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||||||||||||||||
| North America | $ | 622,647 | $ | 550,974 | 13.0 | % | $ | (408 | ) | 13.1 | % | $ | 2,047,742 | $ | 1,824,461 | 12.2 | % | $ | (1,351 | ) | 12.3 | % | ||||||||||||||||||
| EMEA | 248,326 | 272,475 | (8.9 | ) | (33,198 | ) | 3.3 | 867,880 | 961,130 | (9.7 | ) | (157,892 | ) | 6.7 | ||||||||||||||||||||||||||
| Rest of World | 46,197 | 59,779 | (22.7 | ) | (8,785 | ) | (8.0 | ) | 203,894 | 256,532 | (20.5 | ) | (36,932 | ) | (6.1 | ) | ||||||||||||||||||||||||
| Consolidated revenue | $ | 917,170 | $ | 883,228 | 3.8 | % | $ | (42,391 | ) | 8.6 | % | $ | 3,119,516 | $ | 3,042,123 | 2.5 | % | $ | (196,175 | ) | 9.0 | % | ||||||||||||||||||
| Income (loss) from operations | $ | (5,423 | ) | $ | 33,640 | (116.1 | ) | % | $ | (2,742 | ) | (108.0 | ) | % | $ | (79,777 | ) | $ | 30,701 | (359.9 | ) | % | $ | (2,064 | ) | (353.1 | ) | % | ||||||||||||
| Income (loss) from continuing operations | (32,552 | ) | 26,566 | (89,171 | ) | (18,473 | ) | |||||||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of tax (3) | (10,613 | ) | (15,182 | ) | 122,850 | (45,446 | ) | |||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Groupon, Inc. | $ | (46,528 | ) | $ | 8,788 | $ | 20,668 | $ | (73,090 | ) | ||||||||||||||||||||||||||||||
| Basic net income (loss) per share: | ||||||||||||||||||||||||||||||||||||||||
| Continuing operations | $ | (0.06 | ) | $ | 0.04 | $ | (0.16 | ) | $ | (0.04 | ) | |||||||||||||||||||||||||||||
| Discontinued operations | (0.02 | ) | (0.03 | ) | 0.19 | (0.07 | ) | |||||||||||||||||||||||||||||||||
| Basic net income (loss) per share | $ | (0.08 | ) | $ | 0.01 | $ | 0.03 | $ | (0.11 | ) | ||||||||||||||||||||||||||||||
| Diluted net income (loss) per share: | ||||||||||||||||||||||||||||||||||||||||
| Continuing operations | $ | (0.06 | ) | $ | 0.04 | $ | (0.16 | ) | $ | (0.04 | ) | |||||||||||||||||||||||||||||
| Discontinued operations | (0.02 | ) | (0.03 | ) | 0.19 | (0.07 | ) | |||||||||||||||||||||||||||||||||
| Diluted net income (loss) per share | $ | (0.08 | ) | $ | 0.01 | $ | 0.03 | $ | (0.11 | ) | ||||||||||||||||||||||||||||||
| Weighted average number of shares outstanding | ||||||||||||||||||||||||||||||||||||||||
| Basic | 607,517,010 | 671,885,967 | 650,106,225 | 674,832,393 | ||||||||||||||||||||||||||||||||||||
| Diluted | 607,517,010 | 681,543,847 | 650,106,225 | 674,832,393 | ||||||||||||||||||||||||||||||||||||
|
(1) |
Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. | |
|
(2) |
Represents the change in financial measures that would have resulted had average exchange rates in the reporting periods been the same as those in effect during the three months and year ended December 31, 2014. | |
|
(3) |
The $10.6 million loss presented within income (loss) from discontinued operations, net of tax, for the three months ended December 31, 2015 represents additional income tax expense attributed to discontinued operations, which resulted from the valuation allowance that was recognized during the period against the Company's net deferred tax assets in the United States. |
| Groupon, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Operating activities | ||||||||||||||||
| Net income (loss) | $ | (43,165 | ) | $ | 11,384 | $ | 33,679 | $ | (63,919 | ) | ||||||
| Less: Income (loss) from discontinued operations, net of tax | (10,613 | ) | (15,182 | ) | 122,850 | (45,446 | ) | |||||||||
| Income (loss) from continuing operations | (32,552 | ) | 26,566 | (89,171 | ) | (18,473 | ) | |||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
| Depreciation and amortization of property, equipment and software | 28,807 | 25,414 | 113,048 | 94,145 | ||||||||||||
| Amortization of acquired intangible assets | 4,956 | 4,708 | 19,922 | 20,896 | ||||||||||||
| Stock-based compensation | 32,865 | 29,961 | 142,069 | 115,290 | ||||||||||||
| Restructuring-related long-lived asset impairments | 6,922 | — | 7,267 | — | ||||||||||||
| Gain on disposition of business | — | — | (13,710 | ) | — | |||||||||||
| Deferred income taxes | 6,267 | (9,168 | ) | (8,985 | ) | (11,124 | ) | |||||||||
| Excess tax benefits on stock-based compensation | (1,431 | ) | (3,407 | ) | (7,629 | ) | (15,980 | ) | ||||||||
| Loss on equity method investments | — | — | — | 459 | ||||||||||||
| Gain (loss) from changes in fair value of contingent consideration | 508 | (1,385 | ) | 240 | (2,444 | ) | ||||||||||
| Loss from changes in fair value of investments | 829 | — | 2,943 | — | ||||||||||||
| Impairments of investments | — | — | — | 2,036 | ||||||||||||
| Change in assets and liabilities, net of acquisitions: | ||||||||||||||||
| Restricted cash | 75 | (491 | ) | 4,630 | 7,195 | |||||||||||
| Accounts receivable | 6,960 | 10,280 | 13,313 | (16,277 | ) | |||||||||||
| Prepaid expenses and other current assets | 61,358 | 36,816 | 21,545 | 13,933 | ||||||||||||
| Accounts payable | 9,545 | (1,073 | ) | 8,601 | (14,046 | ) | ||||||||||
| Accrued merchant and supplier payables | 142,069 | 155,991 | 40,217 | 54,921 | ||||||||||||
| Accrued expenses and other current liabilities | (1,174 | ) | 11,117 | 56,040 | (9,986 | ) | ||||||||||
| Other, net | (16,980 | ) | (12,057 | ) | (18,222 | ) | 31,952 | |||||||||
| Net cash provided by (used in) operating activities from continuing operations | 249,024 | 273,272 | 292,118 | 252,497 | ||||||||||||
| Net cash provided by (used in) operating activities from discontinued operations | (670 | ) | 13,550 | (37,248 | ) | 36,327 | ||||||||||
| Net cash provided by (used in) operating activities | 248,354 | 286,822 | 254,870 | 288,824 | ||||||||||||
| Net cash provided by (used in) investing activities from continuing operations | (31,238 | ) | (35,175 | ) | (177,250 | ) | (152,818 | ) | ||||||||
| Net cash provided by (used in) investing activities from discontinued operations | — | (714 | ) | 244,470 | (76,638 | ) | ||||||||||
| Net cash provided by (used in) investing activities | (31,238 | ) | (35,889 | ) | 67,220 | (229,456 | ) | |||||||||
| Net cash provided by (used in) financing activities | (322,166 | ) | (21,088 | ) | (508,156 | ) | (194,156 | ) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents, including cash classified within current assets held for sale | (5,147 | ) | (13,100 | ) | (32,485 | ) | (33,771 | ) | ||||||||
| Net increase (decrease) in cash and cash equivalents, including cash classified within current assets held for sale | (110,197 | ) | 216,745 | (218,551 | ) | (168,559 | ) | |||||||||
| Less: Net increase (decrease) in cash classified within current assets held for sale | — | 11,955 | (55,279 | ) | 55,279 | |||||||||||
| Net increase (decrease) in cash and cash equivalents | (110,197 | ) | 204,790 | (163,272 | ) | (223,838 | ) | |||||||||
| Cash and cash equivalents, beginning of period | 963,559 | 811,844 | 1,016,634 | 1,240,472 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 853,362 | $ | 1,016,634 | $ | 853,362 | $ | 1,016,634 | ||||||||
| Groupon, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (in thousands, except share and per share amounts) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenue: | ||||||||||||||||
| Third party and other | $ | 345,260 | $ | 367,902 | $ | 1,372,533 | $ | 1,501,011 | ||||||||
| Direct | 571,910 | 515,326 | 1,746,983 | 1,541,112 | ||||||||||||
| Total revenue | 917,170 | 883,228 | 3,119,516 | 3,042,123 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Third party and other | 43,640 | 49,725 | 188,932 | 203,058 | ||||||||||||
| Direct | 501,790 | 455,394 | 1,545,519 | 1,373,756 | ||||||||||||
| Total cost of revenue | 545,430 | 505,119 | 1,734,451 | 1,576,814 | ||||||||||||
| Gross profit | 371,740 | 378,109 | 1,385,065 | 1,465,309 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Marketing | 83,208 | 59,812 | 254,335 | 241,954 | ||||||||||||
| Selling, general and administrative | 287,976 | 285,466 | 1,192,792 | 1,191,385 | ||||||||||||
| Restructuring charges | 5,422 | — | 29,568 | — | ||||||||||||
| Gain on disposition of business | — | — | (13,710 | ) | — | |||||||||||
| Acquisition-related expense (benefit), net | 557 | (809 | ) | 1,857 | 1,269 | |||||||||||
| Total operating expenses | 377,163 | 344,469 | 1,464,842 | 1,434,608 | ||||||||||||
| Income (loss) from operations | (5,423 | ) | 33,640 | (79,777 | ) | 30,701 | ||||||||||
| Other income (expense), net (1) | (3,393 | ) | (11,531 | ) | (28,539 | ) | (33,450 | ) | ||||||||
| Income (loss) from continuing operations before provision (benefit) for income taxes | (8,816 | ) | 22,109 | (108,316 | ) | (2,749 | ) | |||||||||
| Provision (benefit) for income taxes | 23,736 | (4,457 | ) | (19,145 | ) | 15,724 | ||||||||||
| Income (loss) from continuing operations | (32,552 | ) | 26,566 | (89,171 | ) | (18,473 | ) | |||||||||
| Income (loss) from discontinued operations, net of tax | (10,613 | ) | (15,182 | ) | 122,850 | (45,446 | ) | |||||||||
| Net income (loss) | (43,165 | ) | 11,384 | 33,679 | (63,919 | ) | ||||||||||
| Net income (loss) attributable to noncontrolling interests | (3,363 | ) | (2,596 | ) | (13,011 | ) | (9,171 | ) | ||||||||
| Net income (loss) attributable to Groupon, Inc. | $ | (46,528 | ) | $ | 8,788 | $ | 20,668 | $ | (73,090 | ) | ||||||
| Basic net income (loss) per share: | ||||||||||||||||
| Continuing operations | $ | (0.06 | ) | $ | 0.04 | $ | (0.16 | ) | $ | (0.04 | ) | |||||
| Discontinued operations | (0.02 | ) | (0.03 | ) | 0.19 | (0.07 | ) | |||||||||
| Basic net income (loss) per share | $ | (0.08 | ) | $ | 0.01 | $ | 0.03 | $ | (0.11 | ) | ||||||
| Diluted net income (loss) per share: | ||||||||||||||||
| Continuing operations | $ | (0.06 | ) | $ | 0.04 | $ | (0.16 | ) | $ | (0.04 | ) | |||||
| Discontinued operations | (0.02 | ) | (0.03 | ) | 0.19 | (0.07 | ) | |||||||||
| Diluted net income (loss) per share | $ | (0.08 | ) | $ | 0.01 | $ | 0.03 | $ | (0.11 | ) | ||||||
| Weighted average number of shares outstanding | ||||||||||||||||
| Basic | 607,517,010 | 671,885,967 | 650,106,225 | 674,832,393 | ||||||||||||
| Diluted | 607,517,010 | 681,543,847 | 650,106,225 | 674,832,393 | ||||||||||||
|
(1) |
Other income (expense), net includes foreign currency losses of $1.7 million and $11.4 million for the three months ended December 31, 2015 and 2014, respectively, and foreign currency losses of $23.8 million and $31.5 million for the year ended December 31, 2015 and 2014, respectively. |
| Groupon, Inc. | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (in thousands, except share and per share amounts) | |||||||||
| December 31, | |||||||||
| 2015 | 2014 | ||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 853,362 | $ | 1,016,634 | |||||
| Accounts receivable, net | 68,175 | 90,597 | |||||||
| Prepaid expenses and other current assets | 153,705 | 192,382 | |||||||
| Current assets held for sale | — | 85,445 | |||||||
| Total current assets | 1,075,242 | 1,385,058 | |||||||
| Property, equipment and software, net | 198,897 | 176,004 | |||||||
| Goodwill | 287,332 | 236,756 | |||||||
| Intangible assets, net | 36,483 | 30,609 | |||||||
| Investments (including $163.7 million and $7.4 million at December 31, 2015 and December 31, 2014, respectively, at fair value) | 178,236 | 24,298 | |||||||
| Deferred income taxes | 3,454 | 57,594 | |||||||
| Other non-current assets | 16,620 | 16,173 | |||||||
| Non-current assets held for sale | — | 301,105 | |||||||
| Total Assets | $ | 1,796,264 | $ | 2,227,597 | |||||
| Liabilities and Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 24,590 | $ | 13,822 | |||||
| Accrued merchant and supplier payables | 776,211 | 772,156 | |||||||
| Accrued expenses and other current liabilities | 402,724 | 341,381 | |||||||
| Current liabilities held for sale | — | 166,239 | |||||||
| Total current liabilities | 1,203,525 | 1,293,598 | |||||||
| Deferred income taxes | 8,612 | 32,771 | |||||||
| Other non-current liabilities | 113,540 | 129,531 | |||||||
| Non-current liabilities held for sale | — | 6,753 | |||||||
| Total Liabilities | 1,325,677 | 1,462,653 | |||||||
| Commitments and contingencies (see Note 10) | |||||||||
| Stockholders' Equity | |||||||||
| Class A common stock, par value $0.0001 per share, 2,000,000,000 shares authorized, 717,387,446 shares issued and 588,919,281 shares outstanding at December 31, 2015 and 699,008,084 shares issued and 671,768,980 shares outstanding at December 31, 2014 | 72 | 70 | |||||||
| Class B common stock, par value $0.0001 per share, 10,000,000 shares authorized, 2,399,976 shares issued and outstanding at December 31, 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 December 31, 2015 and December 31, 2014 | — | — | |||||||
| Additional paid-in capital | 1,964,453 | 1,847,420 | |||||||
| Treasury stock, at cost, 128,468,165 shares at December 31, 2015 and 27,239,104 shares at December 31, 2014 | (645,041 | ) | (198,467 | ) | |||||
| Accumulated deficit | (901,292 | ) | (921,960 | ) | |||||
| Accumulated other comprehensive income (loss) | 51,206 | 35,763 | |||||||
| Total Groupon, Inc. Stockholders' Equity | 469,398 | 762,826 | |||||||
| Noncontrolling interests | 1,189 | 2,118 | |||||||
| Total Equity | 470,587 | 764,944 | |||||||
| Total Liabilities and Equity | $ | 1,796,264 | $ | 2,227,597 | |||||
| Groupon, Inc. | |||||||||||||||||
| Segment Information | |||||||||||||||||
| (in thousands) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| North America | |||||||||||||||||
| Gross billings (1) | $ | 1,050,361 | $ | 948,579 | $ | 3,709,797 | $ | 3,303,479 | |||||||||
| Revenue | 622,647 | 550,974 | 2,047,742 | 1,824,461 | |||||||||||||
| Segment cost of revenue and operating expenses (2)(3)(4) | 625,171 | 520,140 | 2,029,643 | 1,755,113 | |||||||||||||
| Segment operating income (loss) (2) | $ | (2,524 | ) | $ | 30,834 | $ | 18,099 | $ | 69,348 | ||||||||
| Segment operating income (loss) as a percent of segment gross billings | (0.2 | )% | 3.3 | % | 0.5 | % | 2.1 | % | |||||||||
| Segment operating income (loss) as a percent of segment revenue | (0.4 | )% | 5.6 | % | 0.9 | % | 3.8 | % | |||||||||
| EMEA | |||||||||||||||||
| Gross billings (1) | $ | 487,147 | $ | 560,541 | $ | 1,794,354 | $ | 2,046,807 | |||||||||
| Revenue | 248,326 | 272,475 | 867,880 | 961,130 | |||||||||||||
| Segment cost of revenue and operating expenses (2)(4)(5) | 211,443 | 237,468 | 797,786 | 857,062 | |||||||||||||
| Segment operating income (2) | $ | 36,883 | $ | 35,007 | $ | 70,094 | $ | 104,068 | |||||||||
| Segment operating income as a percent of segment gross billings | 7.6 | % | 6.2 | % | 3.9 | % | 5.1 | % | |||||||||
| Segment operating income as a percent of segment revenue | 14.9 | % | 12.8 | % | 8.1 | % | 10.8 | % | |||||||||
| Rest of World | |||||||||||||||||
| Gross billings (1) | $ | 169,484 | $ | 215,549 | $ | 751,389 | $ | 887,546 | |||||||||
| Revenue | 46,197 | 59,779 | 203,894 | 256,532 | |||||||||||||
| Segment cost of revenue and operating expenses (2)(4) | 52,731 | 62,828 | 228,273 | 282,688 | |||||||||||||
| Segment operating loss (2) | $ | (6,534 | ) | $ | (3,049 | ) | $ | (24,379 | ) | $ | (26,156 | ) | |||||
| Segment operating loss as a percent of segment gross billings | (3.9 | )% | (1.4 | )% | (3.2 | )% | (2.9 | )% | |||||||||
| Segment operating loss as a percent of segment revenue | (14.1 | )% | (5.1 | )% | (12.0 | )% | (10.2 | )% | |||||||||
|
(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 expense (benefit), net. | |
|
(3) |
Segment cost of revenue and operating expenses for North America for the year ended December 31, 2015 includes a $37.5 million expense related to an increase in the Company's contingent liability for its securities litigation matter. | |
|
(4) |
Segment cost of revenue and operating expenses for the three months ended December 31, 2015 includes restructuring charges (credits) of $9.1 million in North America, $(3.6) million in EMEA and $(0.1) million in Rest of World. Segment cost of revenue and operating expenses for the year ended December 31, 2015 includes restructuring charges of $10.5 million in North America, $16.1 million in EMEA and $3.0 million in Rest of World. | |
|
(5) |
Segment cost of revenue and operating expenses for EMEA for the year ended December 31, 2015 includes a $6.7 million expense for the write-off of a prepaid asset related to a marketing program that was discontinued because the counterparty ceased operations. |
| 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 income (loss) 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, "Income (loss) from continuing operations." | ||
| Q4 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | |||||||
| Income (loss) from continuing operations | $ 26,566 | $ (16,739) | $ (15,267) | $ (24,613) | $ (32,552) | ||||||
| Adjustments: | |||||||||||
| Stock-based compensation (1) | 29,961 | 35,144 | 38,467 | 35,432 | 32,691 | ||||||
| Depreciation and amortization | 30,122 | 32,200 | 31,372 | 35,635 | 33,763 | ||||||
| Acquisition-related expense (benefit), net | (809) | (269) | 505 | 1,064 | 557 | ||||||
| Restructuring charges | — | — | — | 24,146 | 5,422 | ||||||
| Gain on disposition of business | — | — | — | (13,710) | — | ||||||
| Prepaid marketing write-off | — | — | — | 6,690 | — | ||||||
| Securities litigation expense | — | — | — | 37,500 | — | ||||||
| Non-operating expense (income), net | 11,531 | 19,927 | (2,941) | 8,160 | 3,393 | ||||||
| Provision (benefit) for income taxes | (4,457) | 2,107 | 8,982 | (53,970) | 23,736 | ||||||
| Total adjustments | 66,348 | 89,109 | 76,385 | 80,947 | 99,562 | ||||||
| Adjusted EBITDA | $ 92,914 | $ 72,370 | $ 61,118 | $ 56,334 | $ 67,010 | ||||||
|
(1) |
Includes stock-based compensation recorded within cost of revenue, marketing expense, and selling, general and administrative expense. Non-operating expense (income), net, includes $0.02 million, $0.1 million and $0.2 million of additional stock-based compensation for the three months ended June 30, 2015, three months ended September 30, 2015 and three months ended December 31, 2015, respectively. | |
| The following is a reconciliation of Adjusted EBITDA to the most comparable U.S. GAAP financial measure, "Net income (loss) from continuing operations" for the years ended December 31, 2015 and 2014: |
| Year Ended December 31, | |||||||||
| 2015 | 2014 | ||||||||
| Income (loss) from continuing operations | $ | (89,171 | ) | $ | (18,473 | ) | |||
| Adjustments: | |||||||||
| Stock-based compensation (1) | 141,734 | 115,290 | |||||||
| Depreciation and amortization | 132,970 | 115,041 | |||||||
| Acquisition-related expense (benefit), net | 1,857 | 1,269 | |||||||
| Restructuring charges | 29,568 | — | |||||||
| Gain on disposition of business | (13,710 | ) | — | ||||||
| Prepaid marketing write-off | 6,690 | — | |||||||
| Securities litigation expense | 37,500 | — | |||||||
| Non-operating expense (income), net | 28,539 | 33,450 | |||||||
| Provision (benefit) for income taxes | (19,145 | ) | 15,724 | ||||||
| Total adjustments | 346,003 | 280,774 | |||||||
| Adjusted EBITDA | $ | 256,832 | $ | 262,301 | |||||
|
(1) |
Includes stock-based compensation recorded within cost of revenue, marketing expense, and selling, general and administrative expense. Non-operating expense (income), net, includes $0.3 million of additional stock-based compensation for the year ended December 31, 2015. | |
| 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 and year ended December 31, 2015: |
| Three Months Ended | Year Ended | ||||||||
| December 31, 2015 | December 31, 2015 | ||||||||
| Net income (loss) attributable to common stockholders | $ | (46,528 | ) | $ | 20,668 | ||||
| Stock-based compensation | 32,865 | 142,069 | |||||||
| Amortization of acquired intangible assets | 4,956 | 19,922 | |||||||
| Acquisition-related expense (benefit), net | 557 | 1,857 | |||||||
| Restructuring charges | 5,422 | 29,568 | |||||||
| Gain on disposition of business | — | (13,710 | ) | ||||||
| Prepaid marketing write-off | — | 6,690 | |||||||
| Securities litigation expense | — | 37,500 | |||||||
| Intercompany foreign currency losses (gains) and reclassifications of translation adjustments to earnings (1) | (400 | ) | 20,266 | ||||||
| Loss from changes in fair value of investments | 829 | 2,943 | |||||||
| Income tax effect of above adjustments | 14,979 | (53,953 | ) | ||||||
| Loss (income) from discontinued operations, net of tax | 10,613 | (122,850 | ) | ||||||
| Non-GAAP net income (loss) attributable to common stockholders | $ | 23,293 | $ | 90,970 | |||||
| Diluted shares | 607,517,010 | 650,106,225 | |||||||
| Incremental diluted shares | 6,367,291 | 6,854,909 | |||||||
| Adjusted diluted shares | 613,884,301 | 656,961,134 | |||||||
| Diluted net income (loss) per share (2) | $ | (0.08 | ) | $ | 0.03 | ||||
| Impact of stock-based compensation, amortization of acquired intangible assets, acquisition-related expense (benefit), net, intercompany foreign currency losses (gains), items that are unusual in nature and infrequently occurring, income (loss) from discontinued operations and related tax effects | 0.12 | 0.11 | |||||||
| Non-GAAP net income (loss) per share | $ | 0.04 | $ | 0.14 | |||||
|
(1) |
For the three months and year ended December 31, 2015, a $3.7 million net cumulative translation adjustment gain was reclassified to earnings as a result of the Company's exit from certain countries as part of its restructuring plan. For the year ended December 31, 2015, a $4.4 million loss related to the cumulative translation adjustment from the Company's legacy business in the Republic of Korea was reclassified to earnings as a result of the Ticket Monster disposition. | |
|
(2) |
The sum of per share amounts for quarterly periods may not equal year-to-date amounts due to rounding. | |
| 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 December 31, 2015 was as follows: |
| Three Months Ended December 31, 2015 | Three Months Ended December 31, 2015 | ||||||||||||||||||||||||
| At Avg. Q4 2014 | Exchange Rate | As | At Avg. Q3 2015 | Exchange Rate | As | ||||||||||||||||||||
|
Rates (1) |
Effect (2) |
Reported |
Rates (3) |
Effect (2) |
Reported | ||||||||||||||||||||
| Gross billings | $ | 1,801,559 | $ | (94,567 | ) | $ | 1,706,992 | $ | 1,721,580 | $ | (14,588 | ) | $ | 1,706,992 | |||||||||||
| Revenue | 959,561 | (42,391 | ) | 917,170 | 923,903 | (6,733 | ) | 917,170 | |||||||||||||||||
| Income (loss) from operations | $ | (2,681 | ) | $ | (2,742 | ) | $ | (5,423 | ) | $ | (4,620 | ) | $ | (803 | ) | $ | (5,423 | ) | |||||||
| The effect on the Company's gross billings, revenue and income (loss) from operations from changes in exchange rates versus the U.S. Dollar for the year ended December 31, 2015 was as follows: |
| Year Ended December 31, 2015 | Year Ended December 31, 2015 | ||||||||||||||||||||||||
| At Avg. Q4 | At Avg. Q4'14- | ||||||||||||||||||||||||
| 2014 YTD | Exchange Rate | As | Q3'15 | Exchange Rate | As | ||||||||||||||||||||
|
Rates (1) |
Effect (2) |
Reported |
Rates (3) |
Effect (2) |
Reported | ||||||||||||||||||||
| Gross billings | $ | 6,711,274 | $ | (455,734 | ) | $ | 6,255,540 | $ | 6,346,012 | $ | (90,472 | ) | $ | 6,255,540 | |||||||||||
| Revenue | 3,315,691 | (196,175 | ) | 3,119,516 | 3,158,228 | (38,712 | ) | 3,119,516 | |||||||||||||||||
| Income (loss) from operations | $ | (77,713 | ) | $ | (2,064 | ) | $ | (79,777 | ) | $ | (78,679 | ) | $ | (1,098 | ) | $ | (79,777 | ) | |||||||
|
(1) |
Represents the financial statement balances that would have resulted had average exchange rates in the reporting periods been the same as those in effect during the three months and year ended December 31, 2014. | |
|
(2) |
Represents the increase or decrease in reported amounts resulting from changes in exchange rates from those in effect in the comparable prior periods. | |
|
(3) |
Represents the financial statement balances that would have resulted had average exchange rates in the reporting periods been the same as those in effect during the three and twelve months ended September 30, 2015. |
| 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. |
| Q4 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | |||||||||||||||||
| EMEA Gross billings growth, excluding FX | 8 | % | 7 | % | 9 | % | (1 | ) | % | (2 | ) | % | |||||||||
| FX Effect | (9 | ) | (18 | ) | (19 | ) | (14 | ) | (11 | ) | |||||||||||
| EMEA Gross billings growth | (1 | ) | % | (11 | ) | % | (10 | ) | % | (15 | ) | % | (13 | ) | % | ||||||
| Rest of World Gross billings growth, excluding FX | — | % | (1 | ) | % | 6 | % | — | % | (7 | ) | % | |||||||||
| FX Effect | (10 | ) | (11 | ) | (15 | ) | (19 | ) | (14 | ) | |||||||||||
| Rest of World Gross billings growth | (10 | ) | % | (12 | ) | % | (9 | ) | % | (19 | ) | % | (21 | ) | % | ||||||
| Consolidated Gross billings growth, excluding FX | 13 | % | 10 | % | 10 | % | 6 | % | 4 | % | |||||||||||
| FX Effect | (5 | ) | (8 | ) | (8 | ) | (8 | ) | (5 | ) | |||||||||||
| Consolidated Gross billings growth | 8 | % | 2 | % | 2 | % | (2 | ) | % | (1 | ) | % | |||||||||
| 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. |
| Q4 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | |||||||||||||||||
| EMEA Revenue growth, excluding FX | 18 | % | 13 | % | 9 | % | 2 | % | 3 | % | |||||||||||
| FX Effect | (10 | ) | (19 | ) | (19 | ) | (15 | ) | (12 | ) | |||||||||||
| EMEA Revenue growth | 8 | % | (6 | ) | % | (10 | ) | % | (13 | ) | % | (9 | ) | % | |||||||
| Rest of World Revenue growth, excluding FX | (9 | ) | % | (8 | ) | % | (4 | ) | % | (5 | ) | % | (8 | ) | % | ||||||
| FX Effect | (10 | ) | (10 | ) | (14 | ) | (18 | ) | (15 | ) | |||||||||||
| Rest of World Revenue growth | (19 | ) | % | (18 | ) | % | (18 | ) | % | (23 | ) | % | (23 | ) | % | ||||||
| Consolidated Revenue growth, excluding FX | 19 | % | 10 | % | 11 | % | 7 | % | 9 | % | |||||||||||
| FX Effect | (4 | ) | (7 | ) | (8 | ) | (7 | ) | (5 | ) | |||||||||||
| Consolidated Revenue growth | 15 | % | 3 | % | 3 | % | — | % | 4 | % | |||||||||||
| 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 December 31, 2015 was as follows: |
| Exchange | ||||||||||||||||||
| At Avg. Q4 | Rate | December 31, 2015 | December 31, 2014 | Y/Y % | Y/Y% Growth | |||||||||||||
|
2014 Rates (1) |
Effect (2) |
As Reported | As Reported | Growth | excluding FX | |||||||||||||
| Local: | ||||||||||||||||||
| Third party and other | $ | 532,015 | $ | (861 | ) | $ | 531,154 | $ | 499,250 | 6.4 | % | 6.6 | % | |||||
| Travel: | ||||||||||||||||||
| Third party | 89,589 | (200 | ) | 89,389 | 80,296 | 11.3 | % | 11.6 | % | |||||||||
| Total services | 621,604 | (1,061 | ) | 620,543 | 579,546 | 7.1 | % | 7.3 | % | |||||||||
| Goods: | ||||||||||||||||||
| Third party | 13,401 | (450 | ) | 12,951 | 8,277 | 56.5 | % | 61.9 | % | |||||||||
| Direct | 416,867 | — | 416,867 | 360,756 | 15.6 | 15.6 | ||||||||||||
| Total | 430,268 | (450 | ) | 429,818 | 369,033 | 16.5 | % | 16.6 | ||||||||||
| Total gross billings | $ | 1,051,872 | $ | (1,511 | ) | $ | 1,050,361 | $ | 948,579 | 10.7 | % | 10.9 | % | |||||
| 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 December 31, 2015 was as follows: |
| Exchange | ||||||||||||||||||||
| At Avg. Q4 | Rate | December 31, 2015 | December 31, 2014 | Y/Y % | Y/Y% Growth | |||||||||||||||
|
2014 Rates (1) |
Effect (2) |
As Reported | As Reported | Growth | excluding FX | |||||||||||||||
| Local: | ||||||||||||||||||||
| Third party and other | $ | 219,817 | $ | (22,372 | ) | $ | 197,445 | $ | 242,119 | (18.5 | ) | % | (9.2 | ) | % | |||||
| Travel: | ||||||||||||||||||||
| Third party | 68,439 | $ | (8,603 | ) | 59,836 | 72,710 | (17.7 | ) | % | (5.9 | ) | % | ||||||||
| Total services | 288,256 | (30,975 | ) | 257,281 | 314,829 | (18.3 | ) | % | (8.4 | ) | % | |||||||||
| Goods: | ||||||||||||||||||||
| Third party | 92,612 | (9,317 | ) | 83,295 | 99,710 | (16.5 | ) | % | (7.1 | ) | % | |||||||||
| Direct | 167,761 | (21,190 | ) | 146,571 | 146,002 | 0.4 | 14.9 | |||||||||||||
|
Total |
260,373 | (30,507 | ) | 229,866 | 245,712 | (6.4 | ) | % | 6.0 | % | ||||||||||
| Total gross billings | $ | 548,629 | $ | (61,482 | ) | $ | 487,147 | $ | 560,541 | (13.1 | ) | % | (2.1 | ) | % | |||||
| 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 December 31, 2015 was as follows: |
| Exchange | ||||||||||||||||||||
| At Avg. Q4 | Rate | December 31, 2015 | December 31, 2014 | Y/Y % | Y/Y% Growth | |||||||||||||||
|
2014 Rates (1) |
Effect (2) |
As Reported | As Reported | Growth | excluding FX | |||||||||||||||
| Local: | ||||||||||||||||||||
| Third party and other | $ | 99,590 | $ | (16,160 | ) | $ | 83,430 | $ | 105,420 | (20.9 | ) | % | (5.5 | ) | % | |||||
| Travel: | ||||||||||||||||||||
| Third party | 31,010 | $ | (5,641 | ) | 25,369 | 32,313 | (21.5 | ) | % | (4.0 | ) | % | ||||||||
|
Total services |
130,600 | (21,801 | ) | 108,799 | 137,733 | (21.0 | ) | % | (5.2 | ) | % | |||||||||
| Goods: | ||||||||||||||||||||
| Third party | 60,357 | (8,144 | ) | 52,213 | 69,248 | (24.6 | ) | % | (12.8 | ) | % | |||||||||
| Direct | 10,101 | (1,629 | ) | 8,472 | 8,568 | (1.1 | ) | 17.9 | ||||||||||||
| Total | 70,458 | (9,773 | ) | 60,685 | 77,816 | (22.0 | ) | % | (9.5 | ) | % | |||||||||
| Total gross billings | $ | 201,058 | $ | (31,574 | ) | $ | 169,484 | $ | 215,549 | (21.4 | ) | % | (6.7 | ) | % | |||||
| The effect on consolidated gross billings by category from changes in foreign exchange rates versus the U.S. Dollar for the three months ended December 31, 2015 was as follows: |
| Exchange | |||||||||||||
| At Avg. Q4 | Rate | December 31, 2015 | December 31, 2014 | Y/Y % | Y/Y% Growth | ||||||||
|
2014 Rates (1) |
Effect (2) |
As Reported | As Reported | Growth | excluding FX | ||||||||
| Local: | |||||||||||||
| Third party and other | $ 851,422 | $ (39,393) | $ 812,029 | $ 846,789 | (4.1) | % | 0.5 | % | |||||
| Travel: | |||||||||||||
| Third party | $ 189,038 | $ (14,444) | 174,594 | 185,319 | (5.8) | % | 2.0 | % | |||||
| Total services | 1,040,460 | (53,837) | 986,623 | 1,032,108 | (4.4) | % | 0.8 | % | |||||
| Goods: | |||||||||||||
| Third party | 166,370 | (17,911) | 148,459 | 177,235 | (16.2) | % | (6.1) | % | |||||
| Direct | 594,729 | (22,819) | 571,910 | 515,326 | 11.0 | 15.4 | |||||||
| Total | 761,099 | (40,730) | 720,369 | 692,561 | 4.0 | % | 9.9 | % | |||||
| Total gross billings | $ 1,801,559 | $ (94,567) | $ 1,706,992 | $ 1,724,669 | (1.0) | % | 4.5 | % |
|
(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 December 31, 2014. | |||
|
(2) |
Represents the increase or decrease in reported amounts resulting from changes in exchange rates from those in effect in the comparable prior year period. |
| Groupon, Inc. | ||||||||||||||||||||||
| Supplemental Financial Information and Business Metrics (9) (10) | ||||||||||||||||||||||
| (financial data in thousands; active customers in millions) | ||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||
| Q4 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | ||||||||||||||||||
| Segments | ||||||||||||||||||||||
| North America Segment: | ||||||||||||||||||||||
| Gross Billings (1): | ||||||||||||||||||||||
| Local (2) Gross Billings | $ | 499,250 | $ | 512,558 | $ | 499,378 | $ | 481,608 | $ | 531,154 | ||||||||||||
| Travel Gross Billings | 80,296 | 96,678 | 102,908 | 101,801 | 89,389 | |||||||||||||||||
| Gross Billings - Services | 579,546 | 609,236 | 602,286 | 583,409 | 620,543 | |||||||||||||||||
| Gross Billings - Goods | 369,033 | 284,741 | 293,970 | 285,794 | 429,818 | |||||||||||||||||
| Total Gross Billings | $ | 948,579 | $ | 893,977 | $ | 896,256 | $ | 869,203 | $ | 1,050,361 | ||||||||||||
| Year-over-year growth | 20 | % | 14 | % | 12 | % | 12 | % | 11 | % | ||||||||||||
| % Third Party and Other | 62 | % | 69 | % | 68 | % | 68 | % | 60 | % | ||||||||||||
| % Direct | 38 | % | 31 | % | 32 | % | 32 | % | 40 | % | ||||||||||||
| Gross Billings Trailing Twelve Months (TTM) | $ | 3,303,479 | $ | 3,415,687 | $ | 3,513,098 | $ | 3,608,015 | $ | 3,709,797 | ||||||||||||
| Revenue (3): | ||||||||||||||||||||||
| Local Revenue | $ | 170,946 | $ | 180,864 | $ | 172,461 | $ | 163,786 | $ | 184,201 | ||||||||||||
| Travel Revenue | 17,165 | 19,989 | 21,958 | 21,394 | 18,390 | |||||||||||||||||
| Revenue - Services | 188,111 | 200,853 | 194,419 | 185,180 | 202,591 | |||||||||||||||||
| Revenue - Goods | 362,863 | 279,029 | 286,863 | 278,751 | 420,056 | |||||||||||||||||
| Total Revenue | $ | 550,974 | $ | 479,882 | $ | 481,282 | $ | 463,931 | $ | 622,647 | ||||||||||||
| Year-over-year growth | 24 | % | 11 | % | 14 | % | 11 | % | 13 | % | ||||||||||||
| % Third Party and Other | 35 | % | 42 | % | 41 | % | 40 | % | 33 | % | ||||||||||||
| % Direct | 65 | % | 58 | % | 59 | % | 60 | % | 67 | % | ||||||||||||
| Revenue TTM | $ | 1,824,461 | $ | 1,873,281 | $ | 1,930,632 | $ | 1,976,069 | $ | 2,047,742 | ||||||||||||
| Gross Profit (4): | ||||||||||||||||||||||
| Local Gross Profit | $ | 147,582 | $ | 154,776 | $ | 147,574 | $ | 138,798 | $ | 159,745 | ||||||||||||
| % of North America Local Gross Billings | 29.6 | % | 30.2 | % | 29.6 | % | 28.8 | % | 30.1 | % | ||||||||||||
| Travel Gross Profit | 14,187 | 15,791 | 18,385 | 17,644 | 15,207 | |||||||||||||||||
| % of North America Travel Gross Billings | 17.7 | % | 16.3 | % | 17.9 | % | 17.3 | % | 17.0 | % | ||||||||||||
| Gross Profit - Services | 161,769 | 170,567 | 165,959 | 156,442 | 174,952 | |||||||||||||||||
| % of North America Services Gross Billings | 27.9 | % | 28.0 | % | 27.6 | % | 26.8 | % | 28.2 | % | ||||||||||||
| Gross Profit - Goods | 34,404 | 23,923 | 30,598 | 34,801 | 44,329 | |||||||||||||||||
| % of North America Goods Gross Billings | 9.3 | % | 8.4 | % | 10.4 | % | 12.2 | % | 10.3 | % | ||||||||||||
| Total Gross Profit | $ | 196,173 | $ | 194,490 | $ | 196,557 | $ | 191,243 | $ | 219,281 | ||||||||||||
| Year-over-year growth | 13 | % | 8 | % | 9 | % | 9 | % | 12 | % | ||||||||||||
| % Third Party and Other | 83 | % | 88 | % | 85 | % | 83 | % | 81 | % | ||||||||||||
| % Direct | 17 | % | 12 | % | 15 | % | 17 | % | 19 | % | ||||||||||||
| % of North America Total Gross Billings | 20.7 | % | 21.8 | % | 21.9 | % | 22.0 | % | 20.9 | % | ||||||||||||
| EMEA Segment: | ||||||||||||||||||||||
| Gross Billings: | ||||||||||||||||||||||
| Local Gross Billings | $ | 242,119 | $ | 217,598 | $ | 198,553 | $ | 182,540 | $ | 197,445 | ||||||||||||
| Travel Gross Billings | 72,710 | 65,065 | 59,544 | 64,916 | 59,836 | |||||||||||||||||
| Gross Billings - Services | 314,829 | 282,663 | 258,097 | 247,456 | 257,281 | |||||||||||||||||
| Gross Billings - Goods | 245,712 | 176,526 | 175,439 | 167,026 | 229,866 | |||||||||||||||||
| Total Gross Billings | $ | 560,541 | $ | 459,189 | $ | 433,536 | $ | 414,482 | $ | 487,147 | ||||||||||||
| Year-over-year growth | (1 | ) | % | (11 | ) | % | (10 | ) | % | (15 | ) | % | (13 | ) | % | |||||||
| Year-over-year growth, excluding FX (5) | 8 | % | 7 | % | 9 | % | (1 | ) | % | (2 | ) | % | ||||||||||
| % Third Party and Other | 74 | % | 77 | % | 76 | % | 75 | % | 70 | % | ||||||||||||
| % Direct | 26 | % | 23 | % | 24 | % | 25 | % | 30 | % | ||||||||||||
|
Gross Billings TTM |
$ | 2,046,807 | $ | 1,992,408 | $ | 1,942,689 | $ | 1,867,748 | $ | 1,794,354 | ||||||||||||
| Revenue: | ||||||||||||||||||||||
| Local Revenue | $ | 95,572 | $ | 82,536 | $ | 75,543 | $ | 70,781 | $ | 73,225 | ||||||||||||
| Travel Revenue | 16,321 | 14,717 | 13,100 | 13,561 | 11,681 | |||||||||||||||||
| Revenue - Services | 111,893 | 97,253 | 88,643 | 84,342 | 84,906 | |||||||||||||||||
| Revenue - Goods | 160,582 | 118,967 | 115,404 | 114,945 | 163,420 | |||||||||||||||||
| Total Revenue | $ | 272,475 | $ | 216,220 | $ | 204,047 | $ | 199,287 | $ | 248,326 | ||||||||||||
| Year-over-year growth | 8 | % | (6 | ) | % | (10 | ) | % | (13 | ) | % | 9 | % | |||||||||
| Year-over-year growth, excluding FX | 18 | % | 13 | % | 9 | % | 2 | % | 3 | % | ||||||||||||
| % Third Party and Other | 46 | % | 51 | % | 48 | % | 48 | % | 41 | % | ||||||||||||
| % Direct | 54 | % | 49 | % | 52 | % | 52 | % | 59 | % | ||||||||||||
| Revenue TTM | $ | 961,130 | $ | 946,457 | $ | 922,814 | $ | 892,029 | $ | 867,880 | ||||||||||||
| Gross Profit: | ||||||||||||||||||||||
| Local Gross Profit | $ | 90,150 | $ | 77,356 | $ | 70,270 | $ | 66,288 | $ | 68,966 | ||||||||||||
| % of EMEA Local Gross Billings | 37.2 | % | 35.5 | % | 35.4 | % | 36.3 | % | 34.9 | % | ||||||||||||
| Travel Gross Profit | 15,226 | 12,400 | 11,939 | 12,323 | 10,732 | |||||||||||||||||
| % of EMEA Travel Gross Billings | 20.9 | % | 19.1 | % | 20.1 | % | 19.0 | % | 17.9 | % | ||||||||||||
| Gross Profit - Services | 105,376 | 89,756 | 82,209 | 78,611 | 79,698 | |||||||||||||||||
| % of EMEA Services Gross Billings | 33.5 | % | 31.8 | % | 31.9 | % | 31.8 | % | 31.0 | % | ||||||||||||
| Gross Profit - Goods | 38,154 | 25,481 | 21,878 | 24,905 | 43,026 | |||||||||||||||||
| % of EMEA Goods Gross Billings | 15.5 | % | 14.4 | % | 12.5 | % | 14.9 | % | 18.7 | % | ||||||||||||
| Total Gross Profit | $ | 143,530 | $ | 115,237 | $ | 104,087 | $ | 103,516 | $ | 122,724 | ||||||||||||
| Year-over-year growth | (6 | ) | % | (18 | ) | % | (26 | ) | % | (21 | ) | % | (14 | ) | % | |||||||
| % Third Party and Other | 82 | % | 87 | % | 86 | % | 86 | % | 77 | % | ||||||||||||
| % Direct | 18 | % | 13 | % | 14 | % | 14 | % | 23 | % | ||||||||||||
| % of EMEA Total Gross Billings | 25.6 | % | 25.1 | % | 24.0 | % | 25.0 | % | 25.2 | % | ||||||||||||
| Rest of World Segment: | ||||||||||||||||||||||
| Gross Billings: | ||||||||||||||||||||||
| Local Gross Billings | $ | 105,420 | $ | 99,735 | $ | 100,403 | $ | 92,972 | $ | 83,430 | ||||||||||||
| Travel Gross Billings | 32,313 | 32,946 | 31,263 | 30,709 | 25,369 | |||||||||||||||||
| Gross Billings - Services | 137,733 | 132,681 | 131,666 | 123,681 | 108,799 | |||||||||||||||||
| Gross Billings - Goods | 77,816 | 66,154 | 67,555 | 60,168 | 60,685 | |||||||||||||||||
| Total Gross Billings | $ | 215,549 | $ | 198,835 | $ | 199,221 | $ | 183,849 | $ | 169,484 | ||||||||||||
| Year-over-year growth | (10 | ) | % | (12 | ) | % | (9 | ) | % | (19 | ) | % | (21 | ) | % | |||||||
| Year-over-year growth, excluding FX | — | % | (1 | ) | % | 6 | % | — | % | (7 | ) | % | ||||||||||
| % Third Party and Other | 96 | % | 98 | % | 97 | % | 96 | % | 95 | % | ||||||||||||
| % Direct | 4 | % | 2 | % | 3 | % | 4 | % | 5 | % | ||||||||||||
|
Gross Billings TTM |
$ | 887,546 | $ | 861,032 | $ | 840,243 | $ | 797,454 | $ | 751,389 | ||||||||||||
| Revenue: | ||||||||||||||||||||||
| Local Revenue | $ | 32,264 | $ | 30,281 | $ | 28,499 | $ | 26,372 | $ | 22,229 | ||||||||||||
| Travel Revenue | 5,757 | 6,495 | 6,363 | 6,135 | 5,098 | |||||||||||||||||
| Revenue - Services | 38,021 | 36,776 | 34,862 | 32,507 | 27,327 | |||||||||||||||||
| Revenue - Goods | 21,758 | 17,478 | 18,204 | 17,870 | 18,870 | |||||||||||||||||
| Total Revenue | $ | 59,779 | $ | 54,254 | $ | 53,066 | $ | 50,377 | $ | 46,197 | ||||||||||||
| Year-over-year growth | (19 | ) | % | (18 | ) | % | (18 | ) | % | (23 | ) | % | (23 | ) | % | |||||||
| Year-over-year growth, excluding FX | (9 | ) | % | (8 | ) | % | (4 | ) | % | (5 | ) | % | (8 | ) | % | |||||||
| % Third Party and Other | 86 | % | 91 | % | 87 | % | 86 | % | 82 | % | ||||||||||||
| % Direct | 14 | % | 9 | % | 13 | % | 14 | % | 18 | % | ||||||||||||
| Revenue TTM | $ | 256,532 | $ | 244,326 | $ | 232,802 | $ | 217,476 | $ | 203,894 | ||||||||||||
| Gross Profit: | ||||||||||||||||||||||
| Local Gross Profit | $ | 27,175 | $ | 26,161 | $ | 24,567 | $ | 22,568 | $ | 18,889 | ||||||||||||
| % of Rest of World Local Gross Billings | 25.8 | % | 26.2 | % | 24.5 | % | 24.3 | % | 22.6 | % | ||||||||||||
| Travel Gross Profit | 3,815 | 4,906 | 5,012 | 4,859 | 4,040 | |||||||||||||||||
| % of Rest of World Travel Gross Billings | 11.8 | % | 14.9 | % | 16.0 | % | 15.8 | % | 15.9 | % | ||||||||||||
| Gross Profit - Services | 30,990 | 31,067 | 29,579 | 27,427 | 22,929 | |||||||||||||||||
| % of Rest of World Services Gross Billings | 22.5 | % | 23.4 | % | 22.5 | % | 22.2 | % | 21.1 | % | ||||||||||||
| Gross Profit - Goods | 7,416 | 6,612 | 6,784 | 6,726 | 6,806 | |||||||||||||||||
| % of Rest of World Goods Gross Billings | 9.5 | % | 10.0 | % | 10.0 | % | 11.2 | % | 11.2 | % | ||||||||||||
| Total Gross Profit | $ | 38,406 | $ | 37,679 | $ | 36,363 | $ | 34,153 | $ | 29,735 | ||||||||||||
| Year-over-year growth | (24 | ) | % | (16 | ) | % | (20 | ) | % | (28 | ) | % | (23 | ) | % | |||||||
| % Third Party and Other | 96 | % | 99 | % | 99 | % | 99 | % | 99 | % | ||||||||||||
| % Direct | 4 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||
| % of Rest of World Total Gross Billings | 17.8 | % | 18.9 | % | 18.3 | % | 18.6 | % | 17.5 | % | ||||||||||||
| Consolidated Results of Operations: | ||||||||||||||||||||||
| Gross Billings: | ||||||||||||||||||||||
| Local Gross Billings | $ | 846,789 | $ | 829,891 | $ | 798,334 | $ | 757,120 | $ | 812,029 | ||||||||||||
| Travel Gross Billings | 185,319 | 194,689 | 193,715 | 197,426 | 174,594 | |||||||||||||||||
| Gross Billings - Services | 1,032,108 | 1,024,580 | 992,049 | 954,546 | 986,623 | |||||||||||||||||
| Gross Billings - Goods | 692,561 | 527,421 | 536,964 | 512,988 | 720,369 | |||||||||||||||||
| Total Gross Billings | $ | 1,724,669 | $ | 1,552,001 | $ | 1,529,013 | $ | 1,467,534 | $ | 1,706,992 | ||||||||||||
| Year-over-year growth | 8 | % | 2 | % | 2 | % | (2 | ) | % | (1 | ) | % | ||||||||||
| Year-over-year growth, excluding FX | 13 | % | 10 | % | 10 | % | 6 | % | 4 | % | ||||||||||||
| % Third Party and Other | 70 | % | 75 | % | 74 | % | 74 | % | 66 | % | ||||||||||||
| % Direct | 30 | % | 25 | % | 26 | % | 26 | % | 34 | % | ||||||||||||
| Gross Billings TTM | $ | 6,237,832 | $ | 6,269,127 | $ | 6,296,030 | $ | 6,273,217 | $ | 6,255,540 | ||||||||||||
| Year-over-year growth | 8 | % | 7 | % | 6 | % | 3 | % | — | % | ||||||||||||
| Revenue: | ||||||||||||||||||||||
| Local Revenue | $ | 298,782 | $ | 293,681 | $ | 276,503 | $ | 260,939 | $ | 279,655 | ||||||||||||
| Travel Revenue | 39,243 | 41,201 | 41,421 | 41,090 | 35,169 | |||||||||||||||||
| Revenue - Services | 338,025 | 334,882 | 317,924 | 302,029 | 314,824 | |||||||||||||||||
| Revenue - Goods | 545,203 | 415,474 | 420,471 | 411,566 | 602,346 | |||||||||||||||||
| Total Revenue | $ | 883,228 | $ | 750,356 | $ | 738,395 | $ | 713,595 | $ | 917,170 | ||||||||||||
| Year-over-year growth | 15 | % | 3 | % | 3 | % | — | % | 4 | % | ||||||||||||
| Year-over-year growth, excluding FX | 19 | % | 10 | % | 11 | % | 7 | % | 9 | % | ||||||||||||
| % Third Party and Other | 42 | % | 48 | % | 46 | % | 46 | % | 38 | % | ||||||||||||
| % Direct | 58 | % | 52 | % | 54 | % | 54 | % | 62 | % | ||||||||||||
| Revenue TTM | $ | 3,042,123 | $ | 3,064,064 | $ | 3,086,248 | $ | 3,085,574 | $ | 3,119,516 | ||||||||||||
| Year-over-year growth | 18 | % | 13 | % | 10 | % | 5 | % | 3 | % | ||||||||||||
| Gross Profit: | ||||||||||||||||||||||
| Local Gross Profit | $ | 264,907 | $ | 258,293 | $ | 242,411 | $ | 227,654 | $ | 247,600 | ||||||||||||
| % of Consolidated Local Gross Billings | 31.3 | % | 31.1 | % | 30.4 | % | 30.1 | % | 30.5 | % | ||||||||||||
| Travel Gross Profit | 33,228 | 33,097 | 35,336 | 34,826 | 29,979 | |||||||||||||||||
| % of Consolidated Travel Gross Billings | 17.9 | % | 17.0 | % | 18.2 | % | 17.6 | % | 17.2 | % | ||||||||||||
| Gross Profit - Services | 298,135 | 291,390 | 277,747 | 262,480 | 277,579 | |||||||||||||||||
| % of Consolidated Services Gross Billings | 28.9 | % | 28.4 | % | 28.0 | % | 27.5 | % | 28.1 | % | ||||||||||||
| Gross Profit - Goods | 79,974 | 56,016 | 59,260 | 66,432 | 94,161 | |||||||||||||||||
| % of Consolidated Goods Gross Billings | 11.5 | % | 10.6 | % | 11.0 | % | 13.0 | % | 13.1 | % | ||||||||||||
| Total Gross Profit | $ | 378,109 | $ | 347,406 | $ | 337,007 | $ | 328,912 | $ | 371,740 | ||||||||||||
| Year-over-year growth | — | % | (5 | ) | % | (8 | ) | % | (7 | ) | % | (2 | ) | % | ||||||||
| % Third Party and Other | 84 | % | 89 | % | 87 | % | 85 | % | 81 | % | ||||||||||||
| % Direct | 16 | % | 11 | % | 13 | % | 15 | % | 19 | % | ||||||||||||
| % of Total Consolidated Gross Billings | 21.9 | % | 22.4 | % | 22.0 | % | 22.4 | % | 21.8 | % | ||||||||||||
| Marketing | $ | 59,812 | $ | 52,533 | $ | 57,007 | $ | 61,587 | $ | 83,208 | ||||||||||||
| Selling, general and administrative | $ | 285,466 | $ | 289,847 | $ | 288,721 | $ | 326,248 | $ | 287,976 | ||||||||||||
| Adjusted EBITDA | $ | 92,914 | $ | 72,370 | $ | 61,118 | $ | 56,334 | $ | 67,010 | ||||||||||||
| % of Total Consolidated Gross Billings | 5.4 | % | 4.7 | % | 4.0 | % | 3.8 | % | 3.9 | % | ||||||||||||
| % of Total Consolidated Revenue | 10.5 | % | 9.6 | % | 8.3 | % | 7.9 | % | 7.3 | % | ||||||||||||
| 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." |
| Q4 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | |||||||||||||||||
| Net cash provided by (used in) operating activities from continuing operations | $ | 273,272 | $ | 40,711 | $ | 9,995 | $ | (7,612 | ) | $ | 249,024 | ||||||||||
| Purchases of property and equipment and capitalized software from continuing operations | (20,117 | ) | (18,294 | ) | (22,452 | ) | (27,735 | ) | (15,507 | ) | |||||||||||
| Free cash flow | $ | 253,155 | $ | 22,417 | $ | (12,457 | ) | $ | (35,347 | ) | $ | 233,517 | |||||||||
| Net cash provided by (used in) operating activities from continuing operations (TTM) | $ | 252,497 | $ | 307,782 | $ | 346,302 | $ | 316,366 | $ | 292,118 | |||||||||||
| Purchases of property and equipment and capitalized software from continuing operations (TTM) | (83,560 | ) | (85,761 | ) | (79,501 | ) | (88,598 | ) | (83,988 | ) | |||||||||||
| Free cash flow (TTM) | $ | 168,937 | $ | 222,021 | $ | 266,801 | $ | 227,768 | $ | 208,130 | |||||||||||
| Net cash provided by (used in) investing activities from continuing operations | $ | (35,175 | ) | $ | (19,443 | ) | $ | (28,541 | ) | $ | (98,028 | ) | $ | (31,238 | ) | ||||||
| Net cash provided by (used in) financing activities | $ | (21,088 | ) | $ | (32,942 | ) | $ | (138,227 | ) | $ | (14,821 | ) | $ | (322,166 | ) | ||||||
| Net cash provided by (used in) investing activities from continuing operations (TTM) | $ | (152,818 | ) | $ | (105,821 | ) | $ | (102,205 | ) | $ | (181,187 | ) | $ | (177,250 | ) | ||||||
| Net cash provided by (used in) financing activities (TTM) | $ | (194,156 | ) | $ | (185,606 | ) | $ | (209,080 | ) | $ | (207,078 | ) | $ | (508,156 | ) | ||||||
| Other Metrics: | |||||||||||||||||||||
| Active Customers (6) | |||||||||||||||||||||
| North America | 24.1 | 24.6 | 24.9 | 25.2 | 25.9 | ||||||||||||||||
| EMEA | 15.2 | 15.3 | 15.5 | 15.4 | 15.4 | ||||||||||||||||
| Rest of World | 8.1 | 8.2 | 8.2 | 8.0 | 7.6 | ||||||||||||||||
| Total Active Customers | 47.4 | 48.1 | 48.6 | 48.6 | 48.9 | ||||||||||||||||
| TTM Gross Billings / Average Active Customer (7) | |||||||||||||||||||||
| North America | $ | 147 | $ | 147 | $ | 148 | $ | 148 | $ | 149 | |||||||||||
| EMEA | 139 | 134 | 130 | 123 | 117 | ||||||||||||||||
| Rest of World | 105 | 101 | 98 | 99 | 96 | ||||||||||||||||
| Consolidated | 137 | 135 | 133 | 132 | 130 | ||||||||||||||||
| Global headcount as of December 31, 2015 and 2014 was as follows: | |||||
| Q4 2014 | Q4 2015 | ||||
| Sales (8) | 4,493 | 3,992 | |||
| % North America | 31 % | 34 % | |||
| % EMEA | 42 % | 41 % | |||
| % Rest of World | 27 % | 25 % | |||
| Other | 6,256 | 5,880 | |||
| Total Headcount | 10,749 | 9,872 | |||
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(1) |
Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. | |
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(2) |
Local represents deals with local and national merchants and through local events. Other revenue transactions include advertising, payment processing and commission revenue. | |
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(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 merchandise 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 commission revenue, payment processing revenue and advertising revenue. | |
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(4) |
Represents third party revenue, direct revenue and other revenue reduced by cost of revenue. | |
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(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 periods. | |
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(6) |
Reflects the total number of unique user accounts who have purchased a voucher or product from us during the trailing twelve months. | |
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(7) |
Reflects the total gross billings generated in the trailing twelve months per average active customer over that period. |
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(8) |
Includes merchant sales representatives, as well as sales support from continuing operations. | |
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(9) |
Financial information and other metrics have been retrospectively adjusted to exclude Ticket Monster, which has been classified as discontinued operations. | |
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(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. |
