Skip to main content

Groupon updates IPO paperwork and admits it is not profitable

Groupon CustomersThe discussion about a tech bubble has been growing louder and louder as companies like Facebook and Twitter have received massive valuations. Groupon was set to try to capitalize on the frenzy but recent adjustments to their SEC paperwork may derail those efforts.

When the company first filed to go public in June it showed an operating income of $60.6 million for 2010 and $81.6 million for the first quarter of 2011. But upon reviews of Groupon’s accounting questions began to arise around its “adjusted consolidated segment operating income” (ACSOI), a metric that isn’t considered standard in IPO filings. ACSOI reports a company’s operating income excluding several major expenses, including marketing and acquisition-related costs.

“We exclude those costs because, unlike our other marketing expenses, they are an up-front investment to acquire new subscribers that we expect to end when this period of rapid expansion in our subscriber base concludes,” Andrew Mason, Groupon’s CEO wrote in the report.

When Groupon revised the data and resubmitted, they showed a $420 million operating loss for 2010 and a $117.1 million loss in the first quarter. 

That’s a pretty startlingly difference.

Since the report was revised and could now include data through the second quarter, it stated: “We had net income of $21,000 for the second quarter of 2009 as compared to a net loss of $102.7 million for the second quarter of 2011.” That’s two consecutive quarters of losses over $100 million.

Revenue figures for Groupon can also be murky because of the nature of its business model. When a customer pays, this is gross revenue, but an inherent cost is built into that revenue because Groupon must turn around and pay the merchant for their product.

Topics
Caleb Garling
Former Digital Trends Contributor
How to make a GIF from a YouTube video
woman sitting and using laptop

Sometimes, whether you're chatting with friends or posting on social media, words just aren't enough -- you need a GIF to fully convey your feelings. If there's a moment from a YouTube video that you want to snip into a GIF, the good news is that you don't need complex software to so it. There are now a bunch of ways to make a GIF from a YouTube video right in your browser.

If you want to use desktop software like Photoshop to make a GIF, then you'll need to download the YouTube video first before you can start making a GIF. However, if you don't want to go through that bother then there are several ways you can make a GIF right in your browser, without the need to download anything. That's ideal if you're working with a low-specced laptop or on a phone, as all the processing to make the GIF is done in the cloud rather than on your machine. With these options you can make quick and fun GIFs from YouTube videos in just a few minutes.
Use GIFs.com for great customization
Step 1: Find the YouTube video that you want to turn into a GIF (perhaps a NASA archive?) and copy its URL.

Read more
I paid Meta to ‘verify’ me — here’s what actually happened
An Instagram profile on an iPhone.

In the fall of 2023 I decided to do a little experiment in the height of the “blue check” hysteria. Twitter had shifted from verifying accounts based (more or less) on merit or importance and instead would let users pay for a blue checkmark. That obviously went (and still goes) badly. Meanwhile, Meta opened its own verification service earlier in the year, called Meta Verified.

Mostly aimed at “creators,” Meta Verified costs $15 a month and helps you “establish your account authenticity and help[s] your community know it’s the real us with a verified badge." It also gives you “proactive account protection” to help fight impersonation by (in part) requiring you to use two-factor authentication. You’ll also get direct account support “from a real person,” and exclusive features like stickers and stars.

Read more
Here’s how to delete your YouTube account on any device
How to delete your YouTube account

Wanting to get out of the YouTube business? If you want to delete your YouTube account, all you need to do is go to your YouTube Studio page, go to the Advanced Settings, and follow the section that will guide you to permanently delete your account. If you need help with these steps, or want to do so on a platform that isn't your computer, you can follow the steps below.

Note that the following steps will delete your YouTube channel, not your associated Google account.

Read more