Groupon just released its earnings for the third quarter with revenue up 27% year-over-year at $757.1 million, GAAP loss per share of $0.03, and non-GAAP earnings per share of $0.03.
The company beat Wall Street expectations.
“We had another record quarter, with worldwide billings increasing 39 percent and reaching their highest level ever,” said CEO Eric Lefkofsky. “We also made significant progress in our strategy to become the leading mobile commerce destination, with double-digit growth in our North American Local business, double-digit gross margins in North American Goods and positive Adjusted EBITDA in every segment for the first time in over a year.”
Gross billings totaled $1.86 billion for the quarter. At the end of the quarter, active deals were 300,000 globally, compared to 240,000 at the end of the second quarter. Active customers grew 24% year-over-year.
Here’s the release in its entirety:
CHICAGO–(BUSINESS WIRE)– Groupon, Inc. (NASDAQ: GRPN) today announced financial results for the quarter ended September 30, 2014.
“We had another record quarter, with worldwide billings increasing 39 percent and reaching their highest level ever,” said Eric Lefkofsky, CEO of Groupon. “We also made significant progress in our strategy to become the leading mobile commerce destination, with double-digit growth in our North American Local business, double-digit gross margins in North American Goods and positive Adjusted EBITDA in every segment for the first time in over a year.”
Third Quarter 2014 Summary
Gross billings, which reflect the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds, increased 39% globally to $1.86 billion in the third quarter 2014, compared with $1.34 billion in the third quarter 2013. North America billings increased 16%, EMEA increased 10% and Rest of World increased 155%, driven by the first-quarter acquisition of Ticket Monster.
Revenue increased 27%, to $757.1 million in the third quarter 2014, compared with $595.1 million in the third quarter 2013.North America revenue increased 16%, EMEA increased 56% and Rest of World increased 26%.
Gross profit was $380.1 million in the third quarter 2014, compared with $359.6 million in the third quarter 2013.
Adjusted EBITDA, a non-GAAP financial measure, was $67.0 million in the third quarter 2014, compared with $62.3 million in the third quarter 2013, reflecting SG&A expense related to the Ticket Monster and ideel acquisitions, as well as an increase in overall marketing expense.
Third quarter 2014 net loss attributable to common stockholders was $21.2 million, or $0.03 per share. Earnings per share excluding stock compensation, amortization of acquired intangible assets, and acquisition-related costs of $46.1 million (or$38.7 million net of tax), a non-GAAP financial measure, was $0.03 per share.
Third quarter results included $18.6 million of pre-tax non-operating foreign currency losses and a $7.7 million decrease in liabilities for uncertain tax positions.
Operating cash flow for the trailing twelve months ended September 30, 2014 was $180.3 million. Free cash flow, a non-GAAP financial measure, was $25.4 million in the third quarter 2014, bringing free cash flow for the trailing twelve months endedSeptember 30, 2014 to $92.9 million.
At the end of the quarter, Groupon had $855.2 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 92% year-over-year to 88 million in the third quarter 2014. North America units increased 11%, EMEA units increased 30% and Rest of World units increased 316%.
Active deals: At the end of the third quarter 2014, on average, active deals were approximately 300,000 globally, compared with more than 240,000 at the end of the second quarter 2014. North American active deals increased to over 120,000.
Active customers: Active customers, or customers that have purchased a voucher or product within the last twelve months, grew 24% year-over-year, to 52.7 million as of September 30, 2014, comprising 23.5 million in North America, 14.9 million in EMEA, and 14.3 million in Rest of World.
Customer spend: Third quarter 2014 trailing twelve month billings per average active customer was $149, compared with$141 in the second quarter 2014.
Mobile: Mobile mix, as measured by transactions completed on mobile devices, remains over half of the business. Over 100 million people have now downloaded Groupon mobile apps worldwide.
Marketplace: The rollout of Groupon’s marketplace (“Pull”) continued to gain traction. In the third quarter 2014, approximately 10% of total traffic in North America searched, with customers who searched spending significantly more than those who did not.
Rest of World: Rest of World billings grew 155% in the third quarter 2014, driven by Ticket Monster. As a result of the significant growth opportunities that exist for Ticket Monster, as well as for the Asian business more broadly, the company has hired financial advisers to evaluate a range of financing and strategic alternatives for those businesses that would, if pursued, unlock shareholder value.
Share Repurchase Program
During the third quarter 2014, Groupon repurchased 1,349,712 shares of its Class A common stock at an average price of $6.16 per share, for an aggregate purchase price of $8.3 million. Under the existing authorization, Groupon has repurchased a total of 26,087,004 shares at an average price of $7.30 per share, for an aggregate purchase price of $190.4 million. Groupon is authorized to repurchase up to an additional $109.6 million of Class A common stock under the August 2013 share repurchase authorization. The program, which is intended to partially offset dilution from employee stock grants, terminates in August 2015.
2014 Investor and Analyst Day
Groupon will be hosting its first Investor and Analyst Day on Tuesday, November 11, 2014 in Chicago. A live webcast of the event will be available on the company’s investor relations website at http://investor.groupon.com.
Outlook
Significant movement in foreign exchange rates, the Euro in particular, has led to an approximately $7 million negative impact on Groupon’s Adjusted EBITDA estimate since the company last provided full year guidance.
For the fourth quarter 2014, reflecting current foreign exchange rates, Groupon expects revenue of between $875 million and $925 million, Adjusted EBITDA of between $80 million and $100 million, and non-GAAP earnings per share excluding stock compensation, amortization of acquired intangible assets, and acquisition-related expenses, net of tax, of between $0.02 and $0.04.
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 earnings (loss) per share excluding stock-based compensation, amortization of acquired intangible assets, and acquisition-related expense (benefit), net. 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, beginning in the fourth quarter of 2013, also includes external transaction costs related to business combinations, primarily consisting of legal and advisory fees. External transaction costs were not material for periods prior to the fourth quarter of 2013 presented in this release and the accompanying tables. 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.
Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) 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.
Earnings (loss) per share excluding stock-based compensation, amortization of acquired intangible assets, and acquisition-related expense (benefit), net is a non-GAAP financial measure that adjusts our earnings (loss) per share to exclude the impact of stock-based compensation expense, amortization of acquired intangible assets, and acquisition-related expense (benefit), net, and the income tax effect of those items. We believe that this non-GAAP financial measure provides useful supplemental information for evaluating our operating performance.
We previously changed our non-GAAP earnings (loss) per share measure, effective beginning with the first quarter 2014, to exclude amortization of acquired intangible assets, net of tax, in addition to stock compensation and acquisition-related expenses, which we excluded historically. Due to our significant acquisition activity in January 2014 and potential acquisition activity in the future, we believe that excluding the impact of this item from our non-GAAP earnings (loss) per share measure enables more meaningful comparisons with our historical results.
Free cash flow is a non-GAAP financial measure that comprises net cash provided by (used in) operating activities less purchases of property and equipment and capitalized software. 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; responding to changes in the market; effectively dealing with challenges arising from our international operations; 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 against smaller competitors and competitors with more financial resources than us; maintaining favorable terms with our business partners; maintaining a strong brand; managing inventory and order fulfillment risks; integrating our technology platforms; managing refund risks; retaining our executive team; litigation; regulations, including the CARD Act and regulation of the Internet; tax liabilities; tax legislation; maintaining our information technology infrastructure; protecting our intellectual property; handling acquisitions, joint ventures and strategic investments effectively; seasonality; payment-related risks; customer and merchant fraud; global economic uncertainty; compliance with rules and regulations associated with being a public company; and our ability to raise capital if necessary. 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’sweb 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 October 30, 2014. 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, visitwww.Groupon.com. To download Groupon’s five-star 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)
Three Months Ended
Y/Y %
Nine Months Ended
Y/Y %
September 30,
Growth
September 30,
Growth
Y/Y %
excluding
Y/Y %
excluding
2014
2013
Growth
FX Effect (2)
FX (2)
2014
2013
Growth
FX Effect (2)
FX (2)
Gross Billings (1):
North America
$
774,286
$
664,999
16.4
%
$
(484
)
16.5
%
$
2,354,900
$
2,058,523
14.4
%
$
(1,995
)
14.5
%
EMEA
489,423
443,318
10.4
%
2,156
9.9
%
1,486,266
1,417,886
4.8
%
38,788
2.1
%
Rest of World
597,026
234,331
154.8
%
18,080
147.1
%
1,655,826
687,814
140.7
%
1,949
140.5
%
Consolidated gross billings
$
1,860,735
$
1,342,648
38.6
%
$
19,752
37.1
%
$
5,496,992
$
4,164,223
32.0
%
$
38,742
31.1
%
Revenue:
North America
$
418,494
$
360,838
16.0
%
$
(109
)
16.0
%
$
1,273,487
$
1,077,574
18.2
%
$
(601
)
18.2
%
EMEA
230,072
147,950
55.5
%
881
54.9
%
688,655
491,710
40.1
%
18,079
36.4
%
Rest of World
108,488
86,271
25.8
%
(430
)
26.3
%
304,125
235,924
28.9
%
(12,854
)
34.4
%
Consolidated revenue
$
757,054
$
595,059
27.2
%
$
342
27.2
%
$
2,266,267
$
1,805,208
25.5
%
$
4,624
25.3
%
(Loss) income from operations
$
(5,429
)
$
13,812
(139.3
)
%
$
(159
)
(138.2
)
%
$
(33,236
)
$
62,402
(153.3
)
%
$
2,325
(157.0
)
%
Net loss attributable to Groupon, Inc.
$
(21,208
)
$
(2,580
)
$
(81,878
)
$
(14,146
)
Net loss per share
Basic
$
(0.03
)
$
(0.00
)
$
(0.12
)
$
(0.02
)
Diluted
$
(0.03
)
$
(0.00
)
$
(0.12
)
$
(0.02
)
Weighted average number of shares outstanding
Basic
669,526,524
666,432,848
675,814,535
662,531,567
Diluted
669,526,524
666,432,848
675,814,535
662,531,567
(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 and nine months ended September 30, 2013.
Groupon, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2014
2013
2014
2013
Operating activities
Net loss
$
(19,018
)
$
(1,292
)
$
(75,303
)
$
(10,085
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization of property, equipment and software
26,317
17,816
71,476
49,186
Amortization of acquired intangible assets
11,829
5,333
36,068
16,131
Stock-based compensation
34,574
26,870
89,958
89,223
Deferred income taxes
(2,472
)
(659
)
(1,956
)
(1,225
)
Excess tax benefits on stock-based compensation
(2,641
)
(8,348
)
(12,573
)
(12,116
)
Loss on equity method investments
91
25
459
58
Net gain from changes in fair value of contingent consideration
(1,020
)
(1,529
)
(1,059
)
(2,276
)
Impairment of investments
1,448
-
2,036
-
Change in assets and liabilities, net of acquisitions:
Restricted cash
6,040
(3,348
)
6,961
(81
)
Accounts receivable
(2,002
)
11,940
(29,267
)
8,999
Prepaid expenses and other current assets
(26,499
)
(2,846
)
(32,397
)
13,146
Accounts payable
(3,811
)
(3,036
)
(8,964
)
(25,867
)
Accrued merchant and supplier payables
(19,274
)
(34,315
)
(61,219
)
(72,290
)
Accrued expenses and other current liabilities
9,790
(20,553
)
(27,091
)
(27,790
)
Other, net
32,114
2,037
44,873
15,144
Net cash provided by (used in) operating activities
45,466
(11,905
)
2,002
40,157
Net cash used in investing activities
(20,461
)
(26,444
)
(193,567
)
(72,985
)
Net cash used in financing activities
(16,823
)
(8,970
)
(173,068
)
(26,253
)
Effect of exchange rate changes on cash and cash equivalents
(21,102
)
5,165
(20,671
)
(10,351
)
Net decrease in cash and cash equivalents
(12,920
)
(42,154
)
(385,304
)
(69,432
)
Cash and cash equivalents, beginning of period
868,088
1,182,011
1,240,472
1,209,289
Cash and cash equivalents, end of period
$
855,168
$
1,139,857
$
855,168
$
1,139,857
Groupon, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2014
2013
2014
2013
Revenue:
Third party and other
$
399,803
$
394,987
$
1,232,173
$
1,252,966
Direct
357,251
200,072
1,034,094
552,242
Total revenue
757,054
595,059
2,266,267
1,805,208
Cost of revenue:
Third party and other
61,497
54,001
182,226
179,524
Direct
315,413
181,436
928,314
502,359
Total cost of revenue
376,910
235,437
1,110,540
681,883
Gross profit
380,144
359,622
1,155,727
1,123,325
Operating expenses:
Marketing
59,935
53,265
203,134
158,319
Selling, general and administrative
325,942
294,074
983,751
904,880
Acquisition-related (benefit) expense, net
(304
)
(1,529
)
2,078
(2,276
)
Total operating expenses
385,573
345,810
1,188,963
1,060,923
(Loss) income from operations
(5,429
)
13,812
(33,236
)
62,402
Other (expense) income, net (1)
(20,023
)
832
(21,886
)
(9,830
)
(Loss) income before (benefit) provision for income taxes
(25,452
)
14,644
(55,122
)
52,572
(Benefit) provision for income taxes
(6,434
)
15,936
20,181
62,657
Net loss
(19,018
)
(1,292
)
(75,303
)
(10,085
)
Net income attributable to noncontrolling interests
(2,190
)
(1,288
)
(6,575
)
(4,061
)
Net loss attributable to Groupon, Inc.
$
(21,208
)
$
(2,580
)
$
(81,878
)
$
(14,146
)
Net loss per share
Basic
$
(0.03
)
$
(0.00
)
$
(0.12
)
$
(0.02
)
Diluted
$
(0.03
)
$
(0.00
)
$
(0.12
)
$
(0.02
)
Weighted average number of shares outstanding
Basic
669,526,524
666,432,848
675,814,535
662,531,567
Diluted
669,526,524
666,432,848
675,814,535
662,531,567
(1) Other (expense) income, net includes foreign currency (losses) gains of ($18,638) and $326 for the three months endedSeptember 30, 2014 and 2013, respectively, and ($20,108) and ($11,156) for the nine months ended September 30, 2014 and 2013, respectively.
Groupon, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
September 30, 2014
December 31, 2013
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
855,168
$
1,240,472
Accounts receivable, net
124,598
83,673
Deferred income taxes
26,564
27,938
Prepaid expenses and other current assets
243,750
210,415
Total current assets
1,250,080
1,562,498
Property, equipment and software, net
170,534
134,423
Goodwill
441,290
220,827
Intangible assets, net
119,810
28,443
Investments
23,639
20,652
Deferred income taxes, non-current
44,709
35,941
Other non-current assets
22,103
39,226
Total Assets
$
2,072,165
$
2,042,010
Liabilities and Equity
Current liabilities:
Accounts payable
$
25,848
$
27,573
Accrued merchant and supplier payables
754,628
752,943
Accrued expenses
223,677
226,986
Deferred income taxes
44,787
47,558
Other current liabilities
134,116
132,718
Total current liabilities
1,183,056
1,187,778
Deferred income taxes, non-current
9,668
10,853
Other non-current liabilities
151,486
131,697
Total Liabilities
1,344,210
1,330,328
Commitments and contingencies
Stockholders’ Equity
Class A common stock, par value $0.0001 per share, 2,000,000,000 shares authorized, 694,272,530 shares issued and 668,185,526 shares outstanding atSeptember 30, 2014 and 670,149,976 shares issued and 665,717,176 shares outstanding at December 31, 2013
70
67
Class B common stock, par value $0.0001 per share, 10,000,000 shares authorized, 2,399,976 shares issued and outstanding at September 30, 2014 and December 31, 2013
-
-
Common stock, par value $0.0001 per share, 2,010,000,000 shares authorized, no shares issued and outstanding at September 30, 2014 and December 31, 2013
-
-
Additional paid-in capital
1,814,040
1,584,211
Treasury stock, at cost, 26,087,004 shares at September 30, 2014 and 4,432,800 shares at December 31, 2013
(190,355
)
(46,587
)
Accumulated deficit
(930,748
)
(848,870
)
Accumulated other comprehensive income
34,948
24,830
Total Groupon, Inc. Stockholders’ Equity
727,955
713,651
Noncontrolling interests
-
(1,969
)
Total Equity
727,955
711,682
Total Liabilities and Equity
$
2,072,165
$
2,042,010
Groupon, Inc.
Segment Information
(in thousands)
(unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2014
2013
2014
2013
North America
Gross billings (1)
$
774,286
$
664,999
$
2,354,900
$
2,058,523
Revenue
$
418,494
$
360,838
$
1,273,487
$
1,077,574
Segment cost of revenue and operating expenses (2)
405,910
335,670
1,234,973
962,532
Segment operating income (2)
$
12,584
$
25,168
$
38,514
$
115,042
Segment operating income as a percent of segment gross billings
1.6
%
3.8
%
1.6
%
5.6
%
Segment operating income as a percent of segment revenue
3.0
%
7.0
%
3.0
%
10.7
%
EMEA
Gross billings (1)
$
489,423
$
443,318
$
1,486,266
$
1,417,886
Revenue
$
230,072
$
147,950
$
688,655
$
491,710
Segment cost of revenue and operating expenses (2)
207,643
132,346
619,594
417,222
Segment operating income (2)
$
22,429
$
15,604
$
69,061
$
74,488
Segment operating income as a percent of segment gross billings
4.6
%
3.5
%
4.6
%
5.3
%
Segment operating income as a percent of segment revenue
9.7
%
10.5
%
10.0
%
15.1
%
Rest of World
Gross billings (1)
$
597,026
$
234,331
$
1,655,826
$
687,814
Revenue
$
108,488
$
86,271
$
304,125
$
235,924
Segment cost of revenue and operating expenses (2)
114,660
87,890
352,900
276,105
Segment operating loss (2)
$
(6,172
)
$
(1,619
)
$
(48,775
)
$
(40,181
)
Segment operating loss as a percent of segment gross billings
(1.0
)
%
(0.7
)
%
(2.9
)
%
(5.8
)
%
Segment operating loss as a percent of segment revenue
(5.7
)
%
(1.9
)
%
(16.0
)
%
(17.0
)
%
(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 and earnings per share excluding stock-based compensation, amortization of acquired intangible assets and acquisition-related (benefit) expense, net of tax, are non-GAAP financial measures. The Company reconciles Adjusted EBITDA to the most comparable U.S. GAAP financial measure, ”Net loss,” for the periods presented and the Company reconciles earnings per share excluding stock-based compensation, amortization of acquired intangible assets and acquisition-related (benefit) expense, net to the most comparable U.S. GAAP financial measure, ”Diluted net 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.”
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