Groupon has abandoned a controversial accounting measure in a revised prospectus for its initial public offering filed on Wednesday, and. In an unusual letter from CEO Andrew Mason that kicks off the IPO filing, he says Groupon is focused on growth, and measures its success by. Groupon is out with the fourth update to its IPO prospectus.
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The growth and expansion of our business and service offerings places significant demands on our management and our operational and financial resources. A variety of federal, state and international laws and regulations govern the collection, use, retention, sharing and security of consumer data.
Groupon IPO: It’s Here!
If we were found to be in violation of applicable laws or regulations, we could be subject to civil and criminal penalties or forced to cease our payments services business. Unfavorable publicity or consumer perception of our websites, applications, practices prodpectus service offerings, or the offerings of our merchants, could adversely affect our reputation, resulting in difficulties in recruiting, decreased revenue and a negative impact on the number of merchants we feature and the size of our subscriber base, the loyalty of our subscribers and the number and variety of deals we offer each day.
As soon as practicable after this Registration Statement becomes effective. If products or services we introduce, such as changes to our websites and applications, the introduction of social networking and location-based marketing elements to our websites, or entirely new lines of business that we may pursue, fail to engage subscribers or merchants, we may fail to acquire or retain subscribers or generate sufficient revenue or other value to justify our investment, and our business may be materially and adversely affected.
Customer experience and relevance of deals. We do not remit any amounts relating to unredeemed Groupons based on our assessment of applicable laws. For example, recently there have been Congressional hearings and increased attention to the capture and use of location-based information relating to users of smartphones and other mobile devices.
The current economic environment continues ipp be uncertain.
If we are unable to finance our operations on acceptable terms as a result of renewed tightening in the credit markets, we may experience increased costs or we may not be able to effectively manage our business.
Our failure to apply these proceeds effectively could cause our business to suffer. We consider Adjusted CSOI to be an important measure of the performance of our business as it excludes expenses that are non-cash or otherwise not indicative of future operating expenses.
We believe that our prospetus revenue growth will depend, among other factors, on our ability to: The decrease in gross margin was primarily due to the mix of offered deals. The model was built around ioo limitations: Currently, when a merchant partners with us to offer a deal for its products or services, it receives an agreed upon percentage of the revenue from each Groupon sold, and we retain the rest.
Credit card processing fees have also increased consistent with revenue, as this cost is generally variable based on the dollar volume of transactions that are processed.
Such investments may be in areas that present conflicts with, or involve businesses related prospectjs, our operations. We expect that the market will evolve in ways which may be difficult to predict.
We measure our business with several financial metrics.
Groupon adds 11 underwriters, new risk warning | Reuters
In Maywe commenced our operations internationally with the purchase of CityDeal, a European-based local e-commerce business similar to ours, which operated in 80 markets in 16 countries with 1. Consolidated Statements of Operations Data: Our total number of subscribers may be higher than the prosepctus of our actual subscribers because some subscribers have multiple registrations, other subscribers have died or become incapacitated and others may have registered under fictitious names.
Such financing may not be available on acceptable terms, or at all, and our failure to raise capital when needed could harm our business. Online marketing expense primarily represents the cost to acquire new subscribers and is determined by the amount of subscriber growth we wish to pursue. We refer to this as our subscriber economics. We expect the percentage of total revenue derived from outside North America to increase in future periods as we continue to expand globally.
We cannot predict the effect of current attempts to impose sales, income or other taxes on commerce over the internet.
Our total number prosectus subscribers may be higher than the number of our actual subscribers and may not be representative of the number of persons prospecus are active prospctus customers.
Groupon IPO Filing Includes Entire E-mail From CEO – Deal Journal – WSJ
The loss of one or more key members of our management team, or our failure to attract, integrate and retain other highly qualified personnel in the future, could harm our business. The high cost of autism. We cannot assure you that the revenue or gross profit from subscribers we acquire will ultimately exceed the cost of acquiring new subscribers. If our efforts to market, advertise and promote products and services from our existing merchants are not successful, or if our existing merchants do not believe that utilizing our services provides them with a long-term increase in customers, revenues or profits, we may not be able to retain or attract merchants in sufficient numbers to grow our business or we may be required to incur significantly higher marketing expenses or accept lower margins in order to attract new merchants.
In order to expand our subscriber base, we must appeal to and acquire subscribers who historically have used traditional means of commerce to purchase goods and services and may prefer internet analogues to our offerings, such as the retailer’s own website. In addition, increasing numbers of users, increasing bandwidth requirements or problems caused by viruses, worms, malware and similar programs may harm the performance of the internet. If these consumers prove to be less active than our earlier subscribers, or we are unable to gain efficiencies in our operating costs, including our cost of acquiring new subscribers, our business could be adversely impacted.
In addition, certain of our executives have limited experience managing a large global business operation. Accordingly, certain key personnel have only recently assumed the duties and responsibilities they are now performing.
Groupon IPO Filing Includes Entire E-mail From CEO
By January prosspectus, its popularity soaring, we had fully shifted our attention to Groupon. We ended the year with operations in 38 countries. Our business, like that of our merchants, may be grokpon to some degree of sales seasonality. In many countries, we compete with local companies that understand the local market better than we do, and we may not benefit from first-to-market advantages. In addition to the direct costs of such losses, if they are related to credit prospecths transactions and become excessive, they could potentially result in our losing the right to accept credit cards for payment.
We expect competition in e-commerce generally, and group buying in particular, to continue to increase because there are no significant barriers to entry.
Our international business has become critical to our revenue growth and our ability to achieve profitability. Our use of Adjusted CSOI has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP.
For investors outside the United States: Maintaining and enhancing our brand will depend largely on our ability to be a group buying leader and to continue to provide reliable, trustworthy and high quality deals, which we may not do successfully.