August 22, 2017

Groupon Ammended SEC Filing Download Here

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Accounting Irregularities, or Creative Accounting may be the way to best describe what Groupon had originally highlighted in regulatory filings something it calls “adjusted consolidated segment operating income,” or adjusted CSOI. This Creative Accounting strategy may have been used to intentionally draw Investors and analysts attention away from the fact that the company is hemorrhaging money.

Margo Georgiadis-GrouponThen in a sudden turn around Friday, Groupon said, after discussions with the Securities and Exchange Commission, it would change what it books as revenue, and will now only count as revenue its commission on sales, rather than the total value of an online coupon.

Up to now, when it sold a gift certificate for a business for $50, for example, it would book the full amount as revenue, without an offsetting entry for the percentage that went to the business owner. Oops, they forgot to track their expenses. Surely it must be merely an oversight?

This changes Groupon’s stated revenue for 2010 to a more realistic $312.9 million, down from the $713.4 million, as they previously reported. This is a major drop ( roughly 50%) in revenue, and will effect the overall value of the company.

Download A Copy of the latest Groupon SEC filing here > >
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In the meantime, amidst this accounting debacle, chief operating officer Margo Georgiadis, is returning to Google where she served as vice president of global sales operations, after just 5 months on the job.¬† Groupon said on its official blog on Friday that Ms. Georgiadis was leaving the company to take a job as president of Google’s Americas business. Groupon Chief Executive Officer Andrew Mason wrote in the blog posting, “This change won’t have an impact on operations.”

Georgiadis will assume the job which is currently held by Dennis Woodside at Google,to oversee the integration of Motorola Mobility Holdings, which Google is in the process of acquiring for $12.5 billion, and awaiting regulatory approval.

rob-solomonIt’s been a revolving door for COO at Groupon, back in March, former Yahoo executive, President and COO Rob Solomon left suddenly for mysterious reasons.

So, what does this all mean for the future of Groupon. Well, as hungry investors are salivating for this IPO, it shouldn’t make a lot of difference in the scheme of things (in our humble opinion). Groupon is still the king of the Daily Deal sites, and the business model, which they pioneered, has proven to be a winner.

There’s no doubt that a Groupon IPO will Rock the Market much like LinkedIn, and probably surpass it. Go figure…

Download A Copy of the latest Groupon SEC filing here > >
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS