[February 14, 2018] |
|
Groupon Announces Fourth Quarter and Fiscal Year 2017 Results
Groupon, Inc. (NASDAQ: GRPN) today announced financial results for the
quarter and fiscal year ended December 31, 2017.
"In 2017, we made progress in creating a better customer experience that
removed friction for our customers while also maximizing gross profit,"
said CEO Rich Williams. "We are excited to build on this success in
2018, combining our growing mobile penetration and platform power to
ultimately become the daily habit in local commerce for customers and
merchants."
Fourth Quarter 2017 Summary
North America
-
North America gross profit in the fourth quarter 2017 increased 6% to
$265.0 million from $250.8 million in the fourth quarter 2016. In
Local, gross profit increased 6% to $196.7 million driven by continued
benefits from our marketing investment and larger customer base. Goods
gross profit increased 8% to $54.7 million driven by solid performance
during the holiday season. Gross Profit in Travel was $13.6 million
versus $15.1 million in the fourth quarter 2016.
-
During the quarter we continued to make improvements to the customer
experience by investing in our voucherless initiatives. We now have
approximately 2.7 million cards linked in Groupon+, one of our leading
voucherless initiatives, and continue to deepen supply in our more
than 25 Groupon+ markets.
-
North America active customers reached 32.7 million as of December 31,
2017, reflecting the addition of 200 thousand net new active customers
during the fourth quarter 2017. Active customers represent unique user
accounts that have made a purchase during the trailing twelve months
either through one of our online marketplaces or directly with a
merchant for which we earned a commission.
International
-
International gross profit increased 21% (12% FX-neutral) in the
fourth quarter 2017 to $121.9 million. Gross profit increased 19% (11%
FX-neutral) in Local, 33% (22% FX-neutral) in Goods, and 2% (5%
FX-neutral decline) in Travel. We continue to focus on execution of
our product, supply, and marketing initiatives, and these initiatives
contributed to our positive fourth quarter results in International.
-
International active customers increased by 200 thousand net new
active customers during the fourth quarter 2017 to 16.8 million as of
December 31, 2017.
Consolidated
-
Gross billings were $1.58 billion in the fourth quarter 2017, down 2%
(4% FX-neutral) from $1.61 billion in the fourth quarter 2016. Gross
billings reflect the total dollar value of customer purchases of goods
and services.
-
Revenue was $873.2 million in the fourth quarter 2017, down 4% (6%
FX-neutral) from $904.9 million in the fourth quarter 2016 reflecting
our continued focus on maximizing gross profit, including the shift
toward offerings in our higher margin, more differentiated Local
category, from our Goods category. These strategic actions are
expected to continue to create a headwind for revenue.
-
Gross profit was $386.9 million in the fourth quarter 2017, up 10% (8%
FX-neutral) from $351.9 million in the fourth quarter 2016.
-
SG&A declined 6% year-over-year to $224.7 million in the fourth
quarter 2017 as we continue to realize operating leverage from our
previously completed restructuring actions.
-
Marketing expense was $112.5 million in the fourth quarter 2017, up
24% year-over-year. We generated strong results from our offline
marketing including our campaigns focused on the holiday season and
Groupon local merchants, which aired in the fourth quarter.
-
Net income from continuing operations was $51.1 million in the fourth
quarter 2017. This compares to a net loss of $39.5 million in the
fourth quarter 2016.
-
Net income attributable to common stockholders was $47.7 million, or
$0.08 per diluted share. Non-GAAP net income attributable to common
stockholders was $42.7 million, or $0.07 per diluted share.
-
Adjusted EBITDA, a non-GAAP financial measure, was $105.3 million in
the fourth quarter 2017, up 31% from $80.2 million in the fourth
quarter 2016. This result is the highest quarterly Adjusted EBITDA in
our history and was driven by our focus on optimizing gross profit
combined with operating leverage from previously implemented
streamlining initiatives.
-
Global units sold declined 6% year-over-year to 54.6 million in the
fourth quarter 2017, as we leveraged demand on our site and mobile app
to maximize gross profit, which in some instances resulted in fewer
units. Units in North America were down 7% with a significant portion
of that decline due to the divestiture of certain OrderUp assets and
investments in scaling Groupon+. Units are defined as purchases before
refunds and cancellations made either through one of our online
marketplaces or directly with a merchant for which we earned a
commission.
-
Operating cash flow was $270.6 million in the fourth quarter 2017.
Free cash flow, a non-GAAP financial measure, was $255.1 million in
the fourth quarter 2017.
-
Cash and cash equivalents as of December 31, 2017 were $880.1 million,
and we had no outstanding borrowings under our $250.0 million
revolving credit facility.
Full Year 2017 Summary
-
Gross Billings were $5.65 billion in 2017, down 1% compared with $5.69
billion in 2016.
-
Revenue was $2.84 billion in 2017, down 6% compared with $3.01 billion
in 2016.
-
Gross profit was $1.33 billion in 2017, up 4% compared with $1.28
billion in 2016.
-
Net income from continuing operations was $28.6 million in 2017,
compared with a net loss of $166.2 million in 2016.
-
Net income attributable to common stockholders was $14.0 million, or
$0.02 per diluted share. Non-GAAP net income attributable to common
stockholders was $70.0 million, or $0.11 per diluted share.
-
Adjusted EBITDA was $249.9 million in 2017, up 39% compared with
$179.9 million in 2016.
-
Global units sold declined 3% year-over-year to 188.9 million in 2017.
-
Operating cash flow for 2017 was $137.5 million. Free cash flow, a
non-GAAP financial measure, was $78.3 million in 2017.
-
In 2017, we repurchased 16,906,334 shares of our common stock for an
aggregate purchase price of approximately $60.0 million. Up to $135.2
million of common stock remains available for repurchase under
Groupon's share repurchase program as of December 31, 2017. The timing
and amount of share repurchases, if any, will be determined based on
market conditions, limitations under our Amended and Restated Credit
Agreement, share price and other factors, and the program may be
terminated at any time.
Definitions and reconciliations of all non-GAAP financial measures and
additional information regarding operational measures are included below
in the section titled "Non-GAAP Financial and Operational Measures" and
in the accompanying tables.
Outlook
Groupon is providing its outlook for 2018, which reflects current
foreign exchange rates, as well as expected marketing investments and
cost benefits associated with our streamlining initiatives. For the full
year 2018, Groupon expects Adjusted EBITDA to be between $260 million
and $270 million.
Conference Call
A conference call will be webcast live today at 9:00 a.m. CST / 10:00
a.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 and Operational Measures
In addition to financial results reported in accordance with U.S. GAAP,
we have provided the following non-GAAP financial measures: Adjusted
EBITDA, non-GAAP net income (loss) attributable to common stockholders,
non-GAAP earnings (loss) per share, free cash flow and foreign currency
exchange rate neutral operating results. These non-GAAP financial
measures, which are presented on a continuing operations basis, are
intended to aid investors in better understanding our current financial
performance and 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, these
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: gains and losses related to minority
investments, foreign currency gains and losses, interest income and
interest expense, including non-cash interest expense from our
convertible senior notes. 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.
Special Charges and Credits. For the year ended December 31,
2017, special charges and credits included charges related to our
restructuring plan and a gain from the sale of intangible assets. For
the years ended December 31, 2016 and 2015, special charges and credits
included gains from business dispositions and charges related to our
restructuring plan. For the year ended December 31, 2015, special
charges and credits also included the write-off of a prepaid asset
related to a marketing program that was discontinued because the
counterparty ceased operations and the expense related to a significant
increase in the contingent liability for a securities litigation matter
that has subsequently been settled. We exclude special charges and
credits from Adjusted EBITDA because we believe that excluding those
items provides meaningful supplemental information about our core
operating performance and facilitates comparisons with our historical
results.
Non-GAAP Provision (Benefit) for Income Taxes. Non-GAAP provision
(benefit) for income taxes reflects our current and deferred tax
provision computed based on non-GAAP income from continuing operations
before provision (benefit) for income taxes.
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 current
period operating results as if foreign currency exchange rates had
remained the same as those in effect in the prior year period. These
measures are intended to facilitate comparisons to our historical
performance.
Adjusted EBITDA is a non-GAAP performance 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 special charges and credits, including 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 for 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. However, Adjusted
EBITDA is not intended to be a substitute for income (loss) from
continuing operations.
Non-GAAP income from continuing operations before provision (benefit)
for income taxes, non-GAAP net income attributable to common stockholders and
non-GAAP earnings per diluted share are non-GAAP performance
measures that adjust our net income attributable to common stockholders
and earnings per share to exclude the impact of:
-
stock-based compensation,
-
amortization of acquired intangible assets,
-
acquisition-related expense (benefit), net,
-
special charges and credits, including restructuring charges,
-
non-cash interest expense on convertible senior notes,
-
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,
-
non-operating gains and losses from the sale of minority investments,
and
-
income (loss) from discontinued operations.
We believe that excluding the above items from our measures of non-GAAP
income from continuing operations before provision (benefit) from income
taxes, non-GAAP net income attributable to common stockholders and
non-GAAP earnings per diluted 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 liquidity measure that comprises net
cash provided by 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 continuing
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 our cash balance for the
applicable period.
Active customers. We have historically defined active customers
as unique user accounts that have made a purchase through one of our
online marketplaces during the trailing twelve months ("TTM"). As a
result of our ongoing development and testing of voucherless offerings
that are linked to customer credit cards, we have updated our definition
of active customers as follows: unique user accounts that have made a
purchase during the TTM either through one of our online marketplaces or
directly with a merchant for which we earned a commission. This change
in definition did not have a significant impact on our active customer
count for the TTM ended December 31, 2017. We consider this metric to be
an important indicator of our business performance as it helps us to
understand how the number of customers actively purchasing our offerings
is trending. Some customers could establish and make purchases from more
than one account, so it is possible that our active customer metric may
count certain customers more than once in a given period. For entities
that we have acquired in a business combination, this metric includes
active customers of the acquired entity, including customers who made
purchases prior to the acquisition.
Units. This metric has historically represented the number of
purchases made through our online marketplaces, before refunds and
cancellations. As a result of our ongoing development and testing of
voucherless offerings that are linked to customer credit cards, we have
updated our definition of units as follows: purchases during the
reporting period, before refunds and cancellations, made either through
one of our online marketplaces or directly with a merchant for which we
earned a commission. This change in definition did not have a
significant impact on our unit count for the year ended December 31,
2017. We consider unit growth to be an important indicator of the total
volume of business conducted through our marketplaces.
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, including statements regarding our
future results of operations and financial position, business strategy
and plans and our objectives for future operations. The words "may,"
"will," "should," "could," "expect," "anticipate," "believe,"
"estimate," "intend," "continue" and other similar expressions are
intended to identify forward-looking statements. We have based these
forward looking statements largely on current expectations and
projections about future events and financial trends that we believe may
affect our financial condition, results of operations, business
strategy, short-term and long-term business operations and objectives,
and financial needs. These forward-looking statements involve risks and
uncertainties that could cause our actual results to differ materially
from those expressed or implied in our forward-looking statements. Such
risks and uncertainties include, but are not limited to, risk related to
volatility in our operating results; execution of our business and
marketing strategies; retaining existing customers and adding new
customers; challenges arising from our international operations,
including fluctuations in currency exchange rates, legal and regulatory
developments and any potential adverse impact from the United Kingdom's
likely exit from the European Union; retaining and adding high quality
merchants; our voucherless offerings; cybersecurity breaches; competing
successfully in our industry; changes to merchant payment terms;
providing a strong mobile experience for our customers; maintaining our
information technology infrastructure; delivery and routing of our
emails; claims related to product and service offerings; managing
inventory and order fulfillment risks; litigation; managing refund
risks; retaining and attracting members of our executive team;
completing and realizing the anticipated benefits from acquisitions,
dispositions, joint ventures and strategic investments; lack of control
over minority investments; tax liabilities; tax legislation; compliance
with domestic and foreign laws and regulations, including the CARD Act,
GDPR and regulation of the Internet and e-commerce; classification of
our independent contractors; protecting our intellectual property;
maintaining a strong brand; customer and merchant fraud; payment-related
risks; our ability to raise capital if necessary and our outstanding
indebtedness; global economic uncertainty; our common stock, including
volatility in our stock price; our senior convertible notes; our ability
to realize the anticipated benefits from the hedge and warrant
transactions. 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 year ended December 31, 2017, 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 14, 2018. 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 building the daily habit in local commerce,
offering a vast mobile and online marketplace where people discover and
save on amazing things to do, eat, see and buy. By enabling real-time
commerce across local businesses, travel destinations, consumer products
and live events, shoppers can find the best a city has to offer.
Groupon is redefining how small businesses attract and retain customers
by providing them with customizable and scalable marketing tools and
services to profitably grow their businesses.
To download Groupon's top-rated mobile apps, visit www.groupon.com/mobile.
To search for great deals or subscribe to Groupon emails, visit www.groupon.com.
To learn more about the company's merchant solutions and how to work
with Groupon, visit www.groupon.com/merchant.
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Groupon, Inc.
|
Condensed Consolidated Balance Sheets
|
(in thousands, except share and per share amounts)
|
|
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|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
880,129
|
|
|
|
$
|
862,977
|
|
Accounts receivable, net
|
|
|
|
98,294
|
|
|
|
|
71,272
|
|
Prepaid expenses and other current assets
|
|
|
|
94,025
|
|
|
|
|
94,441
|
|
Current assets of discontinued operations
|
|
|
|
-
|
|
|
|
|
63,246
|
|
Total current assets
|
|
|
|
1,072,448
|
|
|
|
|
1,091,936
|
|
Property, equipment and software, net
|
|
|
|
151,145
|
|
|
|
|
169,452
|
|
Goodwill
|
|
|
|
286,989
|
|
|
|
|
274,551
|
|
Intangible assets, net
|
|
|
|
19,196
|
|
|
|
|
42,915
|
|
Investments (including $109,751 and $110,066 at December 31, 2017
and December 31, 2016, respectively, at fair value)
|
|
|
|
135,189
|
|
|
|
|
141,882
|
|
Other non-current assets
|
|
|
|
12,538
|
|
|
|
|
28,635
|
|
Non-current assets of discontinued operations
|
|
|
|
-
|
|
|
|
|
12,006
|
|
Total Assets
|
|
|
$
|
1,677,505
|
|
|
|
$
|
1,761,377
|
|
Liabilities and Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
31,968
|
|
|
|
$
|
28,551
|
|
Accrued merchant and supplier payables
|
|
|
|
770,335
|
|
|
|
|
770,992
|
|
Accrued expenses and other current liabilities
|
|
|
|
331,196
|
|
|
|
|
366,456
|
|
Current liabilities held of discontinued operations
|
|
|
|
-
|
|
|
|
|
47,052
|
|
Total current liabilities
|
|
|
|
1,133,499
|
|
|
|
|
1,213,051
|
|
Convertible senior notes, net
|
|
|
|
189,753
|
|
|
|
|
178,995
|
|
Other non-current liabilities
|
|
|
|
102,408
|
|
|
|
|
101,342
|
|
Non-current liabilities of discontinued operations
|
|
|
|
-
|
|
|
|
|
2,927
|
|
Total Liabilities
|
|
|
|
1,425,660
|
|
|
|
|
1,496,315
|
|
Commitments and contingencies
|
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|
|
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Stockholders' Equity
|
|
|
|
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Common stock, par value $0.0001 per share, 2,010,000,000 shares
authorized; 748,541,862 shares issued and 559,939,620 shares
outstanding at December 31, 2017; 736,531,771 shares issued and
564,835,863 shares outstanding at December 31, 2016
|
|
|
|
75
|
|
|
|
|
74
|
|
Additional paid-in capital
|
|
|
|
2,174,708
|
|
|
|
|
2,112,728
|
|
Treasury stock, at cost, 188,602,242 shares at December 31, 2017 and
171,695,908 shares at December 31, 2016
|
|
|
|
(867,450
|
)
|
|
|
|
(807,424
|
)
|
Accumulated deficit
|
|
|
|
(1,088,204
|
)
|
|
|
|
(1,099,010
|
)
|
Accumulated other comprehensive income (loss)
|
|
|
|
31,844
|
|
|
|
|
58,052
|
|
Total Groupon, Inc. Stockholders' Equity
|
|
|
|
250,973
|
|
|
|
|
264,420
|
|
Noncontrolling interests
|
|
|
|
872
|
|
|
|
|
642
|
|
Total Equity
|
|
|
|
251,845
|
|
|
|
|
265,062
|
|
Total Liabilities and Equity
|
|
|
$
|
1,677,505
|
|
|
|
$
|
1,761,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
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Groupon, Inc.
|
|
|
Condensed Consolidated Statements of Operations
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|
|
(in thousands, except share and per share amounts)
|
|
|
(unaudited)
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|
|
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|
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|
|
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|
Three Months Ended December 31,
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Year Ended December 31,
|
|
|
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|
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2017
|
|
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2016
|
|
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2017
|
|
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2016
|
|
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Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third-party and other
|
|
|
$
|
346,568
|
|
|
|
$
|
318,427
|
|
|
|
$
|
1,266,452
|
|
|
|
$
|
1,206,441
|
|
|
|
Direct
|
|
|
|
526,598
|
|
|
|
|
586,438
|
|
|
|
|
1,577,425
|
|
|
|
|
1,807,174
|
|
|
|
Total revenue
|
|
|
|
873,166
|
|
|
|
|
904,865
|
|
|
|
|
2,843,877
|
|
|
|
|
3,013,615
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third-party and other
|
|
|
|
37,601
|
|
|
|
|
36,025
|
|
|
|
|
160,810
|
|
|
|
|
150,031
|
|
|
|
Direct
|
|
|
|
448,647
|
|
|
|
|
516,934
|
|
|
|
|
1,349,206
|
|
|
|
|
1,582,931
|
|
|
|
Total cost of revenue
|
|
|
|
486,248
|
|
|
|
|
552,959
|
|
|
|
|
1,510,016
|
|
|
|
|
1,732,962
|
|
|
|
Gross profit
|
|
|
|
386,918
|
|
|
|
|
351,906
|
|
|
|
|
1,333,861
|
|
|
|
|
1,280,653
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing
|
|
|
|
112,462
|
|
|
|
|
90,952
|
|
|
|
|
400,918
|
|
|
|
|
352,175
|
|
|
|
Selling, general and administrative
|
|
|
|
224,720
|
|
|
|
|
238,046
|
|
|
|
|
901,781
|
|
|
|
|
994,027
|
|
|
|
Restructuring charges
|
|
|
|
10
|
|
|
|
|
12,060
|
|
|
|
|
18,828
|
|
|
|
|
40,438
|
|
|
|
Gain on sale of intangible assets
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(17,149
|
)
|
|
|
|
-
|
|
|
|
Gains on business dispositions
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(11,399
|
)
|
|
|
Acquisition-related expense (benefit), net
|
|
|
|
-
|
|
|
|
|
1,345
|
|
|
|
|
48
|
|
|
|
|
5,650
|
|
|
|
Total operating expenses
|
|
|
|
337,192
|
|
|
|
|
342,403
|
|
|
|
|
1,304,426
|
|
|
|
|
1,380,891
|
|
|
|
Income (loss) from operations
|
|
|
|
49,726
|
|
|
|
|
9,503
|
|
|
|
|
29,435
|
|
|
|
|
(100,238
|
)
|
|
|
Other income (expense), net
|
|
|
|
(2,112
|
)
|
|
|
|
(54,737
|
)
|
|
|
|
6,710
|
|
|
|
|
(71,289
|
)
|
|
|
Income (loss) from continuing operations before provision
(benefit) for income taxes
|
|
|
|
47,614
|
|
|
|
|
(45,234
|
)
|
|
|
|
36,145
|
|
|
|
|
(171,527
|
)
|
|
|
Provision (benefit) for income taxes
|
|
|
|
(3,457
|
)
|
|
|
|
(5,779
|
)
|
|
|
|
7,544
|
|
|
|
|
(5,318
|
)
|
|
|
Income (loss) from continuing operations
|
|
|
|
51,071
|
|
|
|
|
(39,455
|
)
|
|
|
|
28,601
|
|
|
|
|
(166,209
|
)
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
|
(223
|
)
|
|
|
|
(10,749
|
)
|
|
|
|
(1,974
|
)
|
|
|
|
(17,114
|
)
|
|
|
Net income (loss)
|
|
|
|
50,848
|
|
|
|
|
(50,204
|
)
|
|
|
|
26,627
|
|
|
|
|
(183,323
|
)
|
|
|
Net income (loss) attributable to noncontrolling interests
|
|
|
|
(3,127
|
)
|
|
|
|
(2,384
|
)
|
|
|
|
(12,587
|
)
|
|
|
|
(11,264
|
)
|
|
|
Net income (loss) attributable to Groupon, Inc.
|
|
|
$
|
47,721
|
|
|
|
$
|
(52,588
|
)
|
|
|
$
|
14,040
|
|
|
|
$
|
(194,587
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.09
|
|
|
|
$
|
(0.07
|
)
|
|
|
$
|
0.03
|
|
|
|
$
|
(0.31
|
)
|
|
|
Discontinued operations
|
|
|
|
(0.00
|
)
|
|
|
|
(0.02
|
)
|
|
|
|
(0.00
|
)
|
|
|
|
(0.03
|
)
|
|
|
Basic net income (loss) per share
|
|
|
$
|
0.09
|
|
|
|
$
|
(0.09
|
)
|
|
|
$
|
0.03
|
|
|
|
$
|
(0.34
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per share (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.08
|
|
|
|
$
|
(0.07
|
)
|
|
|
$
|
0.03
|
|
|
|
$
|
(0.31
|
)
|
|
|
Discontinued operations
|
|
|
|
(0.00
|
)
|
|
|
|
(0.02
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
(0.03
|
)
|
|
|
Diluted net income (loss) per share
|
|
|
$
|
0.08
|
|
|
|
$
|
(0.09
|
)
|
|
|
$
|
0.02
|
|
|
|
$
|
(0.34
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
558,170,245
|
|
|
|
|
570,546,159
|
|
|
|
|
559,367,075
|
|
|
|
|
576,354,258
|
|
|
|
Diluted
|
|
|
|
570,734,081
|
|
|
|
|
570,546,159
|
|
|
|
|
568,418,371
|
|
|
|
|
576,354,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The structure of the Company's common stock changed during the year
ended December 31, 2016. For additional information, refer to Note
11, Stockholders' Equity, and Note 17, Income (Loss) per
Share, in the Company's Annual Report on Form 10-K for
the year ended December 31, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Groupon, Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
50,848
|
|
|
|
$
|
(50,204
|
)
|
|
|
$
|
26,627
|
|
|
|
$
|
(183,323
|
)
|
Less: Income (loss) from discontinued operations, net of tax
|
|
|
|
(223
|
)
|
|
|
|
(10,749
|
)
|
|
|
|
(1,974
|
)
|
|
|
|
(17,114
|
)
|
Income (loss) from continuing operations
|
|
|
|
51,071
|
|
|
|
|
(39,455
|
)
|
|
|
|
28,601
|
|
|
|
|
(166,209
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of property, equipment and software
|
|
|
|
28,440
|
|
|
|
|
29,376
|
|
|
|
|
114,795
|
|
|
|
|
116,961
|
|
Amortization of acquired intangible assets
|
|
|
|
5,410
|
|
|
|
|
5,305
|
|
|
|
|
23,032
|
|
|
|
|
18,948
|
|
Stock-based compensation
|
|
|
|
21,726
|
|
|
|
|
22,763
|
|
|
|
|
82,044
|
|
|
|
|
115,123
|
|
Restructuring-related long-lived asset impairments
|
|
|
|
-
|
|
|
|
|
283
|
|
|
|
|
-
|
|
|
|
|
328
|
|
Gains on business dispositions
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(11,399
|
)
|
Gain on sale of intangible assets
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(17,149
|
)
|
|
|
|
-
|
|
Gain on sale of investment
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(7,624
|
)
|
|
|
|
-
|
|
Impairment of investment
|
|
|
|
2,944
|
|
|
|
|
-
|
|
|
|
|
2,944
|
|
|
|
|
-
|
|
Deferred income taxes
|
|
|
|
(242
|
)
|
|
|
|
(3,980
|
)
|
|
|
|
603
|
|
|
|
|
(10,448
|
)
|
(Gain) loss, net from changes in fair value of contingent
consideration
|
|
|
|
-
|
|
|
|
|
(38
|
)
|
|
|
|
48
|
|
|
|
|
4,092
|
|
(Gain) loss from changes in fair value of investments
|
|
|
|
(5,482
|
)
|
|
|
|
40,840
|
|
|
|
|
(382
|
)
|
|
|
|
48,141
|
|
Amortization of debt discount on convertible senior notes
|
|
|
|
2,794
|
|
|
|
|
2,522
|
|
|
|
|
10,758
|
|
|
|
|
7,376
|
|
Change in assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
|
4,315
|
|
|
|
|
(985
|
)
|
|
|
|
6,952
|
|
|
|
|
(1,317
|
)
|
Accounts receivable
|
|
|
|
(19,580
|
)
|
|
|
|
(14,124
|
)
|
|
|
|
(18,793
|
)
|
|
|
|
(16,584
|
)
|
Prepaid expenses and other current assets
|
|
|
|
7,188
|
|
|
|
|
26,748
|
|
|
|
|
4,074
|
|
|
|
|
35,043
|
|
Accounts payable
|
|
|
|
5,417
|
|
|
|
|
7,731
|
|
|
|
|
(199
|
)
|
|
|
|
5,121
|
|
Accrued merchant and supplier payables
|
|
|
|
168,013
|
|
|
|
|
195,673
|
|
|
|
|
(29,823
|
)
|
|
|
|
26,729
|
|
Accrued expenses and other current liabilities
|
|
|
|
(965
|
)
|
|
|
|
16,199
|
|
|
|
|
(40,361
|
)
|
|
|
|
(32,124
|
)
|
Other, net
|
|
|
|
(485
|
)
|
|
|
|
5,735
|
|
|
|
|
(22,023
|
)
|
|
|
|
(10,853
|
)
|
Net cash provided by (used in) operating activities from continuing
operations
|
|
|
|
270,564
|
|
|
|
|
294,593
|
|
|
|
|
137,497
|
|
|
|
|
128,928
|
|
Net cash provided by (used in) operating activities from
discontinued operations
|
|
|
|
(223
|
)
|
|
|
|
(5,931
|
)
|
|
|
|
(2,418
|
)
|
|
|
|
(11,823
|
)
|
Net cash provided by (used in) operating activities
|
|
|
|
270,341
|
|
|
|
|
288,662
|
|
|
|
|
135,079
|
|
|
|
|
117,105
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment and capitalized software
|
|
|
|
(15,442
|
)
|
|
|
|
(19,254
|
)
|
|
|
|
(59,158
|
)
|
|
|
|
(68,287
|
)
|
Cash derecognized upon dispositions of subsidiaries
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(1,128
|
)
|
Acquisitions of businesses, net of acquired cash
|
|
|
|
-
|
|
|
|
|
15,479
|
|
|
|
|
-
|
|
|
|
|
14,539
|
|
Proceeds from sale of intangible assets
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
18,333
|
|
|
|
|
-
|
|
Proceeds from sales and maturities of investments
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
16,561
|
|
|
|
|
1,685
|
|
Acquisitions of intangible assets and other investing activities
|
|
|
|
(309
|
)
|
|
|
|
(274
|
)
|
|
|
|
(1,059
|
)
|
|
|
|
(2,395
|
)
|
Net cash provided by (used in) investing activities from continuing
operations
|
|
|
|
(15,751
|
)
|
|
|
|
(4,049
|
)
|
|
|
|
(25,323
|
)
|
|
|
|
(55,586
|
)
|
Net cash provided by (used in) investing activities from
discontinued operations
|
|
|
|
-
|
|
|
|
|
(1,718
|
)
|
|
|
|
(9,548
|
)
|
|
|
|
(1,900
|
)
|
Net cash provided by (used in) investing activities
|
|
|
|
(15,751
|
)
|
|
|
|
(5,767
|
)
|
|
|
|
(34,871
|
)
|
|
|
|
(57,486
|
)
|
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of convertible senior notes
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
250,000
|
|
Issuance costs for convertible senior notes and revolving credit
agreement
|
|
|
|
-
|
|
|
|
|
(50
|
)
|
|
|
|
-
|
|
|
|
|
(8,147
|
)
|
Purchase of convertible note hedges
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(59,163
|
)
|
Proceeds from issuance of warrants
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
35,495
|
|
Payments for purchases of treasury stock
|
|
|
|
-
|
|
|
|
|
(49,738
|
)
|
|
|
|
(61,233
|
)
|
|
|
|
(165,357
|
)
|
Taxes paid related to net share settlements of stock-based
compensation awards
|
|
|
|
(4,341
|
)
|
|
|
|
(6,450
|
)
|
|
|
|
(27,681
|
)
|
|
|
|
(29,777
|
)
|
Proceeds from stock option exercises and employee stock purchase plan
|
|
|
|
27
|
|
|
|
|
2
|
|
|
|
|
5,513
|
|
|
|
|
4,978
|
|
Distributions to noncontrolling interest holders
|
|
|
|
(3,383
|
)
|
|
|
|
(2,660
|
)
|
|
|
|
(12,357
|
)
|
|
|
|
(11,811
|
)
|
Payments of contingent consideration related to acquisitions
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(7,790
|
)
|
|
|
|
(285
|
)
|
Payments of capital lease obligations
|
|
|
|
(8,727
|
)
|
|
|
|
(8,637
|
)
|
|
|
|
(34,025
|
)
|
|
|
|
(30,598
|
)
|
Other financing activities
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(473
|
)
|
|
|
|
-
|
|
Net cash provided by (used in) financing activities
|
|
|
|
(16,424
|
)
|
|
|
|
(67,533
|
)
|
|
|
|
(138,046
|
)
|
|
|
|
(14,665
|
)
|
Effect of exchange rate changes on cash and cash equivalents,
including cash classified within current assets of discontinued
operations
|
|
|
|
3,306
|
|
|
|
|
(13,263
|
)
|
|
|
|
26,124
|
|
|
|
|
(6,470
|
)
|
Net increase (decrease) in cash and cash equivalents, including
cash classified within current assets of discontinued operations
|
|
|
|
241,472
|
|
|
|
|
202,099
|
|
|
|
|
(11,714
|
)
|
|
|
|
38,484
|
|
Less: Net increase (decrease) in cash classified within current
assets of discontinued operations
|
|
|
|
-
|
|
|
|
|
1,202
|
|
|
|
|
(28,866
|
)
|
|
|
|
(186
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
241,472
|
|
|
|
|
200,897
|
|
|
|
|
17,152
|
|
|
|
|
38,670
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
638,657
|
|
|
|
|
662,080
|
|
|
|
|
862,977
|
|
|
|
|
824,307
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
880,129
|
|
|
|
$
|
862,977
|
|
|
|
$
|
880,129
|
|
|
|
$
|
862,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Groupon, Inc.
|
Supplemental Financial Information and Business Metrics (1)
|
(financial data in thousands; active customers in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2016
|
|
|
Q1 2017
|
|
|
Q2 2017
|
|
|
Q3 2017
|
|
|
Q4 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2017
|
|
|
|
|
|
|
|
|
|
|
|
Gross Billings (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y Growth
|
|
|
|
|
|
|
|
|
|
Local
|
|
|
$
|
590,684
|
|
|
|
$
|
587,766
|
|
|
|
$
|
615,833
|
|
|
|
$
|
606,184
|
|
|
|
$
|
605,460
|
|
|
2.5
|
|
|
%
|
|
|
|
|
|
|
|
|
|
Travel
|
|
|
|
90,059
|
|
|
|
|
114,163
|
|
|
|
|
112,670
|
|
|
|
|
93,186
|
|
|
|
|
84,504
|
|
|
(6.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Goods
|
|
|
|
431,388
|
|
|
|
|
262,588
|
|
|
|
|
245,924
|
|
|
|
|
229,479
|
|
|
|
|
369,973
|
|
|
(14.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Gross Billings
|
|
|
$
|
1,112,131
|
|
|
|
$
|
964,517
|
|
|
|
$
|
974,427
|
|
|
|
$
|
928,849
|
|
|
|
$
|
1,059,937
|
|
|
(4.7
|
)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local
|
|
|
$
|
209,799
|
|
|
|
$
|
200,545
|
|
|
|
$
|
207,534
|
|
|
|
$
|
194,090
|
|
|
|
$
|
223,410
|
|
|
6.5
|
|
|
%
|
|
|
|
|
|
|
|
|
|
Travel
|
|
|
|
19,023
|
|
|
|
|
20,462
|
|
|
|
|
22,320
|
|
|
|
|
18,300
|
|
|
|
|
17,413
|
|
|
(8.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Goods
|
|
|
|
421,931
|
|
|
|
|
252,350
|
|
|
|
|
222,058
|
|
|
|
|
201,824
|
|
|
|
|
333,862
|
|
|
(20.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue
|
|
|
$
|
650,753
|
|
|
|
$
|
473,357
|
|
|
|
$
|
451,912
|
|
|
|
$
|
414,214
|
|
|
|
$
|
574,685
|
|
|
(11.7
|
)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local
|
|
|
$
|
185,280
|
|
|
|
$
|
169,342
|
|
|
|
$
|
179,609
|
|
|
|
$
|
162,914
|
|
|
|
$
|
196,708
|
|
|
6.2
|
|
|
%
|
|
|
|
|
|
|
|
|
|
Travel
|
|
|
|
15,052
|
|
|
|
|
15,165
|
|
|
|
|
17,755
|
|
|
|
|
14,060
|
|
|
|
|
13,614
|
|
|
(9.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Goods
|
|
|
|
50,437
|
|
|
|
|
36,430
|
|
|
|
|
36,496
|
|
|
|
|
30,934
|
|
|
|
|
54,651
|
|
|
8.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gross Profit
|
|
|
$
|
250,769
|
|
|
|
$
|
220,937
|
|
|
|
$
|
233,860
|
|
|
|
$
|
207,908
|
|
|
|
$
|
264,973
|
|
|
5.7
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
$
|
12,265
|
|
|
|
$
|
(14,783
|
)
|
|
|
$
|
(12,033
|
)
|
|
|
$
|
(6,995
|
)
|
|
|
$
|
33,766
|
|
|
175.3
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y Growth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding FX
|
|
|
Gross Billings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y Growth
|
|
|
|
|
FX Effect (3)
|
|
|
(3)
|
|
|
Local
|
|
|
$
|
221,337
|
|
|
|
$
|
191,219
|
|
|
|
$
|
189,408
|
|
|
|
$
|
202,991
|
|
|
|
$
|
229,167
|
|
|
3.5
|
|
|
%
|
|
|
(6.1
|
)
|
|
|
|
(2.6
|
)
|
|
%
|
Travel
|
|
|
|
60,099
|
|
|
|
|
53,161
|
|
|
|
|
45,981
|
|
|
|
|
49,837
|
|
|
|
|
59,666
|
|
|
(0.7
|
)
|
|
|
|
|
(6.2
|
)
|
|
|
|
(6.9
|
)
|
|
|
Goods
|
|
|
|
211,963
|
|
|
|
|
149,079
|
|
|
|
|
154,417
|
|
|
|
|
159,820
|
|
|
|
|
233,422
|
|
|
10.1
|
|
|
|
|
|
(8.8
|
)
|
|
|
|
1.3
|
|
|
|
Total Gross Billings
|
|
|
$
|
493,399
|
|
|
|
$
|
393,459
|
|
|
|
$
|
389,806
|
|
|
|
$
|
412,648
|
|
|
|
$
|
522,255
|
|
|
5.8
|
|
|
%
|
|
|
(7.2
|
)
|
|
|
|
(1.4
|
)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local
|
|
|
$
|
68,900
|
|
|
|
$
|
63,575
|
|
|
|
$
|
66,108
|
|
|
|
$
|
71,574
|
|
|
|
$
|
80,209
|
|
|
16.4
|
|
|
%
|
|
|
(7.6
|
)
|
|
|
|
8.8
|
|
|
%
|
Travel
|
|
|
|
12,141
|
|
|
|
|
11,002
|
|
|
|
|
10,796
|
|
|
|
|
9,801
|
|
|
|
|
12,187
|
|
|
0.4
|
|
|
|
|
|
(6.7
|
)
|
|
|
|
(6.3
|
)
|
|
|
Goods
|
|
|
|
173,071
|
|
|
|
|
125,692
|
|
|
|
|
133,803
|
|
|
|
|
138,877
|
|
|
|
|
206,085
|
|
|
19.1
|
|
|
|
|
|
(10.0
|
)
|
|
|
|
9.1
|
|
|
|
Total Revenue
|
|
|
$
|
254,112
|
|
|
|
$
|
200,269
|
|
|
|
$
|
210,707
|
|
|
|
$
|
220,252
|
|
|
|
$
|
298,481
|
|
|
17.5
|
|
|
%
|
|
|
(9.2
|
)
|
|
|
|
8.3
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local
|
|
|
$
|
63,987
|
|
|
|
$
|
59,194
|
|
|
|
$
|
62,303
|
|
|
|
$
|
67,860
|
|
|
|
$
|
75,991
|
|
|
18.8
|
|
|
%
|
|
|
(8.0
|
)
|
|
|
|
10.8
|
|
|
%
|
Travel
|
|
|
|
11,087
|
|
|
|
|
10,036
|
|
|
|
|
9,996
|
|
|
|
|
8,922
|
|
|
|
|
11,334
|
|
|
2.2
|
|
|
|
|
|
(6.9
|
)
|
|
|
|
(4.7
|
)
|
|
|
Goods
|
|
|
|
26,063
|
|
|
|
|
19,284
|
|
|
|
|
21,908
|
|
|
|
|
24,735
|
|
|
|
|
34,620
|
|
|
32.8
|
|
|
|
|
|
(10.6
|
)
|
|
|
|
22.2
|
|
|
|
Total Gross Profit
|
|
|
$
|
101,137
|
|
|
|
$
|
88,514
|
|
|
|
$
|
94,207
|
|
|
|
$
|
101,517
|
|
|
|
$
|
121,945
|
|
|
20.6
|
|
|
%
|
|
|
(8.5
|
)
|
|
|
|
12.1
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
$
|
(2,762
|
)
|
|
|
$
|
3,103
|
|
|
|
$
|
4,635
|
|
|
|
$
|
5,782
|
|
|
|
$
|
15,960
|
|
|
677.8
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Results of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Billings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local
|
|
|
$
|
812,021
|
|
|
|
$
|
778,985
|
|
|
|
$
|
805,241
|
|
|
|
$
|
809,175
|
|
|
|
$
|
834,627
|
|
|
2.8
|
|
|
%
|
|
|
(1.7
|
)
|
|
|
|
1.1
|
|
|
%
|
Travel
|
|
|
|
150,158
|
|
|
|
|
167,324
|
|
|
|
|
158,651
|
|
|
|
|
143,023
|
|
|
|
|
144,170
|
|
|
(4.0
|
)
|
|
|
|
|
(2.5
|
)
|
|
|
|
(6.5
|
)
|
|
|
Goods
|
|
|
|
643,351
|
|
|
|
|
411,667
|
|
|
|
|
400,341
|
|
|
|
|
389,299
|
|
|
|
|
603,395
|
|
|
(6.2
|
)
|
|
|
|
|
(2.9
|
)
|
|
|
|
(9.1
|
)
|
|
|
Total Gross Billings
|
|
|
$
|
1,605,530
|
|
|
|
$
|
1,357,976
|
|
|
|
$
|
1,364,233
|
|
|
|
$
|
1,341,497
|
|
|
|
$
|
1,582,192
|
|
|
(1.5
|
)
|
|
%
|
|
|
(2.2
|
)
|
|
|
|
(3.7
|
)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local
|
|
|
$
|
278,699
|
|
|
|
$
|
264,120
|
|
|
|
$
|
273,642
|
|
|
|
$
|
265,664
|
|
|
|
$
|
303,619
|
|
|
8.9
|
|
|
%
|
|
|
(1.8
|
)
|
|
|
|
7.1
|
|
|
%
|
Travel
|
|
|
|
31,164
|
|
|
|
|
31,464
|
|
|
|
|
33,116
|
|
|
|
|
28,101
|
|
|
|
|
29,600
|
|
|
(5.0
|
)
|
|
|
|
|
(2.6
|
)
|
|
|
|
(7.6
|
)
|
|
|
Goods
|
|
|
|
595,002
|
|
|
|
|
378,042
|
|
|
|
|
355,861
|
|
|
|
|
340,701
|
|
|
|
|
539,947
|
|
|
(9.3
|
)
|
|
|
|
|
(2.9
|
)
|
|
|
|
(12.2
|
)
|
|
|
Total Revenue
|
|
|
$
|
904,865
|
|
|
|
$
|
673,626
|
|
|
|
$
|
662,619
|
|
|
|
$
|
634,466
|
|
|
|
$
|
873,166
|
|
|
(3.5
|
)
|
|
%
|
|
|
(2.6
|
)
|
|
|
|
(6.1
|
)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local
|
|
|
$
|
249,267
|
|
|
|
$
|
228,536
|
|
|
|
$
|
241,912
|
|
|
|
$
|
230,774
|
|
|
|
$
|
272,699
|
|
|
9.4
|
|
|
%
|
|
|
(2.0
|
)
|
|
|
|
7.4
|
|
|
%
|
Travel
|
|
|
|
26,139
|
|
|
|
|
25,201
|
|
|
|
|
27,751
|
|
|
|
|
22,982
|
|
|
|
|
24,948
|
|
|
(4.6
|
)
|
|
|
|
|
(2.9
|
)
|
|
|
|
(7.5
|
)
|
|
|
Goods
|
|
|
|
76,500
|
|
|
|
|
55,714
|
|
|
|
|
58,404
|
|
|
|
|
55,669
|
|
|
|
|
89,271
|
|
|
16.7
|
|
|
|
|
|
(3.6
|
)
|
|
|
|
13.1
|
|
|
|
Total Gross Profit
|
|
|
$
|
351,906
|
|
|
|
$
|
309,451
|
|
|
|
$
|
328,067
|
|
|
|
$
|
309,425
|
|
|
|
$
|
386,918
|
|
|
9.9
|
|
|
%
|
|
|
(2.4
|
)
|
|
|
|
7.5
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
$
|
9,503
|
|
|
|
$
|
(11,680
|
)
|
|
|
$
|
(7,398
|
)
|
|
|
$
|
(1,213
|
)
|
|
|
$
|
49,726
|
|
|
423.3
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities from continuing
operations
|
|
|
$
|
294,593
|
|
|
|
$
|
(136,233
|
)
|
|
|
$
|
(20,695
|
)
|
|
|
$
|
23,861
|
|
|
|
$
|
270,564
|
|
|
(8.2
|
)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
$
|
275,339
|
|
|
|
$
|
(150,309
|
)
|
|
|
$
|
(36,080
|
)
|
|
|
$
|
9,606
|
|
|
|
$
|
255,122
|
|
|
(7.3
|
)
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2016
|
|
|
Q1 2017
|
|
|
Q2 2017
|
|
|
Q3 2017
|
|
|
Q4 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Customers (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
31.1
|
|
|
|
|
31.6
|
|
|
|
|
31.9
|
|
|
|
|
32.5
|
|
|
|
|
32.7
|
|
|
International
|
|
|
|
16.8
|
|
|
|
|
16.7
|
|
|
|
|
16.4
|
|
|
|
|
16.6
|
|
|
|
|
16.8
|
|
|
Total Active Customers
|
|
|
|
47.9
|
|
|
|
|
48.3
|
|
|
|
|
48.3
|
|
|
|
|
49.1
|
|
|
|
|
49.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TTM Gross Billings / Average Active Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
138
|
|
|
|
$
|
136
|
|
|
|
$
|
133
|
|
|
|
$
|
129
|
|
|
|
$
|
123
|
|
|
International
|
|
|
|
102
|
|
|
|
|
101
|
|
|
|
|
101
|
|
|
|
|
102
|
|
|
|
|
102
|
|
|
Consolidated
|
|
|
|
124
|
|
|
|
|
123
|
|
|
|
|
121
|
|
|
|
|
120
|
|
|
|
|
116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TTM Gross Profit / Average Active Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
31
|
|
|
|
$
|
30
|
|
|
|
$
|
30
|
|
|
|
$
|
30
|
|
|
|
$
|
29
|
|
|
International
|
|
|
|
23
|
|
|
|
|
22
|
|
|
|
|
23
|
|
|
|
|
23
|
|
|
|
|
24
|
|
|
Consolidated
|
|
|
|
28
|
|
|
|
|
27
|
|
|
|
|
28
|
|
|
|
|
27
|
|
|
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Units
|
|
|
|
57.9
|
|
|
|
|
45.7
|
|
|
|
|
44.5
|
|
|
|
|
44.1
|
|
|
|
|
54.6
|
|
|
Year-over-year unit growth:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
3.2
|
|
%
|
|
|
(0.4
|
)
|
%
|
|
|
(1.9
|
)
|
%
|
|
|
(0.1
|
)
|
%
|
|
|
(6.6
|
)
|
%
|
International
|
|
|
|
(0.3
|
)
|
|
|
|
(8.7
|
)
|
|
|
|
(7.8
|
)
|
|
|
|
(1.5
|
)
|
|
|
|
(3.9
|
)
|
|
Consolidated
|
|
|
|
2.0
|
|
|
|
|
(3.1
|
)
|
|
|
|
(3.8
|
)
|
|
|
|
(0.5
|
)
|
|
|
|
(5.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Headcount (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (6)
|
|
|
|
2,626
|
|
|
|
|
2,624
|
|
|
|
|
2,485
|
|
|
|
|
2,457
|
|
|
|
|
2,407
|
|
|
Other
|
|
|
|
4,641
|
|
|
|
|
4,496
|
|
|
|
|
4,176
|
|
|
|
|
4,159
|
|
|
|
|
4,265
|
|
|
Total Headcount
|
|
|
|
7,267
|
|
|
|
|
7,120
|
|
|
|
|
6,661
|
|
|
|
|
6,616
|
|
|
|
|
6,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
We disposed of our operations in 11 countries, primarily based in
Asia and Latin America, between November 2016 and March 2017. The
financial results of our operations in those 11 countries are
presented as discontinued operations in the accompanying
consolidated financial statements and tables. All prior period
financial information and operational metrics have been
retrospectively adjusted to reflect this presentation.
|
(2)
|
|
Represents the total dollar value of customer purchases of goods and
services.
|
|
|
|
|
(3)
|
|
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.
|
(4)
|
|
Reflects the total number of unique user accounts that have made a
purchase during the TTM either through one of our online
marketplaces or directly with a merchant for which we earned a
commission.
|
(5)
|
|
Including employees of discontinued operations, our headcount
decreased by 1,651 employees, or 20%, year-over-year in the fourth
quarter of 2017, from 8,323 total employees in the prior year period.
|
(6)
|
|
Includes merchant sales representatives, as well as sales support
personnel from our continuing 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
performance measures. The Company reconciles Adjusted EBITDA to the
most comparable U.S. GAAP performance 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 performance 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 performance measure, "Income (loss)
from continuing operations."
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2016
|
|
|
Q1 2017
|
|
|
Q2 2017
|
|
|
Q3 2017
|
|
|
Q4 2017
|
|
|
Income (loss) from continuing operations
|
|
|
$
|
(39,455
|
)
|
|
|
$
|
(20,869
|
)
|
|
|
$
|
(5,403
|
)
|
|
|
$
|
3,802
|
|
|
|
$
|
51,071
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation (1)
|
|
|
|
22,563
|
|
|
|
|
19,650
|
|
|
|
|
21,392
|
|
|
|
|
18,235
|
|
|
|
|
21,673
|
|
|
|
Depreciation and amortization
|
|
|
|
34,681
|
|
|
|
|
34,067
|
|
|
|
|
34,679
|
|
|
|
|
35,231
|
|
|
|
|
33,850
|
|
|
|
Acquisition-related expense (benefit), net
|
|
|
|
1,345
|
|
|
|
|
12
|
|
|
|
|
36
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
Restructuring charges
|
|
|
|
12,060
|
|
|
|
|
2,731
|
|
|
|
|
4,584
|
|
|
|
|
11,503
|
|
|
|
|
10
|
|
|
|
Gain on sale of intangible assets
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(17,149
|
)
|
|
|
|
-
|
|
|
|
Non-operating expense (income), net
|
|
|
|
54,737
|
|
|
|
|
4,602
|
|
|
|
|
(5,878
|
)
|
|
|
|
(7,546
|
)
|
|
|
|
2,112
|
|
|
|
Provision (benefit) for income taxes
|
|
|
|
(5,779
|
)
|
|
|
|
4,587
|
|
|
|
|
3,883
|
|
|
|
|
2,531
|
|
|
|
|
(3,457
|
)
|
|
|
Total adjustments
|
|
|
|
119,607
|
|
|
|
|
65,649
|
|
|
|
|
58,696
|
|
|
|
|
42,805
|
|
|
|
|
54,188
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
80,152
|
|
|
|
$
|
44,780
|
|
|
|
$
|
53,293
|
|
|
|
$
|
46,607
|
|
|
|
$
|
105,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Represents stock-based compensation recorded within Selling,
general and administrative, Cost of Revenue and Marketing.
Non-operating expense (income), net, includes $0.2 million, $0.1
million, $0.0 million, $0.1 million and $0.1 million of additional
stock-based compensation for the three months ended December 31,
2016, March 31, 2017, June 30, 2017, September 30, 2017, and
December 31, 2017, respectively. Restructuring charges include
$0.8 million of additional stock-based compensation for the three
months ended September 30, 2017
|
|
|
|
|
|
|
The following is a reconciliation of the Company's annual outlook
for Adjusted EBITDA to the Company's outlook for the most comparable
U.S. GAAP performance measure, Income (loss) from continuing
operations.
|
|
|
|
|
|
|
|
|
|
Year Ending December 31, 2018
|
|
Expected income (loss) from continuing operations range
|
|
|
$25,000 to $35,000
|
|
Expected adjustments:
|
|
|
|
|
Stock-based compensation
|
|
|
95,000
|
|
Depreciation and amortization
|
|
|
112,000
|
|
Non-operating expense (income), net
|
|
|
20,000
|
|
Provision (benefit) for income taxes
|
|
|
8,000
|
|
Total expected adjustments
|
|
|
$235,000
|
|
Expected Adjusted EBITDA range
|
|
|
$260,000 to $270,000
|
|
|
|
|
|
|
The outlook provided above does not reflect the potential impact of
any business or asset acquisitions or dispositions, changes in the
fair values of investments or contingent consideration, foreign
currency gains or losses or unusual or infrequently occurring items
that may occur during 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended
|
|
|
Year Ended
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2017
|
|
|
Net income attributable to common stockholders
|
|
|
|
$
|
47,721
|
|
|
|
$
|
14,040
|
|
|
|
Less: Net income attributable to noncontrolling interest
|
|
|
|
(3,127
|
)
|
|
|
|
(12,587
|
)
|
|
|
Net income
|
|
|
|
|
|
|
|
50,848
|
|
|
|
|
26,627
|
|
|
|
Less: Loss from discontinued operations, net of tax
|
|
|
|
(223
|
)
|
|
|
|
(1,974
|
)
|
|
|
Income from continuing operations
|
|
|
|
|
|
|
|
51,071
|
|
|
|
|
28,601
|
|
|
|
Less: Provision (benefit) for income taxes
|
|
|
|
|
|
|
(3,457
|
)
|
|
|
|
7,544
|
|
|
|
Income from continuing operations before provision (benefit) for
income taxes
|
|
|
|
47,614
|
|
|
|
|
36,145
|
|
|
|
Stock-based compensation (1)
|
|
|
|
|
|
|
|
21,726
|
|
|
|
|
81,168
|
|
|
|
Amortization of acquired intangible assets
|
|
|
|
|
|
5,410
|
|
|
|
|
23,032
|
|
|
|
Acquisition-related expense (benefit), net
|
|
|
|
|
|
|
-
|
|
|
|
|
48
|
|
|
|
Restructuring charges
|
|
|
|
|
|
|
|
10
|
|
|
|
|
18,828
|
|
|
|
Gain on sale of intangible assets
|
|
|
|
|
|
|
|
-
|
|
|
|
|
(17,149
|
)
|
|
|
Gain on sale of investment
|
|
|
|
|
|
|
|
-
|
|
|
|
|
(7,624
|
)
|
|
|
Losses (gains), net from changes in fair value of investments
|
|
|
|
(5,482
|
)
|
|
|
|
(382
|
)
|
|
|
Intercompany foreign currency losses (gains) and reclassifications
of translation adjustments to earnings
|
|
|
|
(112
|
)
|
|
|
|
(16,177
|
)
|
|
|
Non-cash interest expense on convertible senior notes
|
|
|
|
2,794
|
|
|
|
|
10,758
|
|
|
|
Non-GAAP income from continuing operations before provision
(benefit) for income taxes
|
|
|
|
71,960
|
|
|
|
|
128,647
|
|
|
|
Non-GAAP provision (benefit) for income taxes
|
|
|
|
|
|
27,103
|
|
|
|
|
50,452
|
|
|
|
Non-GAAP net income
|
|
|
|
|
|
|
|
44,857
|
|
|
|
|
78,195
|
|
|
|
Net income attributable to noncontrolling interest
|
|
|
|
|
(3,127
|
)
|
|
|
|
(12,587
|
)
|
|
|
Non-GAAP net income attributable to common stockholders
|
|
|
|
41,730
|
|
|
|
|
65,608
|
|
|
|
Plus: Cash interest expense from assumed conversion of convertible
senior notes (2)
|
|
|
|
1,004
|
|
|
|
|
4,337
|
|
|
|
Non-GAAP net income attributable to common stockholders plus
assumed conversions
|
|
|
$
|
42,734
|
|
|
|
$
|
69,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares of common stock - diluted
|
|
|
|
570,734,081
|
|
|
|
|
568,418,371
|
|
|
|
Incremental dilutive securities
|
|
|
|
|
|
|
|
46,296,300
|
|
|
|
|
46,296,300
|
|
|
|
Weighted-average shares of common stock - non-GAAP
|
|
|
|
617,030,381
|
|
|
|
|
614,714,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share
|
|
|
|
|
|
|
$
|
0.08
|
|
|
|
$
|
0.02
|
|
|
|
Impact of non-GAAP adjustments and related tax effects
|
|
|
|
(0.01
|
)
|
|
|
|
0.09
|
|
|
|
Non-GAAP net income per share
|
|
|
|
|
|
|
$
|
0.07
|
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Represents stock-based compensation expense recorded within Selling,
general and administrative, Cost of Revenue, Marketing, and Other
(income) expense, net. Restructuring charges include $0.8 million of
additional stock-based compensation for the twelve months ended
December 31, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
Adjustments to interest expense for assumed conversion of
convertible senior notes excludes non-cash interest expense that has
been added back above in calculating non-GAAP net income (loss)
attributable to common stockholders.
|
|
|
|
|
|
|
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 2016
|
|
|
Q1 2017
|
|
|
Q2 2017
|
|
|
Q3 2017
|
|
|
Q4 2017
|
|
Net cash provided by (used in) operating activities from continuing
operations
|
|
|
$
|
294,593
|
|
|
|
$
|
(136,233
|
)
|
|
|
$
|
(20,695
|
)
|
|
|
$
|
23,861
|
|
|
|
$
|
270,564
|
|
|
Purchases of property and equipment and capitalized software from
continuing operations
|
|
|
|
(19,254
|
)
|
|
|
|
(14,076
|
)
|
|
|
|
(15,385
|
)
|
|
|
|
(14,255
|
)
|
|
|
|
(15,442
|
)
|
|
Free Cash Flow
|
|
|
$
|
275,339
|
|
|
|
$
|
(150,309
|
)
|
|
|
$
|
(36,080
|
)
|
|
|
$
|
9,606
|
|
|
|
$
|
255,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities from continuing
operations
|
|
|
$
|
(4,049
|
)
|
|
|
$
|
(14,020
|
)
|
|
|
$
|
(13,782
|
)
|
|
|
$
|
18,230
|
|
|
|
$
|
(15,751
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
$
|
(67,533
|
)
|
|
|
$
|
(45,726
|
)
|
|
|
$
|
(47,924
|
)
|
|
|
$
|
(27,972
|
)
|
|
|
$
|
(16,424
|
)
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180214005747/en/
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