Groupon, one of the Internet's preeminent daily deal sites, has had to amend its IPO filing to remove strategic accounting practices. The revised Groupon IPO filing indicates that in 2010, the company had a $420 million operating loss, a $117.1 million operating loss in the first quarter of 2011 and a $102.7 million operating loss in the second quarter.
The questionable metric that was removed from Groupon's IPO filing was "adjusted consolidated segment operating income," or ACSOI. That metric, according to chief executive officer Andrew Mason, is "an up-front investment to acquire new subscribers that we expect to end when this period of rapid expansion in our subscriber base concludes." Do you think Groupon will turn a profit in 2011, or has this tech startup peaked?
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