Revised Groupon IPO Filing Reveals $420 Million Operating Loss in 2010

August 10, 2011

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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Joel's picture

I don't think it looks good for Groupon. I can't beleive the accounting issues they are going through. For such a big daily deals website to make those "errors"... crazy. It seems like new daily deals sights are launching on a weekly basis. It's hard to tell who's legit when even the big ones are doing things like this. I even started my own blog to give my opinion and review on the different <a href="">Daily Deal Websites</a>. Hopefully this will add some minor help to those look to get through the mass of sites and down to the good daily deal websites.

Thanks for letting me post my opion.