Groupon going public; IPO for up to $750M
Groupon's logo is displayed on the company's website. Groupon announced Thursday that it has filed with the Securities and Exchange Commission for a proposed initial public offering of its Class A common stock, expecting to raise an estimated $750 million. (June 2, 2011) Credit: Getty Images
Daily deals juggernaut Groupon Inc. has filed a prospectus for an initial public offering of up to $750 million, ending months of speculation about when the Chicago-based company would go public.
"While we're looking forward to being a public company, we intend to continue operating according to the long-term focused principles that have gotten us to this point," founder and chief executive Andrew Mason said in a letter to "potential stockholders" as part of a filing made Thursday with the U.S. Securities and Exchange Commission.
The filing offered the first detailed public glimpse at Groupon's operations and finances.
The company brought in $644.7 million in revenue in the first quarter of 2011 but posted a net loss of $147 million for the period. In 2010, revenue was $713 million with a recorded net loss of $456 million.
The filing showed that Groupon has high operating expenses. Groupon spent $241.5 million in 2010 and $179.9 million in the first quarter of 2011 on online marketing to get new subscribers.
"We anticipate that our operating expenses will increase substantially in the foreseeable future as we continue to invest to increase our subscriber base, increase the number and variety of deals we offer each day, expand our marketing channels, expand our operations, hire additional employees and develop our technology platform," Groupon said.
Groupon said it prefers to use three other financial measures: gross profit, free cash flow and Adjusted Consolidated Segment Operating Income. The last represents operating income before subscriber acquisition costs and certain noncash charges, Groupon said.In 2010, Groupon generated gross profit of $280 million, free cash flow of $72.2 million and Adjusted CSOI of $60.6 million.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
