Groupon has changed the way it presents its revenue, slashing its top-line sales figure by more than half ahead of a much-anticipated initial public offering.
The online coupon seller cut its 2010 sales from $713 million to $313 million after subtracting the fees paid by merchants, it revealed in a securities filing late on Friday.
It also adjusted first-half 2011 reported sales downward from $1.52 billion to $688 million. Groupon said the previous documents filed with the Securities and Exchange Commission had "an error in presentation".
The move, which could delay its plans for an IPO, came on the same day that the company lost its number-two executive.Margo Georgiadis, chief operating officer, has left after just five months at Groupon. Although she wrote in a departing note that she had "complete confidence in the team's ability to realize its mission", she left the Chicago-based company to return to Google (GOOG) as president of the Americas region. > > Bull or Bear? Vote in Our Poll In its latest SEC filing, the company warned that investors should not rely on an optimistic and controversial memorandum to staff that appeared late last month on news Web sites. The memo had raised concerns that the company could fall foul of U.S. regulators' rules governing the "quiet period" before an IPO. Ms. Georgiadis had struggled in dealings with Andrew Mason, Groupon's young chief executive, she told associates. "She was brought in to implement strategy and operational discipline and she did it, but Andrew was fighting her every step of the way," one colleague told the Financial Times. This person described the former McKinsey consultant as effective but corporate in outlook, while Mr. Mason made decisions more instinctively. Mr. Mason wrote on a company blog that he wished that all of his eight senior executives hired this year had worked out. "It would have been great if I could say that we batted 1,000 per cent, but that's rarely the case." He said sales, marketing and other areas would now report directly to him. People close to the company said that Mr. Mason was feeling intense pressure since his company filed a prospectus in June. At a mid-August board meeting, he faced particularly close questioning: The meeting was attended by John Doerr, an influential partner with Groupon venture backer Kleiner Perkins, even though Mr Doerr does not sit on the board.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV