WebProNews

Category: Retail & eCommerce

eCommerce, Online Retail & Retail News

  • Amazon Shares Some 2015 Seller Stats

    Amazon Shares Some 2015 Seller Stats

    Amazon released some stats about how sellers did in 2015. Sellers received orders for over 23 million items on Cyber Monday, and Fulfillment by Amazon delivered over a billion items worldwide throughout the year. Sponsored products grew by over 100% in 2015, Amazon says.

    “Sponsored Products adoption by sellers worldwide grew more than 100 percent year-over-year as sellers advertised their products and built their brands on Amazon,” the company says. “During the holiday season, individuals and businesses selling on Amazon sold to more than 80 percent of Amazon customers worldwide who ordered a physical item.”

    “It’s never been easier for sellers, local merchants and artisans to grow their businesses on Amazon. With targeted advertising tools like Sponsored Products, access to Amazon’s fulfillment and customer service expertise through FBA, and new marketplaces like Handmade at Amazon and Amazon Home Services, businesses of all sizes can easily reach millions of customers around the world,” said Peter Faricy, VP for Amazon Marketplace. “2015 was a big year for sellers on Amazon. In fact, sellers added more new selection and shipped more items than in any previous year. We’re excited to build on that momentum as we continue to innovate on behalf of sellers and customers.”

    According to the company, active sellers worldwide using Fulfillment by Amazon grew over 50% year over year. These sellers from over 100 countries used the service to fulfill orders to customers in 185 countries. Cross-border sellers using it grew by over 100% year over year.

    Sellers generated over $1.5 billion in sales through Sponsored Products listings.

    Amazon launched the Handmade at Amazon, Amazon Home Services, Amazon Business, and Amazon Exclusives marketplaces throughout the year. It also launched a number of new seller tools and services.

    Image via Amazon

  • Small Businesses On What Would Help Them Sell More Online

    Small Businesses On What Would Help Them Sell More Online

    A study recently released by Assurant Solutions finds that over 40% of small-to-midsize businesses say the reasons they have a hard time competing with larger e-tailers is a lack of product expansion opportunities and IT integration skillset.

    The survey polled 450 merchants across the United States in an effort to gauge the state of ecommerce for smaller businesses.

    “SMB merchants see great benefit in selling products and services through their web storefronts, but they readily admit to challenges that prevent them from selling more and competing with larger companies,” Assurant says. “In fact, roughly a third of those polled (34%) said that between 25% – 50% of their annual revenue comes from online sales. More than a third (35%) said their online sales have grown by 25% over the past five years.”

    56% are missing out on a chance to generate additional revenue by increasing their average order value, the survey finds. Less than 10% of online sales come from up-selling or cross-selling at the time of checkout for these merchants.

    Over 43% say they want to increase their up-sell and cross-sell opportunities, but can’t add organic products and services that fit the mold or they lack the internal IT skillset to integrate products into their ecommerce platform.

    “It’s clear that smaller merchants want to amplify their online sales potential, but many of them are unsure how to make it happen cost-effectively,” said Matthew Pufall, Director of Product for Assurant Product Protection.

    Over 26% of merchants said more complimentary product offerings would help them sell more products and services online. Another 26% said easier integration into partner platforms would do the trick.

    Over 15% said support services provided by partner providers would help, while over 27% said products and services that enable more revenue opportunities would. Nearly 5% said they’re not interested in selling more products online.

  • Pinterest Buyable Pins Get Big Upgrade in Usefulness

    Pinterest Buyable Pins Get Big Upgrade in Usefulness

    Pinterest announced the launch of price drop notifications for Buyable Pins. Now, if a Buyable Pin a user has saved drops in price, they’ll get a notification.

    According to Pinterest, there are already over a million Buyable Pins with reduced prices every day. This added functionality should make this info more visible to interest parties, which should lead to more sales for businesses.

    “As a catalog of ideas, our mission is to help people discover and do things they love in their everyday lives,” a spokesperson for Pinterest tells WebProNews. “Millions of people use Pinterest to discover new products (87% of active Pinners use Pinterest to help them decide what to purchase), and Buyable Pins make it easier to buy products you love right in the Pinterest app from +10K brands like Nordstrom, Neiman Marcus, Kate Spade and Moorea Seal. You can shop from more than 60 million Buyable Pins in your home feed, search results and in the Pinterest Shop.”

    “In the Pinterest Shop on iPhone, iPad and Android, you’ll find some of the top Pins with reduced prices in a new shoppable collection, with exclusively reduced prices from Modern Citizen, Lucky Duck Boutique, Maude and more,” the spokesperson says. “There’s also a collection of last minute gift ideas with free shipping in the Pinterest Shop.”

    A recent report indicated that Buyable Pins didn’t perform particularly well throughout Thanksgiving weekend, but that Pinterest doesn’t see that as a terribly big disappointment as it’s still early days for the feature. The price drop notifications could go a long way toward getting more people interested.

    The new features are available with the latest updates for Pinterest’s iOS and Android apps.

    Image via Pinterest

  • Slack Launches App Platform, Directory, Fund

    Slack Launches App Platform, Directory, Fund

    It’s a big week for Slack. The company hosted an event and made some major announcements. these include the Slack Platform and App Directory as well as a new fund and a new framework.

    Slack claims it has hit 2 million active users, and is likely to continue to grow rapidly if media attention is any indication.

    As previously reported, Slack is bringing third-party apps into the fold. This goes beyond the previously available integrations.

    The new Slack App Directory gives Slack users access to over 160 apps sorted by category, popularity, and staff favorites. Categories include: Analytics, Communication, Customer Support, Design, Developer Tools, File Management, HR, Marketing, Office Management, Payments & Accounting, Productivity, Project Management, Security & Compliance, and Social & Fun.

    You can find the directory at Slack.com/apps, and you can search for apps from within Slack by searching /apps <keyword>. It will return the three most popular apps related to that keyword.

    The new Slack Fund is $80 million set aside to support and encourage developers to build apps that interact with Slack. It’s backed by Slack itself with Slack investors Accel, Andreessen-Horowitz, Index Ventures, KPCB, Spark, and Social+Capital.

    “If you’re a developer or small company deciding whether to make a bet on the Slack platform, the Slack Fund is a new source of support to help you get started building apps,” the company says in a blog post. “The Slack Fund will fund both ‘Slack-first’ apps as well as B2B and enterprise tools that make Slack integrations a core part of their offering.”

    The new framework for Slack development is called Botkit, which comes from Howdy.

    “It greatly simplifies the creation of apps (especially bots) with a flexible codebase that handles things like authenticating apps to a team and the sending, receiving, and processing of messages with our API,” Slack says. “With Botkit, developers can stop reinventing the wheel on basic functionality and instead get a head start on writing code for what their bots actually do and how their apps interact with Slack. Botkit will also provide a simplified way for new developers to get into programming for Slack by building off the impressive collection of tools available in it.”

    While not part of the announcements, Slack is said to have a new enterprise version on the way as well.

    Images via Slack

  • Android Pay Hits Apps

    Android Pay Hits Apps

    Google unveiled Android Pay at Google I/O in May as its answer to Apple Pay. It exists separate from Google’s previous payments offering Google Wallet, which got its own overhaul in September.

    Also in September, Android Pay was actually launched, giving users the ability to pay with their Android phones at locations throughout the U.S.

    We knew it was coming, but Google has now launched the ability to pay with Android Pay in apps as well.

    “No more pulling out your credit card while on-the-go,” says Android pay director of product management Pali Bhat. “No more errors thanks to clumsy thumbs. Just tap the Android Pay button in the app, confirm your information, and you’re done! And just like your purchases in stores, Android Pay never shares your card details with merchants.”

    “In the next few months, you’ll see more and more of your favorite apps adding Android Pay to help you speed through mobile checkout,” Bhat adds. “For a limited time, you’ll also get special savings by using Android Pay in select apps—from $20 off on OpenTable* dining, $10 off your Lyft ride*, $10 off DoorDash* to 30% off Vinted*—there’s something for everyone.”

    There’s a collection of offers available here.

    Developers who want to add Android Pay to their apps can find the API developer site here.

    The company says it will roll out Android Pay in Australia in the first half of 2016. Additional countries will follow throughout the year.

    So far, there are over a million locations across the United States that accept Android Pay.

    Image via Google

  • Google Wallet Lets You Send Money To Any Contact By Phone Number

    Google announced that Google Wallet users can now send money to anyone in their contact list with just a phone number. Users have been able to do so with email addresses in the past, but now you don’t even need that.

    If you choose to send money with a phone number, the recipient will get a text with a secure link from which they can enter their debit card to claim the money and it will appear in their bank account within minutes.

    The feature is available in an update to the Google Wallet app on both iOS and Android.

    Google has also improved contact suggestions in the app. You’ll now see the people you send money to the most first. There’s also an new security feature that lets you lock the app by tapping a button.

    Finally, you can now add a second bank account to the app.

    Image via Google

  • Squarespace Commerce Mobile App Now A Reality

    Squarespace Commerce Mobile App Now A Reality

    Squarespace launched Squarespace Commerce nearly three years ago, giving customers a way to manage and sell products on their websites. Now, they’ve finally launched a mobile app for this.

    With the new Squarespace Commerce app for iOS and Android, you can fulfill orders, manage product inventory, and resolve customer issues from your phone.

    The app automatically adds a tracking number and carrier to an order when you scan the shipping label with your device’s camera. Then, you can tap to fulfill the order and send a shipping confirmation.

    For customer service, you can use the app to access order details, issue refunds, and re-send order emails if necessary.

    “As your company grows, it gets harder to keep track of what’s in your storeroom,” says Squarespace’s Natalie Gibralter. “Whether you sell online or in person, our app lets you quickly update inventory levels so you never have to wonder about your supply meeting demands.”

    The app is free in the App Store and Google Play Store, but requires a Squarespace 7 account. If you’re on iOS, you’ll need at least iOS 8, and on Android, it requires at least 4.4 (KitKat).

    Image via Squarespace (YouTube)

  • eBay Gives Sellers A Reminder For Boosting Visibility

    eBay Gives Sellers A Reminder For Boosting Visibility

    Earlier this year in the Spring Seller Update, eBay announced that it will require product identifiers on multi-variation listings and more categories. As it noted at the time, this would lead to increased search visibility.

    With the holiday shopping season in full swing, the company is taking the time to remind seller to use the identifiers. In an announcement on Tuesday, the company told sellers:

    Be sure to include product identifiers such as brand, Manufacturer Part Number (MPN), and Global Trade Item Number (GTIN) to boost your listings’ visibility on eBay and external search engines. And don’t forget, providing this information saves you time—because item specifics are filled in automatically once you enter those product identifiers.

    As promised, we’re also reminding you that product identifiers will be required for multi-variation listings and in a number of additional categories starting next year, as announced in our Spring Seller Update. We’ll provide you with more details about this requirement in January, as well as the information you’ll need to take action in your listings.

    You can review a FAQ page on the topic here.

    Image via eBay

  • IAB Looks At Digital Shopping Habits By Age Group

    IAB Looks At Digital Shopping Habits By Age Group

    The Interactive Advertising Bureau (IAB) released its new Digital Shopping Report finding that younger adults, ages 18 – 34, are more likely to favor smartphones for retail activities than any other age group.

    “While overall, consumers are more likely to purchase using a tablet (35%) than a smartphone (28%), this younger generation is more inclined to make purchases using their smartphones (43% vs. 35% on a tablet),” a spokesperson for the IAB tells WebProNews. “In comparison, those 35-54 are more apt to use a tablet for their shopping needs and are more apt to make purchases on those devices (41% vs. 35% general population).”

    The IAB shares the following findings:

    – 18-34 year olds are more likely to read a product review on their smartphones (44% vs. 32% general population) and less likely to do so on tablets (32%). They’re also inclined to check prices on a smartphone (42% vs. 33% general population) and are less likely to do so on a tablet (32%).

    – Those who are 35-54 are more prone to use tablets to read product reviews, locate stores, check store hours, and check product pricing (40% vs. 35% general population).

    – Adults ages 55-64 are more than twice as likely to make a purchase on a tablet (34%) than on a smartphone (15%).

    – Consumers 65+ are more than twice as likely to make a purchase on a tablet (26%) than on a smartphone (11%). They are also nearly twice as likely to read a product review on a tablet (31%) than on a smartphone (17%).

    For a look at the IAB’s full report, go here.

    Here, you’ll find some online shopping stats from different sources for Thanksgiving and Black Friday.

  • A Timely Glimpse At Ecommerce Habits And Numbers

    A Timely Glimpse At Ecommerce Habits And Numbers

    It’s the time of year when people are using a lot of their hard-earned dollars to get things for the people they care about. In other words, it’s the best time of year for ecommerce businesses. Now that it’s the Tuesday after the big weekend, let’s check in and see how things have been going.

    What are your thoughts about performance from the weekend? Let us know in the comments.

    According to Custora, Thanksgiving saw a 12.5% increase in ecommerce revenue with a 10.8% increase in ecommerce orders. There was a 1.5% increase in average order value compared to last year, which the company considers an indication of a “less promotional, discount-driven” quarter.

    Mobile commerce was 39.3% of all online commerce, up from about a third (34.3%) on Thanksgiving 2014, it says, adding that 78.3% of mobile commerce on Thanksgiving was done on iPhones and iPads with Android accounting for 21.5% of mobile online orders placed.

    They also shared some stats for Cyber Monday, which was the biggest online commerce day in the U.S. ever, it says:

    – Strong growth: E-Commerce revenue was up 16.2% over Cyber Monday 2014

    – Orders grew 14.7% and Average Order Value (AOV) was up 1.3%, indicating a less promotion-driven Cyber Monday than last year

    – 26.9% of online sales were placed on mobile (phones + tablets), up from 23% on Cyber Monday 2014

    – Over three quarters of all mobile orders (75.6%) were made on Apple devices, while only 24.2% happened on Android devices

    – Email marketing was the primary channel driving online sales, accounting for 22.1% of transactions

    – Facebook, Twitter, and Pinterest, etc. only drove 1.5% of sales

    For the whole weekend through Monday, Custora says, “Revenue growth over 2014 came in strong at 16.4%. The strong growth overall for the weekend was driven by mobile (Apple devices in particular), email marketing, and Google search.”

    This week, Google shared some of the biggest search trends for gifts:

    Monetate found mobile phone commerce traffic to be up 118% (up 86% on Android, 50% on iOS) but found add-to-cart rate on mobile to be down 23%. It also found that Add-to-cart rate was up nearly 1% driven by Twitter (up 56%), desktop (up 22%) and tablet (up 17%) and that online commerce traffic from Facebook was up 92%.

    For Black Friday, Monetate found that online spending was up 13% year over year.

    “Consumers averaged bigger online [orders]… on Thanksgiving than on Black Friday,” a spokesperson tells WebProNews. “While Black Friday conversion rates were down 10%, average order value was up 2% YoY. Average order value was up YoY on mobile phone (12%) and Facebook (10%), but down on Twitter (33%).”

    “Screen size mattered,” the spokesperson says. “Consumers used mobile phones to [look]…but spent the most on desktop and tablet. Desktop users spent the most on average ($169) followed by tablet ($163), Facebook ($138) mobile phone ($130). iOS users spent more on average ($156) than Android users ($132). The week high for average order value was $173 on Thanksgiving compared to $164 on Black Friday.”

    DemandWare shared some findings as well. According to that company Black Friday orders were 6.1 times higher than a non-peak period (4 weeks ago), which is a 40% increase over last year. Black Friday baskets created on phones more than doubled year-over-year, according to DemandWare, which also says that on Thanksgiving, phone traffic share began increasing from 5pm until midnight.

    The IAB released a new report finding that younger adults, ages 18 – 34, are more likely to favor smartphones for retail activities than any other age group.

    While overall, consumers are more likely to order something using a tablet (35%) than a smartphone (28%), this younger generation is more inclined to do so using their smartphones (43% vs. 35% on a tablet), a spokesperson for the IAB told WebProNews. Those 35-54 are more apt to use a tablet…and are more apt to get something on those devices (41% vs. 35% general population), they said.

    – 18-34 year olds are more likely to read a product review on their smartphones (44% vs. 32% general population) and less likely to do so on tablets (32%). They’re also inclined to check prices on a smartphone (42% vs. 33% general population) and are less likely to do so on a tablet (32%).

    – Those who are 35-54 are more prone to use tablets to read product reviews, locate stores, check store hours, and check product pricing (40% vs. 35% general population).

    – Adults ages 55-64 are more than twice as likely to get something on a tablet (34%) than on a smartphone (15%).

    – Consumers 65+ are more than twice as likely to get something on a tablet (26%) than on a smartphone (11%). They are also nearly twice as likely to read a product review on a tablet (31%) than on a smartphone (17%).

    For a look at the IAB’s full report, go here.

    Amazon had an all-time high weekend for its devices. While the company didn’t reveal any hard numbers, it says it sold “millions of devices” and 3x over last year.

    Groupon also had a good weekend.

    “Groupon’s North American billings were up 41% compared to last year, and customers…[got] 52% more Groupons over the four-day weekend than in 2014,” a spokesperson for the company said. “Like other e-commerce sites and retailers…[tangible] products led the weekend.”

    Groupon also saw a “tremendous appetite” for local experiences. CEO Rich Williams talks about the company’s weekend here.

    What didn’t have such a great weekend were Pinterest’s “buyable pins” and their counterparts from Facebook and Twitter. A report from Re/code says that one of Pinterest’s big launch partners for Buyable Pins has been seeing less than 10 transactions a day with the feature.

    Interestingly, Google just essentially turned Image Search into a Pinterest competitor, which could negatively impact Pinterest even more considering that Google search is already a primary place that people are looking for things to get.

    How is your business faring compared to last year? Discuss.

  • Are Pinterest’s Buyable Pins Underperforming?

    There has been a great deal of talk over the past year about the potential of social media buy buttons to drive more online sales, but for the most part, it would seem, it’s still just potential.

    We’re more than halfway through Cyber Monday, and it looks as though buy buttons from Facebook, Twitter, and Pinterest have all had minimal impact.

    A report from Re/code says that one of Pinterest’s big launch partners for Buyable Pins has been seeing less than 10 purchases a day with the feature. Jason Del Rey reports:

    The company says more than 10,000 merchants have joined the program, including big retailers and brands like Macy’s, Nordstrom, Neiman Marcus, Cole Haan and Tory Burch, but at least one of these big partners is seeing fewer than 10 purchases a day on Pinterest, according to a person with direct knowledge of the sales figures. This source and another also said that Pinterest insiders have privately admitted to being disappointed with early sales numbers.

    A Pinterest spokesman declined to comment on this information, but said the company is encouraged by at least one bright spot. “Although it’s still early days with the program, we are hearing from merchants that many of their customers coming through Buyable Pins are new and we are driving higher mobile conversions,” he said in an email.

    Pinterest reportedly told the publication that it’s still early days for Buyable Pins, and that it plans to learn from this holiday season to make improvements.

    While Pinterest doesn’t have the reach that Facebook does, it would seemingly cater more to the purchasing of merchandise based simply on the nature of the service. If Buyable Pins ends up not working, it could say a lot about the future of the social media buy button.

    Last month, Pinterest announced the addition of new platform integrations and the availability of the feature to many more merchants.

    Image via Pinterest

  • The Countries Where Online Shopping Is Biggest

    The Countries Where Online Shopping Is Biggest

    Expert Market has a new infographic out looking at which countries spend the most money on online shopping. The data is based on Statista’s Digital Market Outlook for ecommerce.

    “From this we spent time compiling the data for the average revenue per user in each country to rank and compare them,” a spokesperson for Expert Market tells WebProNews.

    The results are interesting. According to the data, Hong Kong leads the pack when it comes to revenue per user in 2015, followed by Norway, Israel, and then the United State, which is significantly lower.

    In the ballpark with the U.S. are Denmark, the UK, Switzerland, and Finland, followed by Sweden, Ireland, Canada, Singapore, France, Germany, Netherlands, and Austria.

    How much online shoppers spend around the world

    Images via Thinkstock, Expert Market

  • dotmailer First Magento Marketing Platform To Get Platinum Technology Partner status.

    dotmailer First Magento Marketing Platform To Get Platinum Technology Partner status.

    dotdigital’s multichannel marketing automation platform dotmailer has become the first Magento marketing platform to achieve Platinum Technology Partner status.

    The Platinum Partner program provides for deeper collaboration in different merchant categories, and requires partners to pass strict audits and guidelines to make sure their products are worthy of inclusion.

    Magento Commerce CEO Mark Lavelle said, “dotdigital, and the dotmailer platform, is in complete alignment with Magento’s strategy to enable retailers to extend Magento with the most advanced capabilities provided by our partners.

    dotmailer CEO Simone Barratt added, “This partnership, combined with the ease-of-use of the dotmailer platform, puts the power in the hands of online retailers to unlock an unparalleled level of marketing insight, ensuring a personalized and optimized journey for every customer”.

    dotmailer is appearing at Magento Live in Australia this week to talk about the release of the second edition of Magento 2.

  • Heather Locklear Expresses Support For HIV-Stricken Friend Charlie Sheen

    Everyone deserves a friend like Heather Locklear.

    The 50-year-old actress didn’t hesitate to send her support to her close friend, Charlie Sheen, who just admitted on live TV that he is, indeed, HIV-positive.

    Prior to the admission, rumors had been swirling about a high-profile Hollywood actor living secretly with the virus. Eventually, gossip website The National Enquirer claimed that the said actor was Charlie Sheen, but before their revelation, Heather Locklear posted a tender message on her Instagram page.

    She posted a lovely photo of herself and Sheen in their younger years along with a caption read: “My heart hurts. Prayers for Charlie and his family.”

    My heart hurts. Prayers for Charlie and his family

    A photo posted by Heather Locklear (@heatherlocklear) on

    On Tuesday, people tuned in as Sheen finally confirmed what the rumors and reports had been claiming – that he was, “in fact, HIV-positive” on The Today Show. Host Matt Lauer asked a series of questions regarding the people who have known about this condition, the payments he allegedly made to keep them quiet, his current financial situation, and his career plans following this admission.

    Charlie Sheen Admits To Having The HIV Virus

    Sheen’s doctor later appeared on the show to explain the status of the HIV virus in the actor’s system. Dr. Robert Huizenga, who is also an assistant professor of clinical medicine at UCLA, emphasized that the former Two & A Half Men star does not have AIDS. Sheen is said to have been taking strong anti-viral medication that suppresses the virus to the point of being “undetectable.” At one point during the interview, Lauer read uplifting tweets from several viewers who had been watching the show. Aside from Heather Locklear, other celebrities have also come forward to cheer on the Anger Management star. Singer and actress Lady Gaga took to Twitter just hours after the announcement to praise Sheen for being “brave.”

    Today Show weather anchor Al Roker also posted a message of encouragement for Sheen.

    Heather Locklear and Charlie Sheen go way back, co-starring in the award-winning sitcom Spin City in 2000 and box office hit Money Talks in 1997.

  • Heather Locklear Shares Old Pic Of Herself With Charlie Sheen After HIV Announcement

    Heather Locklear took to Instagram this week to share an old photo of herself with Charlie Sheen, offering some words of support to him after news leaked that he is HIV positive.

    Sheen himself sat down with Matt Lauer on the Today show on Tuesday to talk about the diagnosis, which reportedly came about four years ago. Before that, however, news began to spread online–notably, from TMZ–that Sheen was going to share the personal news, and speculation began to grow about whether his former fiancee and ex-wife had contracted the disease.

    Sheen was married to actress Denise Richards until 2005, and the couple had two children together; while Richards has allegedly known for years about Sheen’s diagnosis, he apparently became infected after their divorce in 2005.

    While it’s unclear whether Charlie Sheen was intimate with women without telling them about his diagnosis, he was allegedly involved in a lawsuit with a woman who claims he did just that.

    Heather Locklear has had a longtime friendship with Sheen since their Spin City days, and her message on Instagram was short but sweet.

    My heart hurts. Prayers for Charlie and his family

    A photo posted by Heather Locklear (@heatherlocklear) on

    Charlie Sheen has been pretty open in recent years about his struggles with drug and alcohol addiction and about the large amount of money he’s spent on prostitutes (over $50,000 in the early ’90s), but it’s unclear how he contracted the disease. Sheen has been in the headlines quite a bit in the last few years after being fired from Two And A Half Men, filming rants about various topics–including his ex, Richards–and announced he was considering a run for public office.

    “Brooke M is a sexy rok star whom I adore D Richards a heretic washed up piglet Shame pile Happy Father’s Day!!!” Charlie Sheen wrote on Twitter earlier this year.

  • New Sello App From Shopify Lets You Take A Picture of Something and Sell It

    New Sello App From Shopify Lets You Take A Picture of Something and Sell It

    Shopify has a new app called Sello for iOS and Android aimed at making it easier for people to sell things from their mobile devices. The basic concept is that you can just take a picture of something you want to sell, set a price, add a description, and sell via credit card and PayPal. You can share product listings via social networks.

    Check it out:

    “Sello lets you sell anything you like to anyone in your social networks – it’s as easy as snapping a photo. Start selling in just a few seconds,” says the app description. “Take a photo of your product with your phone’s built-in camera. Add a title and a price and you’re ready to start selling – that’s all you need.”

    Shopify certainly knows ecommerce and this app could just be the kind of simplicity a lot of people need to get motivated to start selling more. Sello looks like a great move.

    Image via Sello (Google Play)

  • Google Introduces Text Message Subscription Ads

    Google Introduces Text Message Subscription Ads

    Google is testing a new ad format that delivers brand offers and updates to consumers’ phones via text message. The company is enabling users to subscribe to a Google service that tailors promotional messages to products they’re interested in.

    Once the user subscribes, Google says their phone numbers will remain private and they’ll be able to opt out.

    Here’s what the ads and messages look like:

    “Let’s say, for example, that a consumer searches for ‘black friday deals’ and subscribes from the ad below,” says Google in a Google+ update. “They can now receive text messages from Google on their mobile device showcasing relevant offers from a variety of retailers. Consumers can choose from a variety of product categories including computers, phones and gaming consoles.”

    Users can also text JOIN to one of the following numbers to subscribe to deals:

    For Black Friday – 847-904-0608
    For Cyber Monday – 847-906-8958
    For Holiday deals – 847-904-0596

    Images via Google

  • Can You Capitalize On This New Pinterest Feature?

    Can You Capitalize On This New Pinterest Feature?

    For users, Pinterest is becoming a better and better place for shopping, and for businesses, that means it’s becoming a better place to showcase products. One new feature gives users a chance to find even more products specifically catering to their interests.

    Have you so far found Pinterest to be a meaningful component of your strategy? Let us know in the comments.

    Pinterest announced the launch of a new visual search tool that enables users to zoom in on specific objects in a pin’s image and get results for visually similar pins. The company says this is aimed at giving users a new way to discover ideas and products.

    “Discovery on Pinterest is all about finding things you love, even if you don’t know at first what you’re looking for,” a spokesperson tells WebProNews. “Visual search is search without the text query.”

    To use the tool, users can simply tap the search tool in the corner of a pin when they see something they want to take a closer look at. Then they can select the part of the pin that is of interest and Pinterest will display visually similar objects, colors, patterns, etc. Users can also filter results by topic.

    “Visual search not only helps you discover new ideas and products you may not have known existed or knew how to describe, but it also helps you find similar products at different price points and where to buy products that otherwise would have been just static images in a bigger picture,” the spokesperson says.

    The features presents some interesting new search opportunities, and it helps to look at Pinterest as a search engine rather than a social network. For example, if a user is looking at an image of a room and they like the way a particular light fixture looks, they can select the area over that light fixture, and Pinterest will seek out other pins that feature similar light fixtures.

    It’s not difficult to see how this could lead to more light fixture sales given this technology in addition to other recently added capabilities including promoted pins and a buy button. Obviously this spans well past light fixtures and pretty much into any imagery that you might find on Pinterest.

    If nothing else, the feature further highlights the need to optimize for Pinterest search, use great product images your own pins, and offer great content outside of Pinterest with images made easily pinnable. At the same time, this combination of features points to Pinterest being a better shopping destination at large, and businesses stand to gain a great deal from that.

    It’s interesting to see Pinterest continue focusing on new ways for users to search as it’s positioning itself as more of a search service than a social media service, which is often thought of. This is especially true when it comes to recruiting advertisers.

    Back in the summer, Pinterest added a handful of new features to make its regualr search tool smarter, including a new typeahead experience, more filters, autocorrect, trending searches, and displaying verified accounts in search results.

    This new visual search feature actually appears to be the final version of the “Flashlight” search tool the company has been working on, which we also reported on in June. This was demoed about an hour and twenty-six minutes into the following video.

    Pinterest gets into the technology behind the new tool here.

    “Pinterest’s new visual search initiative indicates just how persuasive visual images can be for consumers,” says Jordan Slabaugh, Vice President of Marketing at social intelligence firm Wayin. “In general, social is becoming more visual across all platforms. Earlier this year, for example, we saw how Facebook’s new algorithm change boosted more visual posts in a given user’s feed instead of text-heavy ones. Over the years, this transition to more visual media will only continue to evolve.”

    “More visual social posts spark more engagement overall, and brands can capitalize on this by incorporating a social display into their current campaigns,” Slabaugh adds. “This can range from dynamic displays on branded websites to in-venue screens during live events and more. Social platforms like Twitter, Facebook and Pinterest have put user-generated content in the spotlight, and brands can use this content to enhance their marketing tactics. Overall, consumers are looking for brands that their peers recommend, and integrating social display is an easy way brands can tell their story authentically.”

    The feature is rolling out globally across the web and Pinterest’s mobile apps.

    Do you see Pinterest’s combined efforts culminating into a major channel for ecommerce? Let us know what you think.

  • Mobile And Reviews To Be Big Factors In Shopping This Season?

    Mobile And Reviews To Be Big Factors In Shopping This Season?

    Social Media Link released some interesting findings based on a survey of 21,000 active social media users. It finds that this holiday season, peer-to-peer online reviews will influence what goes on shoppers’ lists.

    How big of a role do reviews play in driving your sales? Discuss.

    83% of those polled said they discover new products on a monthly basis through social media before other sources while 67% said they always or often seek out family or close friends’ recommendations online while researching a purchase. Such recommendations have impact for 65%.

    Social Media Link CEO Susan Frech says, “Holiday shopping is trend-driven and last-minute. Consumers wait to learn what’s hot; then make their lists. This study suggests that they’re already discovering new products through the power of online reviews. That’s a game-changer.”

    According to the study, reviews on retailer websites, brand sites, and Facebook will impact customers’ choices more than reviews on other channels. It found that consumers trust these channels for computers, electronics, personal care items, children’s products, and apparel.

    “User-generated content, those testimonials, videos and reviews, are what is swaying consumers more than ever this year. Brands that focus on getting their messages out through their consumers, will win all along the path to purchase,” says Frech.

    The findings indicate that 18% find one online review to be enough to convince them to purchase as long as it is from a close friend, family member, or colleague. 23% say up to four from a variety of sources is enough to convince them.

    Facebook reviews are holding more sway than in previous years, and video reviews are gaining credibility among consumers. 6% say they use YouTube to learn about new products and brands. 49% say they use YouTube to gather information before making a purchase. Two-thirds use video reviews at least some of the time to help make a purchase decision.

    The source of the video matters though. Video reviews from YouTube reviewers and on Retail websites tied for influencing 64% while 50% have been influenced by a blogger videos.

    “While video reviews on YouTube certainly hold sway for consumers, it’s important to note that video on Facebook is gaining. I predict that by next holiday season year, we’ll see the balance of video reviewing tipping to Facebook,” said Frech.

    Interestingly, brand sponsored reviews are trusted, but the source is key.

    Facebook Insights (FBIQ) recently released some data on growth in engagement and purchase behavior via mobile devices. Long story short, mobile shopping is on the rise.

    Among the key findings:

    – From January to May 2015, 3 in 10 online purchases took place on mobile and the frequency of mobile purchases increased 35%

    – Over the course of the year, those purchasing on a mobile device steadily increased and in Q4, Facebook IQ predicts that the percentage of online purchasers who buy on mobile will grow 30%

    – 73% of people say mobile devices are always with them

    – 45% of all shopping journeys contain an action on mobile—everything from discovering to researching to buying (57% for Millennials)

    – In the year ahead, 64% of omni-channel shoppers anticipate doing more research on their smartphones and 61% expect to be using their smartphone more while in physical stores

    More on Facebook’s findings here.

    A new State of ecommerce benchmark report from Yotpo is making the rounds. According to that, social channels are only driving 6% of ecommerce traffic compared to Direct (40%), Search (34%), Referral (10%), Paid (5%), Email (3%) and Other (2%). It also shows, however, that social traffic is high quality with Instagram traffic leading for average time on site topping email, direct, and referral.

    Do you expect social media, reviews, and/or mobile to play a significant role in your holiday season success? Share your thoughts here.

  • Uber Driver Sues Former Taco Bell Exec over Brutal Attack Gone Viral

    Uber Driver Sues Former Taco Bell Exec over Brutal Attack Gone Viral

    The Uber driver that posted shocking video of a passenger attacking him over the weekend is now filing suit against his alleged attacker.

    Edward Caban, who uploaded the video on October 30th, has filed a civil suit against 32-year-old Benjamin Golden

    In a video, which has now been seen nearly two million times, an Uber driver repeatedly asks a passenger to give him directions, and the passenger can be heard slurring, burping, and generally being unable to give directions. At about two minutes into the video, the driver flips his dashcam around.

    At about 2:30, the driver pulls into a parking lot and says “sorry man, I gotta kick you out.”

    “You’re too drunk to give me directions,” he says.

    The passenger argues with the driver for about a minute, but the driver says he’s already ended the trip and tells the passenger to get out of the car, or he’ll call the police.

    At about 3:20, the passenger starts hitting the driver in the face. About 10 seconds into the attack, the driver is able to turn around and spray the passenger with pepper spray.

    Check it out:

    Shortly after the video picked up steam, the attacker was identified as a Taco Bell executive, a head of “mobile commerce and innovation initiatives”.

    Taco Bell quickly distanced itself from Golden, terminating his position.

    “Given the behavior of the individual, it is clear he can no longer work for us. We have also offered and encouraged him to seek professional help,” the fast food chain said in a statement.

    After initially being charged with misdemeanor assault and public intoxication, Golden has since been hit with more charges – assault on public transportation property, battery on a public transit employee with injury, assault and battery. He could spend up to a year in jail and be forced to pay a $10,000 fine for his actions.

  • Groupon Gets New CEO, Releases Earnings

    Groupon Gets New CEO, Releases Earnings

    Groupon released its Q3 earnings and announced that it has named Rich Williams as its new CEO as Eric Lefkofsky steps down.

    Williams was appointed by the board, effective immediately as Lefkofsky returns to his role as Chairman of the Board.

    “Rich is the right and natural choice for Groupon’s future, and he has the unanimous support of the Board of Directors. We are fully confident we have identified the best leader for our employees, customers, partners and shareholders,” said Ted Leonsis, outgoing Chairman of the Board, who is now Lead Independent Director. “Over the last two years, Eric has worked tirelessly for the company and the business is much stronger today because of it.”

    “I am honored to be leading the company as Groupon evolves into a daily habit in our customers’ lives,” said Williams. “Under Eric, we made significant strides in establishing our marketplace. That work will continue with a greater focus than ever. As CEO, my top priority is to unlock the long-term growth potential in the business by demonstrating everything the new Groupon has to offer. We have a great team here and I look forward to the opportunities ahead of us.”

    “Cracking the code in local commerce is not easy. We’ve come a long way in building a leading local commerce marketplace in the last two years,” said Lefkofsky. “With his deep experience in e-commerce — both in and outside of Groupon — and expertise in marketing, operations and technology, Rich was the obvious choice to lead Groupon.”

    “I’m assuming the CEO role with three immediate priorities,” Williams said. “First, we will renew our investment in customer acquisition to introduce more new customers to our marketplace and accelerate growth. Second, we will increase our focus on streamlining our international operations to ensure we are operating as lean and efficiently as possible. Finally, we will shift our Shopping category away from lower margin ‘empty calorie’ products to grow a sustainable, healthy Goods business with stronger margins.”

    As for Groupon’s financials, the company announced gros billings of $1.47 billion, revenue of $713.6 million, GAAP loss per share of $0.04 and non-GAAP earnings per share of $0.05.

    Here’s the release in its entirety:

    CHICAGO–(BUSINESS WIRE)– Groupon, Inc. (NASDAQ: GRPN) today announced financial results for the quarter ended September 30, 2015.

    The company also announced that Chief Operating Officer Rich Williams will assume the role of Chief Executive Officer. Outgoing CEO Eric Lefkofsky will once again serve as Chairman of the Board of Directors. Outgoing Chairman Ted Leonsis will now serve as Lead Independent Director.

    “Over the past few years, we’ve repositioned the business for success and strengthened our foundation. On a trailing twelve-month basis, we generated $3.1 billion in revenue, $1.4 billion in gross profit, $283 million in adjusted EBITDA and $228 million in free cash flow,” Lefkofsky said.

    “We’ve successfully transformed Groupon to support our next stage of growth. The business is stable, the marketplace is scaling, and we are ready to take our next big step. Now is the right time for me to return to my role as Chairman, and let Rich, who has done a tremendous job over the past four years, lead Groupon during this next stage.”

    Third Quarter 2015 Summary

    • Gross billings, which reflect the total dollar value of customer purchases of goods and services, was $1.47 billion in the third quarter 2015, compared with $1.49 billion in the third quarter 2014. Gross billings declined 2% globally, but grew 6% excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter. On this F/X neutral basis, North America billings increased 12%, EMEA declined 1% and Rest of World was approximately flat.
    • Revenue was $713.6 million in the third quarter 2015, compared with $714.3 million in the third quarter 2014. Revenue was approximately flat, but grew 7% excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter. On this F/X neutral basis, North America revenue increased 11%, EMEA increased 2% and Rest of World declined 5%.
    • Gross profit was $328.9 million in the third quarter 2015, compared with $355.3 million in the third quarter 2014. Excluding the $26.4 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, gross profit would have been$355.4 million.
    • Adjusted EBITDA, a non-GAAP financial measure, was $56.3 million in the third quarter 2015, compared with $63.9 million in the third quarter 2014.
    • Net loss attributable to common stockholders was $27.6 million, or $0.04 per share. Non-GAAP earnings attributable to common stockholders was $32.5 million, or $0.05 per share.
    • Third quarter 2015 results include pre-tax charges of $24.1 million and $37.5 million related to the previously announced restructuring program and securities litigation, respectively, a $13.7 million pre-tax gain from the sale of a controlling stake in Groupon India and a$17.8 million income tax benefit from a reduction in liabilities for uncertain tax positions.
    • Operating cash flow for the trailing twelve months ended September 30, 2015 was $316.4 million. Free cash flow, a non-GAAP financial measure, was negative $35.3 million in the third quarter 2015, bringing free cash flow for the trailing twelve months ended September 30, 2015 to $227.8 million.
    • Cash and cash equivalents as of September 30, 2015 was $963.6 million and borrowings against our revolving credit facility were $195.0 million.

    “We delivered a solid third quarter and one that was largely in line with our expectations,” said Groupon interim CFO Brian Kayman. “Our fourth quarter guidance reflects increased investments in marketing, and a tighter focus on margin improvement, both domestically and abroad.”

    Definitions and reconciliations of all non-GAAP financial measures are included below in the section titled “Non-GAAP Financial Measures” and in the accompanying tables.

    Highlights

    • Units: Global units, defined as vouchers and products sold before cancellations and refunds, increased 1% year-over-year to 52 million in the third quarter 2015. North America units increased 11%, EMEA units increased 1% and Rest of World units declined 23%.
    • Active deals: At the end of the third quarter 2015, on average, active deals were nearly 570,000 globally, with over 290,000 in North America. Both include the addition of approximately 80,000 Coupons.
    • Active customers: Active customers, or customers that have purchased a voucher or product within the last twelve months, grew 4% year-over-year, to 48.6 million as of September 30, 2015, comprising 25.2 million in North America, 15.4 million in EMEA, and 8.0 million in Rest of World.
    • Customer spend: Third quarter 2015 trailing twelve month billings per average active customer was $132, compared with $137 in the third quarter 2014.

    Share Repurchase

    During the third quarter 2015, Groupon repurchased 44,149,663 shares of its Class A common stock for an aggregate purchase price of $192.9 million. Up to $268.1 million of Class A common stock remains available for repurchase under Groupon’s share repurchase program throughAugust 2017. The timing and amount of any share repurchases are determined based on market conditions, share price and other factors, and the programs may be discontinued or suspended at any time.

    Outlook

    Groupon’s outlook for the fourth quarter reflects current foreign exchange rates, as well as expected marketing investments in customer acquisition.

    For the fourth quarter 2015, Groupon expects revenue of between $815 million and $865 million. This guidance anticipates nearly 400 basis points of unfavorable impact on the year-over-year growth rate from changes in foreign exchange rates. Groupon expects Adjusted EBITDA for the fourth quarter 2015 of between $40 million and $60 million, and non-GAAP earnings per share of between negative $0.01 and positive$0.01.

    Conference Call

    A conference call will be webcast live today at 4:00 p.m. CST / 5:00 p.m. EST, and will be available on Groupon’s investor relations website athttp://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. Grouponpromptly 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.

    Non-GAAP Financial Measures

    In addition to financial results reported in accordance with U.S. generally accepted accounting principles (U.S. GAAP), we have provided the following non-GAAP financial measures in this release and the accompanying tables: foreign exchange rate neutral operating results, adjusted EBITDA, non-GAAP net income attributable to common stockholders, non-GAAP earnings per share and free cash flow. These non-GAAP financial measures, which are presented on a continuing operations basis, are intended to aid investors in better understanding Groupon’scurrent financial performance and its 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, 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: interest income, interest expense, gains and losses related to minority investments, and foreign currency gains and losses. 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.

    Items That Are Unusual in Nature or Infrequently Occurring. For the three and nine months ended September 30, 2015, items that we believe to be unusual in nature or infrequently occurring were (a) charges related to our restructuring program, (b) the gain on our disposition of Groupon India, (c) the write-off of a prepaid asset related to a marketing program that was discontinued because the counterparty ceased operations and (d) the expense related to a significant increase in the contingent liability for our securities litigation matter. We exclude items that are unusual in nature or infrequently occurring because we believe that excluding those items provides meaningful supplemental information about our core operating performance and facilitates comparisons to our historical results.

    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 our current period operating results as if foreign currency exchange rates had remained the same as those in effect in the comparable prior-year period. We present foreign exchange rate neutral information to facilitate comparisons to our historical operating results.

    Adjusted EBITDA is a non-GAAP financial 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 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 plans and make strategic decisions regarding 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.

    Non-GAAP net income (loss) attributable to common stockholders and non-GAAP earnings (loss) per share adjust our net income (loss) attributable to common stockholders and earnings (loss) per share to exclude the impact of:

    • stock-based compensation,
    • amortization of acquired intangible assets,
    • acquisition-related expense (benefit), net,
    • items that are unusual in nature or infrequently occurring,
    • 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,
    • 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,
    • income (loss) from discontinued operations and
    • the income tax effect of those items.

    We believe that excluding these items from our measures of non-GAAP net income (loss) attributable to common stockholders and earnings (loss) per 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 financial measure that comprises net cash provided by (used in) operating activities from continuing operations less purchases of property and equipment and capitalized software from continuing operations. We use free cash flow, and ratios based on it, to conduct and evaluate our business because, although it is similar to cash flow from 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 Groupon’s cash balance for the applicable period.

    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, that involve a number of risks and uncertainties, and actual results could differ materially from those discussed. The words “may,” will,” should,” “could,” “expect,” anticipate,” “believe,” “estimate,” intend,” “continue” and other similar expressions are intended to identify forward-looking statements. The risks and uncertainties that could cause our results to differ materially from those included in the forward-looking statements include, but are not limited to, volatility in our revenue and operating results; risks related to our business strategy, including our marketing strategy and spend and the productivity of those marketing investments; the impact of our shift away from lower-margin products in our Goods category; effectively dealing with challenges arising from our international operations including fluctuations in currency exchange rates; retaining existing customers and adding new customers, including as we increase our marketing spend and shift away from lower-margin products in our Goods category; retaining and adding new and high quality merchants; cyber security breaches; incurring expenses as we expand our business; competing successfully in our industry; maintaining favorable payment terms with our business partners; providing a strong mobile experience for our customers; delivery and routing of our emails; maintaining a strong brand; managing inventory and order fulfillment risks; integrating our technology platforms; managing refund risks; retaining, attracting and integrating members of our executive team; litigation; compliance with domestic and foreign laws and regulations, including the CARD Act and regulation of the Internet and e-commerce; tax liabilities; tax legislation; maintaining our information technology infrastructure; protecting our intellectual property; completing and realizing the anticipated benefits from acquisitions, dispositions, joint ventures and strategic investments; seasonality; payment-related risks; customer and merchant fraud; global economic uncertainty; our ability to raise capital if necessary; difficulties, delays or our inability to successfully complete all or part of the announced restructuring actions or to realize the operating efficiencies and other benefits of such restructuring actions; higher than anticipated restructuring charges or changes in the timing of such restructuring charges; and the impact of our ongoing strategic review and any potential strategic alternatives we may choose to pursue. 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, Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 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 theSEC’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 November 3, 2015. 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 a global leader of local commerce and the place you start when you want to buy just about anything, anytime, anywhere. By leveraging the company’s global relationships and scale, Groupon offers consumers a vast marketplace of unbeatable deals all over the world. Shoppers discover the best a city has to offer on the web or on mobile with Groupon Local, enjoy vacations with Groupon Getaways, and find a curated selection of electronics, fashion, home furnishings and more with Groupon Goods.

    Groupon is redefining how traditional small businesses attract, retain and interact with customers by providing merchants with a suite of products and services, including customizable deal campaigns, credit card payment processing capabilities, and point-of-sale solutions that help businesses grow and operate more effectively. To search for great deals or subscribe to Groupon emails, visit www.Groupon.com. To download Groupon’s top-rated mobile apps, visit www.groupon.com/mobile. To learn more about the company’s merchant solutions and how to work with Groupon, visit www.GrouponWorks.com

    Groupon, Inc.
    Summary Consolidated and Segment Results
    (in thousands, except share and per share amounts)
    (unaudited)
    The financial results of Ticket Monster, including the gain on disposition and related tax effects, are presented as discontinued operations in the accompanying condensed consolidated financial statements and tables for the nine months ended September 30, 2015. Additionally, the assets and liabilities for Ticket Monster are presented as held for sale in the accompanying condensed consolidated balance sheet as of December 31, 2014. All prior period financial information and operational metrics have been retrospectively adjusted to reflect this presentation.
     
    Three Months Ended September 30,     Nine Months Ended September 30,    
    2015 2014 Y/Y % Growth FX Effect(2) Y/Y % Growth
    excluding FX(2)    		 2015 2014 Y/Y % Growth FX Effect(2) Y/Y % Growth
    excluding FX(2)
    Gross Billings(1):
    North America $ 869,203 $ 774,286 12.3 % $ (1,649 ) 12.5 % $ 2,659,436 $ 2,354,900 12.9 % $ (3,904 ) 13.1 %
    EMEA 414,482 489,423 (15.3 ) (72,345 ) (0.5 ) 1,307,207 1,486,266 (12.0 ) (256,158 ) 5.2
    Rest of World 183,849 226,638 (18.9 ) (43,127 ) 0.1 581,905 671,997 (13.4 ) (101,105 ) 1.6
    Consolidated gross billings $ 1,467,534 $ 1,490,347 (1.5 ) % $ (117,121 ) 6.3 % $ 4,548,548 $ 4,513,163 0.8 % $ (361,167 ) 8.8 %
    Revenue:
    North America $ 463,931 $ 418,494 10.9 % $ (405 ) 11.0 % $ 1,425,095 $ 1,273,487 11.9 % $ (943 ) 12.0 %
    EMEA 199,287 230,072 (13.4 ) (35,863 ) 2.2 619,554 688,655 (10.0 ) (124,694 ) 8.1
    Rest of World 50,377 65,703 (23.3 ) (12,004 ) (5.1 ) 157,697 196,753 (19.9 ) (28,147 ) (5.5 )
    Consolidated revenue $ 713,595 $ 714,269 (0.1 ) % $ (48,272 ) 6.7 % $ 2,202,346 $ 2,158,895 2.0 % $ (153,784 ) 9.1 %
    Income (loss) from operations $ (70,423 ) $ 1,049 (6,813.3 ) % $ 633 (6,873.7 ) % $ (74,354 ) $ (2,939 ) (2,429.9 ) % $ 679 (2,453.0 ) %
    Income (loss) from continuing operations (24,613 ) (12,573 ) (56,619 ) (45,039 )
    Income (loss) from discontinued operations, net of tax — (6,445 ) 133,463 (30,264 )
    Net income (loss) attributable toGroupon, Inc. $ (27,615 ) $ (21,208 ) $ 67,196 $ (81,878 )
    Basic net income (loss) per share:
    Continuing operations $ (0.04 ) $ (0.02 ) $ (0.10 ) $ (0.08 )
    Discontinued operations — (0.01 ) 0.20 (0.04 )
    Basic net income (loss) per share $ (0.04 ) $ (0.03 ) $ 0.10 $ (0.12 )
    Diluted net income (loss) per share:
    Continuing operations $ (0.04 ) $ (0.02 ) $ (0.10 ) $ (0.08 )
    Discontinued operations — (0.01 ) 0.20 (0.04 )
    Diluted net income (loss) per share $ (0.04 ) $ (0.03 ) $ 0.10 $ (0.12 )
    Weighted average number of shares outstanding
    Basic 644,894,785 669,526,524 664,302,630 675,814,535
    Diluted 644,894,785 669,526,524 664,302,630 675,814,535
    (1) Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds.
    (2) 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 during the three and nine months ended September 30, 2014.
    Groupon, Inc.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)
    Three Months Ended September 30, Nine Months Ended September 30,
    2015 2014 2015 2014
    Operating activities
    Net income (loss) $ (24,613 ) $ (19,018 ) $ 76,844 $ (75,303 )
    Less: Income (loss) from discontinued operations, net of tax — (6,445 ) 133,463 (30,264 )
    Income (loss) from continuing operations (24,613 ) (12,573 ) (56,619 ) (45,039 )
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:
    Depreciation and amortization of property, equipment and software 30,475 25,355 84,241 68,731
    Amortization of acquired intangible assets 5,160 5,107 14,966 16,188
    Stock-based compensation 35,575 32,680 109,204 85,329
    Restructuring charges 24,146 — 24,146 —
    Gain on disposition of business (13,710 ) — (13,710 ) —
    Deferred income taxes (15,202 ) (2,472 ) (15,252 ) (1,956 )
    Excess tax benefits on stock-based compensation 28 (2,641 ) (6,198 ) (12,573 )
    Loss on equity method investments — 91 — 459
    Gain from changes in fair value of contingent consideration 435 (1,020 ) (268 ) (1,059 )
    Loss from changes in fair value of investments 2,564 — 2,114 —
    Impairments of investments — 1,448 — 2,036
    Change in assets and liabilities, net of acquisitions:
    Restricted cash 1,392 6,014 4,555 7,686
    Accounts receivable 16,635 (4,337 ) 6,353 (26,557 )
    Prepaid expenses and other current assets (33,366 ) (27,040 ) (39,813 ) (22,883 )
    Accounts payable 5,371 (5,505 ) (944 ) (12,973 )
    Accrued merchant and supplier payables (51,319 ) (32,586 ) (101,852 ) (101,070 )
    Accrued expenses and other current liabilities 27,368 7,853 33,413 (21,103 )
    Other, net (18,551 ) 31,950 (1,242 ) 44,009
    Net cash provided by (used in) operating activities from continuing operations (7,612 ) 22,324 43,094 (20,775 )
    Net cash provided by (used in) operating activities from discontinued operations (19,205 ) 23,142 (36,578 ) 22,777
    Net cash provided by (used in) operating activities (26,817 ) 45,466 6,516 2,002
    Net cash provided by (used in) investing activities from continuing operations (98,028 ) (22,492 ) (146,012 ) (117,643 )
    Net cash provided by (used in) investing activities from discontinued operations — (1,415 ) 244,470 (75,924 )
    Net cash provided by (used in) investing activities (98,028 ) (23,907 ) 98,458 (193,567 )
    Net cash provided by (used in) financing activities (14,821 ) (16,823 ) (185,990 ) (173,068 )
    Effect of exchange rate changes on cash and cash equivalents, including cash

    classified within current assets held for sale

    		 (6,923 ) (21,102 ) (27,338 ) (20,671 )
    Net increase (decrease) in cash and cash equivalents, including cash classified

    within current assets held for sale

    		 (146,589 ) (16,366 ) (108,354 ) (385,304 )
    Less: Net increase (decrease) in cash classified within current assets held for sale — 20,649 (55,279 ) 43,324
    Net increase (decrease) in cash and cash equivalents (146,589 ) (37,015 ) (53,075 ) (428,628 )
    Cash and cash equivalents, beginning of period 1,110,148 845,413 1,016,634 1,240,472
    Cash and cash equivalents, end of period $ 963,559 $ 808,398 $ 963,559 $ 811,844
    Groupon, Inc.
    Condensed Consolidated Statements of Operations
    (in thousands, except share and per share amounts)
    (unaudited)
    Three Months Ended September 30, Nine Months Ended September 30,
    2015 2014 2015 2014
    Revenue:
    Third party and other $ 326,306 $ 362,903 $ 1,027,273 $ 1,133,109
    Direct 387,289 351,366 1,175,073 1,025,786
    Total revenue 713,595 714,269 2,202,346 2,158,895
    Cost of revenue:
    Third party and other 46,050 50,774 145,292 153,333
    Direct 338,633 308,217 1,043,729 918,362
    Total cost of revenue 384,683 358,991 1,189,021 1,071,695
    Gross profit 328,912 355,278 1,013,325 1,087,200
    Operating expenses:
    Marketing 61,587 55,258 171,127 182,142
    Selling, general and administrative 326,248 299,275 904,816 905,919
    Restructuring charges 24,146 — 24,146 —
    Gain on disposition of business (13,710 ) — (13,710 ) —
    Acquisition-related expense (benefit), net 1,064 (304 ) 1,300 2,078
    Total operating expenses 399,335 354,229 1,087,679 1,090,139
    Income (loss) from operations (70,423 ) 1,049 (74,354 ) (2,939 )
    Other income (expense), net (1) (8,160 ) (20,056 ) (25,146 ) (21,919 )
    Income (loss) from continuing operations before provision

    (benefit) for income taxes

    		 (78,583 ) (19,007 ) (99,500 ) (24,858 )
    Provision (benefit) for income taxes (53,970 ) (6,434 ) (42,881 ) 20,181
    Income (loss) from continuing operations (24,613 ) (12,573 ) (56,619 ) (45,039 )
    Income (loss) from discontinued operations, net of tax — (6,445 ) 133,463 (30,264 )
    Net income (loss) (24,613 ) (19,018 ) 76,844 (75,303 )
    Net income (loss) attributable to noncontrolling interests (3,002 ) (2,190 ) (9,648 ) (6,575 )
    Net income (loss) attributable to Groupon, Inc. $ (27,615 ) $ (21,208 ) $ 67,196 $ (81,878 )
    Basic net income (loss) per share:
    Continuing operations $ (0.04 ) $ (0.02 ) $ (0.10 ) $ (0.08 )
    Discontinued operations — (0.01 ) 0.20 (0.04 )
    Basic net income (loss) per share $ (0.04 ) $ (0.03 ) $ 0.10 $ (0.12 )
    Diluted net income (loss) per share:
    Continuing operations $ (0.04 ) $ (0.02 ) $ (0.10 ) $ (0.08 )
    Discontinued operations — (0.01 ) 0.20 (0.04 )
    Diluted net income (loss) per share $ (0.04 ) $ (0.03 ) $ 0.10 $ (0.12 )
    Weighted average number of shares outstanding
    Basic 644,894,785 669,526,524 664,302,630 675,814,535
    Diluted 644,894,785 669,526,524 664,302,630 675,814,535
    (1) Other income (expense), net includes foreign currency losses of $5.2 million and $18.6 million for the three months ended September 30, 2015 and 2014, respectively, and foreign currency losses of $22.1 million and $20.1 million for the nine months ended September 30, 2015 and 2014, respectively.
    Groupon, Inc.
    Condensed Consolidated Balance Sheets
    (in thousands, except share and per share amounts)
    September 30, 2015 December 31, 2014
    (unaudited)
    Assets
    Current assets:
    Cash and cash equivalents $ 963,559 $ 1,016,634
    Accounts receivable, net 76,121 90,597
    Deferred income taxes 19,349 16,271
    Prepaid expenses and other current assets 223,986 192,382
    Current assets held for sale — 85,445
    Total current assets 1,283,015 1,401,329
    Property, equipment and software, net 202,714 176,004
    Goodwill 291,084 236,756
    Intangible assets, net 40,841 30,609
    Investments (including $149.2 million and $7.4 million at September 30, 2015 and December 31,

    2014, respectively, at fair value)

    		 163,789 24,298
    Deferred income taxes, non-current 28,791 41,323
    Other non-current assets 20,407 16,173
    Non-current assets held for sale — 301,105
    Total Assets $ 2,030,641 $ 2,227,597
    Liabilities and Equity
    Current liabilities:
    Short-term borrowings $ 195,000 $ —
    Accounts payable 15,503 13,822
    Accrued merchant and supplier payables 640,044 772,156
    Accrued expenses 260,883 214,260
    Deferred income taxes 28,573 31,998
    Other current liabilities 142,925 127,121
    Current liabilities held for sale — 166,239
    Total current liabilities 1,282,928 1,325,596
    Deferred income taxes, non-current 4,756 773
    Other non-current liabilities 142,005 129,531
    Non-current liabilities held for sale — 6,753
    Total Liabilities 1,429,689 1,462,653
    Commitments and contingencies
    Stockholders’ Equity
    Class A common stock, par value $0.0001 per share, 2,000,000,000 shares authorized,

    714,074,671 shares issued and 620,933,460 shares outstanding at September 30, 2015 and

    699,008,084 shares issued and 671,768,980 shares outstanding at December 31, 2014

    		 71 70
    Class B common stock, par value $0.0001 per share, 10,000,000 shares authorized, 2,399,976

    shares issued and outstanding at September 30, 2015 and December 31, 2014

    		 — —
    Common stock, par value $0.0001 per share, 2,010,000,000 shares authorized, no shares issued

    and outstanding at September 30, 2015 and December 31, 2014

    		 — —
    Additional paid-in capital 1,933,994 1,847,420
    Treasury stock, at cost, 93,141,211 shares at September 30, 2015 and 27,239,104 shares at

    December 31, 2014

     

    		 (532,530 ) (198,467 )
    Accumulated deficit (854,764 ) (921,960 )
    Accumulated other comprehensive income 53,369 35,763
    Total Groupon, Inc. Stockholders’ Equity 600,140 762,826
    Noncontrolling interests 812 2,118
    Total Equity 600,952 764,944
    Total Liabilities and Equity $ 2,030,641 $ 2,227,597
    Groupon, Inc.
    Segment Information
    (in thousands)
    (unaudited)
    Three Months Ended September 30, Nine Months Ended September 30,
    2015 2014 2015 2014
    North America
    Gross billings (1) $ 869,203 $ 774,286 $ 2,659,436 $ 2,354,900
    Revenue 463,931 418,494 1,425,095 1,273,487
    Segment cost of revenue and operating expenses (2)(3)(4) 494,843 405,910 1,404,472 1,234,973
    Segment operating income (loss) (2) $ (30,912 ) $ 12,584 $ 20,623 $ 38,514
    Segment operating income (loss) as a percent of segment gross billings (3.6 )% 1.6 % 0.8 % 1.6 %
    Segment operating income (loss) as a percent of segment revenue (6.7 )% 3.0 % 1.4 % 3.0 %
    EMEA
    Gross billings (1) $ 414,482 $ 489,423 $ 1,307,207 $ 1,486,266
    Revenue 199,287 230,072 619,554 688,655
    Segment cost of revenue and operating expenses (2)(4)(5) 195,397 207,643 586,343 619,594
    Segment operating income (loss) (2) $ 3,890 $ 22,429 $ 33,211 $ 69,061
    Segment operating income (loss) as a percent of segment gross billings 0.9 % 4.6 % 2.5 % 4.6 %
    Segment operating income (loss) as a percent of segment revenue 2.0 % 9.7 % 5.4 % 10.0 %
    Rest of World
    Gross billings (1) $ 183,849 $ 226,638 $ 581,905 $ 671,997
    Revenue 50,377 65,703 157,697 196,753
    Segment cost of revenue and operating expenses (2)(4) 57,282 67,291 175,542 219,860
    Segment operating income (loss) (2) $ (6,905 ) $ (1,588 ) $ (17,845 ) $ (23,107 )
    Segment operating income (loss) as a percent of segment gross billings (3.8 )% (0.7 )% (3.1 )% (3.4 )%
    Segment operating income (loss) as a percent of segment revenue (13.7 )% (2.4 )% (11.3 )% (11.7 )%
    (1) Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds.
    (2) Segment cost of revenue and operating expenses and segment operating income (loss) exclude stock-based compensation and acquisition-related expense (benefit), net.
    (3) Segment cost of revenue and operating expenses for North America for the three and nine months ended September 30, 2015 includes a$37.5 million expense related to an increase in the Company’s contingent liability for its securities litigation matter.
    (4) Segment cost of revenue and operating expenses for the three and nine months ended September 30, 2015 includes restructuring charges of $1.4 million in North America, $19.7 million in EMEA and $3.0 million in Rest of World.
    (5) Segment cost of revenue and operating expenses for EMEA for the three and nine months ended September 30, 2015 includes a $6.7 million expense for the write-off of a prepaid asset related to a marketing program that was discontinued because the counterparty ceased 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 financial measures. The Company reconciles Adjusted EBITDA to the most comparable U.S. GAAP financial 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 financial 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 financial measure, “Net income (loss) from continuing operations.”
    Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
    Income (loss) from continuing operations $ (12,573 ) $ 26,566 $ (16,739 ) $ (15,267 ) $ (24,613 )
    Adjustments:
    Stock-based compensation (1) 32,680 29,961 35,144 38,467 35,432
    Depreciation and amortization 30,462 30,122 32,200 31,372 35,635
    Acquisition-related expense (benefit), net (304 ) (809 ) (269 ) 505 1,064
    Restructuring charges — — — — 24,146
    Gain on disposition of business — — — — (13,710 )
    Prepaid marketing write-off — — — — 6,690
    Securities litigation expense — — — — 37,500
    Other expense (income), net 20,056 11,531 19,927 (2,941 ) 8,160
    Provision (benefit) for income taxes (6,434 ) (4,457 ) 2,107 8,982 (53,970 )
    Total adjustments 76,460 66,348 89,109 76,385 80,947
    Adjusted EBITDA $ 63,887 $ 92,914 $ 72,370 $ 61,118 # $ 56,334
    (1) Includes stock-based compensation classified within cost of revenue, marketing expense, and selling, general and administrative expense. Other expense (income), net, includes $0.02 million and $0.1 million of additional stock-based compensation for the three months endedJune 30, 2015 and the three months ended September 30, 2015, respectively.
    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 and nine months ended September 30, 2015:
    Three Months Ended

    September 30, 2015

    		 Nine Months Ended

    September 30, 2015
    Net income (loss) attributable to common stockholders $ (27,615 ) $ 67,196
    Stock-based compensation 35,575 109,204
    Amortization of acquired intangible assets 5,160 14,966
    Acquisition-related expense (benefit), net 1,064 1,300
    Restructuring charges 24,146 24,146
    Gain on disposition of business (13,710 ) (13,710 )
    Prepaid marketing write-off 6,690 6,690
    Securities litigation expense 37,500 37,500
    Intercompany foreign losses (gains) and

    reclassfication of translation adjustment to

    earnings (1)

    		 4,708   20,666
    Loss from changes in fair value of investments 2,564 2,114
    Income tax effect of above adjustments (43,541 ) (68,932 )
    Income from discontinued operations, net of tax — (133,463 )
    Non-GAAP net income (loss) attributable to common stockholders $ 32,541 $ 67,677
    Diluted shares 644,894,785 644,302,630
    Incremental diluted shares 5,385,857 7,017,448
    Adjusted diluted shares 650,280,642 651,320,078
    Diluted net income (loss) per share $ (0.04 ) $ 0.10
    Impact of stock-based compensation,

    amortization of acquired intangible assets,

    acquisition-related expense (benefit), net,

    intercompany foreign currency losses (gains),

    items that are unusual in nature and infrequently

    occurring, income (loss) from discontinued

    operations and related tax effects

    		 0.09 —
    Non-GAAP net income (loss) per share $ 0.05 $ 0.10
    (1) For the nine months ended September 30, 2015, a $4.4 million loss related to the cumulative translation adjustment from the Company’s legacy business in the Republic of Korea was reclassified to earnings as a result of the Ticket Monster disposition.
    Foreign exchange rate neutral operating results are non-GAAP financial measures. The Company reconciles foreign exchange rate neutral operating results to the most comparable U.S. GAAP financial measures, “Gross billings,” “Revenue” and “Income (loss) from continuing operations,” respectively, for the periods presented. The Company reconciles “foreign exchange rate neutral Gross billings growth” and “foreign exchange rate neutral Revenue growth” to year-over-year growth rates for the most comparable U.S. GAAP financial measures, “Gross billings growth” and “Revenue growth,” respectively, for the periods presented.
    The effect on the Company’s gross billings, revenue and income (loss) from changes in exchange rates versus the U.S. Dollar for the three months ended September 30, 2015 was as follows:
    Three Months Ended September 30, 2015 Three Months Ended September 30, 2015
    At Avg. Q3 2014

    Rates(1)

    		 Exchange Rate

    Effect(2)

    		 As

    Reported

    		 At Avg. Q2 2015

    Rates(3)

    		 Exchange Rate

    Effect(2)

    		 As

    Reported
    Gross billings $ 1,584,655 $ (117,121 ) $ 1,467,534 $ 1,478,528 $ (10,994 ) $ 1,467,534
    Revenue 761,867 (48,272 ) 713,595 716,702 (3,107 ) 713,595
    Income (loss) from operations $ (71,056 ) $ 633 $ (70,423 ) $ (71,189 ) $ 766 $ (70,423 )
    The effect on the Company’s gross billings, revenue and income (loss) from operations from changes in exchange rates versus the U.S. Dollar for the nine months ended September 30, 2015 was as follows:
    Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2015
    At Avg. Q3 2014

    YTD Rates(1)

    		 Exchange Rate

    Effect(2)

    		 As

    Reported

    		 At Avg. Q4’14-Q2’15

    Rates(3)

    		 Exchange Rate

    Effect(2)

    		 As

    Reported
    Gross billings $ 4,909,715 $ (361,167 ) $ 4,548,548 $ 4,624,647 $ (76,099 ) $ 4,548,548
    Revenue 2,356,130 (153,784 ) 2,202,346 2,234,382 (32,036 ) 2,202,346
    (Loss) income from operations $ (75,033 ) $ 679 $ (74,354 ) $ (74,074 ) $ (280 ) $ (74,354 )
    (1) Represents the financial statement balances that would have resulted had average exchange rates in the reporting periods been the same as those in effect during the three and nine months ended September 30, 2014.
    (2) Represents the increase or decrease in reported amounts resulting from changes in exchange rates from those in effect in the comparable prior periods.
    (3) Represents the financial statement balances that would have resulted had average exchange rates in the reporting periods been the same as those in effect during the three and nine months ended June 30, 2015.
    The following is a quarterly reconciliation of foreign exchange rate neutral Gross billings growth from the comparable quarterly periods of the prior year to reported Gross billings growth from the comparable quarterly periods of the prior year.
    Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
    EMEA Gross billings growth, excluding FX 10 % 8 % 7 % 9 % (1 ) %
    FX Effect — (9 ) (18 ) (19 ) (14 )
    EMEA Gross billings growth 10 % (1 ) % (11 ) % (10 ) % (15 ) %
    Rest of World Gross billings growth, excluding FX 1 % — % (1 ) % 6 % —   %
    FX Effect (4 ) (10 ) (11 ) (15 ) (19 )
    Rest of World Gross billings growth (3 ) % (10 ) % (12 ) % (9 ) % (19 ) %
    Consolidated Gross billings growth, excluding FX 12 % 13 % 10 % 10 % 6   %
    FX Effect (1 ) (5 ) (8 ) (8 ) (8 )
    Consolidated Gross billings growth 11 % 8 % 2 % 2 % (2 ) %
    The following is a quarterly reconciliation of foreign exchange rate neutral Revenue growth from the comparable quarterly periods of the prior year to reported Revenue growth from the comparable quarterly periods of the prior year.
    Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
    EMEA Revenue growth, excluding FX 55 % 18 % 13 % 9 % 2   %
    FX Effect 1 (10 ) (19 ) (19 ) (15 )
    EMEA Revenue growth 56 % 8 % (6 ) % (10 ) % (13 ) %
    Rest of World Revenue growth, excluding FX (20 ) % (9 ) % (8 ) % (4 ) % (5 ) %
    FX Effect (4 ) (10 ) (10 ) (14 ) (18 )
    Rest of World Revenue growth (24 ) % (19 ) % (18 ) % (18 ) % (23 ) %
    Consolidated Revenue growth, excluding FX 21 % 19 % 10 % 11 % 7   %
    FX Effect (1 ) (4 ) (7 ) (8 ) (7 )
    Consolidated Revenue growth 20 % 15 % 3 % 3 % —   %
    The effect on North America’s gross billings by category from changes in foreign exchange rates versus the U.S. Dollar for the three months ended September 30, 2015 was as follows:
    At Avg. Q3

    2014 Rates (1)

    		 Exchange

    Rate

    Effect (2)

    		 September 30, 2015

    As Reported

    		 September 30, 2014

    As Reported

    		 Y/Y %

    Growth

    		 Y/Y%

    Growth

    excluding

    FX
    Local:
    Third party and other $ 482,498 $ (890 ) $ 481,608 $ 446,573 7.8 % 8.0 %
    Travel:
    Third party 102,065 (264 ) 101,801 84,820 20.0 % 20.3 %
    Total services 584,563 (1,154 ) 583,409 531,393 9.8 % 10.0 %
    Goods:
    Third party 9,181 (495 ) 8,686 5,077 71.1 % 80.8 %
    Direct 277,108 — 277,108 237,816 16.5 16.5
    Total 286,289 (495 ) 285,794 242,893 17.7 % 17.9
    Travel:
    Third party 102,065 (264 ) 101,801 84,820 20.0 % 20.3 %
    Total gross billings $ 870,852 $ (1,649 ) $ 869,203 $ 774,286 12.3 % 12.5 %
    The effect on EMEA’s gross billings by category from changes in foreign exchange rates versus the U.S. Dollar for the three months endedSeptember 30, 2015 was as follows:
    At Avg. Q3

    2014 Rates (1)

    		 Exchange

    Rate

    Effect (2)

    		 September 30, 2015

    As Reported

    		 September 30, 2014

    As Reported

    		 Y/Y %

    Growth

    		 Y/Y%

    Growth

    excluding

    FX
    Local:
    Third party and other $ 211,548 $ (29,008 ) $ 182,540 $ 218,615 (16.5 ) % (3.2 ) %
    Travel:
    Third party 77,825 (12,909 ) 64,916 79,802 (18.7 ) % (2.5 ) %
    Total services 289,373 (41,917 ) 247,456 298,417 (17.1 ) % (3.0 ) %
    Goods:
    Third party 74,621 (10,703 ) 63,918 82,646 (22.7 ) % (9.7 ) %
    Direct 122,833 (19,725 ) 103,108 108,360 (4.8 ) 13.4
    Total 197,454 (30,428 ) 167,026 191,006 (12.6 ) % 3.4 %
    Travel:
    Third party 77,825 (12,909 ) 64,916 79,802 (18.7 ) % (2.5 ) %
    Total gross billings $ 486,827 $ (72,345 ) $ 414,482 $ 489,423 (15.3 ) % (0.5 ) %
    The effect on Rest of World’s gross billings by category from changes in foreign exchange rates versus the U.S. Dollar for the three months ended September 30, 2015 was as follows:
    At Avg. Q3

    2014 Rates (1)

    		 Exchange

    Rate

    Effect (2)

    		 September 30, 2015

    As Reported

    		 September 30, 2014

    As Reported

    		 Y/Y %

    Growth

    		 Y/Y%

    Growth

    excluding

    FX
    Local:
    Third party and other $ 115,909 $ (22,937 ) $ 92,972 $ 120,269 (22.7 ) % (3.6 ) %
    Travel:
    Third party 38,890 (8,181 ) 30,709 35,754 (14.1 ) % 8.8 %
    Total services 154,799 (31,118 ) 123,681 156,023 (20.7 ) % (0.8 ) %
    Goods:
    Third party 63,749 (10,654 ) 53,095 65,425 (18.8 ) % (2.6 ) %
    Direct 8,428 (1,355 ) 7,073 5,190 36.3 62.4
    Total 72,177 (12,009 ) 60,168 70,615 (14.8 ) % 2.2 %
    Travel:
    Third party 38,890 (8,181 ) 30,709 35,754 (14.1 ) % 8.8 %
    Total gross billings $ 226,976 $ (43,127 ) $ 183,849 $ 226,638 (18.9 ) % 0.1 %
    The effect on consolidated gross billings by category from changes in foreign exchange rates versus the U.S. Dollar for the three months endedSeptember 30, 2015 was as follows:
    At Avg. Q3

    2014 Rates (1)

    		 Exchange

    Rate

    Effect (2)

    		 September 30, 2015

    As Reported

    		 September 30, 2014

    As Reported

    		 Y/Y %

    Growth

    		 Y/Y%

    Growth

    excluding

    FX
    Local:
    Third party and other $ 809,955 $ (52,835 ) $ 757,120 $ 785,457 (3.6 ) % 3.1 %
    Travel:
    Third party 218,780 (21,354 ) 197,426 200,376 (1.5 ) % 9.2 %
    Total services 1,028,735 (74,189 ) 954,546 985,833 (3.2 ) % 4.4 %
    Goods:
    Third party 147,551 (21,852 ) 125,699 153,148 (17.9 ) % (3.7 ) %
    Direct 408,369 (21,080 ) 387,289 351,366 10.2 16.2
    Total 555,920 (42,932 ) 512,988 504,514 1.7 % 10.2 %
    Total gross billings $ 1,584,655 $ (117,121 ) $ 1,467,534 $ 1,490,347 (1.5 ) % 6.3 %
    (1) Represents the financial statement balances that would have resulted had average exchange rates in the reporting period been the same as those in effect during the three months ended September 30, 2014.
    (2) Represents the increase or decrease in reported amounts resulting from changes in exchange rates from those in effect in the comparable prior year period.
    Groupon, Inc.
    Supplemental Financial Information and Business Metrics (9)(10)
    (financial data in thousands; active customers in millions)
    (unaudited)
    Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
    Segments
    North America Segment:
    Gross Billings (1):
    Local (2) Gross Billings $ 446,573 $ 499,250 $ 512,558 $ 499,378 $ 481,608
    Travel Gross Billings 84,820 80,296 96,678 102,908 101,801
    Gross Billings – Services 531,393 579,546 609,236 602,286 583,409
    Gross Billings – Goods 242,893 369,033 284,741 293,970 285,794
    Total Gross Billings $ 774,286 $ 948,579 $ 893,977 $ 896,256 $ 869,203
    Year-over-year growth 16 % 20 % 14 % 12 % 12 %
    % Third Party and Other 69 % 62 % 69 % 68 % 68 %
    % Direct 31 % 38 % 31 % 32 % 32 %
    Gross Billings Trailing Twelve Months (TTM) $ 3,143,621 $ 3,303,479 $ 3,415,687 $ 3,513,098 $ 3,608,015
    Revenue (3):
    Local Revenue $ 161,912 $ 170,946 $ 180,864 $ 172,461 $ 163,786
    Travel Revenue 17,627 17,165 19,989 21,958 21,394
    Revenue – Services 179,539 188,111 200,853 194,419 185,180
    Revenue – Goods 238,955 362,863 279,029 286,863 278,751
    Total Revenue $ 418,494 $ 550,974 $ 479,882 $ 481,282 $ 463,931
    Year-over-year growth 16 % 24 % 11 % 14 % 11 %
    % Third Party and Other 43 % 35 % 42 % 41 % 40 %
    % Direct 57 % 65 % 58 % 59 % 60 %
    Revenue TTM $ 1,717,271 $ 1,824,461 $ 1,873,281 $ 1,930,632 $ 1,976,069
    Gross Profit (4):
    Local Gross Profit $ 138,189 $ 147,582 $ 154,776 $ 147,574 $ 138,798
    % of North America Local Gross Billings 30.9 % 29.6 % 30.2 % 29.6 % 28.8 %
    Travel Gross Profit 14,000 14,187 15,791 18,385 17,644
    % of North America Travel Gross Billings 16.5 % 17.7 % 16.3 % 17.9 % 17.3 % %
    Gross Profit – Services 152,189 161,769 170,567 165,959 156,442
    % of North America Services Gross Billings 28.6 % 27.9 % 28.0 % 27.6 % 26.8 %
    Gross Profit – Goods 23,953 34,404 23,923 30,598 34,801
    % of North America Goods Gross Billings 9.9 % 9.3 % 8.4 % 10.4 % 12.2 %
    Total Gross Profit $ 176,142 $ 196,173 $ 194,490 $ 196,557 $ 191,243
    Year-over-year growth 3 % 13 % 8 % 9 % 9 %
    % Third Party and Other 87 % 83 % 88 % 85 % 83 %
    % Direct 13 % 17 % 12 % 15 % 17 %
    % of North America Total Gross Billings 22.7 % 20.7 % 21.8 % 21.9 % 22.0 %
    EMEA Segment:
    Gross Billings:
    Local Gross Billings $ 218,615 $ 242,119 $ 217,598 $ 198,553 $ 182,540
    Travel Gross Billings 79,802 72,710 65,065 59,544 64,916
    Gross Billings – Services 298,417 314,829 282,663 258,097 247,456
    Gross Billings – Goods 191,006 245,712 176,526 175,439 167,026
    Total Gross Billings $ 489,423 $ 560,541 $ 459,189 $ 433,536 $ 414,482
    Year-over-year growth 10 % (1 ) % (11 ) % (10 ) % (15 ) %
    Year-over-year growth, excluding FX 10 % 8 % 7 % 9 % (1 ) %
    % Third Party and Other 78 % 74 % 77 % 76 % 75 %
    % Direct 22 % 26 % 23 % 24 % 25 %
    Gross Billings TTM $ 2,051,979 $ 2,046,807 $ 1,992,408 $ 1,942,689 $ 1,867,748
    Revenue:
    Local Revenue $ 90,002 $ 95,572 $ 82,536 $ 75,543 $ 70,781
    Travel Revenue 16,960 16,321 14,717 13,100 13,561
    Revenue – Services 106,962 111,893 97,253 88,643 84,342
    Revenue – Goods 123,110 160,582 118,967 115,404 114,945
    Total Revenue $ 230,072 $ 272,475 $ 216,220 $ 204,047 $ 199,287
    Year-over-year growth 56 % 8 % (6 ) % (10 ) % (13 ) %
    Year-over-year growth, excluding FX 55 % 18 % 13 % 9 % 2 %
    % Third Party and Other 53 % 46 % 51 % 48 % 48 %
    % Direct 47 % 54 % 49 % 52 % 52 %
    Revenue TTM $ 939,860 $ 961,130 $ 946,457 $ 922,814 $ 892,029
    Gross Profit:
    Local Gross Profit $ 83,956 $ 90,150 $ 77,356 $ 70,270 $ 66,288
    % of EMEA Local Gross Billings 38.4 % 37.2 % 35.5 % 35.4 % 36.3 %
    Travel Gross Profit 15,440 15,226 12,400 11,939 12,323
    % of EMEA Travel Gross Billings 19.3 % 20.9 % 19.1 % 20.1 % 19.0 % %
    Gross Profit – Services 99,396 105,376 89,756 82,209 78,611
    % of EMEA Services Gross Billings 33.3 % 33.5 % 31.8 % 31.9 % 31.8 %
    Gross Profit – Goods 32,252 38,154 25,481 21,878 24,905
    % of EMEA Goods Gross Billings 16.9 % 15.5 % 14.4 % 12.5 % 14.9 %
    Total Gross Profit $ 131,648 $ 143,530 $ 115,237 $ 104,087 $ 103,516
    Year-over-year growth 6 % (6 ) % (18 ) % (26 ) % (21 ) %
    % Third Party and Other 85 % 82 % 87 % 86 % 86 %
    % Direct 15 % 18 % 13 % 14 % 14 %
    % of EMEA Total Gross Billings 26.9 % 25.6 % 25.1 % 24.0 % 25.0 %
    Rest of World Segment:
    Gross Billings:
    Local Gross Billings $ 120,269 $ 105,420 $ 99,735 $ 100,403 $ 92,972
    Travel Gross Billings 35,754 32,313 32,946 31,263 30,709
    Gross Billings – Services 156,023 137,733 132,681 131,666 123,681
    Gross Billings – Goods 70,615 77,816 66,154 67,555 60,168
    Total Gross Billings $ 226,638 $ 215,549 $ 198,835 $ 199,221 $ 183,849
    Year-over-year growth (3 ) % (10 ) % (12 ) % (9 ) % (19 ) %
    Year-over-year growth, excluding FX 1 % — % (1 ) % 6 % — %
    % Third Party and Other 98 % 96 % 98 % 97 % 96 %
    % Direct 2 % 4 % 2 % 3 % 4 %
    Gross Billings TTM $ 910,670 $ 887,546 $ 861,032 $ 840,243 $ 797,454
    Revenue:
    Local Revenue $ 39,034 $ 32,264 $ 30,281 $ 28,499 $ 26,372
    Travel Revenue 7,243 5,757 6,495 6,363 6,135
    Revenue – Services 46,277 38,021 36,776 34,862 32,507
    Revenue – Goods 19,426 21,758 17,478 18,204 17,870
    Total Revenue $ 65,703 $ 59,779 $ 54,254 $ 53,066 $ 50,377
    Year-over-year growth (24 ) % (19 ) % (18 ) % (18 ) % (23 ) %
    Year-over-year growth, excluding FX (20 ) % (9 ) % (8 ) % (4 ) % (5 ) %
    % Third Party and Other 92 % 86 % 91 % 87 % 86 %
    % Direct 8 % 14 % 9 % 13 % 14 %
    Revenue TTM $ 270,211 $ 256,532 $ 244,326 $ 232,802 $ 217,476
    Gross Profit:
    Local Gross Profit $ 34,373 $ 27,175 $ 26,161 $ 24,567 $ 22,568
    % of Rest of World Local Gross Billings 28.6 % 25.8 % 26.2 % 24.5 % 24.3 %
    Travel Gross Profit 5,544 3,815 4,906 5,012 4,859
    % of Rest of World Travel Gross Billings 15.5 % 11.8 % 14.9 % 16.0 % 15.8 %
    Gross Profit – Services 39,917 30,990 31,067 29,579 27,427
    % of Rest of World Services Gross Billings 25.6 % 22.5 % 23.4 % 22.5 % 22.2 %
    Gross Profit – Goods 7,571 7,416 6,612 6,784 6,726
    % of Rest of World Goods Gross Billings 10.7 % 9.5 % 10.0 % 10.0 % 11.2 %
    Total Gross Profit $ 47,488 $ 38,406 $ 37,679 $ 36,363 $ 34,153
    Year-over-year growth (26 ) % (24 ) % (16 ) % (20 ) % (28 ) %
    % Third Party and Other 100 % 96 % 99 % 99 % 99 %
    % Direct — % 4 % 1 % 1 % 1 %
    % of Rest of World Total Gross Billings 21.0 % 17.8 % 18.9 % 18.3 % 18.6 %
    Consolidated Results of Operations:
    Gross Billings:
    Local Gross Billings $ 785,457 $ 846,789 $ 829,891 $ 798,334 $ 757,120
    Travel Gross Billings 200,376 185,319 194,689 193,715 197,426
    Gross Billings – Services 985,833 1,032,108 1,024,580 992,049 954,546
    Gross Billings – Goods 504,514 692,561 527,421 536,964 512,988
    Total Gross Billings $ 1,490,347 $ 1,724,669 $ 1,552,001 $ 1,529,013 $ 1,467,534
    Year-over-year growth 11 % 8 % 2 % 2 % (2 ) %
    Year-over-year growth, excluding FX 12 % 13 % 10 % 10 % 6 %
    % Third Party and Other 76 % 70 % 75 % 74 % 74 %
    % Direct 24 % 30 % 25 % 26 % 26 %
    Gross Billings TTM $ 6,106,270 $ 6,237,832 $ 6,269,127 $ 6,296,030 $ 6,273,217
    Year-over-year growth 7 % 8 % 7 % 6 % 3 % %
    Revenue:
    Local Revenue $ 290,948 $ 298,782 $ 293,681 $ 276,503 $ 260,939
    Travel Revenue 41,830 39,243 41,201 41,421 41,090
    Revenue – Services 332,778 338,025 334,882 317,924 302,029
    Revenue – Goods 381,491 545,203 415,474 420,471 411,566
    Total Revenue $ 714,269 $ 883,228 $ 750,356 $ 738,395 $ 713,595
    Year-over-year growth 20 % 15 % 3 % 3 % (0 ) %
    Year-over-year growth, excluding FX 21 % 19 % 10 % 11 % 7 %
    % Third Party and Other 51 % 42 % 48 % 46 % 46 %
    % Direct 49 % 58 % 52 % 54 % 54 %
    Revenue TTM $ 2,927,342 $ 3,042,123 $ 3,064,064 $ 3,086,248 $ 3,085,574
    Year-over-year growth 20 % 18 % 13 % 10 % 5 %
    Gross Profit:
    Local Gross Profit $ 256,518 $ 264,907 $ 258,293 $ 242,411 $ 227,654
    % of Consolidated Local Gross Billings 32.7 % 31.3 % 31.1 % 30.4 % 30.1 %
    Travel Gross Profit 34,984 33,228 33,097 35,336 34,826
    % of Consolidated Travel Gross Billings 17.5 % 17.9 % 17.0 % 18.2 % 17.6 %
    Gross Profit – Services 291,502 298,135 291,390 277,747 262,480
    % of Consolidated Services Gross Billings 29.6 % 28.9 % 28.4 % 28.0 % 27.5 %
    Gross Profit – Goods 63,776 79,974 56,016 59,260 66,432
    % of Consolidated Goods Gross Billings 12.6 % 11.5 % 10.6 % 11.0 % 13.0 %
    Total Gross Profit $ 355,278 $ 378,109 $ 347,406 $ 337,007 $ 328,912
    Year-over-year growth (1 ) % — % (5 ) % (8 ) % (7 ) %
    % Third Party and Other 88 % 84 % 89 % 87 % 85 %
    % Direct 12 % 16 % 11 % 13 % 15 %
    % of Total Consolidated Gross Billings 23.8 % 21.9 % 22.4 % 22.0 % 22.4 %
    Marketing $ 55,258 $ 59,812 $ 52,533 $ 57,007 $ 61,587
    Selling, general and administrative $ 299,275 $ 285,472 $ 289,847 $ 288,721 $ 326,248
    Adjusted EBITDA $ 63,887 $ 92,914 $ 72,370 $ 61,118 $ 56,334
    % of Total Consolidated Gross Billings 4.3 % 5.4 % 4.7 % 4.0 % 3.8 %
    % of Total Consolidated Revenue 8.9 % 10.5 % 9.6 % 8.3 % 7.9 %
    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.”
    Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
    Net cash provided by (used in) operating activities from continuing operations $ 22,324 $ 273,272 $ 40,711 $ 9,995 $ (7,612 )
    Purchases of property and equipment and capitalized software from continuing operations (18,638 ) (20,117 ) (18,294 ) (22,452 ) (27,735 )
    Free cash flow $ 3,686 $ 253,155 $ 22,417 $ (12,457 ) $ (35,347 )
    Net cash provided by (used in) operating activities from continuing operations (TTM) $ 157,500 $ 252,497 $ 307,782 $ 346,302 $ 316,366
    Purchases of property and equipment and capitalized software from continuing operations (TTM) (83,374 ) (83,560 ) (85,761 ) (79,501 ) (88,598 )
    Free cash flow (TTM) $ 74,126 $ 168,937 $ 222,021 $ 266,801 $ 227,768
    Net cash provided by (used in) investing activities from continuing operations $ (19,046 ) $ (35,175 ) $ (19,443 ) $ (28,541 ) $ (98,028 )
    Net cash provided by (used in) financing activities $ (16,823 ) $ (21,088 ) $ (32,942 ) $ (138,227 ) $ (14,821 )
    Net cash provided by (used in) investing activities from continuing operations (TTM) $ (137,527 ) $ (149,372 ) $ (105,821 ) $ (102,205 ) $ (181,187 )
    Net cash provided by (used in) financing activities (TTM) $ (228,512 ) $ (194,156 ) $ (185,606 ) $ (209,080 ) $ (207,078 )
    Other Metrics:
    Active Customers (6)
    North America 23.5 24.1 24.6 24.9 25.2
    EMEA 14.9 15.2 15.3 15.5 15.4
    Rest of World 8.2 8.1 8.2 8.2 8.0
    Total Active Customers 46.6 47.4 48.1 48.6 48.6
    TTM Gross Billings / Average Active Customer(7)
    North America $ 145 $ 147 $ 147 $ 148 $ 148
    EMEA 142 139 134 130 123
    Rest of World 108 105 101 98 99
    Consolidated 137 137 135 133 132
    Global headcount as of September 30, 2015 and 2014 was as follows:
    Q3 2014 Q3 2015
    Sales (8) 4,420 4,168
    % North America 29 % 33 %
    % EMEA 43 % 42 %
    % Rest of World 28 % 25 %
    Other 6,228 6,301
    Total Headcount 10,648 10,469
    (1) Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds.
    (2) Local represents deals from local merchants, deals with national merchants, and deals through local events. Other revenue transactions include advertising, payment processing, point of sale and commission revenue.
    (3) Includes third party revenue, direct revenue and other revenue. Third party revenue is related to sales for which the Company acts as a marketing agent for the merchant. This revenue is recorded on a net basis. Direct revenue is primarily related to the sale of products for which the Company is the merchant of record. These revenues are accounted for on a gross basis, with the cost of inventory included in cost of revenue. Other revenue primarily consists of advertising revenue, payment processing revenue, point of sale revenue and commission revenue.
    (4) Represents third party revenue, direct revenue and other revenue reduced by cost of revenue.
    (5) 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.
    (6) Reflects the total number of unique user accounts who have purchased a voucher or product from us during the trailing twelve months.
    (7) Reflects the total gross billings generated in the trailing twelve months per average active customer over that period.
    (8) Includes merchant sales representatives, as well as sales support from continuing operations.
    (9) Financial information and other metrics have been retrospectively adjusted to exclude Ticket Monster, which has been classified as discontinued operations.
    (10) The definition, methodology and appropriateness of each of our supplemental metrics is reviewed periodically. As a result, metrics are subject to removal and/or change.

    Groupon
    Investor Relations
    Genny Konz
    Tom Grant
    312-999-3098
    [email protected]
    or
    Public Relations
    Bill Roberts
    312-459-5191

    Source: Groupon