Tag: CEOs

Microsoft Launches ‘Envision’ Event For Business Leaders

Microsoft recently announced the launch of Microsoft Envision, which it describes as a new flagship event for business leaders.

The event will feature keynotes and interactive sessions with “a broad slate of visionaries, experts and innovators” as well as industry-specific content and networking opportunities.

Microsoft CEO Satya Nadella will deliver the opening keynote.

Hear from @satyanadella and a host of industry visionaries at #Env16. Learn more: https://t.co/JDvjQXyNLa pic.twitter.com/LlWbU9ucME

— Microsoft Envision (@MSFTEnvision) January 15, 2016

“Microsoft Envision is designed for CxOs and their senior department and functional leaders who are driven to shape their own future and position their organizations and business for success in a mobile first, cloud first world,” says Chris Capossela, Executive Vice President and Chief Marketing Officer at Microsoft.

“Microsoft Envision brings together the most forward thinking minds in business and technology,” the company says on the event site. “Whether you’re a business leader or decision maker, you won’t want to miss the opportunity to hear the latest business trends and discover solutions that can help you, your team and your business achieve more.”

Envision will take place in New Orleans from April 4 – 6. Registration is open.

Image via Microsoft

January 18, 2016
Foursquare Names Jeff Glueck CEO As Dennis Crowley Changes Roles

Foursquare just announced that CEO and co-founder Dennis Crowley is dropping the former title and taking on the new role of Executive Chairman. Jeff Glueck, who has been COO for the past year is taking over as CEO.

Steven Rosenbaltt, who has been with the company for four years is also becoming President, and will oversee revenue and B2B offerings that are becoming an increasingly important part of the company’s business.

Brand new $45M round for @Foursquare & I step up to Exec Chair as @JeffGlueck & @Stevenjr76 step up as CEO & Pres 🙂 https://t.co/m7ZC1x5kzG

— Dennis Crowley (@dens) January 14, 2016

Foursquare also secured some new funding. The company says on its blog:

In addition, we are thrilled to share that we’ve just closed a new round of growth funding that will give us the fuel we need to continue enhancing our apps and to build out our location intelligence, which is the foundation of everything we do. (For more details on these updates and a personal note from Dennis, check out and follow our Medium Publication, Foursquare Direct.)

The best part? These changes will sustain and support us so we can continue to bring you the engaging products, cool data offerings and fun trend stories that we know you love.

Foursquare provides its data to Apple, Twitter, and Pinterest in deals, which the company considers among contributors to its biggest revenue year so far.

Apple says Apple Maps, which uses Foursquare data (among many other sources) is now used more than three times as often as Google Maps on iPhones and iPads.

January 14, 2016
StumbleUpon No longer Has A CEO, Is Part Of Expa’s Mix.com (Also 5by Is Shutting Down)

It would appear that StumbeUpon is no longer a company with a CEO. There hasn’t really been a lot of clarity around this in recent months, but that appears to be the state of things.

Over two years ago, StumbleUpon (under CEO Mark Bartels) made its first acquisition with 5by – a video discovery service that operated much like StumbleUpon itself, but strictly for videos. It was a pretty cool app, particularly once it became Chromecast compatible, and seemed to be a major part of where StumbleUpon was headed.

On Thursday, an email was sent to 5by users saying that it is shutting down. While I was well aware that StumbleUpon has been going through some changes, I can’t say I saw that coming.

Digging a bit after receiving that email, I discovered much to my surprise neither Bartels nor 5by CEO Greg Isenberg are even at the company anymore. I’ve seen no reports of either leaving, which seems strange to me particularly in the case of Bartels. We’re talking about the CEO of what is one of the web’s biggest drivers of social media traffic to websites. If he left the company, it seems like we should’ve heard about it.

As you may know, co-founder Garrett Camp announced in August that he was returning to the company, purchasing the majority stake, and advising management. He wrote:

Some difficult changes to the product and company will be needed, and these changes will take time. But I strongly believe that systems like StumbleUpon play an important role in helping people discover what matters most to them. I’m excited to work with the team on product once again, getting back-to-basics and improving recommendations, while exploring potential synergies between SU and Expa.

He noted that he is still focused on being CEO of Expa, his startup studio (which counts Uber among its companies by the way).

While layoffs were known, there was no mention of the departure of Bartels, Isenberg, or even 5by at all. According to Bartel’s LinkedIn profile, he exited StumbleUpon in September. I’ve also learned that Isenberg has been gone since June.

So what does that mean for StumbleUpon? Well, Camp actually announced what is going on with StumbleUpon on October 30th. Apparently nobody (at least in the media – myself included) noticed it.

Expa has begun working on a new discovery platform called Mix.com, which aims to “connect the curious with the creative, delivering personalized recommendations one click at a time.”

That sounds exactly like StumbleUpon.

“Mix will provide a modern and elegant way to discover the best content liked by friends and experts, from across the web to your mobile device,” Camp wrote.

He also said that StumbleUpon is officially part of the Expa family and that the StumbleUpon team will be joining forces with Expa to create Mix.com, “bringing with them everything learned serving 50 billion recommendations to millions of people.”

According to this announcement, StumbleUpon users will be able to use the site like normal and it will “continue to operate as always” as Expa explores new product ideas for Mix. My guess is that StumbleUpon will go away once Mix is ready for primetime.

While plenty of websites still get a ton of traffic from StumbleUpon, it’s clear (and made even more so by the lack of coverage around this) that StumbleUpon just doesn’t draw the interest that it once did. This evolution could be just what it needs.

The reality is that StumbleUpon still operates within in an area in which it isn’t really rivaled. There aren’t really any other services of note that do what StumbleUpon does, which is obviously why Camp is still pursuing this kind of content discovery.

Image via Mix.com

December 4, 2015
What Is Going on At StumbleUpon?

Update: Ok, here’s what’s going on at StumbleUpon. Read this instead.

I’ve written about StumbleUpon more often than probably anyone else in the media over the last few years, but I’ll be damned if know what the current situation is.

I know one thing. 5by is shutting down. I got that email a little bit ago. It says:

Dear 5by users,

We wanted to let you know that today we are shutting down 5by.

We hope that you’ve enjoyed using the product as much as we’ve enjoyed building it, and we hope that in the wake of our attempt at building the premiere platform for video discovery and sharing, we have inspired moments of joy, entertainment, hilarity and awe.

To continue to discover great videos, download the StumbleUpon app below.

Thank you for your loyal support,
The 5by Team

5by was StumbleUpon’s first acquisition. This happened just over two years ago.

Earlier this year, I interviewed both StumbleUpon CEO Mark Bartels and 5by CEO Greg Isenberg. It sounded like there were grand plans for 5by including business profiles. Apparently all of that went to hell.

During the summer, StumbleUpon went through a round of layoffs that reportedly numbered in the “dozens“.

Shortly after reports about that emerged, news came that co-founder Garrett Camp (pictured) was becoming the majority shareholder of the company, and would be advising the management team on the “best way to bring serendipitous discovery to a wider audience.”

Camp wrote on Medium in August (his most recent post):

A few years ago, after co-founding Uber and getting excited about several new ideas, I left my day-to-day role at SU and began working on Expa, a startup studio designed to help founders create new companies. Since then we’ve helped create a few cool products, and have a few more on the way. And while I’m focused on Expa as CEO these days, I’ve never stopped thinking about content discovery, and how it could be better.

So after careful consideration, I’m now finalizing the process of becoming the majority shareholder of StumbleUpon. In this role, I will be advising the management team on the best way to bring serendipitous discovery to a wider audience. Some difficult changes to the product and company will be needed, and these changes will take time. But I strongly believe that systems like StumbleUpon play an important role in helping people discover what matters most to them. I’m excited to work with the team on product once again, getting back-to-basics and improving recommendations, while exploring potential synergies between SU and Expa.

There was nothing about Bartels stepping down from the CEO role at the company, nor were there reports (to my knowledge) about Isenberg leaving.

In fact, reports about Camp’s return including the best one I’ve come across (from Business Insider) are the last time the company was in the news cycle.

In light of the 5by email, I began reaching out to contacts, but have so far received nothing but tumbleweeds (which is the same thing I got at the time of the Camp news).

I did notice, however, that Bartels now has StumbleUpon listed under “previous” on LinkedIn. He’s now currently listed only as a partner at Motopos. Isenberg also has “5by (Acquired by StumbleUpon)” listed as previous. It says he’s currently at Indicator Ventures.

I have reached out to both and so far have yet to get a response.

So, uh, 5by is no more, but who is StumbleUpon’s CEO? Google is still telling me Bartels.

I couldn’t believe I would have missed news about a change in the position, but just to make sure, I had to check. There are no articles out there as far as I can tell that indicate anyone other than Bartels (including Camp) has assumed the role.

Until I hear otherwise, I have to assume Camp is just running the show, but things seem to be pretty under the radar here. Even Camp still just has StumbleUpon listed as “previous” on LinkedIn. And phrases like “I’m focused on Expa as CEO” and “advising the management team” don’t make it sound like he’s taken over the role of Bartels.

StumbleUpon’s company blog hasn’t been updated since May of last year, but I do know people are still working on it because I’ve encountered a redesign to the content submission process over the last couple weeks.

So, anybody know what’s going on with StumbleUpon these days?

It’s hard for me to believe there is this much mystery around a company that has been one of the top drivers of social media referral traffic on the web.

Image via Wikimedia Commons

December 3, 2015
Google Taps VMWare Co-Founder Diane Greene To Lead New Cloud Team, Acquires Her Bebop Platform

Google announced that it has hired VMware co-founder Diane Greene to lead a new team combining all of Google’s cloud businesses including Google for Work, the Google Cloud Platform, and Google Apps.

The company has also agreed to acquire, bebop, a new development platform/company that Greene also founded.

Google CEO Sundar Pichai said in a blog post, “Since the launch of our first product for businesses, the Google Search Appliance, in 2002, we’ve been building more and more products that help make businesses more productive. From Gmail to Docs to Chromebooks and Google Cloud Platform, we are now helping millions of businesses transform and support their businesses with our Cloud products. In fact, more than 60% of the Fortune 500 are actively using a paid Google for Work product. And all of Google’s own businesses run on our cloud infrastructure. Including our own services, Google has significantly larger data center capacity than any other public cloud provider – part of what makes it possible for customers to receive the best price and performance for compute and storage services.”

“All of this demonstrates great momentum, but it’s really just the beginning,” he added. “In fact, only a tiny fraction of the world’s data is currently in the cloud – most businesses and applications aren’t cloud-based yet. This is an important and fast-growing area for Google and we’re investing for the future.”

Greene has been on Google’s Board of Directors for three years, and will remain a member. According to Pichai, she has a “huge amount of operational experience that will continue to help the company.”

The bebop platform is designed to make it easy to build and maintain enterprise applications, and Google sees it as a way to help businesses find applications and take better advantage of cloud computing. It will be put to use across Android, Chromebooks, infrastructure and services in Cloud Platform, developer frameworks for mobile and enterprise users, Gmail, and Google Docs.

Image via YouTube

November 20, 2015
New Groupon CEO: Nobody Understands Us

Earlier this month, Groupon reported its Q3 financials and announced that it has a new CEO. Rich Williams stepped into the role as Eric Lefkofsky stepped down to return to his role as Chairman of the Board.

Wall Street was not impressed with the news as shares plummeted as much as 26% in after-hours trading that day. In addition to the leadership, Groupon had missed forecasts.

Williams believes the company is greatly misunderstood by the media, by analysts, and by consumers. He says Groupon is still paying the price for pas mistakes such as scaling “too far” and “too fast”.

He also says some “myths” about the company have been built up over the years, and he aims to dispel those in a new blog post.

One myth, he says, is that nobody can win in the local space, and he says that Groupon is the “unquestioned leader”.

“On more than one occasion, we’ve been overly enthusiastic about the potential impact of new products, and we’ve been wrong more than once with how critical it is for us to compete in certain areas,” Williams writes. “We shouldn’t run from those failures or apologize for them. None of them bet the future of the company. We are pioneering, we are growing, and we are the market leader, which means we know that not every test will come out beaming rainbows and unicorns. Sometimes we will fail, and sometimes we will win, and win big. Winning big is absolutely possible in local. It’s a massive space that remains largely underserved. Consumers and merchants ultimately want that to change, and that makes winning in local possible. We have sold nearly a billion Groupons life to date. Add to that our nearly 50 million active consumer and 1 million merchant customers to date and you have a lot of proof of the possibilities in local.”

Another myth, he says, is that the company isn’t growing and that it’s going out of business. He calls this logic “lazy,” and notes that Groupon has grown billings and revenue by over 90% since going public with seven consecutive quarters of double-digit billings growth in North America. They’ve also doubled their customers in the past five years, he says, adding that the number of deals available has grown by 500x since the IPO.

Back in the early days, there were a lot of reports in the media that people were finding Groupon to actually be bad for business. This is another of the myths he says, adding that they don’t hear about that one much anymore. Now, he says, the top complaint is that people just want to sell more Groupons.

The biggest myth of all, however, according to Williams, is that Groupon is an email daily deal company, when the reality, he says, is that Groupon is a marketplace, and more people get deals from searching on its website than they do from email. More than half of purchases, he says, occur on mobile.

“Second, the ‘deals are dead’ line of thinking is tired and not supported,” he says. “Deals are core to who we are as a company, and we’re not running away from them–not by a long shot. Deals have helped us build the largest transactional platform of its kind in dozens of countries around the globe and a loved brand. We also know that there’s more to our marketplace than deals, including an increasing number of market rate and low discount offers, and new ways to save time as well as money. They’re just in their early stages and we want to move faster to bring them to customers so that they can see clearly the changes for themselves. We’re going to do that, and fast.”

After the myth-busting portion of the blog post, he gets into why he thinks Groupon has what it takes to win. He says it in many, many more words, but this basically boils down to Groupon’s team, customers, a strong business model, and experience.

He also outlines some strategic companies the company is making including a shift in marketing geared toward driving people to the marketplace.

The company will be adjusting its international strategy as well. It will shut down in some countries, partner in others, and increase investments in countries where it’s doing better.

Groupon will also no longer emphasize the consumer electronics business.

Image via Groupon

November 19, 2015

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151103006897/en/

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

Source: Groupon

November 3, 2015

Jack Dorsey Officially Twitter’s CEO

Last week, we learned that Twitter was about to name co-founder and interim CEO Jack Dorsey permanent CEO. On Monday, they made it official.

Most would agree that Dorsey is probably the right man for the job given his past with the company, but it has left questions about how he’ll be able to commit wholeheartedly to both Twitter and Square, where he is also CEO (and which is expected to launch an IPO soon).

Twitter hosted a conference call to make the announcement and ensure that they’ve chosen the right person for the job. The company acknowledged that running two companies is no easy feat, but that Dorsey will be able to do it, and will have help running Twitter from Adam Bain (who is now COO) and CFO Anthony Noto.

Here are some statements from Dorsey himself:

?⚡️ Hello! We have some news to share!

— Jack (@jack) October 5, 2015

We are naming @adambain COO of Twitter, we're working to change the composition of our Board, and I will serve as CEO of Twitter and Square!

— Jack (@jack) October 5, 2015

I've been CEO of both companies for over 3 months now. I have the smartest, strongest, and most determined leaders in the world on my teams.

— Jack (@jack) October 5, 2015

My focus is to build teams that move fast, and learn faster. In the past 3 months we have increased our speed and urgency at both companies.

— Jack (@jack) October 5, 2015

A few things about each company, and their impact in the world. What we stand for gives us purpose, and that purpose dictates our job ahead.

— Jack (@jack) October 5, 2015

Square stands for economic empowerment. We stand for financial systems that serve instead of rule. We stand for leveling the playing field.

— Jack (@jack) October 5, 2015

Square is the most powerful set of tools to start, run & grow a business. Download Square, start selling. Download Square, get cash to grow.

— Jack (@jack) October 5, 2015

Twitter stands for freedom of expression. We stand for speaking truth to power. And we stand for empowering dialogue.

— Jack (@jack) October 5, 2015

Twitter is the most powerful communications tool of our time. It shows everything the world is saying rn…10-15 minutes before anything else.

— Jack (@jack) October 5, 2015

Both companies have strong businesses and are well positioned to grow their impact in the world. I will do whatever it takes to ensure that.

— Jack (@jack) October 5, 2015

We're working hard at Twitter to focus our roadmap on a few things we can make really great. And we're strengthening our team along the way.

— Jack (@jack) October 5, 2015

Our work forward is to make Twitter easy to understand by anyone in the world, and give more utility to the people who love to use it daily!

— Jack (@jack) October 5, 2015

Former Twitter CEO Dick Costolo, who is stepping away from the Board of Directors, had this to say:

1/ delighted for @jack and the team and excited for the future of Twitter. https://t.co/hY7ZEttA2t

— dick costolo (@dickc) October 5, 2015

2/ @jack is a calm and thoughtful leader. He is bold, forthright, decisive, and the team loves working with him. https://t.co/2M3y7oEB45

— dick costolo (@dickc) October 5, 2015

3/ as I step off the board, two reminders: those banging pots and pans outside Twitter know the least about what's going on inside Twitter

— dick costolo (@dickc) October 5, 2015

4/ and @Twitter, there is only one narrative that matters and it's the one you'll create for the world.

— dick costolo (@dickc) October 5, 2015

5/ (Inside reference for the @twitter folks) pic.twitter.com/PNjxvANgkP

— dick costolo (@dickc) October 5, 2015

.@adambain congrats and so well deserved. PRO TIP: Don't make any stupid jokes about your first day as COO.

— dick costolo (@dickc) October 5, 2015

From Bain:

I’m thrilled @jack is now Twitter's permanent CEO, and honored to serve as COO. No one has thought more about @twitter than him.

— adam bain (@adambain) October 5, 2015

.@jack has the insight as well as the moral authority as a founder to push teams to make big, bold changes to @twitter.

— adam bain (@adambain) October 5, 2015

Our teams are energized by @jack and our advertisers & partners love interacting with him.

— adam bain (@adambain) October 5, 2015

Expanding my role is only possible because of our amazing sales & business leadership and teams. They are the best in the business.

— adam bain (@adambain) October 5, 2015

Image via Jack Dorsey (Twitter)

October 5, 2015
Is Yelp’s CEO Right About Google And Interstitials?

Last month, Google shared findings of an internal study on interstitials, which it had previously implied could start negatively impacting people’s search rankings.

Do you consider interstitials to be negative to the user experience? Are there ways in which they can make the user experience better? Share your thoughts in the comments.

They looked at behavior related to their own use of interstitials, specifically with the Google+ mobile site, which utilized one encouraging users to install the app. 9% of visits to the interstitial page resulted in a “Get App” button being pressed. 69% of visits abandoned the page. They neither went to the app store nor continued to the mobile website. Presumably they were so annoyed they just didn’t feel like going any further.

“While 9% sounds like a great CTR for any campaign, we were much more focused on the number of users who had abandoned our product due to the friction in their experience,” Google said. “With this data in hand, in July 2014, we decided to run an experiment and see how removing the interstitial would affect actual product usage. We added a Smart App Banner to continue promoting the native app in a less intrusive way, as recommended in the Avoid common mistake section of our Mobile SEO Guide. The results were surprising.”

1-day active users on the mobile site increased by 17% and Google+ iOS native app installs were mostly unaffected (-2%). They didn’t report the Android numbers because most Android devices come with the app pre-installed.

“Based on these results, we decided to permanently retire the interstitial,” Google said. “We believe that the increase in users on our product makes this a net positive change, and we are sharing this with the hope that you will reconsider the use of promotional interstitials. Let’s remove friction and make the mobile web more useful and usable!”

When Google published its findings, Yelp CEO and frequent Google critic Jeremy Stoppelman blasted the company on Twitter:

@jeremys is this about protecting consumers or protecting their search monopoly?

— Jeremy Stoppelman (@jeremys) July 24, 2015

Now, he’s elaborating on this in a new blog post. This wouldn’t be much of a surprise if he were to do so on the Yelp blog, but interestingly his post comes in the form of a guest article on Search Engine Land, one of the most widely-read blogs in the search industry.

He begins by talking about something Steve Jobs said five years ago (which would have been five iPhone generations ago) about how people prefer apps to mobile browsers. Stoppelman goes on:

A point Jobs left unsaid — perhaps because it is so obvious — was that in order for consumers to enjoy the advantageous experience apps provide them, they need to know the app exists. In other words, those apps must be somehow discoverable.

While many users find apps by browsing inside an app store, another critical way they discover new apps is through mobile search engines, like Google. In this way, mobile search indeed serves a critical function to users: offering a bridge from the less desirable world of mobile Web browsing to a new world inside apps.

Note that a mobile Google search for Yelp brings up an install button for Yelp’s app at the very top of the page.

Stoppelman says that after people “cross the bridge” from mobile web to apps, they “likely don’t go back,” which he says Google sees as a threat to its core business of search and that apps eliminate the need for the middleman, which would be Google.

He criticizes the Google study and says that what it really is is “Google foreshadowing a search ranking penalty designed to slow users’ natural migration away from Web search towards apps, a major consumer trend that Steve Jobs accurately predicted.”

Google has actually been talking about interstitials as a negative signal since before this study came out. Google also introduced two very clear positive ranking signals this year in mobile-friendliness and app indexing. One encourages the use of apps and makes them easier for people to use. This way, if you come across a Yelp result in Google, you can go right to the content in that app. Google is also utilizing this app indexing for something called Google Now on Tap, which brings users app functionality while they’re already using other apps.

As Google explained this earlier this year, “If you’re chatting with a friend about where to get dinner, Google can bring you quick info about the place your friend recommends. You’ll also see other apps on your phone, like OpenTable or Yelp, so you can easily make a reservation, read reviews or check out the menu.”

Search Engine Land notes that some opinions in Stoppelman’s article may be those of the guest author.

Readers, which again, are primarily industry folks, had a lot of criticisms for Stoppelman’s article in the comments. Some maintained that interstitials make for bad experiences. Others criticized his approach such as not backing up his stance with data of his own. One went so far as to slam Yelp’s interstitial specifically.

What do you think? Does Stoppelman make a good point or is he off base on this one? Share your thoughts in the comments.

Image via Jeremy Stoppelman (Twitter)

August 24, 2015
Reports Suggest Dorsey Likely To Remain Twitter CEO

Last week, Twitter announced that CEO Dick Costolo is stepping down on July 1. The official word is that co-founder and original CEO Jack Dorsey, who is also the CEO of Square, will return to the role in the interim while Twitter’s board conducts a search for a permanent replacement.

Based on responses Dorsey gave to questions about the subject, it sounded as if the interim part could potentially be dropped. When asked by multiple news outlets whether he might become the permanent CEO, he would not just come out and say no. He repeatedly sidestepped these questions, seemingly indicating that it’s not out of the question.

Since then, more reports have come out implying that not only it is possible that Dorsey will return as permanent Twitter CEO, but that it’s most likely to be the case. Business Insider literally says, “Jack Dorsey is the only person who can be Twitter’s next CEO.”

BI’s Jay Yarow, who interviewed both Dorsey and Costolo after the announcement, says he believes the interim title will be dropped by the end of the year because he believes Dorsey wants to be full-time CEO of Twitter. He also cites a New York Times article reporting that “people with knowledge of his thinking” say Dorsey has wanted to return to run Twitter since he was ousted in 2008.

Yarow also makes the case that Square could be handed off to one of its insiders relatively easy and that Dorsey is said to find running a payments company boring. There’s no way to know if there’s really any truth to this, but that’s apparently what the grapevine is saying.

Henry Blodget claims to know “what’s really going on” and that “Twitter’s CEO search is pretty much a sham.”

The article essentially makes the case that the CEO search is really just to give Dorsey a trial period, so they can figure out if they really think he’s right for the job, and if not, they don’t lose face when they decide to go a different direction, all the while, giving Dorsey a chance to figure out if he wants to try to run both companies and/or to figure out what to do about Square if he takes over permanently at Twitter.

The thinking is that Dorsey is the best person to help with the consumer-facing part of Twitter, which has been its biggest problem. User growth just hasn’t been coming fast enough, and he could be the right person to change that.

Of course the whole thing could also lead to the board finding someone else it likes better. There’s been a lot of talk about Adam Bain, who leads revenue and partnerships. There’s also been talk of Twitter potentially getting acquired.

Image via Wikimedia Commons

June 15, 2015
Is Dorsey’s Role As Twitter CEO Really Just Interim?

On Thursday, Twitter announced that CEO Disk Costolo is stepping down on July 1, and that co-founder Jack Dorsey will step in as interim CEO as the board of directors conducts a search for a permanent replacement. The way in which Dorsey answered questions following the announcement, however, leaves some room for speculation about just how interim his position will actually be.

For starters, he wouldn’t just come out and say that he will not be the permanent CEO.

Business Insider asked Costolo if bringing in someone new would put a lot of pressure, stress, and shakeups to the Twitter team. Costolo replied that this would be true if someone from the outside were to step in, “but we have the benefit of Jack being chairman of the board, the inventor of the product, and a cofounder. He’s already a visible leader within the company, he speaks to the company and in company events both in the US and abroad with some frequency. There’s no one better than him to lead the company through a transition like that. He’s close to my entire leadership team.”

Business Insider asked Dorsey flat out if the “interim” is just a thing to hold us or if he’s really just interim. Here’s what Dorsey reportedly said:

“My focus is on interim, and my focus is on making sure we continue our momentum around all of our products and initiatives. And that we continue our pace of delivery and facilitating a smooth transition as the board conducts a search for a permanent CEO. We do have a search committee comprised of Peter Currie, Peter Fenton, and our cofounder Evan Williams, and we’re going to take the time to pick and choose the right CEO for the company. I’m not focused on that question at all. I’m focused on making sure we continue our momentum and to amplify what we’re doing.”

Asked even more directly if he wants to be permanent CEO, Dorsey responded:

Again, I’m not going to answer that because it’s not my focus, it’s not what I’m thinking about; I have enough to focus on.

Similarly, he sidestepped the question from the Wall Street Journal about whether he would consider staying on permanently:

“It’s not my decision,” he said in an interview. “As Dick mentioned, we have a search committee running and they’re just starting their process and it’s not even something I’m thinking about. Again, I’m focused on making sure that Twitter is the most successful it can be and that Square is the most successful it can be.”

When pressed further on what he would do if the job were offered to him, he declined to comment. “I’m not going to answer that question because it’s not what I’m focused on,” said Dorsey, who is also the chairman of Twitter’s board.

Dorsey said he already spends his time at both Twitter and Square, which are located on the same block in San Francisco. But if he were to take over as full-time CEO of Twitter, he would likely need to relinquish his role at Square.

Dorsey did mention Square in the official Twitter announcement:

“I am grateful for the talented team at Square, which I will continue to lead,” he added. “We have built a very strong company from top to bottom, and I am as committed as ever to its continued success.”

It’s hard to imagine that anybody is more qualified for the Twitter CEO role than Dorsey, which is no doubt why he’s stepping in for the interim. Until either Twitter finds another suitable replacement or Dorsey flat out says he doesn’t want the job, I expect he’ll be considered the frontrunner (at least by the media) for the foreseeable future.

Dorsey was, of course, Twitter’s original CEO.

Image via Wikimedia Commons

June 12, 2015
Dick Costolo Is Stepping Down As Twitter CEO

Well, I suppose it was only a matter of time. People have been calling for his ouster for quite a while, but the other top brass at Twitter has always had his back. Either way, Twitter just announced that Dick Costolo will step down as CEO on July 1.

Costolo will remain on the company’s board of directors, and co-founder Jack Dorsey will fill in as interim CEO while the board looks for a permanent replacement. Dorsey will also remain CEO of Square.

The board has formed a search committee, which is chaired by its Lead Independent Director, Peter Currie, and includes Peter Fenton and co-founder Evan Williams. The company said the committee will retain a leading executive search firm to assist in its efforts. They’re looking both inside and outside of the company.

“I am tremendously proud of the Twitter team and all that the team has accomplished together during my six years with the company,” Costolo said. “We have great leaders who work well together and a clear strategy that informs our objectives and priorities. There is no one better than Jack Dorsey to lead Twitter during this transition. He has a profound understanding of the product and Twitter’s mission in the world as well as a great relationship with Twitter’s leadership team. I am deeply appreciative of the confidence the Board, the management team and the employees have placed in me over the years, and I look forward to supporting Twitter however I can going forward.”

“The future belongs to Twitter thanks in large part to Dick Costolo’s dedication and vision,” said Dorsey. “Dick has put a world-class team in place and created a great foundation from which Twitter can continue to change the world and grow. We have an exciting lineup of products and initiatives coming to market, and I look forward to continuing to execute our strategy while helping facilitate a smooth transition as the Board conducts its search.”

“I am grateful for the talented team at Square, which I will continue to lead,” he added. “We have built a very strong company from top to bottom, and I am as committed as ever to its continued success.”

Was there any doubt about that one?

Welcome back, @jack !! https://t.co/3papmyUKg0

— dick costolo (@dickc) June 11, 2015

Currie said, “On behalf of the Board, I want to thank Dick for his years of tireless devotion to building Twitter into the strong and dynamic company it is today, putting us in a superb position for continued growth and innovation for many years to come. We look forward to his continued contributions during the transition period and as an ongoing member of the Board. The Board is fully committed to running a thorough process to identify the right CEO to lead Twitter into its next phase of growth. In the meantime, we are fortunate to have Jack – one of our founders – step back into a management role and help lead Twitter as we continue on our strategic priorities.”

Costolo has been on the hot seat since the company web public, as Twitter’s user growth just hasn’t managed to be strong enough for investors. The company has been focusing on trying to change that, but ultimately, it’s going to be up to someone else going forward.

Cue the blogosphere’s suggestions for Costolo’s replacement. Who would you like to see take over?

Image via Wikimedia Commons

June 11, 2015
About Daniel Zhang, The New CEO Of Alibaba Group

Alibaba managed to take the title for the largest global IPO ever in September, and the company is about to be under new (yet familiar) leadership .

Alibaba reported its March 2015 and fiscal year 2015 financial results on Thursday while also announcing that COO Daniel Zhang will become CEO of Alibaba Group starting May 10. He will replace Jonathan Lu, who will reaamin on the board of directors as Vice Chairman, and will work with Zhang through a transition period over the coming months.

“I’m excited to take on this new challenge,” said Zhang. “It is an immense responsibility, and I’m grateful to every member of the Alibaba team for their commitment and dedication to excellence.”

“I’m proud of the Alibaba team and all that we have accomplished together,” added Lu. “Over many years, I have seen just how critical Alibaba’s culture and talent are to our success, and I’m excited to take on this new role helping to develop the next generation of leaders at our company.”

Executive Chairman Jack Ma said, “Daniel is a proven international business leader and innovator with a strong track record of delivering results. He has the confidence of our entire management team, and there is no better person to lead Alibaba Group as we embark on the next stage of our growth on top of the strong foundation that Jonathan helped build. I am grateful to Jonathan Lu for his excellent leadership and management over the past several years, and I look forward to his continued contribution as a key leader in helping Alibaba Group train and develop the next generation of leaders. Alibaba Group has a strong and deep bench of talented executives who will help lead the company for the years to come. Today’s announcement reflects our commitment to continuing to develop strong leadership from within.”

Who is Daniel Zhang?

Zhang has been with the company for eight years, holding different top management positions in that time. He’s one of the founding members of the Alibaba partnership, and has been COO since September 2013. In this role, he oversaw the operations of all Alibaba Group business in China as well as internationally.

Zhang joined Alibaba as CFO of Taobao Marketplace in 2007. The following year he was appointed COO of Taobao Marketplace and GM of Taobao Mall. According to Alibaba, Taobao Mall “rapidly” became one of the company’s most important businesses under his leadership. In 2011, he was named president when it became an independent business unit, Tmall.com, which the company refers to as “one of the world’s largest online B2C platforms.”

The company says he was also a “key architect” of the November 11 Shopping Festival, and led it to what it calls the world’s largest online shopping event.

Before joining Alibaba Group, Zhang was CFO of Shanda Interactive Entertainment, an online game developer and operator. Before that, he was senior manager of PricewaterhouseCoopers’ Audit and Business Advisory Division in Shanghai. Before that he worked in the Shanghai office of Arthur Andersen for seven years.

He received a bachelor’s degree in finance from Shanghai University of Finance and Economics, and is a member of the Chinese Institute of Certified Public Accountants. He also serves on the boards of directors of CITIC 21 and Haier. Both of these are listed on the Hong Kong Stock Exchange. In addition to those seats, he’s been serving on the board of directors of Weibo for about a year.

Alibaba beat Wall Street expectations on its earnings report with quarterly sales of $2.8 billion (up 45%) and adjusted earnings per share of $0.43.

Image via Alibaba

May 7, 2015
As StumbleUpon Sends More Traffic, CEO Talks Content Submission

It was only four short years ago that StumbleUpon was the biggest driver of social media traffic to websites. Look at this chart from StatCounter we shared in January, 2011.

Was StumbleUpon a big traffic driver for your site back then? Have things changed? Let us know in the comments.

A lot has changed in the social media landscape since then. For one thing, Pinterest didn’t crack the top ten social networking services until December of that year. Now, it’s number two for social media traffic referrals, while Facebook has completely run away with the top spot. These days, StumbleUpon sits at a respectable number four, based on data from Shareaholic (Pinterest is at a comfortable number 2), but out of the eight social networks Shareaholic tracks, only Facebook and StumbleUpon saw growth in referrals in Q4.

StumbleUpon referrals are back on the rise after previously heading in the opposite direction, and this is likely due to various efforts by the company, including email and social media strategy, a new blogger program, and a change made to the functionality of the submit button for websites. We discussed all of this here.

But will websites continue to be able to get their content in front of the StumbleUpon audience and reap the traffic benefits? As you may or may not know, StumbleUpon made its first acquisition in 2013 when it bought video discovery platform 5by. It seems that much of the company’s focus has been on this service, which essentially works like a StumbleUpon for video. Last year, 5by gained Chromecast support, opening the service up to all of those who’ve bought Google’s super-cheap streaming device. 5by, which works great as a discovery service, does not rely on user-submitted content like StumbleUpon, however. Instead, it’s based on algorithms and an internal team of curators.

We asked StumbleUpon CEO Mark Bartels if the long-term goal is to continue these separate methods for content selection or whether we’ll see both services follow similar models. It would appear that the latter is the plan, but instead of of StumbleUpon adopting the 5by approach, it’s likely that we’ll see 5by adopt the StumbleUpon approach.

“Long term as 5by scales you’ll see them leverage [the] SU ingestion engine which includes user submitted content,” Bartels tells us.

In other words, 5by will only get more StumbleUpon-like. StumbleUpon users shouldn’t worry about StumbleUpon becoming more 5by-like when it comes to submitted content. StumbleUpon has no plans to move away from user submissions.

“Quite the opposite,” Bartels says. “The highest quality content is typically user submitted. The new iOS build now allows uses to submit from Safari. [The] majority of stumbles are now on mobile so giving users [the] ability to submit directly from their mobile browsers or via a badge is [a] great tool. The ingestion engine quickly eliminates duplicates, spam and low quality content. Doing this fast and reliably is key to scaling.”

The downloadable StumbleUpon toolbar for web browsers used to be a major part of the StumbleUpon experience. These days, it doesn’t seem to be the subject of a whole lot of focus from the company. For example, a while back, StumbleUpon made some changes to the submission experience from the “Submit” button, which sites (like the one you’re on) display on their content. In the past, users would select categories and tags for the content, but now StumbleUpon dictates this categorization on its own. If you submit with the toolbar, however, you still get the old experience.

Asked if the bar is still being used much, Bartels says, “It still has a lot of power users, but the team resources & growth is on mobile and Web Toolbar. Publishers and brands have made huge leaps in creating mobile optimized stories that load quickly and is user friendly.”

“Publishers’ natives pages are rendering beautifully within the apps and mobile web. We improve the discovery experience with lightning quick recommendations and pubs get the traffic kick,” he adds, noting that people do underestimate how big and solid the desktop market is.

“A lot people spend ~8 hours a day in front of a PC,” he says. “Our strongest days on SU are always weekends and Mondays.”

Publishers looking for increased exposure of their content through StumbleUpon shouldn’t be afraid of submitting their own stuff. Just make sure it’s good content.

Bartels tells us, “We want to make the guidance clear and friendly to bloggers and businesses promoting quality content on SU. A strong SU community includes giving publishers and bloggers the ability to submit quality stories and not be penalized for self promotion. Ingestion and curation of quality stories is just as important as the discovery and sharing.”

Just don’t go overboard. Make sure you remember the part about quality. And by all means, share good stuff from other sources too.

Do you submit your own content to StumbleUpon? Let us know in the comments.

Images via StatCounter, Shareaholic, Mark Bartels

February 2, 2015
Jack Dorsey Tweets Praise For Twitter CEO

On Thursday, Twitter co-founder Jack Dorsey unleashed a series of tweets about Twitter’s place in the world, and showed support for CEO Dick Costolo, who has been under fire from some investors and analysts of late. Some are calling for his ouster, but Dorsey appears to have set out to affirm that he’s still the right man for the job.

1/Is this thing on?

— Jack (@jack) January 29, 2015

2/I have some things I'd like to say. To start…the tweetstorm!

— Jack (@jack) January 29, 2015

3/The folks using Twitter daily created the @username, the #hashtag, and the retweet, all within the constraint of 140 characters.

— Jack (@jack) January 29, 2015

4/The @, #, and RT have become cultural movements and have influenced every social and communications service since. Even offline.

— Jack (@jack) January 29, 2015

5/The “tweetstorm” and #/tweet syntax is a (clever) way around the 140 character constraint. Once again created by people using the service!

— Jack (@jack) January 29, 2015

6/I think it beautifully showcases Twitter's real strength: simple and engaging live conversation. From anywhere about anything!

— Jack (@jack) January 29, 2015

7/A service that enables the people using it to create new cultural practices is a service that is evergreen. Twitter is that service.

— Jack (@jack) January 29, 2015

8/And now, the team at Twitter. The team today is excellent in every way and is having a tangible positive impact on our pace and execution.

— Jack (@jack) January 29, 2015

9/We saw that Tuesday with a string of amazing launches that are making Twitter even better: https://t.co/5XWnxpNmQN

— Jack (@jack) January 29, 2015

10/As for @dickc, our cofounder @ev rightly pointed out there isn't a single person who has been thinking longer about Twitter than @dickc.

— Jack (@jack) January 29, 2015

11/@dickc was one of our first angel investors, our advisor, our COO, the creator of our revenue engine, and our CEO who assembled the team.

— Jack (@jack) January 29, 2015

12/And finally, the company. I don't know of many companies that also represent a movement. Twitter does.

— Jack (@jack) January 29, 2015

13/Twitter has more global awareness than most century old companies, and yet the brand actually stands for something.

— Jack (@jack) January 29, 2015

14/The Twitter bird has come to stand for empowerment and a positive force in civil society.

— Jack (@jack) January 29, 2015

15/The company constantly shows this spirit in action, especially in policy. And it's built a great business to enable that to flourish!

— Jack (@jack) January 29, 2015

16/I think Twitter is the closest thing we have to a global consciousness. And I believe the world needs that right now.

— Jack (@jack) January 29, 2015

17/That's all. Have a great day!

— Jack (@jack) January 29, 2015

He makes some pretty good points.

Dorsey, of course, knows the CEO role well having served in the position at Twitter originally, and currently serving as the CEO of Square, which is valued at somewhere around $6 billion.

The “string of amazing launches” Dorsey refers to would include this week’s announcement of native video on Twitter’s mobile apps and the addition of group messaging.

Image via Wikimedia Commons

January 30, 2015
Mark Zuckerberg Wants Your Idea For His 2015 Personal Challenge

Each year, Facebook CEO Mark Zuckerberg undertakes a personal challenge. Past challenges have included: wearing a tie every day; being a vegetarian (or only eating meat he killed himself); writing a thank you note each day to someone who “made the world better;” meeting one new person who doesn’t work at Facebook each day; and learning to speak Mandarin.

Zuck takes on these challenges, he says, to broaden his perspective and learn things about the world beyond his work at Facebook.He wrote a status update last night about these challenges, and has decided to call upon the world to give him some new ideas.

“At our last town hall Q&A, someone asked me what my challenge will be for the new year and I said I’d love ideas from our community,” he wrote. “I have an idea of what my next challenge might be, but I’m open to more ideas before the new year officially begins. So share your ideas here!”

And the comments are rolling in.

Kate Aronowitz suggested, “Learn to cook and only eat dinners that you’ve made. A new skill and good excuse to be home for dinner.”

Zuckerberg replied to that, “I love cooking. I’m only good at cooking meat though. I do need to get better at the rest.”

Erryl Ho said, “Learn how to dance haha.”

Zuckerberg replied, “This would certainly be a challenge for me.”

Yvonne Chen suggested, “Run one mile everyday, rain or shine. And you can’t run 2 miles one day and have it eliminate the run for the next day. The challenge is to do it everyday.”

Zuckerberg responded, “Interesting idea!”

There are plenty more where those came from (including more responses from Zuck) here.

Image via Mark Zuckerberg, Facebook video screenshot

December 31, 2014
Mark Zuckerberg Q&A To Be Streamed

As previously reported, Mark Zuckerberg will soon participate in another live Q&A session. He recently held one, and talked about a variety of headline-making items.

The next one will be next week. Facebook previously said this about it:

We’ve got a limited amount of free tickets for the next public Q&A with Mark at Facebook in Menlo Park, California on Dec. 11 at 2PM PT. If you’ll be in the Bay Area and would like a chance to attend this event or future Q&As, please email us at [email protected] and include your full name and where you live.

Facebook has since given an update on the event, indicating that it will in fact be livestreamed like the last one. Zuckerberg said this in a Facebook post:

I’m hosting our second community Q&A at Facebook HQ on December 11, next Thursday.

This is an opportunity for you to ask me questions, and for me to hear directly from you how we can make Facebook better.

To ask a question, go to the Q&A with Mark page and comment on my post.

To vote for a question, just like that comment.

At our last Q&A, people asked about everything from how News Feed ranking works to why I wear the same shirt every day.

I’ll answer questions for about an hour and I’ll try to get through as many as possible. We’ll livestream the Q&A on the page and I’ll post some video highlights later that day.

I’m looking forward to hearing from you!

Zuckerberg talked about organic reach and the great Messenger controversy last time. While he may not have given the most compelling answers, he at least didn’t shy away from addressing the uncomfortable questions. He even https://www.dev.webpronews.commark-zuckerberg-gripes-about-social-network-movie-2014-11″>talked about how the movie The Social Network made him feel.

He gave people plenty of material with his new Time Magazine cover story for this time around. It will be interesting to see what he talks about.

Image via Facebook

December 5, 2014
Reddit CEO Yishan Wong Steps Down

Yishan Wong took the CEO reins at reddit months after the “Front Page of the Internet” was spun off from Condé Nast. Wong became CEO in March, 2012. He has now handed in his resignation.

Reddit co-founder Alexis Ohanian broke the news in a blog post, saying, “We are grateful for his contributions over the last few years, including growing reddit from 35M to 174M, and we have a team in place to ensure that reddit’s best years are still ahead of it.”

Ellen Pao, who has been second in command, will be assuming the role of interim CEO until a permanent replacement can be found. She has been running operations for the company, and is responsible for building reddit’s mobile team, acquiring Alien Blue, and leading the team behind the AMA app.

Dan McComas, who joined the company three years ago, will become SVP of Product.

Ohanian himself will become Executive Chairman. He writes:

I left reddit in 2010 to volunteer for kiva.org in Armenia and have been in an advisory role to reddit ever since. When reddit became independent in 2011, I was asked to return, but turned it down because there were exciting non-profit projects I wanted to do, a book I wanted to write, and I loved advising early stage startups at Y Combinator.

Instead, I joined the board and have done everything I can to not be a helicopter parent, but rather support reddit and all the amazing people who make it work as best I can. But reddit is and will always be my baby (yes, reddit has two dads, and that’s awesome).

Mobile, user experience, and community tools will be priorities going forward, he says.

Sam Altman, an advisor to reddit, wrote a blog post about Wong’s resignation, noting that he left the position last week. He talks about a dispute Wong had with the board:

The reason was a disagreement with the board about a new office (location and amount of money to spend on a lease). To be clear, though, we didn’t ask or suggest that he resign—he decided to when we didn’t approve the new office plan.

We wish him the best and we’re thankful for the work he’s done to grow reddit more than 5x.

In September, reddit announced a new $50 million round of funding.

Altman has apparently been handling CEO duties between Wong’s departure and Pao’s appointment.

Image via Twitter

November 13, 2014
Sean Rad Forced Out Of CEO Role At Tinder

Tinder CEO Sean Rad has been forced out of the role, but will be staying with the company in the capacity of President and board member. Rad founded the company behind the hottest dating app out there, but events unrelated to the app’s performance have led to his demotion.

The news didn’t come in a formal announcement from Tinder or a press release from IAC, which holds a majority stake in the company. It came in a Forbes report with quotes from Rad himself, from his boss at IAC, Sam Yagan, and from other unnamed insiders. So this isn’t a rumor. It’s happening.

You can read the full four-page article here, which gives a lot of background and compares the story to Shakespeare (yeah, the report is really that dramatic).

Long story short, IAC wants a more experienced executive to run the show, and used a recent highly-publicized sexual harassment lawsuit as a reason to take the CEO title away from Rad. Former executive Whitney Wolfe had sued Tinder and IAC for harassment by former CMO and best friend of Rad, Justin Mateen. She also claimed Mateen and Rad had stripped her title as co-founder of the company because she was a woman. The parties reached a settlement in September, but as we now know, that was hardly the end of it.

From the Forbes report:

Rad had the title of founder, but he didn’t have control over his own fate at the company. Which led a few weeks later to the call in Philly. “If the Whitney thing didn’t happen it would be difficult for IAC to demote Sean, because they’d have a lot to answer for,” says one insider. “But the lawsuit gave them an out.”

Rad will remain in the CEO role until his replacement is found. While he will reportedly hold the President title and a spot on the board, it will be interesting to see what happens when that replacement is instated.

“We’re looking for an Eric Schmidt-like person,” Rad is quoted as saying. “There is no CEO coming in the door that I don’t get along with—that would be corporate suicide.”

The timing of this whole situation is pretty interesting because Tinder is pretty much killing it, and Rad just announced the company’s first revenue strategy a couple weeks ago (at the Forbes 30 Under 30 Summit no less). It is offering a premium service, which will “let users break away from location limits and expand their Tinder reach.”

#Tinder CEO @seanrad discusses the future of the company @ForbesUnder30 http://t.co/XSCJ3iseGB via @Forbes pic.twitter.com/Q7BbNVz4zp

— Tinder (@Tinder) October 22, 2014

Meanwhile the company claims to have seen 600% growth over the past year with 40 million downloads since launching in 2012. 30 million people are registered, and 14,000 people are being checked out on the app every second.

For Tinder itself, the outlook is pretty good. We’ll see if Rad really does stay around for the ride.

Image via Facebook

November 4, 2014
Google Makes Some Changes To Its Corporate Structure

Google is making changes to the way it functions internally from a corporate structure standpoint. At the end of the week last week, Re/code reported on an internal memo CEO Larry Page sent to staff detailing some of the changes.

The biggest change is that Sundar Pichai, who has been heading Android and Chrome, is taking over leadership of the company’s core products, reporting to Page. He’s basically becoming Page’s right-hand man from the sound of it, and freeing Page up from having to directly deal with everything himself. Pichai will focus on product, while Page focuses on business.

On Monday, The Wall Street Journal shared some actual excerpts form the memo. One says:

“In terms of management meetings, we’re going to simplify things too, taking our current main management meeting and splitting it into more focused parts. Sundar will run… product-centric meetings with real focus on excellence. I will run a more business-centric meeting with our functional leaders and Sundar, drilling into sales, partnerships and deals as well as any important legal, finance, HR, government relations or PR issues.”

Another:

“Our previous structure with multiple different product areas all reporting to me is relatively unorthodox. In principle that’s good because we are not a conventional company and do not intend to become one. But it’s hard to scale as many decisions ended up coming through me. Our new approach is a more common corporate structure … scalable, focused and enables fast decision making. That’s what we need right now for Google to stay innovative, maintain our velocity and build truly excellent products.”

Roles of co-founder Sergey Brin, CFO Patrick Pichette, and Chief Legal Officer David Drummond will reportedly remain unchanged. Executive chairman Eric Schmidt was not even mentioned in the report.

Page will reportedly work on business issues with Chief Business Officer Omid Kordestani, who recently replaced Nikesh Arora. Page will also focus more of his time on Google’s access and energy initiatives.

Image via YouTube

October 27, 2014
Oracle CEO Larry Ellison Steps Down

Oracle CEO Larry Ellison is stepping down from the position, and will be taking on the roles of executive chairman and CTO.

Here’s the full statement from Oracle:

The Oracle (NYSE: ORCL) Board of Directors today announced that it has elected Larry Ellison to the position of Executive Chairman of Oracle’s Board and appointed him the company’s Chief Technology Officer. Jeff Henley, who has served as Oracle’s Chairman for the last 10 years, was appointed Oracle’s Vice Chairman of the Board.

The Oracle Board also promoted both Safra Catz and Mark Hurd to the position of CEO, Oracle Corporation. All manufacturing, finance, and legal functions will continue to report to Oracle CEO, Safra Catz. All sales, service and vertical industry global business units will continue to report to Oracle CEO, Mark Hurd. All software and hardware engineering functions will continue to report to Oracle Chairman and CTO, Larry Ellison.

“Safra and Mark will now report to the Oracle Board rather than to me,” said Larry Ellison. “All the other reporting relationships will remain unchanged. The three of us have been working well together for the last several years, and we plan to continue working together for the foreseeable future. Keeping this management team in place has always been a top priority of mine.”

“Larry has made it very clear that he wants to keep working full time and focus his energy on product engineering, technology development and strategy,” said the Oracle Board’s Presiding Director, Dr. Michael Boskin. “Safra and Mark are exceptional executives who have repeatedly demonstrated their ability to lead, manage and grow the company. The Directors are thrilled that the best senior executive team in the industry will continue to move the company forward into a bright future.”

According to CNN Money, Ellison earned $78.4 million last year.

Image via Wikimedia Commons

September 18, 2014


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


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	)%


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 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
	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
	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
	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
	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		%


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.

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