WebProNews

Tag: Deals

  • Amazon Marketplace Sellers Get Access To High-Traffic Amazon Holiday Deal Pages

    Amazon Marketplace Sellers Get Access To High-Traffic Amazon Holiday Deal Pages

    Thousands of Amazon Marketplace sellers are getting the opportunity to have their products appear on high-traffic holiday deal pages on Amazon.com throughout the holiday season, opening up the possibility for a big increase in traffic and sales.

    Amazon announced on Monday that sellers are being invited to offer holiday deals to be featured on such pages, including the Today’s Deals page, Gold Box Today’s Deal page, Black Friday and Cyber Monday deal pages, and category holiday pages. As the company notes, the most popular holiday categories (like electronics and toys) will have numerous deals each day from various sellers all season long.

    Amazon Marketplace VP Peter Faricy said, “It will now be easier than ever for our millions of customers to find popular and unique holiday products from our sellers. We know that customers expect to find the lowest prices on Amazon and love browsing the holiday deal pages for great bargains. We are excited that for the first time ever our sellers will be able to showcase their unique and high quality items on the holiday promotion shopping pages.”

    Michael Silberstein, operations manager for NYC-based electronics retailer Focus Camera, said, “Our Gold Box Deal promotion earlier this year was an outstanding success. We listed a popular camera at an unbeatable price that was showcased on the premier placement of Amazon Today’s Deal page for several hours. As a result, we received an enormous increase in sales during the promotion, especially for an item priced over $200.”

    “The Gold Box Deal promotion helped us sell approximately 30 percent of the cameras we had in stock in only a few hours,” he added. “Considering our large inventory, the amount of orders we fulfilled greatly exceeded our expectations. The Gold Box Deal attracted so many customers that we can’t wait for our next chance to participate during the holidays. Amazon is undoubtedly our most important sales channel during the holiday season. If our items are listed on Amazon and the price is right, sales are guaranteed.”

    Gold Box features are shown to all Amazon customers with an account, and new customers see Gold Box “Quick Picks” a few days after their first purchase. These deals include a daily deal, a selection of “best deals,” and lightning deals, which pair a single item with a limited number of coupons.

    Many others should be feeling similar effects throughout the season. According to Amazon, over 2 million sellers experienced record holiday growth during the holiday season last year. In the U.S. alone, unit growth increased over 40% year-over-year.

    Stu Eisenman, president of Delaware-based E-Revolution Ventures, said, “We experienced a tremendous increase in sales for the products we’ve offered as Best Deal or Gold Box Deals. Not only do our sales increase for that item but the deal brings attention and increased popularity to the product that lasts well beyond the promotional deal. As a smaller retailer we were never able to offer our customers the same shipping savings as larger competitors. By participating in Amazon’s FBA program, we can take advantage of the economies of scale. Through the FBA program we’re able to leverage Amazon’s reputation for customer service into increased sales. We can focus on analyzing which items are hot sellers during the holiday season and take steps to ensure ample quantities are available.”

    There are concerns about online spending going into this holiday season. eBay, which released its earnings report last week, gave some less than stellar guidance for the season, and according to the New York Times, online retailers are worried about uncertainty created by the government shutdown.

    Amazon will release its report this Thursday. We’ll see what kind of guidance they give.

  • Microsoft Launches ‘Bing Offers Card-Linked’ Deals

    Earlier this year, Bing announced Bing Offers, its latest foray into the local deals space. The product launched across the United States. Today, the company has announced an expansion of that with “Bing Offers Card-Linked”.

    This is a program they’re launching in Seattle only for the time being, but more cities will follow soon.

    “We found that there is some frustration with having to make major commitments to create coupon deals along with additional investment in infrastructure and training to manage redemptions. Merchants also wished they had more direct control on managing promotions with better insights into consumer engagement,” says Microsoft’s Erik Jorgensen.

    They created Bing Offers Card-Linked to help “minimize this frustration,” partnering with First Data, Visa and MasterCard.

    Basically what it does is gives merchants the ability to provide offers to consumers via their credit cards or other payment cards, so the customer doesn’t have to use a coupon, promotion code or voucher.

    Bing Offers Card-Linked

    Benefits for advertisers, as described by Microsoft, include broad reach (ads across Outlook.com, windows Phone 8, Skype and Bing Apps), a CPA model, better engagement, controlled discounts and “frictionless” redemption.

    So far businesses taking advantage of Bing Offers Card-Linked include: Pizza Hut, Mooyah Burgers, Buca Di Beppo, as well as some other SMBs in the spas, automotive, espresso shop, restaurant and retail store verticals.

    Microsoft expects to update the list of available cities later this year.

  • LivingSocial Launches Larger Deal Inventory, New Merchant Tools And Coupons

    LivingSocial announced on Tuesday that it is rolling out new tools for merchants, a larger deals inventory, extended-length deals and new coupons.

    A spokesperson for the company tells WebProNews that LivingSocial is “moving towards being more of a marketing partner for merchants and an online marketplace destination for consumers.”

    “The new enhancements were developed after listening to feedback from merchants and customers and trialing the solutions with merchants over the past few months,” they said.

    Through the LivingSocial Merchant Center, merchants can respond immediately to feedback from customers after they redeem a deal, and will have access to enhanced deal metrics including deal exposure and user engagement, purchaser highlights and payments information. Merchants will also have access to a tool letting them monitor social media campaigns and two new promotional product options – Amplifier and Stampede – which the company says “are outside the traditional deal structure.”

    With Amplifier ads, the merchant’s promotions receive “premium distribution” on LivingSocial’s channels. The company says this results in “vastly increased exposure and incremental purchases.” With Stampede, brands promote offers that customers can claim with no upfront payment required. They can claim an offer, and get email confirmation with a redemption voucher, then can pay later when they redeem the voucher.

    “In the past three months we have quadrupled the number of LivingSocial deals available,” said CEO Tim O’Shaughnessy. “We have moved from simply being a daily deal company to a real marketing partner for merchants by adding effective and custom solutions to improve their bottom line. Simultaneously, we are giving consumers broader inventory and more ways to get great products, experiences, events and escapes.”

    With increased inventory – which includes more spas, restaurants and “weekend getaways” – comes the need to get these deals in front of consumers. A redesigned LivingSocial website and app aims to take care of that with enhanced search capabilities.

    Finally, LivingSocial is rolling out coupons in beta, which let consumers access and redeem free promo codes, coupons and info on sales from over 3,000 retailers in North America. More about this offering here.

  • Twitter Buzzes with Labor Day Travel Ideas

    Twitter Buzzes with Labor Day Travel Ideas

    The long weekend beckons and most people are off work, so if you can swing it, do it! It’s time to savor the last sweet taste of Summer. It’s like scooping the sugar out of the bottom of a really good glass of iced tea with your finger…
    If you’re from the south, you know what I’m talking about.

  • Groupon Reserve Launched For iPhone App

    Groupon announced on Tuesday that it is expanding its Groupon Reserve channel to the Groupon mobile app. For now, it’s only available on the iPhone app, but the company says it plans to add the feature to Android and iPad soon.

    According to a Groupon spokesperson, 45% of North American transactions were completed on mobile devices, compared to 30% in March 2012. In Q1, less than 45% of Groupon’s North American transactions came from email, with mobile and search accounting for a greater percentage. North American mobile customers spend on average well over 50% more than web-only customers, he says, adding that over 40 million people have downloaded the Groupon mobile app, including 7 million in Q1 alone.

    “We’ve also seen increased interest from merchants since the Web launch of Groupon Reserve,” the spokesperson says. “In fact, July 1 (date of the Web announcement) was one of the highest trafficked days in the history of our B2B website www.grouponworks.com.”

    Groupon Reserve is based on Savored.com’s reservations engine, which lets customers book tables at restaurants and get big discounts. Groupon acquired Savored last year. More on the Groupon Reserve launch here.

    With the new iPhone experience, users can make, view, share and modify restaurant reservations in the currently available markets, which include: Atlanta, Boston, Chicago, Denver, Los Angeles, Miami, New York City, Philadelphia, San Francisco and Washington D.C.

    “Since the launch of Reserve, we have seen a significant increase in bookings, and adding the capability to the Groupon mobile app will make it even easier for more customers to reserve a great dining experience at some of the best restaurants in their city,” said Ben McKean, GM of Groupon Reserve reservations. “Reserve on mobile gives our customers even more options for great things to do wherever they are.”

    Groupon says it intends to launch Reserve in more cities in the U.S. and other key international markets. In the future it will also be expanded to include offerings from beauty, product, travel and entertainment brands, as well as spas, salons and hotels.

  • Groupon Is Going To Offer Gun Deals Again

    In the wake of the massacre at Sandy Hook Elementary in Newtown, Connecticut last winter, Groupon decided to put a stop, at least temporarily, to offering any deals related to guns. This, which took place in the middle of a very heated national debate on gun control, sparked a great deal of controversy, with gun rights advocates calling for a boycott on the company.

    Now, about half a year later, Groupon is letting some gun-related deals go forward again. This will no doubt reignite the controversy surrounding the subject.

    Do you think people should be able to purchase gun-related Groupons? Let us know in the comments.

    As you know, Adam Lanza fatally shot twenty children and six adults at Sandy Hook Elementary (as well as his mother, separately) in the infamous mass murder that took place in Newtown on December 14th. Though the gun control debate has raged for years, there had been no other time in recent memory in which those on both sides had been so vocal as in the aftermath of the tragedy.

    Groupon’s move to ban gun-related deals came in January, as arguments had steadily elevated since the massacre. Michael Cargill, a gun rights activist, concealed handgun instructor, and owner of Central Texas Gun Works, called for a nationwide boycott of Groupon, saying his contract with the company was “abruptly terminated,” after Groupon’s then-CEO Andrew Mason “decided the company would no longer associate with any business related to firearms.”

    As the controversy erupted, Groupon said it was reviewing its policies regarding gun-related offers. Groupon’s PR sent us the following statement at the time:

    “All scheduled and current gun-related deals featured on Groupon North America, including shooting ranges, conceal-and-carry and clay shooting, have been placed on hiatus while we review internal standards that shape the deal inventory we feature. The category is under review following recent consumer and merchant feedback.”

    It’s hard to say if it was really consumer and merchant feedback alone, or if the media had a role in Groupon’s decision, but either way, the statement contained no finality on the subject, and now, some gun deals are making their way back into Groupon’s offerings. The change of heart has gone largely unnoticed in the media, which is probably how Groupon would like to keep it, but Red Alert Politics followed up on the topic last week, and spoke with Groupon’s PR department:

    After an expired coupon for a Colorado Shooting Range was included in today’s Groupon email blast for Denver, Red Alert Politics followed up with the company and discovered the change in policy. Today’s coupon was a mistake, but Denver residents might soon see real gun-related deals in their Groupon emails.

    “We have decided to reopen certain firearm-related deals in specific markets where they’ve been frequently requested by both merchants and customers,” Nicholas Halliwell, a public relations officer for Groupon wrote in an email to Red Alert.

    According to the report, Halliwell said the reintroduction of gun-related deals (which includes firing ranges and skeet shooting) was a “pretty recent decision”.

    When we asked Halliwell for further comment, we got a similar statement:

    After a carefully considered review, we have decided to reopen certain firearm-related deals in specific markets where they’ve been frequently requested by both merchants and customers. These deals are limited to skeet shooting and firing ranges.

    Halliwell tells us that Groupon has already run “a small handful [of] skeet shooting and firing range deals in states such as North Carolina, Oklahoma and Texas.”

    The decision to run them, he says, was made on a case-by-case basis. Again, he notes, this was taking into account feedback from merchants and consumers.

    It’s unclear what exactly led to Groupon’s decision to start allowing gun-related deals again, and how much requesting needs to happen from merchants and customers to have these deals appear in specific areas.

    It’s worth noting that Groupon has undergone a major leadership change since the ban was initially implemented, as CEO Andrew Mason was let go. Mason, by the way, has a new motivational business song album.

    Do you think Groupon’s decision to allow gun-related deals again is a good one? For those who opposed the ban to begin with, is it too late? Share your thoughts in the comments.

    Update: A previous version of this article indicated that Halliwell was quoted by Red Alert as saying the move was “a pretty good decision.” Halliwell says he never editorialized and commented on what he felt about the decision, and that the word “good” was really “recent”.

  • Groupon Reserve Launched For Premium Deals

    Groupon announced the launch of a new service for “premium” deals called Groupon Reserve. According to the company, it’s a destination for “the finest things to eat, see, do and buy.”

    So all those other Groupons are like coach, and this is like first class, apparently.

    “Reserve is an important step in Groupon’s journey from a daily deals company to a leading marketplace for online deals, where consumers can come to Groupon and discover great businesses at unbeatable prices,” a spokesperson for Groupon tells WebProNews.

    Groupon Reserve is launching with Savored.com’s reservations engine, which lets customers book tables at restaurants at discounts of up to 40%. The service will expand to include more premium deals from various beauty, product, travel and entertainment brands.

    CEO Eric Lefkofsky writes, “Groupon Reserve is an important step in our journey to become the leading marketplace for online deals, where consumers can come to Groupon and discover great businesses at unbeatable prices. As Groupon has evolved, we’ve seen growing demand from our customers for upscale offers and exclusive experiences. Reserve gives the most prestigious brands a new way to reach our large and desirable audience.”

    Customers can get their checks discounted without pre-payments or vouchers. Local businesses, Groupon says, get a tool to drive traffic during slow periods.

    “Whether it’s because of a slow night or a last minute no-show, even the best restaurants have empty tables,” Lefkofsky said. “Reserve provides these businesses with a yield management solution to bring customers through their doors at the times they need them the most.”

    The product is launching in Atlanta, Boston, Chicago, Denver, Los Angeles, Miami, New York City, Philadelphia, San Francisco and Washington, D.C. More cities are coming this year, both in the U.S. and internationally. It’s starting off with over 600 restaurants.

    Groupon acquired Savored last year.

  • Bing Takes Another Swing At The Deals Space

    Bing announced Bing Offers today. This is a searchable collection of local deals on the web, aggregated from a “broad” set of partners.

    Sound familiar? That’s probably because they launched Bing Deals two years ago, another deals aggregator. Apparently that didn’t work because these days that just redirects to Bing.

    Update: A Microsoft spokesperson tells us:

    “Microsoft has aligned all deal offerings under the Bing Offers brand – with a much wider selection of local and national deals presented across multiple channels.

    In order to better serve our customers, we decided to work on creating a richer experience across devices. As part of the experiential rollout of the new Bing Offers experience, people will begin seeing local deals through Bing and Local Scout on Windows Phone 8. Also, the bing.com/offers site is mobile optimized for customers wanting to discover their deals from any of their favorite mobile devices, such as iPhone or Android.”

    So now Bing is at it again with Bing Offers.

    “Bing Offers brings together popular deals from across the web in one convenient place, creating a simple way for people to discover and take advantage of great local deals,” a Bing spokesperson tells WebProNews. “Whether looking for a new restaurant to try or a much needed spa treatment, consumers can use Bing Offers to search and filter one of the largest collections of local deals from leading providers. Additionally, Bing Offers is optimized for tablets, mobile and PCs, so people can find great deals no matter what device they use.”

    Bing Offers

    The features as described by Bing:

    • All your favorite deals in one place: You no longer need to browse through different websites, manage multiple sign-ups or sift-through your inbox. Bing Offers aggregates popular deals across the US to help you discover great deals at the right time and place.
    • Quickly find the deals you are looking for:Search for your favorite deals by using any business name, category or keyword. Not looking for a specific deal? Then filter out irrelevant offers by location or category including: food, activities, health & fitness, beauty, travel, retail & services.
    • Available on any device: The Bing Offers experience works seamlessly across tablets, mobile devices, and PCs, so you can use access great deals regardless of where you are.

    Bing Offers is US-only at this point.

  • Groupon Puts Search “Front And Center” In Mobile Apps

    Groupon has launched updates to its iPhone and Android apps, which make search “a front-and-center experience,” as the company says.

    Here’s a look:

    Groupon Search

    Groupon Search

    Groupon has this to say about search’s importance to its business:

    Search is a critical part of Groupon’s product strategy. Most Groupon merchants now make their deals available on an ongoing basis, and search allows customers to find only the deals most relevant to them in this expanded marketplace. In iPhone v.2.5 search is prominent with a clickable icon that allows customers to navigate from anywhere in the app.

    Search is also a central element of Android v.2.4, which also includes a sleek new interface for 10-inch tablets. The Android tablet market is growing quickly, and, with support for tablets, the Groupon Android app is now a great complement to Groupon’s highly regarded iPad app.

    An increased focus on search from Groupon is long overdue. People want deals on specific things, not just the latest massage offer that they happen to email you on a given day. This is why Google’s AdWords has been so successful. Advertisers can cater to what people are actually looking for. Likewise, with Groupon, this should be a basic element of the service, and promoted as such.

  • Foursquare Gives Businesses Incentive to Offer Specials on 4sqDay

    If you’re a local business and are thinking about celebrating the upcoming 4sqDay 2013 with a special, Foursquare is giving you another little incentive to make that decision easier.

    Foursquare has just announced that they will be automatically featuring any business that offers a Foursquare special in the search results on foursquare.com.

    “It’s a great way to get even more eyes on your business!” says the company.

    And if you plan to run a special, Foursquare says that you should print out this sign and plant it on your window, counter, or wherever.

    Foursquare is pretty flexible on what kinds of specials you can run through their service. It can be monetary – like 10% off upon check-in. Or it can be a reward for a frequent customer or for the mayor. Foursquare makes an example of one local business who offered an express check-out line for those who checked-in on Foursquare.

    4sqDay (Foursquare Day) is going on its 4th year this year. It’s alway celebrated on April 16th (4/16…4×4=16, get it?). The first 4sqDay was celebrated in 2010 in Tampa Bay. It was originally begun by Foursquare users but in 2011, after the success of the new holiday in an unofficial capacity, some cities hopped on the bandwagon. New York City Mayor Michael Bloomberg actually issued an official proclamation declaring 4/16 4sqDay in the city.

  • Groupon Earnings Disappoint, Stock Down 28%

    Groupon reported its Q4 and fiscal year 2012 earnings on Wednesday afternoon, sending stock plummeting as results missed Wall Street estimates.

    The company posted a net loss of $81.1 million for the quarter, though revenue was up 30% at $638.3 million.

    Late last year, Groupon CEO Andrew Mason’s job came into question, and now reports are questioning how long he’ll remain in the position again. Groupon hasn’t commented on this since the new earnings release, but the Wall Street Journal reports:

    As Groupon’s stock continues to falter, Mr. Mason will likely struggle to maintain the confidence of Groupon’s board members, particularly its chairman and largest shareholder, Eric Lefkofsky, who has sparred with Mr. Mason in the past, these people have said.

    In pre-market trading Groupon is at $4.30 (-1.68‎, -28.12%‎).

    Here’s the release in its entirety:

    CHICAGO–(BUSINESS WIRE)–Groupon, Inc. (NASDAQ: GRPN) today announced financial results for the quarter and fiscal year ended December 31, 2012.

    “Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities.”

    Gross billings, which reflect the total dollar value of customer purchases of goods and services, excluding any applicable taxes and net of estimated refunds, increased 24% year-over-year to $1.52 billion in the fourth quarter 2012, compared with $1.23 billion in the fourth quarter 2011. Excluding the $21.0 million unfavorable impact from year-over-year changes in foreign exchange rates, gross billings growth was 25% compared with fourth quarter 2011.

    Revenue increased 30% year-over-year to $638.3 million in the fourth quarter 2012, compared with $492.2 million in the fourth quarter 2011. Excluding the $7.7 million unfavorable impact from year-over-year changes in foreign exchange rates, revenue growth was 31% compared with fourth quarter 2011. Growth was driven by an increase in direct revenue, which grew 1549% year-over-year to $225.2 million in the fourth quarter 2012, compared with $13.7 million in the fourth quarter 2011.

    Operating loss was $12.9 million in the fourth quarter 2012, including stock-based compensation and acquisition-related expenses of $26.6 million, and depreciation and amortization of $16.0 million. This compares with an operating loss of $15.0 million in the fourth quarter 2011, which included stock-based compensation and acquisition-related expenses of $32.9 million, and depreciation and amortization of $9.3 million. Year-over-year changes in foreign exchange rates had a $0.1 million favorable impact on operating results.

    “Record billings growth this quarter is a clear signal that customers love Groupons,” said Andrew Mason, CEO of Groupon. “We will continue to invest in growth through 2013 as we see new opportunities to give our customers what they want.”

    Operating cash flow decreased 61% year-over-year to $65.7 million, compared with $169.1 million in the fourth quarter 2011. Free cash flow, a non-GAAP financial measure calculated as operating cash flow less capital expenditures, decreased 83% year-over-year to $25.7 million, compared with $155.1 million in the fourth quarter 2011. At the end of the quarter, Groupon had $1.2 billion in cash and cash equivalents and no long-term borrowings.

    Fourth quarter 2012 net loss attributable to common stockholders was $81.1 million, or $0.12 per share, reflecting stock-based compensation and acquisition-related expenses of $26.6 million and share count of 655.7 million. Fourth quarter 2012 results included a pre-tax non-operating loss of $50.6 million ($45.5 million after tax) related to the impairment of a cost method investment in China.

    Net loss attributable to common stockholders increased by $15.7 million year-over-year, from a loss of $65.4 million, or $0.12 per share in the fourth quarter 2011, including stock-based compensation and acquisition-related expenses of $32.9 million.

    Full Year 2012

    Gross billings increased 35% year-over-year to $5.38 billion in 2012, compared with $3.99 billion in 2011. Excluding the $183.5 million unfavorable impact from year-over-year changes in foreign exchange rates, gross billings growth was 40% compared with 2011.

    Revenue increased 45% year-over-year to $2.33 billion in 2012, compared with $1.61 billion in 2011. Excluding the $74.1 million unfavorable impact from year-over-year changes in foreign exchange rates, revenue growth was 50% compared with 2011. Growth was driven by an increase in direct revenue, which grew 2083% to $454.7 million in 2012, compared with $20.8 million in 2011.

    Operating income was $98.7 million in 2012, including stock-based compensation and acquisition-related expenses of $105.0 million, and depreciation and amortization of $55.8 million. This compares with an operating loss of $233.4 million in 2011, which included stock-based compensation and acquisition-related expenses of $89.1 million, and depreciation and amortization of $32.1 million. Year-over-year changes in foreign exchange rates had a $7.4 million unfavorable impact on operating income.

    Operating cash flow decreased 8% year-over-year to $266.8 million, compared with $290.4 million in 2011. Free cash flow decreased 31% year-over-year to $171.0 million, compared with $246.6 million in 2011.

    Full year 2012 net loss attributable to common stockholders was $67.4 million, or $0.10 per share, reflecting stock-based compensation and acquisition-related expenses of $105.0 million and share count of 650.2 million.

    Net loss attributable to common stockholders improved by $306.1 million year-over-year, from a loss of $373.5 million, or $1.03 per share in 2011, including stock-based compensation and acquisition-related expenses of $89.1 million.

    Groupon, Inc.
    Summary Consolidated and Segment Results
    (dollars in thousands, except share and per share data)
    (unaudited)
    Three Months Ended Y/Y % Year Ended Y/Y %
    December 31, Growth December 31, Growth
    2012 2011 Y/Y %
    Growth    		 FX Effect (2) excluding
    FX(2)    		 2012 2011 Y/Y %
    Growth    		 FX Effect (2) excluding
    FX(2)
    Gross Billings (1)
    North America $ 718,952 $ 475,807 51.1 % $ (2,569 ) 51.6 % $ 2,373,153 $ 1,561,927 51.9 % $ (2,780 ) 52.1 %
    International 801,500 755,061 6.2 % (18,451 ) 8.6 % 3,007,031 2,423,574 24.1 % (180,739 ) 31.5 %
    Consolidated Billings $ 1,520,452 $ 1,230,868 23.5 % $ (21,020 ) 25.2 % $ 5,380,184 $ 3,985,501 35.0 % $ (183,519 ) 39.6 %
    Revenue
    North America $ 375,351 $ 179,638 108.9 % $ (1,082 ) 109.6 % $ 1,165,700 $ 634,980 83.6 % $ (1,156 ) 83.8 %
    International 262,951 312,526 (15.9 ) % (6,629 ) (13.7 ) % 1,168,772 975,450 19.8 % (72,960 ) 27.3 %
    Consolidated revenue $ 638,302 $ 492,164 29.7 % $ (7,711 ) 31.3 % $ 2,334,472 $ 1,610,430 45.0 % $ (74,116 ) 49.6 %
    Operating (loss) income $ (12,861 ) $ (14,972 ) 14.1 % $ 135 13.2 % $ 98,701 $ (233,386 ) N/A $ (7,401 ) N/A
    Net loss attributable to common stockholders $ (81,089 ) $ (65,379 ) (24.0 ) % $ 1,102 (25.7 ) % $ (67,377 ) $ (373,494 ) 82.0 % $ (9,283 ) 84.4 %
    Net loss per share
    Basic $ (0.12 ) $ (0.12 ) $ (0.10 ) $ (1.03 )
    Diluted $ (0.12 ) $ (0.12 ) $ (0.10 ) $ (1.03 )
    Weighted average basic shares outstanding 655,678,123 528,421,712 650,214,119 362,261,324
    Weighted average diluted shares outstanding 655,678,123 528,421,712 650,214,119 362,261,324
    (1) Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. Includes direct billings and third party and other billings.
    (2) Represents change in financial measures that would have resulted had average exchange rates in the reporting period been the same as those in effect in the three months and year ended December 31, 2011.

    Highlights

    • Largest sequential gross billings increase in Groupon history. All categories contributed to the biggest sequential increase in platform growth on an absolute dollar basis in Groupon’s history.
    • Unit milestone. The Company surpassed the 50 million unit mark for the first time in the fourth quarter 2012. Consolidated units, defined as vouchers and products ordered before cancellations and refunds, grew 21% year-over-year.
    • Seasonal strength in Groupon Goods. After a successful holiday season, Goods has now reached an annual run rate of about $2.0 billion in global billings, just five quarters after its launch.
    • Growing merchant selection and quality. As of the end of the fourth quarter, the number of active deals in North America increased almost 300% year-over-year to nearly 37,000.
    • Continued customer acquisition efficiencies. Marketing expense per new customer improved 61% year-over-year in the fourth quarter 2012, enabling the reduction of overall marketing spend by 61% compared with the fourth quarter 2011. As of December 31, 2012, Groupon had 41.0 million active customers, an increase of 22% year-over-year, with gross customer additions partially offset by higher customer inactivations.
    • Substantial growth in mobile transaction activity. In January 2013, nearly 40% of North American transactions were completed on mobile devices, an increase of 44% compared with January 2012. This compares with about one third of transactions completed on mobile devices in October 2012.
    • Launch of merchant services in 2012. Groupon launched a number of services in 2012 to strengthen relationships with local businesses, including Breadcrumb and Payments.

    Outlook

    Revenue for the first quarter 2013 is expected to be between $560 million and $610 million, an increase of between 0% and 9% compared with first quarter 2012.

    Operating (loss) income for the first quarter 2013 is expected to be between $(10) million and $10 million, compared with $39.6 million in the first quarter 2012. This outlook includes $30 million of stock-based compensation, and assumes no acquisitions or investments, or material changes in foreign exchange rates.

    For the full year 2013, operating income is expected to increase compared with 2012.

    A conference call will be webcast live today at 4:00 p.m. CT / 5:00 p.m. ET, 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.

    Non-GAAP Financial Measures

    In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided the following non-GAAP financial measures in this release and the accompanying tables: foreign exchange rate neutral operating results, free cash flow and consolidated operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net. These non-GAAP financial measures are presented to aid investors in better understanding Groupon’s performance. However, these measures are not intended to be a substitute for those reported in accordance with GAAP. These measures may be different from non-GAAP financial measures used by other companies.

    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 period. These measures are intended to facilitate comparisons to our historical performance. For a reconciliation of foreign exchange rate neutral operating results to our GAAP operating results, see “Reconciliation of Foreign Exchange Rate Neutral Operating Results to U.S. GAAP Operating Results” and “Supplemental Financial Information and Business Metrics” included in the tables accompanying this release.

    Free cash flow is a non-GAAP measure that comprises net cash provided by operating activities less purchases of property and equipment and capitalized software. 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. For a reconciliation of free cash flow to cash flow from operations, see ”Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities” included in the tables accompanying this release.

    Consolidated operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net is a non-GAAP measure that comprises the consolidated total of the segment operating income (loss) of our two segments, North America and International. Stock-based compensation expense and acquisition-related expense (benefit), net are excluded from segment operating income (loss) that we report under GAAP for our segments. Stock-based compensation expense is primarily a non-cash item. Acquisition-related expense (benefit), net represents the change in the fair value of contingent consideration arrangements related to business combinations. We use consolidated operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net to allocate resources and evaluate performance internally. For a reconciliation of consolidated operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net to consolidated operating income (loss), see ”Supplemental Financial Information and Business Metrics” included in the tables accompanying this release.

    Note on Forward Looking Statements

    The statements contained in this presentation that refer to plans and expectations for the next quarter or the future are forward- looking statements that involve a number of risks and uncertainties, and actual results could differ materially from those discussed. 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; responding to changes in the market; effectively dealing with challenges arising from our international operations; retaining existing customers and adding new customers; retaining existing merchant partners and adding new merchant partners; incurring expenses as we expand our business; competing against smaller competitors and competitors with more financial resources than us; maintaining favorable terms with our business partners; maintaining a strong brand; managing inventory and order fulfillment; integrating our technology platforms; managing refund risks; retaining our executive team; litigation; regulations, including the CARD Act and regulation of the Internet; tax liabilities; tax legislation; maintaining our information technology infrastructure; security breaches; protecting our intellectual property; handling acquisitions, joint ventures and strategic investments effectively; seasonality; payment-related risks; customer and merchant partner fraud; global economic uncertainty; compliance with rules and regulations associated with being a public company; and our ability to raise capital if necessary. 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 and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the company’s Investor Relations web site at http://investor.groupon.com or the SEC’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 February 27, 2013. Groupon undertakes no obligation to update publicly any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in its expectations.

    Groupon encourages investors to use its investor relations website as a way of easily finding information about the company. Groupon promptly 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.

    Groupon, Inc.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)
    Three Months Ended
    December 31,    		 Year Ended
    December 31,
    2012 2011 2012 2011
    Operating activities
    Net loss $ (80,047 ) $ (59,679 ) $ (51,031 ) $ (297,762 )
    Adjustments to reconcile net loss to net cash provided by operating activities:
    Depreciation and amortization 15,965 9,301 55,801 32,055
    Stock-based compensation 26,411 32,668 104,117 93,590
    Deferred income taxes (17,259 ) 31,601 (7,651 ) 32,203
    Excess tax benefits on stock-based compensation (2,403 ) 1,145 (27,023 ) (10,178 )
    Loss on equity method investees 1,231 6,678 9,925 26,652
    Acquisition-related expense (benefit), net 153 256 897 (4,537 )
    Gain on return of common stock – – – (4,916 )
    Gain on E-Commerce transaction – – (56,032 ) –
    Impairment of cost method investment 50,553 – 50,553 –
    Change in assets and liabilities, net of acquisitions:
    Restricted cash (2,517 ) (4,378 ) (4,372 ) (12,519 )
    Accounts receivable 12,723 (686 ) 10,534 (70,376 )
    Prepaid expenses and other current assets (45,922 ) 4,731 (70,859 ) (36,292 )
    Accounts payable 5,537 927 18,711 (20,997 )
    Accrued merchant and supplier payables 96,029 65,236 149,918 380,108
    Accrued expenses and other current liabilities (20,268 ) 80,164 47,742 189,127
    Other, net 25,531 1,113 35,604 (5,711 )
    Net cash provided by operating activities 65,717 169,077 266,834 290,447
    Net cash used in investing activities (52,753 ) (34,907 ) (194,979 ) (147,433 )
    Net cash (used in) provided by financing activities (6,495 ) 746,913 12,095 867,205
    Effect of exchange rate changes on cash and cash equivalents 1,809 (2,083 ) 2,404 (6,117 )
    Net increase in cash and cash equivalents 8,278 879,000 86,354 1,004,102
    Cash and cash equivalents, beginning of period 1,201,011 243,935 1,122,935 118,833
    Cash and cash equivalents, end of the period $ 1,209,289 $ 1,122,935 $ 1,209,289 $ 1,122,935
    Groupon, Inc.
    Consolidated Statements of Operations
    (in thousands, except share and per share data)
    (unaudited)
    Three Months Ended December 31, Year Ended December 31,
    2012 2011 2012 2011
    Revenue:
    Third party and other revenue $ 413,127 $ 478,510 $ 1,879,729 $ 1,589,604
    Direct revenue 225,175 13,654 454,743 20,826
    Total revenue 638,302 492,164 2,334,472 1,610,430
    Cost of revenue:
    Third party and other revenue 63,905 86,882 297,739 243,789
    Direct revenue 218,567 9,383 421,201 15,090
    Total cost of revenue 282,472 96,265 718,940 258,879
    Gross Profit 355,830 395,899 1,615,532 1,351,551
    Operating expenses:
    Marketing 60,913 155,299 336,854 768,472
    Selling, general and administrative 307,625 255,316 1,179,080 821,002
    Acquisition-related expense (benefit), net 153 256 897 (4,537 )
    Total operating expenses 368,691 410,871 1,516,831 1,584,937
    (Loss) income from operations (12,861 ) (14,972 ) 98,701 (233,386 )
    Interest and other (expense) income, net (48,279 ) (3,835 ) 6,166 5,973
    Loss on equity method investees (1,231 ) (6,678 ) (9,925 ) (26,652 )
    (Loss) income before provision for income taxes (62,371 ) (25,485 ) 94,942 (254,065 )
    Provision for income taxes 17,676 34,194 145,973 43,697
    Net loss (80,047 ) (59,679 ) (51,031 ) (297,762 )
    Less: Net (income) loss attributable to noncontrolling interests (936 ) (5,267 ) (3,742 ) 18,335
    Net loss attributable to Groupon, Inc. (80,983 ) (64,946 ) (54,773 ) (279,427 )
    Redemption of preferred stock in excess of carrying value – – – (34,327 )
    Adjustment of redeemable noncontrolling interests to redemption value (106 ) (433 ) (12,604 ) (59,740 )
    Net loss attributable to common stockholders $ (81,089 ) $ (65,379 ) $ (67,377 ) $ (373,494 )
    Net loss per share
    Basic $ (0.12 ) $ (0.12 ) $ (0.10 ) $ (1.03 )
    Diluted $ (0.12 ) $ (0.12 ) $ (0.10 ) $ (1.03 )
    Weighted average number of shares outstanding
    Basic 655,678,123 528,421,712 650,214,119 362,261,324
    Diluted 655,678,123 528,421,712 650,214,119 362,261,324
    Groupon, Inc.
    Consolidated Balance Sheets
    (in thousands, except share and per share data)
    (unaudited)
    December 31,
    2012 2011
    Assets
    Current assets:
    Cash and cash equivalents $ 1,209,289 $ 1,122,935
    Accounts receivable, net 96,713 108,747
    Deferred income taxes 31,211 19,243
    Prepaid expenses and other current assets 150,573 72,402
    Total current assets 1,487,786 1,323,327
    Property, equipment and software, net 121,072 51,800
    Goodwill 206,684 166,903
    Intangible assets, net 42,597 45,667
    Investments 84,209 50,604
    Deferred income taxes, non-current 29,916 46,104
    Other non-current assets 59,210 90,071
    Total Assets $ 2,031,474 $ 1,774,476
    Liabilities and Stockholders’ Equity
    Current liabilities:
    Accounts payable $ 59,865 $ 40,918
    Accrued merchant and supplier payables 671,305 520,723
    Accrued expenses 246,924 212,007
    Deferred income taxes 53,700 76,841
    Other current liabilities 136,647 144,673
    Total current liabilities 1,168,441 995,162
    Deferred income taxes, non-current 20,860 7,428
    Other non-current liabilities 100,072 70,766
    Total Liabilities 1,289,373 1,073,356
    Commitments and contingencies
    Redeemable noncontrolling interests – 1,653
    Stockholders’ Equity
    Class A common stock, par value $0.0001 per share, 2,000,000,000 shares authorized, 654,523,706 and 641,745,225 shares issued and outstanding at December 31, 2012 and 2011, respectively 65 64
    Class B common stock, par value $0.0001 per share, 10,000,000 shares authorized, 2,399,976 shares issued and outstanding at December 31, 2012 and 2011 – –
    Common stock, par value $0.0001 per share, 2,010,000,000 shares authorized, no shares issued and outstanding at December 31, 2012 and 2011 – –
    Additional paid-in capital 1,485,006 1,388,253
    Accumulated deficit (753,477 ) (698,704 )
    Accumulated other comprehensive income 12,446 12,928
    Total Groupon, Inc. Stockholders’ Equity 744,040 702,541
    Noncontrolling interests (1,939 ) (3,074 )
    Total Equity 742,101 699,467
    Total Liabilities and Equity $ 2,031,474 $ 1,774,476
    Groupon, Inc.
    Segment Information
    (in thousands)
    (unaudited)
    Three Months Ended December 31, Year Ended December 31,
    2012 2011 2012 2011
    North America
    Gross Billings (1) $ 718,952 $ 475,807 $ 2,373,153 $ 1,561,927
    Revenue $ 375,351 $ 179,638 $ 1,165,700 $ 634,980
    Segment cost of revenue and operating expenses(2)(3) 358,319 161,399 1,025,974 630,184
    Segment operating income(3) $ 17,032 $ 18,239 $ 139,726 $ 4,796
    Segment income as a percent of segment revenue 4.5 % 10.2 % 12.0 % 0.8 %
    International
    Gross Billings (1) $ 801,500 $ 755,061 $ 3,007,031 $ 2,423,574
    Revenue $ 262,951 $ 312,526 $ 1,168,772 $ 975,450
    Segment cost of revenue and operating expenses(2)(3) 266,280 312,813 1,104,783 1,124,579
    Segment operating (loss) income(3) $ (3,329 ) $ (287 ) $ 63,989 $ (149,129 )
    Segment (loss) income as a percent of segment revenue (1.3 ) % (0.1 ) % 5.5 % (15.3 ) %
    Consolidated
    Gross Billings (1) $ 1,520,452 $ 1,230,868 $ 5,380,184 $ 3,985,501
    Revenue $ 638,302 $ 492,164 $ 2,334,472 $ 1,610,430
    Segment cost of revenue and operating expenses(2) 624,599 474,212 2,130,757 1,754,763
    Segment operating income (loss) $ 13,703 $ 17,952 $ 203,715 $ (144,333 )
    Segment income (loss) as a percent of segment revenue 2.1 % 3.6 % 8.7 % (9.0 ) %
    Stock-based compensation 26,411 32,668 104,117 93,590
    Acquisition-related expense (benefit), net 153 256 897 (4,537 )
    Operating (loss) income (12,861 ) (14,972 ) 98,701 (233,386 )
    Interest and other expense (income), net 48,279 3,835 (6,166 ) (5,973 )
    Loss on equity method investees 1,231 6,678 9,925 26,652
    (Loss) income before provision for income taxes (62,371 ) (25,485 ) 94,942 (254,065 )
    Provision for income taxes 17,676 34,194 145,973 43,697
    Net loss $ (80,047 ) $ (59,679 ) $ (51,031 ) $ (297,762 )
    (1) Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. Includes direct billings and third party and other billings.
    (2) Represents cost of revenue and operating expenses, excluding stock-based compensation and acquisition-related expense (benefit), net.
    (3) We record intercompany cross-charges every period for services provided by the United States to our international subsidiaries. We updated our intercompany allocations for those charges during the fourth quarter of 2012, which resulted in a one-time $8.5 million decrease to International Segment operating expenses (reduction to International Segment operating loss) and a corresponding increase to North America Segment operating expenses (reduction to North America Segment operating income).
    Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities
    (in thousands)
    (unaudited)
    The following is a reconciliation of free cash flow to the most comparable U.S. GAAP measure, “Net cash provided by operating activities,” for the three months and years ended December 31, 2012 and 2011, respectively:
    Three Months Ended December 31, Year Ended December 31,
    2012 2011 2012 2011
    Net cash provided by operating activities $ 65,717 $ 169,077 $ 266,834 $ 290,447
    Purchases of property and equipment and capitalized software (40,034 ) (13,986 ) (95,836 ) (43,811 )
    Free cash flow $ 25,683 $ 155,091 $ 170,998 $ 246,636
    Net cash used in investing activities $ (52,753 ) $ (34,907 ) $ (194,979 ) $ (147,433 )
    Net cash (used in) provided by financing activities $ (6,495 ) $ 746,913 $ 12,095 $ 867,205
    Reconciliation of Foreign Exchange Rate Neutral Operating Results to Revenue and (Loss) Income from Operations
    (in thousands)
    (unaudited)
    The following is a reconciliation of foreign exchange rate neutral operating results to the most comparable U.S. GAAP measures, “Revenue” and “(Loss) Income from operations,” for the three months and year ended December 31, 2012:
    The effect on the Company’s consolidated statements of operations from changes in exchange rates versus the U.S. Dollar for the three months ended December 31, 2012 are as follows:
    Three Months Ended December 31, 2012 Three Months Ended December 31, 2012
    At Avg. Exchange At Avg. Exchange
    Q4 2011
    Rates (1)    		 Rate
    Effect (2)    		 As
    Reported    		 Q3 2012
    Rates (3)    		 Rate
    Effect (2)    		 As
    Reported
    Revenue $ 646,013 $ (7,711 ) $ 638,302 $ 634,734 $ 3,568 $ 638,302
    Loss from operations $ (12,996 ) $ 135 $ (12,861 ) $ (12,075 ) $ (786 ) $ (12,861 )
    The effect on the Company’s consolidated statements of operations from changes in exchange rates versus the U.S. Dollar for the year ended December 31, 2012 are as follows:
    Year Ended December 31, 2012 Year Ended December 31, 2012
    At Avg. Exchange At Avg. Exchange
    2011
    Rates (1)    		 Rate
    Effect (2)    		 As
    Reported    		 Q4’11 – Q3’12
    Rates (3)    		 Rate
    Effect (2)    		 As
    Reported
    Revenue $ 2,408,588 $ (74,116 ) $ 2,334,472 $ 2,344,952 $ (10,480 ) $ 2,334,472
    Income from operations $ 106,102 $ (7,401 ) $ 98,701 $ 105,467 $ (6,766 ) $ 98,701
    (1) Represents the outcome that would have resulted had average exchange rates in the reported period been the same as those in effect during the three months and year ended December 31, 2011.
    (2) Represents the increase or decrease in reported amounts resulting from changes in exchange rates from those in effect in the comparable period.
    (3) Represents the outcome that would have resulted had average exchange rates in the reported period been the same as those in effect during the three and twelve months ended September 30, 2012.
    Supplemental Financial Information and Business Metrics(13)
    (in thousands, except per share and headcount data and TTM
    Gross Billings / Average Active Customer)
    (unaudited)
    Q1 2011 (8) Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
    Segments
    North America Segment:
    Gross Billings (1) $ 315,152 $ 369,990 $ 400,978 $ 475,807 $ 553,557 $ 548,275 $ 552,369 $ 718,952
    Year-over-year growth 610 % 359 % 204 % 118 % 76 % 48 % 38 % 51 %
    % of Consolidated Gross Billings 47 % 40 % 35 % 39 % 41 % 43 % 45 % 47 %
    Gross Billings (1) Trailing Twelve Months (TTM) $ 745,772 $ 1,035,183 $ 1,304,128 $ 1,561,927 $ 1,800,332 $ 1,978,617 $ 2,130,008 $ 2,373,153
    Revenue:
    Third Party and Other Revenue (2) $ 136,612 $ 157,205 $ 161,525 $ 179,638 $ 230,984 $ 207,119 $ 158,545 $ 165,776
    Direct Revenue (2) – – – – 7,581 53,062 133,058 209,575
    Total Revenue $ 136,612 $ 157,205 $ 161,525 $ 179,638 $ 238,565 $ 260,181 $ 291,603 $ 375,351
    Year-over-year growth 574 % 341 % 188 % 103 % 75 % 66 % 81 % 109 %
    % of Consolidated Revenue 46 % 40 % 38 % 36 % 43 % 46 % 51 % 59 %
    Revenue TTM $ 316,752 $ 438,305 $ 543,705 $ 634,980 $ 736,933 $ 839,909 $ 969,987 $ 1,165,700
    Cost of Revenue:
    Third Party and Other Cost of Revenue (3) $ 25,050 $ 32,169 $ 31,316 $ 51,419 $ 62,580 $ 40,155 $ 15,475 $ 27,002
    Direct Cost of Revenue (3) – – – – 6,671 46,159 115,560 196,789
    Total Cost of Revenue $ 25,050 $ 32,169 $ 31,316 $ 51,419 $ 69,251 $ 86,314 $ 131,035 $ 223,791
    % of North America Total Revenue 18 % 20 % 19 % 29 % 29 % 33 % 45 % 60 %
    Gross Profit
    Third Party and Other $ 111,562 $ 125,036 $ 130,209 $ 128,219 $ 168,404 $ 166,964 $ 143,070 $ 138,774
    Direct – – – – 910 6,903 17,498 12,786
    Total $ 111,562 $ 125,036 $ 130,209 $ 128,219 $ 169,314 $ 173,867 $ 160,568 $ 151,560
    % of North America Total Revenue 82 % 80 % 81 % 71 % 71 % 67 % 55 % 40 %
    Operating (Loss) Income Excl Stock-Based Compensation (SBC), Acquisition-Related Expenses $ (21,778 ) $ (10,501 ) $ 18,836 $ 18,239 $ 40,172 $ 43,429 $ 39,093 $ 17,032
    Year-over-year growth N/A (2,678 ) % 496 % N/A N/A N/A 108 % (7 ) %
    % of Consolidated Operating (Loss) Income Excl SBC, Acq-Related 22 % 17 % 1,113 % 102 % 59 % 60 % 77 % 124 %
    Operating Margin Excl SBC, Acq-Related (% of North America Total revenue) (15.9 ) % (6.7 ) % 11.7 % 10.2 % 16.8 % 16.7 % 13.4 % 4.5 %
    Year-over-year growth (bps) (5,879 ) (562 ) 603 3,494 3,278 2,337 170 (570 )
    Operating (Loss) Income TTM Excl SBC, Acq-Related $ (40,901 ) $ (51,024 ) $ (35,348 ) $ 4,796 $ 66,746 $ 120,676 $ 140,933 $ 139,726
    Operating Margin TTM Excl SBC, Acq-Related (% of North America Total TTM revenue) (12.9 ) % (11.6 ) % (6.5 ) % 0.8 % 9.1 % 14.4 % 14.5 % 12.0 %
    Year-over-year growth (bps) (3,604 ) (2,266 ) (1,467 ) 596 2,197 2,601 2,100 1,120
    International Segment:
    Gross Billings (1) $ 353,022 $ 559,259 $ 756,232 $ 755,061 $ 801,243 $ 738,401 $ 665,887 $ 801,500
    Year-over-year growth N/A 5,057 % 1,115 % 283 % 127 % 32 % (12 ) % 6 %
    Year-over-year growth, excluding FX (4) N/A 4,587 % 1,021 % 287 % 138 % 45 % (4 ) % 9 %
    % of Consolidated Gross Billings 53 % 60 % 65 % 61 % 59 % 57 % 55 % 53 %
    Gross Billings (1) TTM $ 623,367 $ 1,171,781 $ 1,865,774 $ 2,423,574 $ 2,871,795 $ 3,050,937 $ 2,960,592 $ 3,007,031
    Revenue:
    Third Party and Other Revenue (2) $ 158,911 $ 235,377 $ 261,464 $ 298,872 $ 309,069 $ 295,866 $ 265,019 $ 247,351
    Direct Revenue (2) – – 7,172 13,654 11,649 12,288 11,930 15,600
    Total Revenue $ 158,911 $ 235,377 $ 268,636 $ 312,526 $ 320,718 $ 308,154 $ 276,949 $ 262,951
    Year-over-year growth N/A 7,709 % 947 % 273 % 102 % 31 % 3 % (16 ) %
    Year-over-year growth, excluding FX (4) N/A 7,013 % 868 % 276 % 112 % 44 % 13 % (14 ) %
    % of Consolidated Revenue 54 % 60 % 62 % 64 % 57 % 54 % 49 % 41 %
    Revenue TTM $ 271,440 $ 503,803 $ 746,785 $ 975,450 $ 1,137,257 $ 1,210,034 $ 1,218,347 $ 1,168,772
    Cost of Revenue:
    Third Party and Other Cost of Revenue (3) $ 14,715 $ 22,634 $ 31,023 $ 35,463 $ 40,049 $ 36,877 $ 38,698 $ 36,903
    Direct Cost of Revenue (3) – – 5,707 9,383 10,198 11,993 12,053 21,778
    Total Cost of Revenue $ 14,715 $ 22,634 $ 36,730 $ 44,846 $ 50,247 $ 48,870 $ 50,751 $ 58,681
    % of International Total Revenue 9 % 10 % 14 % 14 % 16 % 16 % 18 % 22 %
    Gross Profit
    Third Party and Other $ 144,196 $ 212,743 $ 230,441 $ 263,409 $ 269,020 $ 258,989 $ 226,321 $ 210,448
    Direct – – 1,465 4,271 1,451 295 (123 ) (6,178 )
    Total $ 144,196 $ 212,743 $ 231,906 $ 267,680 $ 270,471 $ 259,284 $ 226,198 $ 204,270
    % of International Total Revenue 91 % 90 % 86 % 86 % 84 % 84 % 82 % 78 %
    Operating (Loss) Income Excl SBC, Acq-Related $ (76,506 ) $ (51,808 ) $ (20,528 ) $ (287 ) $ 27,418 $ 28,505 $ 11,395 $ (3,329 )
    Year-over-year growth N/A (125 ) % 21 % 100 % N/A 155 N/A 1060 %
    % of Consolidated Operating (Loss) Income Excl SBC, Acq-Related 78 % 83 % (1,213 ) % (2 ) % 41 % 40 % 23 % (24 ) %
    Operating Margin Excl SBC, Acq-Related (% of International Total revenue) (48.1 ) % (22.0 ) % (7.6 ) % (0.1 ) % 8.5 % 9.3 % 4.1 % (1.3 ) %
    Year-over-year growth (bps) N/A 74,265 9,392 14,474 5,669 3,126 1,170 (120 )
    Operating (Loss) Income TTM Excl SBC, Acq-Related $ (247,063 ) $ (275,824 ) $ (270,298 ) $ (149,129 ) $ (45,205 ) $ 35,108 $ 67,031 $ 63,989
    Operating Margin TTM Excl SBC, Acq-Related (% of International Total TTM revenue) (91.0 ) % (54.7 ) % (36.2 ) % (15.3 ) % (4.0 ) % 2.9 % 5.5 % 5.5 %
    Year-over-year growth (bps) N/A 70,992 13,508 13,628 8,704 5,765 4,170 2,080
    Consolidated Results of Operations
    Gross Billings (1) $ 668,174 $ 929,249 $ 1,157,210 $ 1,230,868 $ 1,354,800 $ 1,286,676 $ 1,218,256 $ 1,520,452
    Year-over-year growth 1,405 % 916 % 496 % 196 % 103 % 38 % 5 % 24 %
    Year-over-year growth, excluding FX (4) 1,378 % 859 % 465 % 198 % 108 % 47 % 11 % 25 %
    Gross Billings (1) (TTM) $ 1,369,139 $ 2,206,964 $ 3,169,902 $ 3,985,501 $ 4,672,127 $ 5,029,554 $ 5,090,600 $ 5,380,184
    Year-over-year growth 1,651 % 1,227 % 804 % 435 % 241 % 128 % 61 % 35 %
    Revenue:
    Third Party and Other Revenue (2) $ 295,523 $ 392,582 $ 422,989 $ 478,510 $ 540,053 $ 502,985 $ 423,564 $ 413,127
    Direct Revenue (2) – – 7,172 13,654 19,230 65,350 144,988 225,175
    Total Consolidated Revenue $ 295,523 $ 392,582 $ 430,161 $ 492,164 $ 559,283 $ 568,335 $ 568,552 $ 638,302
    Year-over-year growth 1,358 % 915 % 426 % 186 % 89 % 45 % 32 % 30 %
    Year-over-year growth, excluding FX (4) 1,332 % 858 % 401 % 188 % 95 % 53 % 38 % 31 %
    Total Consolidated Revenue TTMYear-over-year growth, excluding FX (1) $ 588,192 $ 942,108 $ 1,290,490 $ 1,610,430 $ 1,874,190 $ 2,049,943 $ 2,188,334 $ 2,334,472
    Year-over-year growth 1,594 % 1,205 % 761 % 415 % 219 % 118 % 70 % 45 %
    Cost of Revenue:
    Third Party and Other Cost of Revenue (3) $ 39,765 $ 54,803 $ 62,339 $ 86,882 $ 102,629 $ 77,032 $ 54,173 $ 63,905
    Direct Cost of Revenue (3) – – 5,707 9,383 16,869 58,152 127,613 218,567
    Total Consolidated Cost of Revenue $ 39,765 $ 54,803 $ 68,046 $ 96,265 $ 119,498 $ 135,184 $ 181,786 $ 282,472
    % of Total Consolidated Revenue 13 % 14 % 16 % 20 % 21 % 24 % 32 % 44 %
    Gross Profit
    Third Party and Other $ 255,758 $ 337,779 $ 360,650 $ 391,628 $ 437,424 $ 425,953 $ 369,391 $ 349,222
    Direct – – 1,465 4,271 2,361 7,198 17,375 6,608
    Total $ 255,758 $ 337,779 $ 362,115 $ 395,899 $ 439,785 $ 433,151 $ 386,766 $ 355,830
    % of Total Consolidated Revenue 87 % 86 % 84 % 80 % 79 % 76 % 68 % 56 %
    Operating (Loss) Income Excl SBC, Acq-Related $ (98,284 ) $ (62,309 ) $ (1,692 ) $ 17,952 $ 67,590 $ 71,934 $ 50,488 $ 13,703
    Year-over-year growth N/A (166 ) % 93. % N/A N/A N/A N/A (24 ) %
    Operating Margin Excl SBC, Acq-Related (% of Total Consolidated revenue) (33.3 ) % (15.9 ) % (0.4 ) % 3.6 % 12.1 % 12.7 % 8.9 % 2.1 %
    Year-over-year growth (bps) (7,611 ) 4,471 2,760 8,689 4,534 2,853 930 (150 )
    Operating (Loss) Income TTM Excl SBC, Acq-Related $ (287,964 ) $ (326,848 ) $ (305,646 ) $ (144,333 ) $ 21,541 $ 155,784 $ 207,964 $ 203,715
    Operating Margin TTM Excl SBC, Acq-Related (% of Total Consolidated TTM revenue) (49.0 ) % (34.7 ) % (23.7 ) % (9.0 ) % 1.1 % 7.6 % 9.5 % 8.7 %
    Year-over-year growth (bps) (7,208 ) (1,333 ) 245 4,887 5,011 4,229 3,320 1,770
    Operating (Loss) Income $ (117,148 ) $ (101,027 ) $ (239 ) $ (14,972 ) $ 39,639 $ 46,485 $ 25,438 $ (12,861 )
    Year-over-year growth N/A (174 ) % 100 % 96. % N/A N/A N/A 14 %
    Operating Margin (% of Total Consolidated revenue) (39.6 ) % (25.7 ) % (0.1 ) % (3.0 ) % 7.1 % 8.2 % 4.5 % (2.0 ) %
    Year-over-year growth (bps) (8,192 ) 6,949 6,838 19,213 4,673 3,391 457 100
    Operating (Loss) Income TTM $ (546,064 ) $ (610,272 ) $ (554,543 ) $ (233,386 ) $ (76,599 ) $ 70,913 $ 96,590 $ 98,701
    Operating Margin TTM (% of Total Consolidated TTM revenue) (92.8 ) % (64.8 ) % (43.0 ) % (14.5 ) % (4.1 ) % 3.5 % 4.4 % 4.2 %
    Year-over-year growth (bps) (11,533 ) (2,457 ) 1,427 11,983 8,875 6,824 4,740 1,870
    Net (Loss) Income Attributable to Common Stockholders (146,480 ) (107,406 ) (54,229 ) (65,379 ) (11,695 ) 28,386 (2,979 ) (81,089 )
    Weighted Average Basic Shares Outstanding 307,849 303,415 307,605 528,422 644,097 647,150 653,224 655,678
    Weighted Average Diluted Shares Outstanding (5) 307,849 303,415 307,605 528,422 644,097 663,123 653,224 655,678
    Net (Loss) Earnings per Share
    Basic $ (0.48 ) $ (0.35 ) $ (0.18 ) $ (0.12 ) $ (0.02 ) $ 0.04 $ (0.00 ) $ (0.12 )
    Diluted $ (0.48 ) $ (0.35 ) $ (0.18 ) $ (0.12 ) $ (0.02 ) $ 0.04 $ (0.00 ) $ (0.12 )
    Supplemental Financial Information and Business Metrics(13)
    (in thousands, except per share and headcount data and TTM
    Gross Billings / Average Active Customer)
    (unaudited)
    Q1 2011 (8) Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
    Depreciation and Amortization
    North America $ 1,273 $ 1,910 $ 2,817 $ 4,515 $ 5,004 $ 6,669 $ 8,153 $ 10,754
    International 6,325 6,188 4,241 4,786 6,712 6,141 7,157 5,211
    Consolidated $ 7,598 $ 8,098 $ 7,058 $ 9,301 $ 11,716 $ 12,810 $ 15,310 $ 15,965
    The following is a quarterly reconciliation of Operating (Loss) Income, excluding stock-based compensation and acquisition-related expense (benefit), net, to the most comparable U.S. GAAP measure, “Operating (Loss) Income.” (6)
    Operating (Loss) Income, excluding stock-based compensation and acquisition-related expense $ (98,284 ) $ (62,309 ) $ (1,692 ) $ 17,952 $ 67,590 $ 71,934 $ 50,488 $ 13,703
    Stock-based Compensation (18,864 ) (38,718 ) (3,340 ) (32,668 ) (28,003 ) (27,084 ) (22,619 ) (26,411 )
    Acquisition-related expense (benefit), net – – 4,793 (256 ) 52 1,635 (2,431 ) (153 )
    Operating (Loss) Income $ (117,148 ) $ (101,027 ) $ (239 ) $ (14,972 ) $ 39,639 $ 46,485 $ 25,438 $ (12,861 )
    The following is a trailing twelve months reconciliation of Operating (Loss) Income, excluding stock-based compensation and acquisition-related expense (benefit), net, to the most comparable U.S. GAAP measure, “Operating (Loss) Income.” (6)
    Operating (Loss) Income, excluding stock-based compensation and acquisition-related expense TTM $ (287,964 ) $ (326,848 ) $ (305,646 ) $ (144,333 ) $ 21,541 $ 155,784 $ 207,964 $ 203,715
    Stock-based Compensation (54,916 ) (89,674 ) (88,351 ) (93,590 ) (102,729 ) (91,095 ) (110,374 ) (104,117 )
    Acquisition-related expense (benefit), net (203,184 ) (193,750 ) (160,546 ) 4,537 4,589 6,224 (1,000 ) (897 )
    Operating (Loss) Income TTM $ (546,064 ) $ (610,272 ) $ (554,543 ) $ (233,386 ) $ (76,599 ) $ 70,913 $ 96,590 $ 98,701
    The following is a quarterly reconciliation of foreign exchange rate neutral Gross Billings growth from the comprable quarterly periods of the prior year to reported Gross billings growth from the comprable quarterly periods of the prior year.(7)
    International Gross Billings, excluding FX N/A 4,587 % 1,021 % 287 % 138 % 45 % (4 ) % 9 %
    FX Effect N/A 470 % 94 % (4 ) % (11 ) % (13 ) % (8 ) % (3 ) %
    International Gross Billings N/A 5,057 % 1,115 % 283 % 127 % 32 % (12 ) % 6 %
    Consolidated Gross Billings, excluding FX 1,378 % 859 % 465 % 198 % 108 % 47 % 11 % 25 %
    FX Effect 27 % 57 % 31 % (2 ) % (5 ) % (9 ) % (6 ) % (1 ) %
    Condolidated Gross Billings 1,405 % 916 % 496 % 196 % 103 % 38 % 5 % 24 %
    The following is a quarterly reconciliation of foreign exchange rate neutral Revenue growth from the comprable quarterly periods of the prior year to reported Revenue growth from the comprable quarterly periods of the prior year.(7)
    International Revenue, excluding FX N/A 7,013 % 868 % 276 % 112 % 44 % 13 % (14 ) %
    FX Effect N/A 696 % 79 % (3 ) % (10 ) % (13 ) % (10 ) % (2 ) %
    International Revenue N/A 7,709 % 947 % 273 % 102 % 31 % 3 % (16 ) %
    Consolidated Revenue, excluding FX 1,332 % 858 % 401 % 188 % 95 % 53 % 38 % 31 %
    FX Effect 26 % 57 % 25 % (2 ) % (6 ) % (8 ) % (6 ) % (1 ) %
    Consolidated Revenue 1,358 % 915 % 426 % 186 % 89 % 45 % 32 % 30 %
    Cash Flow
    Operating cash flow (TTM) $ 91,928 $ 128,316 $ 173,291 $ 290,447 $ 356,221 $ 392,517 $ 370,194 $ 266,834
    Purchases of property, equipment and capitalized software, net (TTM) (24,780 ) (31,949 ) (38,414 ) (43,811 ) (45,932 ) (62,401 ) (69,788 ) (95,836 )
    Free cash flow (TTM) (9) $ 67,148 $ 96,367 $ 134,877 $ 246,636 $ 310,289 $ 330,116 $ 300,406 $ 170,998
    Net cash (used in) provided by investing activities (TTM) $ (55,510 ) $ (83,226 ) $ (124,301 ) $ (147,433 ) $ (149,583 ) $ (184,552 ) $ (177,133 ) $ (194,979 )
    Net cash provided by (used in) financing activities (TTM) $ 142,549 $ 125,404 $ 130,593 $ 867,205 $ 746,824 $ 771,404 $ 765,503 $ 12,095
    Other Metrics:
    Active Customers (10)
    North America 8,213 11,039 12,823 14,084 14,876 15,121 15,983 17,215
    International 7,163 11,998 16,083 19,658 21,974 22,925 23,542 23,834
    Total Active Customers 15,376 23,037 28,906 33,742 36,850 38,046 39,525 41,049
    TTM Gross Billings / Average Active Customer (11) $ 169 $ 174 $ 189 $ 187 $ 179 $ 165 $ 149 $ 144
    Headcount
    Sales (12) 3,556 4,850 4,853 5,196 5,735 5,587 5,087 4,677
    % North America 19 % 20 % 21 % 20 % 21 % 20 % 24 % 25 %
    % International 81 % 80 % 79 % 80 % 79 % 80 % 76 % 75 %
    Other 3,551 4,775 5,565 6,275 6,813 7,233 6,779 6,717
    Total Headcount 7,107 9,625 10,418 11,471 12,548 12,820 11,866 11,394
    (1) Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. Includes direct billings and third party and other billings.
    (2) 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 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.
    (3) Cost of revenue is comprised of direct and indirect costs incurred to generate revenue. Direct cost of revenue includes the purchase price of consumer products, warehousing, shipping costs and inventory markdowns. Third party cost of revenue includes estimated refunds for which the merchant’s share is not recoverable. Other costs incurred to generate revenue are allocated to cost of third party revenue, direct revenue and other revenue in proportion to relative gross billings during the period.
    (4) Represents change in financial measures that would have resulted had average exchange rates in the reported period been the same as those in effect in the prior year period.
    (5) The weighted-average diluted shares outstanding is calculated using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock units and restricted shares, as calculated using the treasury stock method.
    (6) Operating income excluding stock-based compensation and acquisition-related activities is a non-GAAP financial measure. The Company reconciles this measure to the most comparable U.S. GAAP measure, ‘‘Operating Income,” for the periods presented.
    (7) Foreign Exchange Rate neutral operating results are non-GAAP financial measures. The Company reconciles these measures to the most comparable U.S. GAAP measures, ‘‘Gross Billings” and “Revenue,” for the periods presented.
    (8) Year-over-year growth is unavailable for select international growth measures as Groupon did not commence international operations until the second quarter of 2010.
    (9) Free cash flow is a non-GAAP financial measure. The Company reconciles this measure to the most comparable U.S. GAAP measure, ‘‘Net cash provided by operating activities,” for the periods presented. See “Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities.”
    (10) Reflects the total number of unique accounts who have purchased Groupons during the trailing twelve months.
    (11) Reflects the total gross billings generated in the trailing twelve months per average active customer over that period.
    (12) Includes inside and outside merchant sales representatives, as well as sales support.
    (13) 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.


  • Foursquare Partners with Visa, MasterCard for Amex-Like Offers

    In early 2011, Foursquare and American Express launched a partnership that allowed card-owners to score discounts and cashback by using Foursquare to check-in and spend at certain participating businesses around the country. The program made a big splash on Small Business Saturday (the shopping day after Black Friday) and featured offers like “spend $25 get $25 off.”

    Later, Foursquare and AMEX extended those deals, even launching them across the pond.

    Now, Foursquare is making a move to expand these offers to more types of plastic.

    The company has announced that they will be extending these types of specials with both Visa and MasterCard, and most debit cards to provide similar check-in offers alongside participating businesses.

    Foursquare is working with payment solutions company First Data and CardSpring to expand the seamless specials.

    The AMEX/Foursquare deal has morphed over time to start producing more revenue for Foursquare, and the company says that the new deals with Visa and MasterCard will earn them a fee for every offer redeemed. It’s unclear whether that will be a flat fee per offer claimed or some sort of percentage deal.

    “This is going to be a pretty core part of our revenue model going forward,” said Foursquare Product Manager Noah Weiss.

    According to AdAge, the first offer that should be available today involves $1 off for $10 spent at 8,000 participating Burger King locations.

    Since this is going to be a “core part of the revenue model,” it shouldn’t surprise you that Foursquare is also making these credit card deals more prominent within the app.

    All you’ll have to do is sync your Visa, MasterCard, or AMEX with your Foursquare account to start earning cashback on purchases made through the app.

  • The Latest In Google’s Plot Against Groupon

    Google has released a new Offers format for AdWords ads. Larry Kim, CTO of Wordstream, who was an early Google partner on Enhanced Campaigns shared this screen cap with us:

    Google Offer ads

    Kim calls it “Google’s plan to kill Groupon,” and says these ads matter because:

    1) Way better deal than Groupon who requires 50-90% discounted pricing, then takes 50% of that for themselves.

    2) Advertisers can track this. Local businesses can connect the dots between online marketing and in-store purchases. Not possible before!

    3) I think they’ll be rolling this out on Google Maps. Local Deals + Google Maps = perfect match!

    Kim Discusses the ads more in his own blog post.

  • Facebook Reportedly Testing Feature Updates For Offers

    Facebook is working with global retailers on a test of a new version of its Offers product, according to a report from Inside Facebook. This incarnation of Offers reportedly lets users shop immediately or get a reminder before the promotion ends. Brittany Darwell reports:

    A Facebook spokesperson says the company is working with a few global retailers for this test, but for now other pages aren’t affected and their offers will continue to appear in the original format.

    Facebook Offers launched last year. COO Sheryl Sandberg said last month that offers had already been claimed by 42 million unique users. I would imagine that the format that’s being tested would only help users claim more of them. It will also be interesting to see if Facebook adds Offers functionality to Graph Search, as it expands that to include different types of Facebook data.

    In October, Facebook started letting Page admins promote Offers from mobile devices. That’s an important feature for this product’s succes, given that Facebook now considers itself a mobile company.

    In recent weeks, we’ve also seen Facebook launch new physical gift cards that store gift amounts from various businesses, roll out the ability to let users pay to promote their friends’ statuses, and test a new “buy tickets” option for events.

  • Groupon Gives Merchants An ‘Impact Report’

    Groupon Gives Merchants An ‘Impact Report’

    Groupon announced a new tool for merchants on Wednesday, which the company says will help them measure the performance of their Groupon deal. It’s called the Merchant Impact Report.

    “Merchants now have the ability to access themselves analytics, customer insights and a profit calculator to help them gauge the performance of their Groupon promotion,” a spokesperson for Groupon tells WebProNews. “It lets local businesses work out their campaign profitability, which is something that’s not generally available through other marketing/advertising mediums.”

    The company has been testing the offering in a trial period with over 1,000 merchants, but now it’s widely available in the U.S. and Canada. It comes with analytics, including the total number of Groupon subscribers who received the merchant’s deal via Groupon, as well as which subscribers are purchasing the offer, broken down by geography, gender and age. It also shows the percentage of customers new to the business or reactivated as a result of working with Groupon. It even shows the estimated percentage of those expected to return in a 90-day period.

    The offering also comes with a profit calculator, estimating the cost-effectiveness of any given deal. This includes payments from Groupon, overspend above the value of the Groupon, revenue generated by returning customers, and the merchant’s costs.

    Groupon Merchant Impact Report

    “The Merchant Impact Report was created as a result of our merchants’ feedback and is designed to provide a clear, concise view into the effectiveness of their Groupon promotions,” said Amit Koren, Director of Merchant Products, Groupon. “Until today only the largest companies had access to this kind of information, and now we’re providing these powerful analytics to every local business that works with Groupon.”

    More on the report here.

  • Groupon Acquires Deals App Glassmap

    Groupon Acquires Deals App Glassmap

    Late on Friday, news came out that Groupon has acquired deals app creators Glassmap. The app, which lets users get deals based on interests, location and activity, is available for both iOS and Android.

    AllThingsD broke the news, with confirmation from Groupon.

    Glassmap wrote on its blog:

    Today, we’re happy to announce that Glassmap has been acquired by Groupon! Our goal when we started building Glassmap was to help people find what was interesting and relevant around them. But in plainer terms, we just really wanted to mold all these fancy ideas and innovations of Silicon Valley into a simple and useful tool for the real world. Groupon has revolutionized how people today use technology to interact with the real world, and that’s why we’re so excited to join them. Together, we’ll be able to create even more amazing products.

    Most importantly, we want to thank all our loyal users for riding with us for these past two years. It’s been really fun for us, and we hope to continue delighting you with our efforts with Groupon. The Glassmap application will wind down and close on February 15, 2013.

    Terms of the deal were not disclosed.

  • Google Launches Zavers Coupon Offering For Retailers

    Google Launches Zavers Coupon Offering For Retailers

    Google announced a real-time new digital coupon offering today called Zavers by Google, which the company says enables retailers and manufacturers to reward loyal customers with relevant coupons.

    Retailers can use the product to extend their existing incentive programs.

    “Unlike traditional media, Zavers’ real-time data gives manufacturers new ways to measure coupon redemptions and analyze consumer preferences so they can manage distribution, tailor campaigns, and optimize budgets for maximum ROI,” says Google Commerce Director of Emerging Platforms, Spencer Spinnell. “Zavers also offers access to an extensive network of manufacturer coupons, opening up new retail revenue streams.

    “With Zavers, shoppers find manufacturer discounts on their favorite retailer websites, and save the digital coupons to their accounts,” he explains. “Then they simply shop for those products and check out as usual. Redemption occurs in real time, with savings automatically deducted at checkout when shoppers provide their rewards cards or phone numbers—no scanning or sorting necessary. Manufacturers only pay when a product is moved off the shelf.”

    The coupons are applied to purchases without the need to show and scan paper or digital goods. Customers using Google Wallet can redeem coupons instantly by tapping their phones at the checkout.

    Google has New York grocer D’Agostino on as a partner, as well as A&P, Bi-Lo, The Food Emporium, Harris Teeter, PathMark, Price Chopper, SuperFresh and Waldbums. The company says it will be announcing new partnerships with major retailers in the coming months.

  • Netflix Stock on the Rise Following Huge Disney Deal

    Netflix Stock on the Rise Following Huge Disney Deal

    Today, Netflix and the Walt Disney company made a pretty huge announcement. Starting in 2016, the company will be the exclusive streamers of the first-run of Disney’s huge theatrical catalog – meaning films from Pixar, Marvel, and Walt Disney Animation Studios as well. It’s a big deal because it allows Netflix to stream the films inside the pay TV window. That means that as soon as the films would be available on services like HBO or cable on-demand, Netflix will have them. Even though it’s not set to start until 2016, it’s a step forward for the streaming subscription service, who is accustomed to getting content weeks after it’s been available in the pay TV period.

    Wall Street is reacting positively to the news, as Netflix stock has jumped over 14% following the news:

    As part of the deal, Netflix will also receive rights to Disney’s straight-to-video selections as well as an extension on the back catalog of classics like Dumbo and Pocahontas.

    “For us, this is a really big deal – for the first time in our largest market – new Disney movies will be available when and where you want to watch them on Netflix rather than on a premium cable channel,” said Netflix VP of content acquisition Pauline Fischer. “Through this new partnership with Disney, one of the best known global names in family entertainment, Netflix is giving our members even more high quality films to enjoy.”

    “Disney and Netflix have shared a long and mutually beneficial relationship and this deal will bring to our subscribers, in the first pay TV window, some of the highest-quality, most imaginative family films being made today,” said Ted Sarandos, Chief Content Officer at Netflix. “It’s a bold leap forward for Internet television and we are incredibly pleased and proud this iconic family brand is teaming with Netflix to make it happen.”

    A bold leap forward for internet television, indeed. Will other studios follow suit and start looking at streaming services like Netflix for exclusive pay TV window deals?

  • Netflix Will Get Disney Films Inside Pay TV Window Starting in 2016

    Netflix Will Get Disney Films Inside Pay TV Window Starting in 2016

    Netflix has just inked a huge deal that will make it the exclusive source for some of the biggest movies around – Disney films.

    Netflix and the Walt Disney Company have announced a multi-year partnership that will bring new films to the service instantly, inside the pay TV window. Netflix will be the only subscription service for first-run Disney films, including both live-action and animated features.

    The studios covered in the deal are Disney, Walt Disney Animation Studios, Pixar, Marvel and Disneynature. The deal goes into effect in 2016, where Netflix will then receive all of the theatrically-released films to stream out on a wide range of devices.

    “Disney and Netflix have shared a long and mutually beneficial relationship and this deal will bring to our subscribers, in the first pay TV window, some of the highest-quality, most imaginative family films being made today,” said Ted Sarandos, Chief Content Officer at Netflix. “It’s a bold leap forward for Internet television and we are incredibly pleased and proud this iconic family brand is teaming with Netflix to make it happen.”

    Netflix and Disney made a couple of other deals today, such as extended a catalog deal that allows Netflix to stream some old favorites like Dumbo and Alice in Wonderland. Netflix will also receive Disney’s straight-to-video films starting in 2013.

    This is a pretty big deal for Netflix, who will be able to boast incredibly popular titles as soon as they become available for the small screen. It’s definitely a shot across the bow for a company like HBO, ans Netflix is slowly moving into their pay window. But then again, we do have to wait until 2016. Bummer.

  • Groupon Partners With Major League Baseball

    Groupon announced today that it has entered a multi-year partnership with MLB Advance Media (MLBAM), the interactive media and Internet company of Major League Baseball. As a result of the partnership, Groupon is now the official daily deals site for MLB.com.

    Groupon says it will be working with various teams from the league to offer more deals on tickets, official merchandise and “rare experiences, such as up-close encounters with MLB ballparks.”

    “What does this insider status look like?” asks Groupon in a blog post. “Past deals have included exclusive access to World Series ticket packages, batting practice with an MLB team, the chance to throw out the first pitch before a game, an official Jumbotron welcome to the stadium and a tour of the locker room where your favorite players starch their lucky socks.”

    The company says users can expect similar deals to these, and other things on GrouponLive, Groupon’s events platform. Such offerings will also be available via the Groupon mobile app.

    Users can expect all of this to begin with the upcoming 2013 baseball season. While it is a multi-year partnership, it’s unclear just how many years it is for.

    “Groupon is proud to partner with MLB Advanced Media and work with the teams to create new, unique opportunities for our customers to appreciate America’s favorite pastime,” said GrouponLive General Manager, Greg Rudin. “In addition to great deals on tickets, fans will have a chance to enjoy unforgettable ballpark experiences.”

    “Groupon offers a cutting-edge marketing channel with an extensive customer base to drive additional ticketing opportunities and incremental revenue for our teams,” said Noah Garden, EVP, Revenue, MLBAM.

    Groupon, meanwhile, is facing potential changes in leadership.

  • Following Huge Black Friday, Amazon Begins A Whole Week Of Cyber Monday Deals

    Following Huge Black Friday, Amazon Begins A Whole Week Of Cyber Monday Deals

    Amazon was the top retail site on a record breaking Black Friday. Not exactly a surprise, but we can also expect similar results for Cyber Monday, which Amazon began participating in at midnight.

    That’s when Amazon opened its Cyber Monday Deals Store. Through the store, Amazon is offering thousands of limited-time deals.This includes items like televisions, digital cameras, home theater speaker systems, laptops and other computer hardware, Kindle books, toys, vacuums cleaners, yoga kits, synthesizers, wine sets, and all kinds of stuff.

    While the deals may be limited-time, Amazon is offering deals through the Cyber Monday Deals Store throughout the entire week. The deals are, however, offered individually at various times throughout the week.

    “We know our customers love shopping on Cyber Monday and finding top deals on gifts for everyone on their list,” said Craig Berman, Vice President, Amazon Global Communications. “We’re excited to offer customers the best prices on popular gift items this season and an easy, stress-free holiday shopping experience – nothing beats the convenience of shopping from anywhere at any time, whether it’s on a PC at work, in line for coffee or lounging on the couch with the Kindle Fire HD.”

    I’m not sure employers will be too keen on that shopping from work part, but I would imagine that won’t be stopping many deal seekers. Let’s not forget that people are giving birth and leaving their babies unattended in Walmarts just to get some deals on merchandise (both stories found on reddit over the holiday weekend).