Category: News

Rob Kardashian Charged With Battery, Theft

Rob Kardashian, brother of the famous reality TV Kardashian sisters, is now facing legal repercussions from a run-in with a paparazzo earlier this year.

According to an E! News report, Kardashian appeared in court today and plead not guilty to one count of misdemeanor battery and one count of misdemeanor petty theft. The reality TV star was released on his own recognizance.

Back in March, Kardashian was accused of stealing a camera memory card from a photographer’s camera. The incident happened near an L.A. gym, when the paparazzo was reportedly photographing Kardashian with his shirt off. Kardashian had allegedly claimed that he would pay for the memory card at a later date before taking off with it, but it seems the photographer didn’t consider that a fair deal.

The photographer, named Andra Vaik, sued Kardashian earlier this month over the incident.

Kardashian is reportedly being represented in the case by Robert Shapiro, a lawyer famous for being part of O.J. Simpson’s murder trial defense team alongside Kardashian’s father, Robert Kardashian.

Rob Kardashian has not commented directly on his legal troubles through his social media accounts. His last two tweets have been an ad for a friend’s debut album and a short nighty-night message:

Follow @RobKardashian

Rob Kardashian
@RobKardashian

The prestige. Goodnight

Reply · Retweet · Favorite
14 hours ago via Twitter for iPhone · powered by @socialditto

May 8, 2013
Google Glass Ban: Will It Actually Happen?

A Google Glass ban has been on the minds of some people as stories begin to emerge of establishments saying they will bar customers from wearing Google’s new tech inside. Those are just stories from a small number of businesses though? Is there any chance that Google Glass could be banned on a much larger scale?

A recent petition on the White House’s We the People Web site is asking the administration to ban Google Glass until certain privacy concerns can be addressed. The petition has only received 30 signatures so far though. If there’s wide-spread fear of Google Glass, it’s not being voiced here.

Of course, it doesn’t mean that anti-Glass advocates are small in numbers. In recent months, a Web site called “Stop the Cyborgs” was created to collect all stories on the technology while providing interesting commentary on the future of personal surveillance and privacy. That being said, the group is adamant that it does not hate Google and that it does not want to ban Glass. Instead, the group says that it wants to “encourage individual people to think about the impact of new technologies, to set bounds on how technologies are used proactively, and negotiate their relationship with the future.”

Besides people getting a laugh out of white dudes looking really nerdy wearing Glass, most seem to be of the above opinion. Google Glass isn’t an evil that needs to be eradicated, but rather something that people should just be aware of. Glass opens up a lot of new possibilities, but some of those possibilities can be rather scary. Is the risk worth it? It’s best to let the market decide that.

May 8, 2013
Release candidates for CyanogenMod 10.1.0 start making their way to select devices

CyanogenMod has announced they have release candidates ready for a few select devices. OK so the word few isn’t really accurate, 40 is the actual number and the list is impressive. For those of you who don’t know what CyanogenMod or CM 10.1 is, it is a custom ROM for select Android devices, CM 10.1 is the latest from the CyanogenMod crew and it is based on Android 4.2.2 Jelly Bean source code.

The devices listed for rc1 consideration is a who’s-who of current and former top end devices. The current lineup of Nexus phones and tablets are there, as well as the Nexus Q for those who happen to own one. The international HTC One X is there as well, and a few U.S. variants of the Samsung Galaxy S III.

The list is too big for me to run through all of them, so click on the source and see if your device is listed. If not, be patient it may make the list sooner or later.

Source: CyanogenMod

Come comment on this article: Release candidates for CyanogenMod 10.1.0 start making their way to select devices

Visit TalkAndroid for Android news, Android guides, and much more!

May 8, 2013

Groupon Earnings Beat Expectations, Stock On The Rise

Groupon just released its first earnings report since CEO Andrew Mason was fired. Unlike last time, Groupon actually beat Wall Street expectations this time, and the stock is currently on the rise.

The company reported gross billings of $1.41 billion, revenue of $601.4 million, and GAAP operating income of $21.2 million.

Active customers are up 13% year-over-year.

Eric Lefkofsky, Chairman and co-CEO, said, “We are encouraged by our results, as our local revenues accelerated and our margins improved over the prior quarter. We had record mobile performance as 45% of our North American transactions came from mobile in March, and more than 7 million people downloaded our apps in the quarter.”

Meanwhile the hunt for Mason’s replacement continues.

Here’s the earnings report in its entirety:

CHICAGO–(BUSINESS WIRE)–Groupon, Inc. (NASDAQ: GRPN) today announced financial results for the quarter ended March 31, 2013:

“Management’s Discussion and Analysis of Financial Condition and Results of Operations”

Gross billings of $1.41 billion

Revenue of $601.4 million

GAAP operating income of $21.2 million, or $51.2 million excluding stock compensation

GAAP loss per share of $0.01, or earnings per share of $0.03 excluding stock compensation

“We are encouraged by our results, as our local revenues accelerated and our margins improved over the prior quarter,” said Eric Lefkofsky, Chairman and co-CEO of Groupon. “We had record mobile performance as 45% of our North American transactions came from mobile in March, and more than 7 million people downloaded our apps in the quarter.”

First Quarter 2013 Summary

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 4% to $1.41 billion in the first quarter 2013, compared with $1.35 billion in the first quarter 2012. North America growth of 23% was offset by a decline of 9% in the International segment on a year-over-year basis.

Revenue increased 8% to $601.4 million in the first quarter 2013, compared with $559.3 million in the first quarter 2012. North America revenue growth of 42% was offset by a decline of 18% in the International segment on a year-over-year basis.

Gross profit was $379.0 million in the first quarter 2013, compared with $439.8 million in the first quarter 2012.

Operating income was $21.2 million in the first quarter 2013, compared with $39.6 million in the first quarter 2012. Operating income increased $34.0 million compared with fourth quarter 2012.

Operating income excluding stock compensation and acquisition-related costs, a non-GAAP financial measure, was $51.2 million in the first quarter 2013, compared with $67.6 million in the first quarter 2012. Operating income excluding stock compensation and acquisition-related costs increased $37.4 million compared with fourth quarter 2012.

First quarter 2013 net loss attributable to common stockholders was $4.0 million, or $0.01 per share, including stock compensation and acquisition-related costs of $30.0 million, or $20.9 million net of tax. Earnings per share excluding stock compensation and acquisition-related costs, net of tax, a non-GAAP financial measure, was $0.03 per share.

Operating cash flow for the trailing twelve months ended March 31, 2013 was $191.9 million. Free cash flow, a non-GAAP financial measure, was negative $5.7 million in the first quarter 2013, bringing free cash flow for the trailing twelve months ended March 31, 2013 to $94.7 million.

At the end of the quarter, Groupon had $1.2 billion in cash and cash equivalents.

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.

First Quarter Operating Highlights

Global units: Consolidated units, defined as vouchers and products ordered before cancellations and refunds, increased 4% year-over-year to 45 million. North America units increased 37%, and International units decreased 18%.

Active deals: As of March 31, 2013, the number of active deals in North America increased to nearly 40,000, compared with nearly 37,000 at the end of the fourth quarter 2012.

Active customers: Active customers, or customers that have purchased a Groupon within the last twelve months, grew 13% year-over-year, to 41.7 million as of March 31, 2013, comprising 18.2 million in North America, and 23.5 million in International.

Customer spend: Trailing twelve month billings per average active customer decreased to $138 from $144 in the fourth quarter 2012, related primarily to seasonal strength in the fourth quarter holiday period.

Mobile: In March 2013, 45% of North American transactions were completed on mobile devices, compared with nearly 30% in March 2012. In the first quarter 2013, more than 7 million people downloaded Groupon mobile apps worldwide.

Marketplace: The rollout of Groupon’s marketplace (”Pull”) continued to gain momentum, as email accounted for less than 45% of North American transactions in the first quarter 2013.

Outlook

Groupon anticipates incremental investments of between $15 million and $30 million in customer incentives and marketing in the second quarter 2013. As a result, for the second quarter 2013, revenue is expected to be between $575 million and $625 million, and operating income excluding stock compensation and acquisition-related expenses is expected to be between $20 million and $40 million. Stock compensation is expected to be approximately $30 million, and tax expense is expected to be approximately $25 million. This outlook assumes no acquisitions or investments, or material changes in foreign exchange rates.

Groupon reaffirms its guidance that full year 2013 GAAP operating income will exceed $100 million.

Conference Call

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 at http://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 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, operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net, Adjusted EBITDA, earnings per share excluding stock-based compensation and acquisition-related expense (benefit), net, and free cash flow. These non-GAAP financial measures are presented to aid investors in better understanding Groupon’s performance and to facilitate comparisons to many of our peers who present similar measures. However, these measures are not intended to be a substitute for those reported in accordance with U.S. GAAP. These measures may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures. 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 represents the change in the fair value of contingent consideration arrangements related to business combinations. 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 because it is 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.

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 period.

Operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net is a non-GAAP financial measure that comprises the consolidated total of the segment operating income (loss) of our two segments, North America and International. We use consolidated operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net to allocate resources and evaluate performance internally.

Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) excluding income taxes, interest and other non-operating items, depreciation and amortization, stock-based compensation, and acquisition-related expense (benefit), net. Adjusted EBITDA is similar to Operating income (loss) excluding stock-based compensation and acquisition-related expense (benefit), net, except Adjusted EBITDA also excludes depreciation and amortization. Our definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. We believe that Adjusted EBITDA is a meaningful measure for evaluating our operating performance and liquidity.

Earnings per share excluding stock-based compensation and acquisition-related expense (benefit), net is a non-GAAP financial measure that adjusts our earnings (loss) per share to exclude the impact of stock-based compensation expense, acquisition-related expense (benefit), net and the income tax effect of those items. We believe that this non-GAAP financial measure provides meaningful supplemental information for evaluating our operating performance.

Free cash flow is a non-GAAP financial 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.

Note on Forward-Looking Statements

The statements contained in this release 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 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 May 8, 2013. 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.

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.

About Groupon

Groupon (NASDAQ: GRPN) is a global leader in local commerce, making it easy for people around the world to search and discover great businesses at unbeatable prices. Groupon is reinventing the traditional small business world by providing merchants with a suite of products and services, including customizable deals, payments processing capabilities and point-of-sale solutions to help them attract more customers and run their operations more effectively. By leveraging the company’s global relationships and scale, Groupon offers consumers incredible deals on the best stuff to eat, see, do, and buy in 48 countries. With Groupon, shoppers discover the best a city has to offer with Groupon Local, enjoy vacations with GrouponGetaways, and find a curated selection of electronics, fashion, home furnishings and more with Groupon Goods. To subscribe to Groupon emails, visit www.Groupon.com. 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)

Three Months Ended
March 31, Y/Y %

Growth

2013 2012 Y/Y %
Growth FX Effect ⁽²⁾ excluding
FX⁽²⁾

Gross Billings ⁽¹⁾

North America $ 681,319 $ 553,557 23.1 % $ (59 ) 23.1 %

International 726,450 801,243 (9.3 ) % (12,460 ) (7.8 ) %

Consolidated gross billings $ 1,407,769 $ 1,354,800 3.9 % $ (12,519 ) 4.8 %

Revenue

North America $ 339,554 $ 238,565 42.3 % $ (27 ) 42.3 %

International 261,848 320,718 (18.4 ) % (4,540 ) (16.9 ) %

Consolidated revenue $ 601,402 $ 559,283 7.5 % $ (4,567 ) 8.3 %

Income from operations $ 21,178 $ 39,639 (46.6 ) % $ 2,377 (52.6 ) %

Net loss attributable to common stockholders $ (3,992 ) $ (11,695 ) 65.9 % $ 2,614 43.5 %

Net loss per share

Basic $ (0.01 ) $ (0.02 )

Diluted $ (0.01 ) $ (0.02 )

Weighted average basic shares outstanding 658,800,417 644,097,375

Weighted average diluted shares outstanding 658,800,417 644,097,375

(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 during the three months ended March 31, 2012.

Groupon, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended

March 31,

2013 2012

Operating activities

Net loss $ (3,242 ) $ (3,593 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization 20,700 11,716

Stock-based compensation 29,907 28,003

Deferred income taxes (258 ) (876 )

Excess tax benefits on stock-based compensation (832 ) (2,881 )

Loss on equity method investments 19 5,128

Acquisition-related expense (benefit), net 68 (52 )

Change in assets and liabilities, net of acquisitions:

Restricted cash 2,523 (1,357 )

Accounts receivable (7,684 ) (11,878 )

Prepaid expenses and other current assets 12,527 (4,121 )

Accounts payable (19,606 ) (1,821 )

Accrued merchant and supplier payables (39,417 ) 46,000

Accrued expenses and other current liabilities 13,302 13,420

Other, net 753 6,026

Net cash provided by operating activities 8,760 83,714

Net cash used in investing activities (30,679 ) (46,444 )

Net cash used in financing activities (9,342 ) (8,275 )

Effect of exchange rate changes on cash and cash equivalents (12,378 ) 9,059

Net (decrease) increase in cash and cash equivalents (43,639 ) 38,054

Cash and cash equivalents, beginning of period 1,209,289 1,122,935

Cash and cash equivalents, end of period $ 1,165,650 $ 1,160,989

Groupon, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

Three Months Ended March 31,

2013 2012

Revenue:

Third party and other $ 439,108 $ 540,053

Direct 162,294 19,230

Total revenue 601,402 559,283

Cost of revenue:

Third party and other 70,016 102,629

Direct 152,377 16,869

Total cost of revenue 222,393 119,498

Gross Profit 379,009 439,785

Operating expenses:

Marketing 49,557 116,615

Selling, general and administrative 308,206 283,583

Acquisition-related expense (benefit), net 68 (52 )

Total operating expenses 357,831 400,146

Income from operations 21,178 39,639

Interest and other expense, net (5,064 ) (3,539 )

Loss on equity method investments (19 ) (5,128 )

Income before provision for income taxes 16,095 30,972

Provision for income taxes 19,337 34,565

Net loss (3,242 ) (3,593 )

Less: Net income attributable to noncontrolling interests (750 ) (880 )

Net loss attributable to Groupon, Inc. (3,992 ) (4,473 )

Adjustment of redeemable noncontrolling interests to redemption value – (7,222 )

Net loss attributable to common stockholders $ (3,992 ) $ (11,695 )

Net loss per share

Basic $ (0.01 ) $ (0.02 )

Diluted $ (0.01 ) $ (0.02 )

Weighted average number of shares outstanding

Basic 658,800,417 644,097,375

Diluted 658,800,417 644,097,375

Groupon, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share amounts)

(unaudited)

March 31, December 31,

2013 2012

Assets

Current assets:

Cash and cash equivalents $ 1,165,650 $ 1,209,289

Accounts receivable, net 102,717 96,713

Deferred income taxes 30,679 31,211

Prepaid expenses and other current assets 132,324 150,573

Total current assets 1,431,370 1,487,786

Property, equipment and software, net of accumulated depreciation and amortization of $60,291 and $46,236, respectively 128,773 121,072

Goodwill 205,466 206,684

Intangible assets, net 36,838 42,597

Investments 97,245 84,209

Deferred income taxes, non-current 29,710 29,916

Other non-current assets 52,855 59,210

Total Assets $ 1,982,257 $ 2,031,474

Liabilities and Equity

Current liabilities:

Accounts payable $ 40,898 $ 59,865

Accrued merchant and supplier payables 620,485 671,305

Accrued expenses 245,889 246,924

Deferred income taxes 52,875 53,700

Other current liabilities 140,433 136,647

Total current liabilities 1,100,580 1,168,441

Deferred income taxes, non-current 19,917 20,860

Other non-current liabilities 97,791 100,072

Total Liabilities 1,218,288 1,289,373

Commitments and contingencies

Stockholders’ Equity

Class A common stock, par value $0.0001 per share, 2,000,000,000 shares authorized, 657,774,882 and 654,523,706 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively 66 65

Class B common stock, par value $0.0001 per share, 10,000,000 shares authorized, 2,399,976 shares issued and outstanding at March 31, 2013 and December 31, 2012 – –

Common stock, par value $0.0001 per share, 2,010,000,000 shares authorized, no shares issued and outstanding at March 31, 2013, and December 31, 2012 – –

Additional paid-in capital 1,508,972 1,485,006

Accumulated deficit (757,469 ) (753,477 )

Accumulated other comprehensive income 14,787 12,446

Total Groupon, Inc. Stockholders’ Equity 766,356 744,040

Noncontrolling interests (2,387 ) (1,939 )

Total Equity 763,969 742,101

Total Liabilities and Equity $ 1,982,257 $ 2,031,474

Groupon, Inc.

Segment Information

(in thousands)

(unaudited)

Three Months Ended March 31,

2013 2012

North America

Gross Billings⁽¹⁾ $ 681,319 $ 553,557

Revenue $ 339,554 $ 238,565

Segment cost of revenue and operating expenses⁽²⁾ 298,188 198,393

Segment operating income $ 41,366 $ 40,172

Segment operating income as a percent of segment revenue 12.2 % 16.8 %

International

Gross Billings ⁽¹⁾ $ 726,450 $ 801,243

Revenue $ 261,848 $ 320,718

Segment cost of revenue and operating expenses⁽²⁾ 252,061 293,300

Segment operating income $ 9,787 $ 27,418

Segment operating income as a percent of segment revenue 3.7 % 8.5 %

Consolidated

Gross Billings ⁽¹⁾ $ 1,407,769 $ 1,354,800

Revenue $ 601,402 $ 559,283

Segment cost of revenue and operating expenses⁽²⁾ 550,249 491,693

Segment operating income $ 51,153 $ 67,590

Segment operating income as a percent of segment revenue 8.5 % 12.1 %

Stock-based compensation 29,907 28,003

Acquisition-related expense (benefit), net 68 (52 )

Income from operations 21,178 39,639

Interest and other expense, net 5,064 3,539

Loss on equity method investments 19 5,128

Income before provision for income taxes 16,095 30,972

Provision for income taxes 19,337 34,565

Net loss $ (3,242 ) $ (3,593 )

(1) Represents the total dollar value of customer purchases of goods and services, excluding any 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.

Groupon, Inc.

Non-GAAP Reconciliation Schedules

(in thousands, except share and per share amounts)

(unaudited)

The following are reconciliations of earnings per share excluding stock-based compensation and acquisition-related expense (benefit), net and foreign exchange rate neutral operating results to the most comparable U.S. GAAP financial measures. See “Supplemental Financial Information and Business Metrics” for reconciliations of Adjusted EBITDA, operating income (loss), excluding stock-based compensation and acquisition-related benefit (expense), net and free cash flow to the most comparable U.S. GAAP financial measures.

The following is a reconciliation of net loss per share to earnings per share excluding stock-based compensation and acquisition-related expense, net for the three months ended March 31, 2013:

Three Months Ended

March 31, 2013

Net loss attributable to common stockholders $ (3,992 )

Stock-based compensation 29,907

Acquisition-related expense, net 68

Income tax effect of adjustments (9,113 )

Net income attributable to common stockholders excluding stock-based

compensation and acquisition-related expense, net $ 16,870

Diluted shares 658,800,417

Incremental diluted shares ⁽¹⁾ 12,175,734

Adjusted diluted shares 670,976,151

Diluted net loss per share $ (0.01 )

Impact of stock-based compensation and acquisition-related

expense, net and the related income tax effects 0.04

Diluted earnings per share excluding stock-based compensation and

acquisition-related expense, net $ 0.03

(1) Outstanding equity awards are not reflected in the diluted loss per share calculation for the three months ended March 31, 2013 because the effect would be antidilutive. However, those awards have been reflected in the calculation of diluted earnings per share excluding stock-based compensation and acquisition-related expense, net for the three months ended March 31, 2013 because they have a dilutive effect on that calculation.

The following is a reconciliation of foreign exchange rate neutral operating results to the most comparable U.S. GAAP financial measures, “Gross Billings,” “Revenue” and “Income from operations,” for the three months ended March 31, 2013. The effect on the Company’s gross billings, revenue and income from operations from changes in exchange rates versus the U.S. Dollar for the three months ended March 31, 2013 was as follows:

Three Months Ended March 31, 2013 Three Months Ended March 31, 2013

At Avg. Exchange At Avg. Exchange

Q1 2012
Rates ⁽¹⁾ Rate
Effect ⁽²⁾ As
Reported Q4 2012
Rates ⁽³⁾ Rate
Effect ⁽²⁾ As
Reported

Gross billings $ 1,420,288 $ (12,519 ) $ 1,407,769 $ 1,408,597 $ (828 ) $ 1,407,769

Revenue $ 605,969 $ (4,567 ) $ 601,402 $ 601,584 $ (182 ) $ 601,402

Income from operations $ 18,801 $ 2,377 $ 21,178 $ 21,698 $ (520 ) $ 21,178

(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 ended March 31, 2012.

(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 months ended December 31, 2012.

Groupon, Inc.

Supplemental Financial Information and Business Metrics⁽¹³⁾

(financial data in thousands, except per share data; active customers in millions)

(unaudited)

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Segments

North America Segment

Gross Billings ⁽¹⁾

Local ⁽²⁾ Gross Billings

Third Party and Other $ 424,124 $ 412,348 $ 349,293 $ 430,255 $ 450,140

Direct 5,299 288 6,450 – –

Total Local Gross Billings $ 429,423 $ 412,636 $ 355,743 $ 430,255 $ 450,140

Goods Gross Billings

Third Party and Other $ 75,908 $ 40,173 $ 25,508 $ 31,270 $ 17,294

Direct 2,282 52,773 126,608 209,575 148,065

Total Goods Gross Billings $ 78,190 $ 92,946 $ 152,116 $ 240,845 $ 165,359

Travel and Other Gross Billings

Third Party and Other $ 45,944 $ 42,693 $ 44,510 $ 47,852 $ 65,820

Direct – – – – –

Total Travel and Other Gross Billings $ 45,944 $ 42,693 $ 44,510 $ 47,852 $ 65,820

Total Gross Billings

Third Party and Other $ 545,976 $ 495,214 $ 419,311 $ 509,377 $ 533,254

Direct 7,581 53,061 133,058 209,575 148,065

Total Gross Billings $ 553,557 $ 548,275 $ 552,369 $ 718,952 $ 681,319

Year-over-year growth 76 % 48 % 38 % 51 % 23 %

% of Consolidated Gross Billings 41 % 43 % 45 % 47 % 48 %

Gross Billings Trailing Twelve Months (TTM) $ 1,800,332 $ 1,978,617 $ 2,130,008 $ 2,373,153 $ 2,500,915

Revenue ⁽³⁾

Local Revenue

Third Party and Other $ 191,128 $ 184,189 $ 134,993 $ 142,454 $ 171,593

Direct 5,299 288 6,450 – –

Total Local Revenue $ 196,427 $ 184,477 $ 141,443 $ 142,454 $ 171,593

Goods Revenue

Third Party and Other $ 24,941 $ 10,387 $ 13,064 $ 11,877 $ 3,144

Direct 2,282 52,774 126,608 209,575 148,065

Total Goods Revenue $ 27,223 $ 63,161 $ 139,672 $ 221,452 $ 151,209

Travel and Other Revenue

Third Party and Other $ 14,915 $ 12,543 $ 10,488 $ 11,445 $ 16,752

Direct – – – – –

Total Travel and Other Revenue $ 14,915 $ 12,543 $ 10,488 $ 11,445 $ 16,752

Total Revenue

Third Party and Other $ 230,984 $ 207,119 $ 158,545 $ 165,776 $ 191,489

Direct 7,581 53,062 133,058 209,575 148,065

Total Revenue $ 238,565 $ 260,181 $ 291,603 $ 375,351 $ 339,554

Year-over-year growth 75 % 66 % 81 % 109 % 42 %

% of Consolidated Revenue 43 % 46 % 51 % 59 % 56 %

Revenue TTM $ 736,933 $ 839,909 $ 969,987 $ 1,165,700 $ 1,266,689

Cost of Revenue ⁽⁴⁾

Local Cost of Revenue

Third Party and Other $ 51,782 $ 35,710 $ 13,176 $ 23,203 $ 25,915

Direct 4,663 234 5,231 – –

Total Local Cost of Revenue $ 56,445 $ 35,944 $ 18,407 $ 23,203 $ 25,915

Goods Cost of Revenue

Third Party and Other $ 6,757 $ 2,014 $ 1,275 $ 1,935 $ 475

Direct 2,008 45,925 110,329 196,789 138,278

Total Goods Cost of Revenue $ 8,765 $ 47,939 $ 111,604 $ 198,724 $ 138,753

Travel and Other Cost of Revenue

Third Party and Other $ 4,041 $ 2,431 $ 1,024 $ 1,864 $ 2,530

Direct – – – – –

Total Travel and Other Cost of Revenue $ 4,041 $ 2,431 $ 1,024 $ 1,864 $ 2,530

Total Cost of Revenue

Third Party and Other $ 62,580 $ 40,155 $ 15,475 $ 27,002 $ 28,920

Direct 6,671 46,159 115,560 196,789 138,278

Total Cost of Revenue $ 69,251 $ 86,314 $ 131,035 $ 223,791 $ 167,198

% of North America Total Revenue 29 % 33 % 45 % 60 % 49 %

Gross Profit

Local Gross Profit

Third Party and Other $ 139,346 $ 148,479 $ 121,817 $ 119,251 $ 145,678

Direct 636 54 1,219 – –

Total Local Gross Profit $ 139,982 $ 148,533 $ 123,036 $ 119,251 $ 145,678

% of North America Total Local Revenue 71.3 % % 80.5 % % 87.0 % % 83.7 % % 84.9 % %

% of North America Total Local Gross Billings 32.6 % % 36.0 % % 34.6 % % 27.7 % % 32.4 % %

Goods Gross Profit

Third Party and Other $ 18,184 $ 8,373 $ 11,789 $ 9,942 $ 2,669

Direct 274 6,849 16,279 12,786 9,787

Total Goods Gross Profit $ 18,458 $ 15,222 $ 28,068 $ 22,728 $ 12,456

% of North America Total Goods Revenue 67.8 % % 24.1 % % 20.1 % % 10.3 % % 8.2 % %

% of North America Total Goods Gross Billings 23.6 % % 16.4 % % 18.5 % % 9.4 % % 7.5 % %

Travel and Other Gross Profit

Third Party and Other $ 10,874 $ 10,112 $ 9,464 $ 9,581 $ 14,222

Direct – – – – –

Total Travel and Other Gross Profit $ 10,874 $ 10,112 $ 9,464 $ 9,581 $ 14,222

% of North America Total Travel and Other Revenue 72.9 % % 80.6 % % 90.2 % % 83.7 % % 84.9 % %

% of North America Total Travel and Other Gross Billings 23.7 % % 23.7 % % 21.3 % % 20.0 % % 21.6 % %

Total Gross Profit

Third Party and Other $ 168,404 $ 166,964 $ 143,070 $ 138,774 $ 162,569

Direct 910 6,903 17,498 12,786 9,787

Total Gross Profit $ 169,314 $ 173,867 $ 160,568 $ 151,560 $ 172,356

% of North America Total Revenue 71.0 % % 66.8 % % 55.1 % % 40.4 % % 50.8 % %

% of North America Total Gross Billings 30.6 % % 31.7 % % 29.1 % % 21.1 % % 25.3 % %

Operating Income Excl Stock-Based Compensation (SBC), Acquisition-Related Expenses $ 40,172 $ 43,429 $ 39,093 $ 17,032 $ 41,366

Year-over-year growth N/A N/A 108 % (7 ) % 3 %

% of Consolidated Operating Income Excl SBC, Acq-Related 59 % 60 % 77 % 124 % 81 %

Operating Margin Excl SBC, Acq-Related (% of North America Total revenue) 16.8 % 16.7 % 13.4 % 4.5 % 12.2 %

Year-over-year growth (bps) 3,278 2,337 170 (570 ) (460 )

Operating Income TTM Excl SBC, Acq-Related $ 66,746 $ 120,676 $ 140,933 $ 139,726 $ 140,920

Operating Margin TTM Excl SBC, Acq-Related (% of North America Total TTM revenue) 9.1 % 14.4 % 14.5 % 12.0 % 11.1 %

Year-over-year growth (bps) 2,197 2,601 2,100 1,120 200

International Segment Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Gross Billings

Local Gross Billings

Third Party and Other $ 465,879 $ 423,313 $ 328,044 $ 368,898 $ 379,413

Direct – – – – –

Total Local Gross Billings $ 465,879 $ 423,313 $ 328,044 $ 368,898 $ 379,413

Goods Gross Billings

Third Party and Other $ 199,988 $ 186,899 $ 211,464 $ 285,057 $ 212,736

Direct 7,396 12,288 11,930 15,601 14,229

Total Goods Gross Billings $ 207,384 $ 199,187 $ 223,394 $ 300,658 $ 226,965

Travel and Other Gross Billings

Third Party and Other $ 123,727 $ 115,901 $ 114,449 $ 131,944 $ 120,072

Direct 4,253 – – – –

Total Travel and Other Gross Billings $ 127,980 $ 115,901 $ 114,449 $ 131,944 $ 120,072

Total Gross Billings

Third Party and Other $ 789,594 $ 726,113 $ 653,957 $ 785,899 $ 712,221

Direct 11,649 12,288 11,930 15,601 14,229

Total Gross Billings $ 801,243 $ 738,401 $ 665,887 $ 801,500 $ 726,450

Year-over-year growth 127 % 32 % (12 ) % 6 % (9 ) %

Year-over-year growth, excluding FX⁽⁵⁾ 138 % 45 % (4 ) % 9 % (8 ) %

% of Consolidated Gross Billings 59 % 57 % 55 % 53 % 52 %

Gross Billings TTM $ 2,871,795 $ 3,050,937 $ 2,960,592 $ 3,007,031 $ 2,932,238

Revenue

Local Revenue

Third Party and Other $ 213,166 $ 193,861 $ 164,184 $ 144,834 $ 155,800

Direct – – – – –

Total Local Revenue $ 213,166 $ 193,861 $ 164,184 $ 144,834 $ 155,800

Goods Revenue

Third Party and Other $ 60,365 $ 67,864 $ 71,310 $ 74,702 $ 63,937

Direct 7,396 12,288 11,930 15,600 14,229

Total Goods Revenue $ 67,761 $ 80,152 $ 83,240 $ 90,302 $ 78,166

Travel and Other Revenue

Third Party and Other $ 35,538 $ 34,141 $ 29,525 $ 27,815 $ 27,882

Direct 4,253 – – – –

Total Travel and Other Revenue $ 39,791 $ 34,141 $ 29,525 $ 27,815 $ 27,882

Total Revenue

Third Party and Other $ 309,069 $ 295,866 $ 265,019 $ 247,351 $ 247,619

Direct 11,649 12,288 11,930 15,600 14,229

Total Revenue $ 320,718 $ 308,154 $ 276,949 $ 262,951 $ 261,848

Year-over-year growth 102 % 31 % 3 % (16 ) % (18 ) %

Year-over-year growth, excluding FX 112 % 44 % 13 % (14 ) % (17 ) %

% of Consolidated Revenue 57 % 54 % 49 % 41 % 44 %

Revenue TTM $ 1,137,257 $ 1,210,034 $ 1,218,347 $ 1,168,772 $ 1,109,902

Cost of Revenue

Local Cost of Revenue

Third Party and Other $ 27,622 $ 24,162 $ 23,729 $ 20,423 $ 20,115

Direct – – – – –

Total Local Cost of Revenue $ 27,622 $ 24,162 $ 23,729 $ 20,423 $ 20,115

Goods Cost of Revenue

Third Party and Other $ 7,822 $ 8,459 $ 10,702 $ 12,558 $ 17,381

Direct 6,474 11,993 12,053 21,778 14,099

Total Goods Cost of Revenue $ 14,296 $ 20,452 $ 22,755 $ 34,336 $ 31,480

Travel and Other Cost of Revenue

Third Party and Other $ 4,605 $ 4,256 $ 4,267 $ 3,922 $ 3,600

Direct 3,724 – – – –

Total Travel and Other Cost of Revenue $ 8,329 $ 4,256 $ 4,267 $ 3,922 $ 3,600

Total Cost of Revenue

Third Party and Other $ 40,049 $ 36,877 $ 38,698 $ 36,903 $ 41,096

Direct 10,198 11,993 12,053 21,778 14,099

Total Cost of Revenue $ 50,247 $ 48,870 $ 50,751 $ 58,681 $ 55,195

% of International Total Revenue 16 % 16 % 18 % 22 % 21 %

Gross Profit

Local Gross Profit

Third Party and Other $ 185,544 $ 169,699 $ 140,455 $ 124,411 $ 135,685

Direct – – – – –

Total Local Gross Profit $ 185,544 $ 169,699 $ 140,455 $ 124,411 $ 135,685

% of International Total Local Revenue 87.0 % % 87.5 % % 85.5 % % 85.9 % % 87.1 % %

% of International Total Local Gross Billings 39.8 % % 40.1 % % 42.8 % % 33.7 % % 35.8 % %

Goods Gross Profit

Third Party and Other $ 52,543 $ 59,405 $ 60,608 $ 62,144 $ 46,556

Direct 922 295 (123 ) (6,178 ) 130

Total Goods Gross Profit $ 53,465 $ 59,700 $ 60,485 $ 55,966 $ 46,686

% of International Total Goods Revenue 78.9 % % 74.5 % % 72.7 % % 62.0 % % 59.7 % %

% of International Total Goods Gross Billings 25.8 % % 30.0 % % 27.1 % % 18.6 % % 20.6 % %

Travel and Other Gross Profit

Third Party and Other $ 30,933 $ 29,885 $ 25,258 $ 23,893 $ 24,282

Direct 529 – – – –

Total Travel and Other Gross Profit $ 31,462 $ 29,885 $ 25,258 $ 23,893 $ 24,282

% of International Total Travel and Other Revenue 79.1 % % 87.5 % % 85.5 % % 85.9 % % 87.1 % %

% of International Total Travel and Other Gross Billings 24.6 % % 25.8 % % 22.1 % % 18.1 % % 20.2 % %

Total Gross Profit

Third Party and Other $ 269,020 $ 258,989 $ 226,321 $ 210,448 $ 206,523

Direct 1,451 295 (123 ) (6,178 ) 130

Total Gross Profit $ 270,471 $ 259,284 $ 226,198 $ 204,270 $ 206,653

% of International Total Revenue 84.3 % % 84.1 % % 81.7 % % 77.7 % % 78.9 % %

% of International Total Gross Billings 33.8 % % 35.1 % % 34.0 % % 25.5 % % 28.4 % %

Operating Income (Loss) Excl SBC, Acq-Related $ 27,418 $ 28,505 $ 11,395 $ (3,329 ) $ 9,787

Year-over-year growth N/A 155 N/A (1,060 ) % (64 ) %

% of Consolidated Operating Income Excl SBC, Acq-Related 41 % 40 % 23 % (24 ) % 19 %

Operating Margin Excl SBC, Acq-Related (% of International Total revenue) 8.5 % 9.3 % 4.1 % (1.3 ) % 3.7 %

Year-over-year growth (bps) 5,669 3,126 1,170 (120 ) (480 )

Operating (Loss) Income TTM Excl SBC, Acq-Related $ (45,205 ) $ 35,108 $ 67,031 $ 63,989 $ 46,358

Operating Margin TTM Excl SBC, Acq-Related (% of International Total TTM revenue) (4.0 ) % 2.9 % 5.5 % 5.5 % 4.2 %

Year-over-year growth (bps) 8,704 5,765 4,170 2,080 820

Consolidated Results of Operations Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Gross Billings

Local Gross Billings

Third Party and Other $ 890,003 $ 835,661 $ 677,337 $ 799,153 $ 829,533

Direct 5,299 288 6,450 – –

Total Local Gross Billings $ 895,302 $ 835,949 $ 683,787 $ 799,153 $ 829,533

Goods Gross Billings

Third Party and Other $ 275,896 $ 227,072 $ 236,972 $ 316,327 $ 230,030

Direct 9,678 65,061 138,538 225,176 162,294

Total Goods Gross Billings $ 285,574 $ 292,133 $ 375,510 $ 541,503 $ 392,324

Travel and Other Gross Billings

Third Party and Other $ 169,671 $ 158,594 $ 158,959 $ 179,796 $ 185,892

Direct 4,253 – – – –

Total Travel and Other Gross Billings $ 173,924 $ 158,594 $ 158,959 $ 179,796 $ 185,892

Total Gross Billings

Third Party and Other $ 1,335,570 $ 1,221,327 $ 1,073,268 $ 1,295,276 $ 1,245,475

Direct 19,230 65,349 144,988 225,176 162,294

Total Gross Billings $ 1,354,800 $ 1,286,676 $ 1,218,256 $ 1,520,452 $ 1,407,769

Year-over-year growth 103 % 38 % 5 % 24 % 4 %

Year-over-year growth, excluding FX 108 % 47 % 11 % 25 % 5 %

Gross Billings (TTM) $ 4,672,127 $ 5,029,554 $ 5,090,600 $ 5,380,184 $ 5,433,153

Year-over-year growth 241 % 128 % 61 % 35 % 16 %

Revenue

Local Revenue

Third Party and Other $ 404,294 $ 378,050 $ 299,177 $ 287,288 $ 327,393

Direct 5,299 288 6,450 – –

Total Local Revenue $ 409,593 $ 378,338 $ 305,627 $ 287,288 $ 327,393

Goods Revenue

Third Party and Other $ 85,306 $ 78,251 $ 84,374 $ 86,579 $ 67,081

Direct 9,678 65,062 138,538 225,175 162,294

Total Goods Revenue $ 94,984 $ 143,313 $ 222,912 $ 311,754 $ 229,375

Travel and Other Revenue

Third Party and Other $ 50,453 $ 46,684 $ 40,013 $ 39,260 $ 44,634

Direct 4,253 – – – –

Total Travel and Other Revenue $ 54,706 $ 46,684 $ 40,013 $ 39,260 $ 44,634

Total Revenue

Third Party and Other $ 540,053 $ 502,985 $ 423,564 $ 413,127 $ 439,108

Direct 19,230 65,350 144,988 225,175 162,294

Total Revenue $ 559,283 $ 568,335 $ 568,552 $ 638,302 $ 601,402

Year-over-year growth 89 % 45 % 32 % 30 % 8 %

Year-over-year growth, excluding FX 95 % 53 % 38 % 31 % 8 %

Total Consolidated Revenue TTM $ 1,874,190 $ 2,049,943 $ 2,188,334 $ 2,334,472 $ 2,376,591

Year-over-year growth 219 % 118 % 70 % 45 % 27 %

Cost of Revenue

Local Cost of Revenue

Third Party and Other $ 79,404 $ 59,872 $ 36,905 $ 43,626 $ 46,030

Direct 4,663 234 5,231 – –

Total Local Cost of Revenue $ 84,067 $ 60,106 $ 42,136 $ 43,626 $ 46,030

Goods Cost of Revenue

Third Party and Other $ 14,579 $ 10,473 $ 11,977 $ 14,493 $ 17,856

Direct 8,482 57,918 122,382 218,567 152,377

Total Goods Cost of Revenue $ 23,061 $ 68,391 $ 134,359 $ 233,060 $ 170,233

Travel and Other Cost of Revenue

Third Party and Other $ 8,646 $ 6,687 $ 5,291 $ 5,786 $ 6,130

Direct 3,724 – – – –

Total Travel and Other Cost of Revenue $ 12,370 $ 6,687 $ 5,291 $ 5,786 $ 6,130

Total Cost of Revenue

Third Party and Other $ 102,629 $ 77,032 $ 54,173 $ 63,905 $ 70,016

Direct 16,869 58,152 127,613 218,567 152,377

Total Cost of Revenue $ 119,498 $ 135,184 $ 181,786 $ 282,472 $ 222,393

% of Total Consolidated Revenue 21 % 24 % 32 % 44 % 37 %

Gross Profit

Local Gross Profit

Third Party and Other $ 324,890 $ 318,178 $ 262,272 $ 243,662 $ 281,363

Direct 636 54 1,219 – –

Total Local Gross Profit $ 325,526 $ 318,232 $ 263,491 $ 243,662 $ 281,363

% of Total Consolidated Local Revenue 79.5 % % 84.1 % % 86.2 % % 84.8 % % 85.9 % %

% of Total Consolidated Local Gross Billings 36.4 % % 38.1 % % 38.5 % % 30.5 % % 33.9 % %

Goods Gross Profit

Third Party and Other $ 70,727 $ 67,778 $ 72,397 $ 72,086 $ 49,225

Direct 1,196 7,144 16,156 6,608 9,917

Total Goods Gross Profit $ 71,923 $ 74,922 $ 88,553 $ 78,694 $ 59,142

% of Total Consolidated Goods Revenue 75.7 % % 52.3 % % 39.7 % % 25.2 % % 25.8 % %

% of Total Consolidated Goods Gross Billings 25.2 % % 25.6 % % 23.6 % % 14.5 % % 15.1 % %

Travel and Other Gross Profit

Third Party and Other $ 41,807 $ 39,997 $ 34,722 $ 33,474 $ 38,504

Direct 529 – – – –

Total Travel and Other Gross Profit $ 42,336 $ 39,997 $ 34,722 $ 33,474 $ 38,504

% of Total Consolidated Travel and Other Revenue 77.4 % % 85.7 % % 86.8 % % 85.3 % % 86.3 % %

% of Total Consolidated Travel and Other Gross Billings 24.3 % % 25.2 % % 21.8 % % 18.6 % % 20.7 % %

Total Gross Profit

Third Party and Other $ 437,424 $ 425,953 $ 369,391 $ 349,222 $ 369,092

Direct 2,361 7,198 17,375 6,608 9,917

Total Gross Profit $ 439,785 $ 433,151 $ 386,766 $ 355,830 $ 379,009

% of Total Consolidated Revenue 78.6 % % 76.2 % % 68.0 % % 55.7 % % 63.0 % %

% of Total Consolidated Gross Billings 32.5 % % 33.7 % % 31.7 % % 23.4 % % 26.9 % %

Operating Income Excl SBC, Acq-Related $ 67,590 $ 71,934 $ 50,488 $ 13,703 $ 51,153

Year-over-year growth N/A N/A N/A (24 ) % (24 ) %

Operating Margin Excl SBC, Acq-Related (% of Total Consolidated revenue) 12.1 % 12.7 % 8.9 % 2.1 % 8.5 %

Year-over-year growth (bps) 4,534 2,853 930 (150 ) (360 )

Operating Income TTM Excl SBC, Acq-Related $ 21,541 $ 155,784 $ 207,964 $ 203,715 $ 187,278

Operating Margin TTM Excl SBC, Acq-Related (% of Total Consolidated TTM revenue) 1.1 % 7.6 % 9.5 % 8.7 % 7.9 %

Year-over-year growth (bps) 5,011 4,229 3,320 1,770 680

Operating Income (Loss) $ 39,639 $ 46,485 $ 25,438 $ (12,861 ) $ 21,178

Year-over-year growth N/A N/A N/A 14 % (47 ) %

Operating Margin (% of Total Consolidated revenue) 7.1 % 8.2 % 4.5 % (2.0 ) % 3.5 %

Year-over-year growth (bps) 4,673 3,391 457 100 (360 )

Operating (Loss) Income TTM $ (76,599 ) $ 70,913 $ 96,590 $ 98,701 $ 80,240

Operating Margin TTM (% of Total Consolidated TTM revenue) (4.1 ) % 3.5 % 4.4 % 4.2 % 3.4 %

Year-over-year growth (bps) 8,875 6,824 4,740 1,870 750

Net (Loss) Income Attributable to Common Stockholders (11,695 ) 28,386 (2,979 ) (81,089 ) (3,992 )

Weighted Average Basic Shares Outstanding 644,097 647,150 653,224 655,678 658,800

Weighted Average Diluted Shares Outstanding ⁽⁶⁾ 644,097 663,123 653,224 655,678 658,800

Net (Loss) Earnings per Share

Basic $ (0.02 ) $ 0.04 $ (0.00 ) $ (0.12 ) $ (0.01 )

Diluted $ (0.02 ) $ 0.04 $ (0.00 ) $ (0.12 ) $ (0.01 )

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

The following is a quarterly reconciliation of Adjusted EBITDA to the most comparable U.S. GAAP financial measure, “Net (loss) income” and a quarterly reconciliation of operating income, excluding stock-based compensation and acquisition-related benefit (expense), net, to the most comparable U.S. GAAP financial measure, “Operating income (loss).” ⁽⁷⁾

Adjusted EBITDA $ 79,306 $ 84,744 $ 65,798 $ 29,668 $ 71,853

Depreciation and amortization (11,716 ) (12,810 ) (15,310 ) (15,965 ) (20,700 )

Operating income, excluding stock-based compensation and acquisition-related benefit (expense), net 67,590 71,934 50,488 13,703 51,153

Stock-based compensation (28,003 ) (27,084 ) (22,619 ) (26,411 ) (29,907 )

Acquisition-related benefit (expense), net 52 1,635 (2,431 ) (153 ) (68 )

Operating income (loss) 39,639 46,485 25,438 (12,861 ) 21,178

Non Operating Items

Interest and other (expense) income, net (3,539 ) 57,367 617 (48,279 ) (5,064 )

Loss on equity method investments (5,128 ) (3,428 ) (138 ) (1,231 ) (19 )

Provision for income taxes (34,565 ) (66,875 ) (26,857 ) (17,676 ) (19,337 )

Net (loss) income $ (3,593 ) $ 33,549 $ (940 ) $ (80,047 ) $ (3,242 )

The following is a trailing twelve months reconciliation of Operating income, excluding stock-based compensation and acquisition-related benefit (expense), net, to the most comparable U.S. GAAP financial measure, “Operating (loss) Income.” ⁽⁷⁾

Operating income, excluding stock-based compensation and acquisition-related benefit (expense), net TTM $ 21,541 $ 155,784 $ 207,964 $ 203,715 $ 187,278

Stock-based compensation (102,729 ) (91,095 ) (110,374 ) (104,117 ) (106,021 )

Acquisition-related benefit (expense), net 4,589 6,224 (1,000 ) (897 ) (1,017 )

Operating (loss) income TTM $ (76,599 ) $ 70,913 $ 96,590 $ 98,701 $ 80,240

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.⁽⁸⁾

International Gross Billings growth, excluding FX 138 % 45 % (4 ) % 9 % (8 ) %

FX Effect (11 ) % (13 ) % (8 ) % (3 ) % (1 ) %

International Gross Billings growth 127 % 32 % (12 ) % 6 % (9 ) %

Consolidated Gross Billings growth, excluding FX 108 % 47 % 11 % 25 % 5 %

FX Effect (5 ) % (9 ) % (6 ) % (1 ) % (1 ) %

Consolidated Gross Billings growth 103 % 38 % 5 % 24 % 4 %

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.⁽⁸⁾

International Revenue growth, excluding FX 112 % 44 % 13 % (14 ) % (17 ) %

FX Effect (10 ) % (13 ) % (10 ) % (2 ) % (1 ) %

International Revenue growth 102 % 31 % 3 % (16 ) % (18 ) %

Consolidated Revenue growth, excluding FX 95 % 53 % 38 % 31 % 8 %

FX Effect (6 ) % (8 ) % (6 ) % (1 ) % – %

Consolidated Revenue growth 89 % 45 % 32 % 30 % 8 %

The following is a reconciliation of free cash flow to the most comparable U.S. GAAP financial measure, “Net cash provided by operating activities.”

Net cash provided by operating activities $ 83,714 $ 75,315 $ 42,088 $ 65,717 $ 8,760

Purchases of property, equipment and capitalized software (13,083 ) (26,709 ) (16,010 ) (40,034 ) (14,468 )

Free cash flow ⁽⁹⁾ $ 70,631 $ 48,606 $ 26,078 $ 25,683 $ (5,708 )

Net cash provided by operating activities (TTM) $ 356,221 $ 392,517 $ 370,194 $ 266,834 $ 191,880

Purchases of property, equipment and capitalized software (TTM) (45,932 ) (62,401 ) (69,788 ) (95,836 ) (97,221 )

Free cash flow (TTM) $ 310,289 $ 330,116 $ 300,406 $ 170,998 $ 94,659

Net cash used in investing activities $ (46,444 ) $ (60,153 ) $ (35,629 ) $ (52,753 ) $ (30,679 )

Net cash (used in) provided by financing activities $ (8,275 ) $ 24,158 $ 2,707 $ (6,495 ) $ (9,432 )

Net cash used in investing activities (TTM) $ (149,583 ) $ (184,552 ) $ (177,133 ) $ (194,979 ) $ (179,214 )

Net cash provided by financing activities (TTM) $ 746,824 $ 771,404 $ 765,503 $ 12,095 $ 11,028

Other Metrics

Active Customers⁽¹⁰⁾

North America 14.9 15.1 16.0 17.2 18.2

International 22.0 22.9 23.5 23.8 23.5

Total Active Customers 36.9 38.0 39.5 41.0 41.7

TTM Gross Billings / Average Active Customer ⁽¹¹⁾

North America $ 156 $ 151 $ 148 $ 152 $ 151

International $ 197 $ 175 $ 149 $ 138 $ 129

Consolidated $ 179 $ 165 $ 149 $ 144 $ 138

Headcount

Sales ⁽¹²⁾ 5,735 5,587 5,087 4,677 4,566

% North America 21 % 20 % 24 % 25 % 28 %

% International 79 % 80 % 76 % 75 % 72 %

Other 6,813 7,233 6,779 6,717 6,433

Total Headcount 12,548 12,820 11,866 11,394 10,999

(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) Local represents deals from local merchants, deals with national merchants, and through local events (i.e., GrouponLive deals).

(3) 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.

(4) 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 for each of our categories (Local, Goods, and Travel and Other) in proportion to relative gross billings during the period.

(5) 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 prior year period.

(6) 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.

(7) Adjusted EBITDA and Operating income excluding stock-based compensation and acquisition-related expense (benefit), net are non-GAAP financial measures. The Company reconciles Adjusted EBITDA to the most comparable U.S. GAAP financial measure, “Net (loss) income” for the periods presented, and the Company reconciles Operating income excluding stock-based compensation and acquisition-related expense (benefit), net to the most comparable U.S. GAAP financial measure, “Operating income (loss),” for the periods presented.

(8) Foreign Exchange Rate neutral operating results are non-GAAP financial measures. The Company reconciles these measures to the most comparable U.S. GAAP financial measures, ‘‘Gross Billings” and “Revenue,” for the periods presented.

(9) Free cash flow is a non-GAAP financial measure. The Company reconciles this measure to the most comparable U.S. GAAP financial measure, ‘‘Net cash provided by operating activities,” for the periods presented.

(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.

May 8, 2013

Amy Hood replaces Peter Klein as Microsoft CFO

During last month’s fiscal third quarter 2013 earnings call, Microsoft revealed that Peter Klein would step down as chief financial officer. Today, the company announced his replacement: Amy Hood, who currently is CFO of the Business division. She assumed that role in January 2010.

CEO Steve Ballmer describes Hood as an “instrumental leader” who helped “lead the transition to services with Office 365” and to bring strong financial results.

“I’m excited to step into this role and look forward to working closely again with our investors and shareholders”, she says. “Peter has built a world-class finance team, and I am set up well to continue the company’s strong discipline around costs and focus on driving shareholder value”.

Hood assumes the CFO position, effective immediately. However, Klein will remain at Microsoft through the end of June, which is the close of the fiscal year.

Proven Record

Microsoft currently operates five product groups, with Business being most successful. For example, the division generated $6.32 billion in revenue and $4.1 billion profit during fiscal Q3. Business brings in more sales than any other Microsoft division, even Windows. The point: Being CFO there is no less than many independent companies.

During her tenure, Hood played pivotal roles in two big Business division acquisitions: Skype (May 2010; $8.5 billion) and Yammer (June 2010; $1.2 billion) — skills, among others, she will need in her new role.

Microsoft also rolled out Office 365 on Hood’s watch. From a financial perspective, the subscription service risks much, while promising great rewards. Already about 60 percent of Business division revenue comes from annuity licensing contracts, which are like subscriptions in how they’re paid for.

Subscribe for Life

The move to the real deal will change how some small businesses acquire the productivity suite and companion server software, while moving the consumer market from discreet purchases every few years to paying Microsoft on regular schedules. Like annuity contracts, subscriptions promise to smooth out the company’s revenue and insulate against economic downturns or highs and lows between new product releases.

Subscriptions are the software giant’s future. Microsoft’s Clint Patterson said as much yesterday: “We think subscription software-as-a-service is the future. The benefits to consumers are huge”.

But subscriptions challenge some of the metrics Wall Street analysts typically use to gauge a company’s health, and they can mystify smaller investors. Already, Microsoft carries huge sums of “unearned revenue” on the balance sheet related to annuity licenses. Hood inherits responsibility for managing both categories and communicating context to investors.

Great Timing

Klein exits at a good time — ditto for Hood’s entrance. At close of market today, Microsoft’s stock was up about 25 percent from January, reaching a 52-week high of $33.91 on Monday. Recent results are strong, too. For the first nine months of fiscal 2013, the company generated $58.1 billion revenue and $16.91 billion net profit.

May 8, 2013
Apple wants source code records in Samsung trial and looks in Google’s direction in the process

Apple is trying to bring Google into their lawsuit with Samsung in a roundabout way. Apple wants a judge to ask Google to turn over documents related to the Android OS. Apple argues that by having a judge force Google to turn over the documents, it will help prove their case of Samsung’s alleged infringement. Android runs in all of Samsung’s devices that Apple has a problem with and Apple argues that Android “provides much of the accused functionality“.

A lawyer for Apple claims that Google is not doing a full search for said documents, but the lawyer representing Samsung in this case and who also represents Google as well, said that this was part of Apple’s “strategic decision… to keep Google off the complaint” in this case. By not listing Google as part of the complaint, Google is not entitled to the same reciprocal discovery process as Apple and Samsung. If a judge orders this evidence to be turned over Apple, they could possibly be handed something they could use to try and come after Google, that they would not have got without a judges order.

This is the second trial for Samsung and Apple. The first one didn’t go as well as Samsung had hopped, having received a judgment of $1.05 billion which was later reduced to $639.4 million by the same judge, who also order a new trial. As always we will keep an eye on any developments in this case and bring them to you as soon as we hear them.

Source: Bloomberg

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May 8, 2013
Difference in opinion might have prompted Fusion-io leadership changes
The stock market was shocked Wednesday by news that two founders of flash memory vendor Fusion-io, CEO David Flynn and Chief Marketing Officer (and one-time CEO) Rick White, have suddenly left the company. Some analysts are speculating that a difference in opinion over the company’s future direction could be to blame for the shakeup.

Former Hewlett-Packard executive and Fusion-io board director Shane Robison (pictured) takes the CEO position. Robison previously was executive vice president and chief strategy and technology officer at HP. Reuters reported that Robison was involved with HP’s Autonomy and Palm deals. Flynn and White will get into investing, according to a statement.

With Flynn and White leaving, it’s possible that there was a disagreement about the company’s future direction, rather than an operational matter causing issues, according to a
Departure due to operational reasons or strategy disagreement? Given that both David Flynn and Rick White are founders, we think the issue may not be operational but more of a disagreement regarding the long term direction of the company. We continue to believe that Fusion-io has potential for long term growth and could be seen as a possible acquisition target for numerous large cap tech companies including NetApp, EMC, Cisco, IBM and possibly Oracle, Intel and Samsung.

Fusion-io, which announced last month that it had paid $119 million for NexGen Storage, has been in an acquisition state of mind in the past few years. It also has picked up IO Turbine and ID7.

As the company has matured since its 2005 establishment, it has become more of a known quantity in storage, with webscale customers in Apple and Facebook and original-equipment manufacturer relationships with Dell, HP and IBM.

The company is not directly selling NexGen’s hybrid-storage gear; rather, it will rely on systems integrators to do that, Flynn told me last month. That means the company won’t compete against its existing customers, such as HP and IBM. The idea is to help systems integrators compete with the likes of EMC for business from small and medium-sized businesses, Flynn said.

At the same time, through the NexGen acquisition Fusion-io got a hold of ioControl software that could help diversify Fusion-io’s software capabilities. Flynn clearly positioned the NexGen buy as a software-defined storage grab. But it wouldn’t be surprising if Flynn and White don’t want to work for a software-first company. Robison, meanwhile, seems to be eyeing the software-defined storage space for his new company. “Fusion-io has an incredible opportunity to continue to transform the software defined storage industry,” he said in the company statement.

Regardless of what happens at Fusion-io, recent commitments to flash memory on the part of EMC and IBM promise that it will continue to be a hot space. Smaller vendors such as Fusion-io, Violin Memory and Virident might want to shift and prepare for acquisitions by the bigger guys, and that might not be what Flynn and White had in mind all these years.

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May 8, 2013
BlackBerry Q10 seen outpacing the Z10 in early sales estimates

Kevin Smithen of Macquarie Capital has become more optimistic about BlackBerry’s future, Barron’s reported. The analyst believes the QWERTY-equipped BlackBerry Q10 could be a bigger seller than the company’s first BlackBerry 10 smartphone, the BlackBerry Z10. Smithen notes that the Q10 will appeal to enterprise customers, who account for 13.4 million of the company’s total subscriber base. He estimates that as a whole the company will ship 4.3 million BlackBerry 10 devices in May but only 2.7 million in August, although he added that the “August estimate could prove to be conservative based on stronger enterprise demand for the Q10.” Smithen reiterated his Neutral rating on shares of BlackBerry with a price target of $17.

May 8, 2013
Demi Lovato: Blonde Look Suits Her

Demi Lovato, whose hair has been several different colors in the past few years, has gone back to blonde after a brunette hiatus. A photo of her at an event for the Substance Abuse and Mental Health Services Administration taken yesterday is sweeping the web, as the young “X Factor” judge looks to have a healthy glow about her.

Lovato was honored at the event for her work in raising awareness about mental health issues and spoke a bit about her darkest times, which came after a bout of depression led to an eating disorder and cutting.

“You’re constantly asking yourself, ‘What will happen if people know my diagnosis?” she explained. “For me, it was more complicated. ‘Would I lose my career, doing what I love?’ … I pretended for a long time to be OK so that I could continue to work. And that’s why I’m here today, to tell young people who are asking themselves those questions, uncertain of what lies ahead, that they are not alone.”

Lovato is also being praised by fans and critics alike for her new album, DEMI, and many say it has helped them through their own tough times.

Lovato seems to be loving her new look, although she says it’s gotten her into trouble already:

Almost didn’t make it through airport security!! I look SO different from my driver’s license!! Hahaha #blondehairdon‘tcare

May 8, 2013
Michelle Knight Photo Finally Surfaces

Earlier, we looked at photos of two of the three women – Amanda Berry and Gina DeJesus – who were kidnapped a decade ago in Cleveland, and rescued this week. There had been no photos of third woman Michelle Knight circulating.

Now, the first photo of Knight has come out (above), and was shown in this ABC News report:

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According to Cleveland.com, the photo was reportedly taken in 1999.

Knight is reportedly recovering in the hospital, as the other women (and Berry’s kid) have returned home.

Knight was 21 years old when she was kidnapped. She had last been seen in August of 2002 until the rescue this week.

May 8, 2013
Meet five New York high school students with fascinating stories

No television special exploring ideas on improving education in the United States would be complete without hearing from students themselves. And so it was essential that students be able to tell their own stories during our first television special, TED Talks Education, which premiered on PBS last night.

To that end, we invited Market Road Films, the production company of two-time Emmy-winning filmmaker Tony Gerber and Pulitzer Prize-winning playwright/MacArthur Genius Award-recipient Lynn Nottage, to create short documentaries about high schoolers in New York City with incredible stories. Several of these docs appeared in last night’s show, but several went unsurfaced … until now. Watch all five below.

Shahruz Gaehmi is lucky enough to attend one of the most competitive schools in the nation — but he feels that some of his best learning happens outside the classroom. While studying with his jazz piano teacher, Gaehmi is dropped into an environment where he is forced to think differently. While standardized testing can be confining, this creative outlet helps him understand concepts in new ways. “[Education] ought to be able to provide everyone in America with opportunity,” he says. “But an administrative culture that focuses on standardized testing does us no good at all.”

Two years ago, Melissa Perez didn’t have graduation on the brain at all. In fact, she barely attended classes. Then she got pregnant — and becoming a parent changed everything. Melissa wanted to be able to provide for her daughter, and with the help of her math teacher — who recognized her talent — she quickly improved her grades. Thanks to that push from her teacher, she rose to the challenge and became the first in her family to graduate high school. “She always said that she saw something in me,” Melissa says. “She was like, ‘I know there’s something inside you that wants to fight for it.’”

You can tell Julia Delmedico is sharp from the way she observes her school environment in the Bronx. But as a hands-on learner, she struggles during exam time. In this documentary, Julia is the voice of students who feel the weighty pressure of tests as something that keeps them from learning as much as they could. “I think the best kind of education is one that teaches you to speak and think for yourself,” she says. “That’s much more valuable than passing your exams.”

Shayna Cody’s work ethic is unmistakable as she competes with her twin sister to finish homework. Full of energy, she takes it upon herself to channel it towards her education by participating in a program for teenagers who hope to become doctors. For Shayna, learning isn’t about being a receptacle of knowledge, but about pursuing more. She says, “I think a fully rounded education is not just sitting there doing the work that’s required of you but actually taking the time to learn what you can’t out of your classes.”

Being young sounds carefree, but Grier Montgomery reminds us that it can be filled with anxiety. He speaks to the hard parts of being a high-schooler: the harsh bullying, the pressure to achieve and the assignments that pile up. Grier finds some relief among all of this, though, in the arts. “The arts is what I live for,” he says. “If it wasn’t for theater, I think I definitely would have dropped out of school.”

May 8, 2013
Mozilla’s Cookie Policy Writer Slams Advertisers, Says They Refuse To Negotiate

It was revealed in March that Mozilla would start to disable third-party cookies by default in its Firefox browser. The non-profit says it’s only doing it to protect consumer privacy, but advertisers have hit back hard saying the policy will only hurt small businesses. Does the man behind Mozilla’s anti-cookie policy care though? Nope.

In an interview with AdExchanger, Jonathan Mayer, privacy advocate and Mozilla’s cookie policy maestro, says that the current Do Not Track negotiations forced his hand in writing the anti-cookie policy. Those negotiations, which were previously reported as being in danger of breaking down, see both sides not being able to agree on what Do Not Track means. Mayer indicates that it’s worse than that as both sides are refusing to negotiate:

The advertising side would be expected to reevaluate their hardline “We’re not going to negotiate” stance and rethink their strategy. Unfortunately, that hasn’t happened. So I’m not too optimistic on negotiated terms for Do Not Track, but I’m increasingly optimistic that by virtue of the browsers’ efforts, consumers will get the choices they want. It looks like consumers will get some pretty good privacy in the near term. If the W3C’s process is unsuccessful in developing a consensus on what the standards are, companies could be in a difficult spot, but consumers may be okay because of the technical countermeasures that are starting to be drawn over browsers.

In other words, Mayer is saying that it’s up to the browsers to give consumers the choice that privacy advocates are fighting for in the “Do Not Track” negotiations. Of course, that choice comes in the form of either “Do Not Track” being turned on by default in Internet Explorer 10, or Firefox outright blocking all third-party cookies. Advertisers don’t take well to either of those scenarios, but are apparently unwilling to negotiate for more favorable terms.

What would happen if the advertisers were to give in then? What system would Mayer want put into place? He’s still all for third-party cookies being blocked as the default option, but he also calls upon advertisers to prove to consumers that they’re trustworthy:

Consumers don’t have a great handle on what’s going on in terms of how their data is being collected and what it is being used for. Therefore it makes sense to shift the burden of explaining to the user what is going on to those who are in the best position to do it. Advertising companies have an incentive to convince users that they’re trustworthy and that users should allow them to collect data.

By setting those default settings to Do Not Track, we give interested parties the incentive to educate consumers about the impacts of those choices. We allocate to them [those parties] the responsibility of getting consumers to give them access.

It’s unlikely that the advertising lobby will give in though. Some even fear that Web sites will begin blocking browsers that block cookies. Some sites already block browsers with AdBlock software installed so it’s not much of a stretch to see some advertisers going the extra mile.

It would be truly unfortunate if it were to reach that point. As always, advertisers have a right to the Internet just as much as anybody else does, but they should be held to a consumer friendly standard. Maybe it’s time they started paying more attention to the “acceptable ad” idea.

[h/t: Business Insider]

May 8, 2013
MN Broadband Task Force Meeting Agenda: May 14, 2013

I am planning to attend the next meeting and will take notes. However, it’s always nice for the Task Force to hear from local folks – and TIES often has freshly baked cookies in the lobby!

Governor’s Task Force on Broadband
May 14, 2013
TIES Event Center,
Hamline Room*
1640 Larpenteur Ave. N.,
St. Paul, MN 55108
10:00 a.m. – 2:00 p.m.

10:00-‐10:15 Welcome/Introductions/Public Comments/Approve minutes from April 23, 2013 meeting
10:15-‐10:45 Jennifer Fritz, Deputy Director, Office of Health Information Technology, Health Policy Division, Minnesota Department of Health
10:45-‐11:30 Dave Hemler, CEO, Revation Systems, Inc. (See www.revation.com)
11:30-‐12:00 Pete Frank, Information Technology Director, MNSure
12:00-‐12:30 Lunch
12:30-‐1:00 Sandy Long, PhD student in Health Informatics at the University of MN Topic: Health Information Technology in all areas of consumer engagement
1:00-‐1:20 Subgroups “Best Practices/Incentives” and “Broadband Adoption” meet
1:20-‐1:40 Subgroups “Mobile/Wireless” and “Coordination Across Govt./Monitor FCC & PUC Decisions/Cost of Broadband” meet
1:40-‐2:00 Legislative update/Next meeting location and topics/Wrap-‐up
2:00 Adjourn

*Park in main lot off of Larpenteur Avenue and enter building through the glass entry doors that face Larpenteur to enter the new event center where the Hamline Room is located upstairs—note street address is 1640 Larpenteur.

May 8, 2013
Verizon offering “Red Hot Deal Days” until May 12 on select devices for Mother’s Day

Mother’s Day is on Sunday and Verizon is helping out all of the last-minute shoppers looking for a deal. Verizon is hosting “Red Hot Deal Days” from today until May 12.

The DROID line is the focus of these deals, with the Droid RAZR MAXX HD being offered at $149, RAZR HD at $49, and RAZR M (all with a contract). With the release of the Galaxy S 4, Verizon has cut the price of the 16GB Galaxy S III to $99.99. If your mom is looking for a tablet, the 8GB Galaxy Tab 2 has been marked down to $199.99.

Check out the deals Verizon is offering via the source link. Free overnight shipping is offered as part of the deal.

Source: Verizon Wireless

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May 8, 2013
Why Branch could have a future connecting companies with customers
Out of all the companies in the ex-Twitter gang’s Obvious Corp’s umbrella of publishing startups — most notably, Medium — Branch is still perhaps the lowest-profile of the bunch. While it presents an interesting forum for conversation, eight months into its existence Branch is still figuring out how to get traction in a world that isn’t exactly lacking for conversation online.

Branch launched publicly about eight months ago with the idea of creating a public space for limited conversations among a few people. While it’s fostered some interesting discussions so far (“Is there a bubble?” “What have you learned about visiting Las Vegas?” “How much should a writer be paid, if anything?“), the company is clearly still figuring out how to get conversations going on the site.

I recently spoke with people from Branch and Hyatt, one of the first companies that’s been using Branch for marketing purposes, and it was clear from our conversation that Branch could have a real future in giving companies a place to talk to with consumers in a way that’s both fairly public and transparent but also limited in terms of the investment required by the companies. In other words, some of the aspects of Branch that make it unappealing to users could actually work in its favor when it comes to courting large businesses as customers — and potentially making money on the site.

Branch wasn’t created by one of the former Twitter founders like Medium was, but instead joined the Obvious Corp back in March of 2012. We wrote about the company in July and talked with CEO Josh Miller, who explained the idea behind the product and how he wanted to create the types of conversations people have with friends around a dinner table, but transport those conversations online to be shared and viewed publicly.

But as my colleague Mathew Ingram noted at the time, that closed nature of Branch conversations that are then posted online are reminiscent of blogs without comments — they seem odd to those of use who’ve become used to the spontaneous, collaborative qualities of traditional social media:

“The discussion also seems oddly sterile for anyone who has gotten used to the somewhat chaotic nature of a Twitter debate — or even in blog comments. And because it is less open, there is less of an opportunity for flames or irrelevant comments, but there is also less opportunity for a smart comment from a stranger.”

Yet the closed nature of the discussions and the greater assurance of quality control are obvious perks for a company like Hyatt that wants to hear what frequent travelers think of hotels, and wants to share that feedback publicly but doesn’t necessarily want to maintain a lengthy Facebook feed about the topic. Not to mention, users would probably get annoyed if Hyatt retweeted a lot of people tweeting about hotels, explained Dan Moriarty, the director of digital strategy for Hyatt.

But when I asked Moriarty why he doesn’t just send out a survey asking people what they think of hotels, he explained that the company has learned the value of sharing public feedback with users and the company gets more out of the experience in the long run by appearing more transparent.

“I think we’re over that worry,” he said about the possibility that users would post negative things publicly about Hyatt on a company Branch thread. “I think we’ve done a similar thing on Facebook or the website we started for the campaign, so we’ve worked through the pain of worrying about what people would say about us in social spaces.”

He noted that with a Branch conversation, Hyatt can pick influential travel or hotel bloggers and ask them about hotels, and then once the Branch is over, they can keep sharing the conversation and make sure other users see how the company took that feedback into account. So a conversation hosted with 20 people can get shared out to thousands of others. You could certainly argue that it’s a lot less transparent and truly open for a company to hand-pick people for a Branch conversation than respond to angry customers on Twitter, but you can see the appeal from the company’s perspective, and there’s no reason a company couldn’t do both.

“When you look at Branch… it’s just like-minded people opting into a conversation on things they care about,” he said. “So we definitely get a higher-quality of responses that are more thought through.”

Libby Brittain, the director of editorial development for Branch, said the company is still new, and they’re not sure what a money-making strategy with large corporate partners would look like, but it’s something they’ll evaluate.

“For publishers or brands, they’ve been told to be conversational for years,” she said. “But sometimes they really struggle to deliver on that promise with their customers or clients. I’ve been pleasantly surprised how this has worked.”

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May 8, 2013
Big Hollywood has no business being on Kickstarter, says Hollywood insider
Scrubs star Zach Braff has raised around $2.5 million on Kickstarter to finance his new movie — and caused a major ruckus while doing so: Cheers and Frasier writer and veteran director and producer Ken Levine argued on his blog Tuesday that Braff’s project shouldn’t be supported by Kickstarter users.

“It defeats the whole purpose of Kickstarter,” he said, arguing that Kickstarter should instead be for indie filmmakers who don’t have access to the studio system.

He went on to say:

“The next Kevin Smith is out there… somewhere. He (or she) just needs a break, which is what Kickstarter is supposed to provide. Zach Braff can find his money elsewhere.”

Levine’s post struck a chord and went viral, leading him to follow up with another piece Wednesday. In it, Levine shares his thoughts about another major Hollywood Kickstarter success story: the Veronica Mars movie starring Kristen Bell. Veronica Mars creator Rob Thomas took to Kickstarter in March to fund a movie reunion of the show’s cast, and hit his goal of $2 million in 10 hours.

The Veronica Mars Kickstarter was unique because it came with the blessing of Warner Bros., which is going to produce the movie. Thomas had tried for years to get Warner to front the money, but only got the project greenlit after Kickstarter users opened their wallets. “Kickstarter was a luxury for Braff, a necessity for Thomas,” acknowledged Levine Wednesday. But he added that the real winner may have been Warner:

“They get a possible hit movie, they didn’t have to lay out a cent for production, and they don’t have to share the profits with the investors. They give them T-shirts and souvenirs and they’re off the hook. How sweet a deal is that? On a project they didn’t even believe in. What a win/win. ”

Of course, there’s a flip side to this, as our own Liz Miller argued earlier this year: At this point in time, Kickstarter is still growing — and big projects with big names attached can help to bring new audiences to the crowdfunding site.

But the controversy also points towards a bigger issue for Kickstarter and the types of projects it accepts. If patrons feel as if they’re being asked to pay for projects that have no trouble getting funding elsewhere, then they might start to question the entire idea behind crowdfunding.

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May 8, 2013
Another blow for Nintendo: Next-gen EA games will skip the Wii U

Things keep getting darker for video game giant Nintendo. The news that the company’s previous-generation Wii console outsold the new Wii U during the first quarter really put Nintendo’s troubles in perspective, and now more bad news has emerged for the video game giant. As picked up in a report from Joystiq, an Electronic Arts executive has confirmed on Twitter that the company is abandoning plans to build its new gaming engine for the Wii U.

Continue reading…

May 8, 2013
Google Maps Is Reportedly About To Look Like This

Alex Chitu at Google Operating System has shared a couple of screenshots of what it says is the new Google Maps interface. It’s no small redesign:

Chitu hints that we could see the new look unveiled at Google I/O next week. Google does apparently have a three-hour keynote lined up.

It’s hard to say for certain just how authentic these screenshots are, as Chitu appears to be the only source (though he thanks a Florian K.). Chitu has a pretty credible track record of Google coverage though, and is always conscientious to point out when new Google features are simply tests. His post makes him seem pretty confident that this is the real deal. I guess we’ll find out soon enough.

Chris Velazco at TechCrunch makes a couple of good points, like for one, that the design seems to fall in line with other Google products of late – the “cards” look in particular. Also Google has had a history of recent product leaks.

According to The Atlantic, everybody hates the new look. What do you think of it?

May 8, 2013
Jeanne Cooper Dies; ‘The Young and the Restless’ Star Was 84

Actress Jeanne Cooper, born Wilma Jeanne Cooper, has died at the age of 84. Cooper was best known for her 40-year run as Katherine Chancellor on the U.S. soap opera The Young and the Restless.

According to a statement from Cooper’s son, actor Corbin Bernsen, Cooper died early Wednesday. According to Bernsen, she died peacefully in her sleep, with her daughter, Caren, by her side.

Bernsen’s Facebook post:

Corbin Bernsen1 hour ago

Wasn’t sure how I would have to say these words so I opt for simplicity at least to begin…

My mother passed away this morning just a short time ago, peaceful with my sister by her side, in her sleep. I was going to visit this afternoon, thought I had time. Reminder to self – time is a precious thing. I too am at peace however. I said my goodbyes several times over during the last few weeks. I’ll go one last time now for a gentle kiss a final farewell for this lifetime. She has been a blaze her entire life, that beacon, that boxer I spoke of earlier. She went the full twelve rounds and by unanimous decision… won! And while her light finally gave into the wind that gives flight to all our journeys, there will always be a glimmer left behind by what she stood for. I will speak about that more in coming days, months I suppose. I will certainly dedicate what remains of my life to continue her purpose of honesty, equality, humility, empathy and love. So many of you have said your prayers for her and right now, today, I can say the best way to honor her is to inhabit your lives with those things she stood for. I would ask that closer friends respectfully give us some time to find our family’s path in this transition, and please limit calls, emails and the rest for a couple of days. As always, your outpouring of love here on this page, is not only welcomed to continue but truly appreciated and comforting. I asked my sister what time she passed exactly, and she told me (not to important for public record) but I was working out and just happened to pick out a song for my final moments on the treadmill – “Everlasting Light” by the Black Keys. Oh what a wonder it all is… what a magnificence! Powered by socialditto 1,000+ likes · 1,000+ comments

Cooper began her acting career in the early 50s in movies such as The Redhead From Wyoming and The Man From the Alamo. She went on to have roles in many network TV shows, including Perry Mason, Hawaii Five-O, and Mannix.

In 1973 Cooper was cast in the role of Katherine Chancellor in the long-running U.S. soap opera The Young and the Restless. The character has been described as the “matriarch” of soap opera television and her rivalry with Jill Foster Abbott has produced story twists for The Young and the Restless for many years.

May 8, 2013
There Was A ‘Glass’ Before Google Came Along, And It Was Used In Antarctica In 2001

Whether or not you think that Google Glass is something that you’d wind up using one day, you have to admit that the technology is impressive. Packed inside of the pair of specs is a computer running android, camera and all of the wireless capabilities you’d need. The idea of wearable computers is nothing new, and a team that explored Antarctica actually had their own pair of “Glass” long before it was en vogue.

In a blog post chronicling the team’s experience, Tina Sjogren fondly remembers what it was like to pull together a wearable computer running Windows 98, paired with a “finger” mouse for controls and a glass screen as its display. It sounds a lot like an early version of Google Glass, but this was truly a technological marvel, considering that it was built and used at the South Pole in 2001.

The specs of the device, which was called “South Pole Wearable,” are nothing short of amazing, including custom built software to share information and post photos. It was also solar powered, something that Google Glass could really use. It didn’t use 3G, 4G or WiFi, relying on satellites:

Finger Mouse
Wrist Keyboard
HUD (VGA Heads Up Display, Eye-trek Glasses by Olympus)
Wearable Windows 98 computers
Daylight flat panel display
Customized Technology vests
Shoulder Mounted Web Camera
Bluetooth near person network
Iridium data over satellite
Power converters
Solar cells
Control and Command voice software
CONTACT blogging software
Image editing, word processing

The entire kit weighed 15 pounds, which is almost double what the original Google Glass prototype weighed, about 8 pounds. It now weighs about as much as an average pair of sunglasses.

Tina and Tom Sjogren set forth to build something that allowed them to transfer all types of information as they skied through the snowy South Pole. Sharing this type of information in real-time was not something that many could wrap their brains around, therefore the pair didn’t get the type of attention for their device that Google is getting for Glass today. Tina says:

We wore a computer on our hips, a mouse in our pocket, and the glass was our screen. We did it not to show off but because we had no other choice.

She also sees a future for Google Glass and regular consumers: “New technology often needs time to catch on and I can see a future for Google glass today. It will come down to how sleek and useful they are. A stylish design paired with all the wonders of augmented reality – what’s not to love?”

“Cool, maybe the time has come for this tech”

Wearing Google Glass wasn’t the experience that Tina and Tom had back in 2001, as Tina refers to their display as “too bulky to wear all of the time.” The eye piece on their device had greenish text which, much like Google Glass, didn’t obstruct your view. It even had voice commands. The two even slept in their gear at nights, to keep it warm and protect it from the elements. In 2002, they became the first to broadcast live photos and sounds from the Antarctic ice cap.

The trekkers counted on Ericcson as their sponsor during the mission, and here’s a drawing they made of a “future explorer” wearing their device:

I spoke with Tina Sjogren today and she told me that the reason for building the device was based on their love of exploration: “Our specialty is to find and marry software and hardware for unique situations such as extreme expeditions, military, security and other.” The purpose of building the device was simple, yet profound: “We had a story to tell. There had never been live dispatches done from a skiing expedition on the continent before. We also helped General Dynamics with feedback on how this could work on aircraft carriers.”

Twelve years after the Sjogren team set out on their adventure, Google is trying to make the world around us equally as interesting with Glass. It’s too soon to know whether it will catch on with consumers once they’re made available to people other than developers.

If we’ve learned anything from Tina and Tom Sjogren, it’s that good ideas have this way of coming back year after year, getting better and more polished each time:

As Google Glass has gotten more publicity, Tina summarized her feelings about it succinctly, capturing the true mentality of someone who loves to see new things, explore new places and share experiences: “Cool, maybe the time has come for this tech.”

May 8, 2013




Groupon, Inc.
Summary Consolidated and Segment Results
(in thousands, except share and per share amounts)
(unaudited)

	Three Months Ended March 31,												Y/Y % Growth
	2013			2012			Y/Y % Growth			FX Effect ⁽²⁾			excluding FX⁽²⁾
Gross Billings ⁽¹⁾
North America	$	681,319		$	553,557		23.1		%	$	(59	)	23.1		%
International		726,450			801,243		(9.3	)	%		(12,460	)	(7.8	)	%
Consolidated gross billings	$	1,407,769		$	1,354,800		3.9		%	$	(12,519	)	4.8		%

Revenue
North America	$	339,554		$	238,565		42.3		%	$	(27	)	42.3		%
International		261,848			320,718		(18.4	)	%		(4,540	)	(16.9	)	%
Consolidated revenue	$	601,402		$	559,283		7.5		%	$	(4,567	)	8.3		%

Income from operations	$	21,178		$	39,639		(46.6	)	%	$	2,377		(52.6	)	%

Net loss attributable to common stockholders	$	(3,992	)	$	(11,695	)	65.9		%	$	2,614		43.5		%

Net loss per share
Basic	$	(0.01	)	$	(0.02	)
Diluted	$	(0.01	)	$	(0.02	)

Weighted average basic shares outstanding		658,800,417			644,097,375
Weighted average diluted shares outstanding		658,800,417			644,097,375

Groupon, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

	Three Months Ended March 31,
	2013			2012
Operating activities
Net loss	$	(3,242	)	$	(3,593	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		20,700			11,716
Stock-based compensation		29,907			28,003
Deferred income taxes		(258	)		(876	)
Excess tax benefits on stock-based compensation		(832	)		(2,881	)
Loss on equity method investments		19			5,128
Acquisition-related expense (benefit), net		68			(52	)
Change in assets and liabilities, net of acquisitions:
Restricted cash		2,523			(1,357	)
Accounts receivable		(7,684	)		(11,878	)
Prepaid expenses and other current assets		12,527			(4,121	)
Accounts payable		(19,606	)		(1,821	)
Accrued merchant and supplier payables		(39,417	)		46,000
Accrued expenses and other current liabilities		13,302			13,420
Other, net		753			6,026
Net cash provided by operating activities		8,760			83,714

Net cash used in investing activities		(30,679	)		(46,444	)

Net cash used in financing activities		(9,342	)		(8,275	)

Effect of exchange rate changes on cash and cash equivalents		(12,378	)		9,059
Net (decrease) increase in cash and cash equivalents		(43,639	)		38,054
Cash and cash equivalents, beginning of period		1,209,289			1,122,935
Cash and cash equivalents, end of period	$	1,165,650		$	1,160,989

Groupon, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)

	Three Months Ended March 31,
	2013			2012
Revenue:
Third party and other	$	439,108		$	540,053
Direct		162,294			19,230
Total revenue		601,402			559,283
Cost of revenue:
Third party and other		70,016			102,629
Direct		152,377			16,869
Total cost of revenue		222,393			119,498
Gross Profit		379,009			439,785
Operating expenses:
Marketing		49,557			116,615
Selling, general and administrative		308,206			283,583
Acquisition-related expense (benefit), net		68			(52	)
Total operating expenses		357,831			400,146
Income from operations		21,178			39,639
Interest and other expense, net		(5,064	)		(3,539	)
Loss on equity method investments		(19	)		(5,128	)
Income before provision for income taxes		16,095			30,972
Provision for income taxes		19,337			34,565
Net loss		(3,242	)		(3,593	)
Less: Net income attributable to noncontrolling interests		(750	)		(880	)
Net loss attributable to Groupon, Inc.		(3,992	)		(4,473	)
Adjustment of redeemable noncontrolling interests to redemption value		–			(7,222	)
Net loss attributable to common stockholders	$	(3,992	)	$	(11,695	)

Net loss per share
Basic	$	(0.01	)	$	(0.02	)
Diluted	$	(0.01	)	$	(0.02	)

Weighted average number of shares outstanding
Basic		658,800,417			644,097,375
Diluted		658,800,417			644,097,375

Groupon, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
(unaudited)

	March 31,			December 31,
	2013			2012
Assets
Current assets:
Cash and cash equivalents	$	1,165,650		$	1,209,289
Accounts receivable, net		102,717			96,713
Deferred income taxes		30,679			31,211
Prepaid expenses and other current assets		132,324			150,573
Total current assets		1,431,370			1,487,786
Property, equipment and software, net of accumulated depreciation and amortization of $60,291 and $46,236, respectively		128,773			121,072
Goodwill		205,466			206,684
Intangible assets, net		36,838			42,597
Investments		97,245			84,209
Deferred income taxes, non-current		29,710			29,916
Other non-current assets		52,855			59,210
Total Assets	$	1,982,257		$	2,031,474
Liabilities and Equity
Current liabilities:
Accounts payable	$	40,898		$	59,865
Accrued merchant and supplier payables		620,485			671,305
Accrued expenses		245,889			246,924
Deferred income taxes		52,875			53,700
Other current liabilities		140,433			136,647
Total current liabilities		1,100,580			1,168,441
Deferred income taxes, non-current		19,917			20,860
Other non-current liabilities		97,791			100,072
Total Liabilities		1,218,288			1,289,373
Commitments and contingencies
Stockholders’ Equity
Class A common stock, par value $0.0001 per share, 2,000,000,000 shares authorized, 657,774,882 and 654,523,706 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively		66			65
Class B common stock, par value $0.0001 per share, 10,000,000 shares authorized, 2,399,976 shares issued and outstanding at March 31, 2013 and December 31, 2012		–			–
Common stock, par value $0.0001 per share, 2,010,000,000 shares authorized, no shares issued and outstanding at March 31, 2013, and December 31, 2012		–			–
Additional paid-in capital		1,508,972			1,485,006
Accumulated deficit		(757,469	)		(753,477	)
Accumulated other comprehensive income		14,787			12,446
Total Groupon, Inc. Stockholders’ Equity		766,356			744,040
Noncontrolling interests		(2,387	)		(1,939	)
Total Equity		763,969			742,101
Total Liabilities and Equity	$	1,982,257		$	2,031,474

Groupon, Inc.
Segment Information
(in thousands)
(unaudited)

	Three Months Ended March 31,
	2013				2012
North America
Gross Billings⁽¹⁾	$	681,319			$	553,557
Revenue	$	339,554			$	238,565
Segment cost of revenue and operating expenses⁽²⁾		298,188				198,393
Segment operating income	$	41,366			$	40,172
Segment operating income as a percent of segment revenue		12.2		%		16.8		%

International
Gross Billings ⁽¹⁾	$	726,450			$	801,243
Revenue	$	261,848			$	320,718
Segment cost of revenue and operating expenses⁽²⁾		252,061				293,300
Segment operating income	$	9,787			$	27,418
Segment operating income as a percent of segment revenue		3.7		%		8.5		%

Consolidated
Gross Billings ⁽¹⁾	$	1,407,769			$	1,354,800
Revenue	$	601,402			$	559,283
Segment cost of revenue and operating expenses⁽²⁾		550,249				491,693
Segment operating income	$	51,153			$	67,590
Segment operating income as a percent of segment revenue		8.5		%		12.1		%

Stock-based compensation		29,907				28,003
Acquisition-related expense (benefit), net		68				(52	)
Income from operations		21,178				39,639
Interest and other expense, net		5,064				3,539
Loss on equity method investments		19				5,128
Income before provision for income taxes		16,095				30,972
Provision for income taxes		19,337				34,565
Net loss	$	(3,242	)		$	(3,593	)

Groupon, Inc.
Non-GAAP Reconciliation Schedules
(in thousands, except share and per share amounts)
(unaudited)

The following are reconciliations of earnings per share excluding stock-based compensation and acquisition-related expense (benefit), net and foreign exchange rate neutral operating results to the most comparable U.S. GAAP financial measures. See “Supplemental Financial Information and Business Metrics” for reconciliations of Adjusted EBITDA, operating income (loss), excluding stock-based compensation and acquisition-related benefit (expense), net and free cash flow to the most comparable U.S. GAAP financial measures.


The following is a reconciliation of net loss per share to earnings per share excluding stock-based compensation and acquisition-related expense, net for the three months ended March 31, 2013:

	Three Months Ended
	March 31, 2013
Net loss attributable to common stockholders	$	(3,992	)
Stock-based compensation		29,907
Acquisition-related expense, net		68
Income tax effect of adjustments		(9,113	)
Net income attributable to common stockholders excluding stock-based
compensation and acquisition-related expense, net	$	16,870

Diluted shares		658,800,417
Incremental diluted shares ⁽¹⁾		12,175,734
Adjusted diluted shares		670,976,151

Diluted net loss per share	$	(0.01	)
Impact of stock-based compensation and acquisition-related
expense, net and the related income tax effects		0.04
Diluted earnings per share excluding stock-based compensation and
acquisition-related expense, net	$	0.03

The following is a reconciliation of foreign exchange rate neutral operating results to the most comparable U.S. GAAP financial measures, “Gross Billings,” “Revenue” and “Income from operations,” for the three months ended March 31, 2013. The effect on the Company’s gross billings, revenue and income from operations from changes in exchange rates versus the U.S. Dollar for the three months ended March 31, 2013 was as follows:

	Three Months Ended March 31, 2013							Three Months Ended March 31, 2013
	At Avg.		Exchange					At Avg.		Exchange
	Q1 2012 Rates ⁽¹⁾		Rate Effect ⁽²⁾			As Reported		Q4 2012 Rates ⁽³⁾		Rate Effect ⁽²⁾			As Reported
Gross billings	$	1,420,288	$	(12,519	)	$	1,407,769	$	1,408,597	$	(828	)	$	1,407,769
Revenue	$	605,969	$	(4,567	)	$	601,402	$	601,584	$	(182	)	$	601,402
Income from operations	$	18,801	$	2,377		$	21,178	$	21,698	$	(520	)	$	21,178

Groupon, Inc.
Supplemental Financial Information and Business Metrics⁽¹³⁾
(financial data in thousands, except per share data; active customers in millions)
(unaudited)

	Q1 2012				Q2 2012				Q3 2012				Q4 2012				Q1 2013
Segments
North America Segment
Gross Billings ⁽¹⁾
Local ⁽²⁾ Gross Billings
Third Party and Other	$	424,124			$	412,348			$	349,293			$	430,255			$	450,140
Direct		5,299				288				6,450				–				–
Total Local Gross Billings	$	429,423			$	412,636			$	355,743			$	430,255			$	450,140
Goods Gross Billings
Third Party and Other	$	75,908			$	40,173			$	25,508			$	31,270			$	17,294
Direct		2,282				52,773				126,608				209,575				148,065
Total Goods Gross Billings	$	78,190			$	92,946			$	152,116			$	240,845			$	165,359
Travel and Other Gross Billings
Third Party and Other	$	45,944			$	42,693			$	44,510			$	47,852			$	65,820
Direct		–				–				–				–				–
Total Travel and Other Gross Billings	$	45,944			$	42,693			$	44,510			$	47,852			$	65,820
Total Gross Billings
Third Party and Other	$	545,976			$	495,214			$	419,311			$	509,377			$	533,254
Direct		7,581				53,061				133,058				209,575				148,065
Total Gross Billings	$	553,557			$	548,275			$	552,369			$	718,952			$	681,319
Year-over-year growth		76		%		48		%		38		%		51		%		23		%
% of Consolidated Gross Billings		41		%		43		%		45		%		47		%		48		%
Gross Billings Trailing Twelve Months (TTM)	$	1,800,332			$	1,978,617			$	2,130,008			$	2,373,153			$	2,500,915

Revenue ⁽³⁾
Local Revenue
Third Party and Other	$	191,128			$	184,189			$	134,993			$	142,454			$	171,593
Direct		5,299				288				6,450				–				–
Total Local Revenue	$	196,427			$	184,477			$	141,443			$	142,454			$	171,593
Goods Revenue
Third Party and Other	$	24,941			$	10,387			$	13,064			$	11,877			$	3,144
Direct		2,282				52,774				126,608				209,575				148,065
Total Goods Revenue	$	27,223			$	63,161			$	139,672			$	221,452			$	151,209
Travel and Other Revenue
Third Party and Other	$	14,915			$	12,543			$	10,488			$	11,445			$	16,752
Direct		–				–				–				–				–
Total Travel and Other Revenue	$	14,915			$	12,543			$	10,488			$	11,445			$	16,752
Total Revenue
Third Party and Other	$	230,984			$	207,119			$	158,545			$	165,776			$	191,489
Direct		7,581				53,062				133,058				209,575				148,065
Total Revenue	$	238,565			$	260,181			$	291,603			$	375,351			$	339,554
Year-over-year growth		75		%		66		%		81		%		109		%		42		%
% of Consolidated Revenue		43		%		46		%		51		%		59		%		56		%
Revenue TTM	$	736,933			$	839,909			$	969,987			$	1,165,700			$	1,266,689

Cost of Revenue ⁽⁴⁾
Local Cost of Revenue
Third Party and Other	$	51,782			$	35,710			$	13,176			$	23,203			$	25,915
Direct		4,663				234				5,231				–				–
Total Local Cost of Revenue	$	56,445			$	35,944			$	18,407			$	23,203			$	25,915
Goods Cost of Revenue
Third Party and Other	$	6,757			$	2,014			$	1,275			$	1,935			$	475
Direct		2,008				45,925				110,329				196,789				138,278
Total Goods Cost of Revenue	$	8,765			$	47,939			$	111,604			$	198,724			$	138,753
Travel and Other Cost of Revenue
Third Party and Other	$	4,041			$	2,431			$	1,024			$	1,864			$	2,530
Direct		–				–				–				–				–
Total Travel and Other Cost of Revenue	$	4,041			$	2,431			$	1,024			$	1,864			$	2,530
Total Cost of Revenue
Third Party and Other	$	62,580			$	40,155			$	15,475			$	27,002			$	28,920
Direct		6,671				46,159				115,560				196,789				138,278
Total Cost of Revenue	$	69,251			$	86,314			$	131,035			$	223,791			$	167,198
% of North America Total Revenue		29		%		33		%		45		%		60		%		49		%

Gross Profit
Local Gross Profit
Third Party and Other	$	139,346			$	148,479			$	121,817			$	119,251			$	145,678
Direct		636				54				1,219				–				–
Total Local Gross Profit	$	139,982			$	148,533			$	123,036			$	119,251			$	145,678
% of North America Total Local Revenue		71.3	%	%		80.5	%	%		87.0	%	%		83.7	%	%		84.9	%	%
% of North America Total Local Gross Billings		32.6	%	%		36.0	%	%		34.6	%	%		27.7	%	%		32.4	%	%
Goods Gross Profit
Third Party and Other	$	18,184			$	8,373			$	11,789			$	9,942			$	2,669
Direct		274				6,849				16,279				12,786				9,787
Total Goods Gross Profit	$	18,458			$	15,222			$	28,068			$	22,728			$	12,456
% of North America Total Goods Revenue		67.8	%	%		24.1	%	%		20.1	%	%		10.3	%	%		8.2	%	%
% of North America Total Goods Gross Billings		23.6	%	%		16.4	%	%		18.5	%	%		9.4	%	%		7.5	%	%
Travel and Other Gross Profit
Third Party and Other	$	10,874			$	10,112			$	9,464			$	9,581			$	14,222
Direct		–				–				–				–				–
Total Travel and Other Gross Profit	$	10,874			$	10,112			$	9,464			$	9,581			$	14,222
% of North America Total Travel and Other Revenue		72.9	%	%		80.6	%	%		90.2	%	%		83.7	%	%		84.9	%	%
% of North America Total Travel and Other Gross Billings		23.7	%	%		23.7	%	%		21.3	%	%		20.0	%	%		21.6	%	%
Total Gross Profit
Third Party and Other	$	168,404			$	166,964			$	143,070			$	138,774			$	162,569
Direct		910				6,903				17,498				12,786				9,787
Total Gross Profit	$	169,314			$	173,867			$	160,568			$	151,560			$	172,356
% of North America Total Revenue		71.0	%	%		66.8	%	%		55.1	%	%		40.4	%	%		50.8	%	%
% of North America Total Gross Billings		30.6	%	%		31.7	%	%		29.1	%	%		21.1	%	%		25.3	%	%

Operating Income Excl Stock-Based Compensation (SBC), Acquisition-Related Expenses	$	40,172			$	43,429			$	39,093			$	17,032			$	41,366
Year-over-year growth		N/A				N/A				108		%		(7	)	%		3		%
% of Consolidated Operating Income Excl SBC, Acq-Related		59		%		60		%		77		%		124		%		81		%
Operating Margin Excl SBC, Acq-Related (% of North America Total revenue)		16.8		%		16.7		%		13.4		%		4.5		%		12.2		%
Year-over-year growth (bps)		3,278				2,337				170				(570	)			(460	)
Operating Income TTM Excl SBC, Acq-Related	$	66,746			$	120,676			$	140,933			$	139,726			$	140,920
Operating Margin TTM Excl SBC, Acq-Related (% of North America Total TTM revenue)		9.1		%		14.4		%		14.5		%		12.0		%		11.1		%
Year-over-year growth (bps)		2,197				2,601				2,100				1,120				200


International Segment	Q1 2012				Q2 2012				Q3 2012				Q4 2012				Q1 2013
Gross Billings
Local Gross Billings
Third Party and Other	$	465,879			$	423,313			$	328,044			$	368,898			$	379,413
Direct		–				–				–				–				–
Total Local Gross Billings	$	465,879			$	423,313			$	328,044			$	368,898			$	379,413
Goods Gross Billings
Third Party and Other	$	199,988			$	186,899			$	211,464			$	285,057			$	212,736
Direct		7,396				12,288				11,930				15,601				14,229
Total Goods Gross Billings	$	207,384			$	199,187			$	223,394			$	300,658			$	226,965
Travel and Other Gross Billings
Third Party and Other	$	123,727			$	115,901			$	114,449			$	131,944			$	120,072
Direct		4,253				–				–				–				–
Total Travel and Other Gross Billings	$	127,980			$	115,901			$	114,449			$	131,944			$	120,072
Total Gross Billings
Third Party and Other	$	789,594			$	726,113			$	653,957			$	785,899			$	712,221
Direct		11,649				12,288				11,930				15,601				14,229
Total Gross Billings	$	801,243			$	738,401			$	665,887			$	801,500			$	726,450
Year-over-year growth		127		%		32		%		(12	)	%		6		%		(9	)	%
Year-over-year growth, excluding FX⁽⁵⁾		138		%		45		%		(4	)	%		9		%		(8	)	%
% of Consolidated Gross Billings		59		%		57		%		55		%		53		%		52		%
Gross Billings TTM	$	2,871,795			$	3,050,937			$	2,960,592			$	3,007,031			$	2,932,238

Revenue
Local Revenue
Third Party and Other	$	213,166			$	193,861			$	164,184			$	144,834			$	155,800
Direct		–				–				–				–				–
Total Local Revenue	$	213,166			$	193,861			$	164,184			$	144,834			$	155,800
Goods Revenue
Third Party and Other	$	60,365			$	67,864			$	71,310			$	74,702			$	63,937
Direct		7,396				12,288				11,930				15,600				14,229
Total Goods Revenue	$	67,761			$	80,152			$	83,240			$	90,302			$	78,166
Travel and Other Revenue
Third Party and Other	$	35,538			$	34,141			$	29,525			$	27,815			$	27,882
Direct		4,253				–				–				–				–
Total Travel and Other Revenue	$	39,791			$	34,141			$	29,525			$	27,815			$	27,882
Total Revenue
Third Party and Other	$	309,069			$	295,866			$	265,019			$	247,351			$	247,619
Direct		11,649				12,288				11,930				15,600				14,229
Total Revenue	$	320,718			$	308,154			$	276,949			$	262,951			$	261,848
Year-over-year growth		102		%		31		%		3		%		(16	)	%		(18	)	%
Year-over-year growth, excluding FX		112		%		44		%		13		%		(14	)	%		(17	)	%
% of Consolidated Revenue		57		%		54		%		49		%		41		%		44		%
Revenue TTM	$	1,137,257			$	1,210,034			$	1,218,347			$	1,168,772			$	1,109,902

Cost of Revenue
Local Cost of Revenue
Third Party and Other	$	27,622			$	24,162			$	23,729			$	20,423			$	20,115
Direct		–				–				–				–				–
Total Local Cost of Revenue	$	27,622			$	24,162			$	23,729			$	20,423			$	20,115
Goods Cost of Revenue
Third Party and Other	$	7,822			$	8,459			$	10,702			$	12,558			$	17,381
Direct		6,474				11,993				12,053				21,778				14,099
Total Goods Cost of Revenue	$	14,296			$	20,452			$	22,755			$	34,336			$	31,480
Travel and Other Cost of Revenue
Third Party and Other	$	4,605			$	4,256			$	4,267			$	3,922			$	3,600
Direct		3,724				–				–				–				–
Total Travel and Other Cost of Revenue	$	8,329			$	4,256			$	4,267			$	3,922			$	3,600
Total Cost of Revenue
Third Party and Other	$	40,049			$	36,877			$	38,698			$	36,903			$	41,096
Direct		10,198				11,993				12,053				21,778				14,099
Total Cost of Revenue	$	50,247			$	48,870			$	50,751			$	58,681			$	55,195
% of International Total Revenue		16		%		16		%		18		%		22		%		21		%

Gross Profit
Local Gross Profit
Third Party and Other	$	185,544			$	169,699			$	140,455			$	124,411			$	135,685
Direct		–				–				–				–				–
Total Local Gross Profit	$	185,544			$	169,699			$	140,455			$	124,411			$	135,685
% of International Total Local Revenue		87.0	%	%		87.5	%	%		85.5	%	%		85.9	%	%		87.1	%	%
% of International Total Local Gross Billings		39.8	%	%		40.1	%	%		42.8	%	%		33.7	%	%		35.8	%	%
Goods Gross Profit
Third Party and Other	$	52,543			$	59,405			$	60,608			$	62,144			$	46,556
Direct		922				295				(123	)			(6,178	)			130
Total Goods Gross Profit	$	53,465			$	59,700			$	60,485			$	55,966			$	46,686
% of International Total Goods Revenue		78.9	%	%		74.5	%	%		72.7	%	%		62.0	%	%		59.7	%	%
% of International Total Goods Gross Billings		25.8	%	%		30.0	%	%		27.1	%	%		18.6	%	%		20.6	%	%
Travel and Other Gross Profit
Third Party and Other	$	30,933			$	29,885			$	25,258			$	23,893			$	24,282
Direct		529				–				–				–				–
Total Travel and Other Gross Profit	$	31,462			$	29,885			$	25,258			$	23,893			$	24,282
% of International Total Travel and Other Revenue		79.1	%	%		87.5	%	%		85.5	%	%		85.9	%	%		87.1	%	%
% of International Total Travel and Other Gross Billings		24.6	%	%		25.8	%	%		22.1	%	%		18.1	%	%		20.2	%	%
Total Gross Profit
Third Party and Other	$	269,020			$	258,989			$	226,321			$	210,448			$	206,523
Direct		1,451				295				(123	)			(6,178	)			130
Total Gross Profit	$	270,471			$	259,284			$	226,198			$	204,270			$	206,653
% of International Total Revenue		84.3	%	%		84.1	%	%		81.7	%	%		77.7	%	%		78.9	%	%
% of International Total Gross Billings		33.8	%	%		35.1	%	%		34.0	%	%		25.5	%	%		28.4	%	%

Operating Income (Loss) Excl SBC, Acq-Related	$	27,418			$	28,505			$	11,395			$	(3,329	)		$	9,787
Year-over-year growth		N/A				155				N/A				(1,060	)	%		(64	)	%
% of Consolidated Operating Income Excl SBC, Acq-Related		41		%		40		%		23		%		(24	)	%		19		%
Operating Margin Excl SBC, Acq-Related (% of International Total revenue)		8.5		%		9.3		%		4.1		%		(1.3	)	%		3.7		%
Year-over-year growth (bps)		5,669				3,126				1,170				(120	)			(480	)
Operating (Loss) Income TTM Excl SBC, Acq-Related	$	(45,205	)		$	35,108			$	67,031			$	63,989			$	46,358
Operating Margin TTM Excl SBC, Acq-Related (% of International Total TTM revenue)		(4.0	)	%		2.9		%		5.5		%		5.5		%		4.2		%
Year-over-year growth (bps)		8,704				5,765				4,170				2,080				820


Consolidated Results of Operations	Q1 2012				Q2 2012				Q3 2012				Q4 2012				Q1 2013
Gross Billings
Local Gross Billings
Third Party and Other	$	890,003			$	835,661			$	677,337			$	799,153			$	829,533
Direct		5,299				288				6,450				–				–
Total Local Gross Billings	$	895,302			$	835,949			$	683,787			$	799,153			$	829,533
Goods Gross Billings
Third Party and Other	$	275,896			$	227,072			$	236,972			$	316,327			$	230,030
Direct		9,678				65,061				138,538				225,176				162,294
Total Goods Gross Billings	$	285,574			$	292,133			$	375,510			$	541,503			$	392,324
Travel and Other Gross Billings
Third Party and Other	$	169,671			$	158,594			$	158,959			$	179,796			$	185,892
Direct		4,253				–				–				–				–
Total Travel and Other Gross Billings	$	173,924			$	158,594			$	158,959			$	179,796			$	185,892
Total Gross Billings
Third Party and Other	$	1,335,570			$	1,221,327			$	1,073,268			$	1,295,276			$	1,245,475
Direct		19,230				65,349				144,988				225,176				162,294
Total Gross Billings	$	1,354,800			$	1,286,676			$	1,218,256			$	1,520,452			$	1,407,769
Year-over-year growth		103		%		38		%		5		%		24		%		4		%
Year-over-year growth, excluding FX		108		%		47		%		11		%		25		%		5		%
Gross Billings (TTM)	$	4,672,127			$	5,029,554			$	5,090,600			$	5,380,184			$	5,433,153
Year-over-year growth		241		%		128		%		61		%		35		%		16		%

Revenue
Local Revenue
Third Party and Other	$	404,294			$	378,050			$	299,177			$	287,288			$	327,393
Direct		5,299				288				6,450				–				–
Total Local Revenue	$	409,593			$	378,338			$	305,627			$	287,288			$	327,393
Goods Revenue
Third Party and Other	$	85,306			$	78,251			$	84,374			$	86,579			$	67,081
Direct		9,678				65,062				138,538				225,175				162,294
Total Goods Revenue	$	94,984			$	143,313			$	222,912			$	311,754			$	229,375
Travel and Other Revenue
Third Party and Other	$	50,453			$	46,684			$	40,013			$	39,260			$	44,634
Direct		4,253				–				–				–				–
Total Travel and Other Revenue	$	54,706			$	46,684			$	40,013			$	39,260			$	44,634
Total Revenue
Third Party and Other	$	540,053			$	502,985			$	423,564			$	413,127			$	439,108
Direct		19,230				65,350				144,988				225,175				162,294
Total Revenue	$	559,283			$	568,335			$	568,552			$	638,302			$	601,402
Year-over-year growth		89		%		45		%		32		%		30		%		8		%
Year-over-year growth, excluding FX		95		%		53		%		38		%		31		%		8		%
Total Consolidated Revenue TTM	$	1,874,190			$	2,049,943			$	2,188,334			$	2,334,472			$	2,376,591
Year-over-year growth		219		%		118		%		70		%		45		%		27		%

Cost of Revenue
Local Cost of Revenue
Third Party and Other	$	79,404			$	59,872			$	36,905			$	43,626			$	46,030
Direct		4,663				234				5,231				–				–
Total Local Cost of Revenue	$	84,067			$	60,106			$	42,136			$	43,626			$	46,030
Goods Cost of Revenue
Third Party and Other	$	14,579			$	10,473			$	11,977			$	14,493			$	17,856
Direct		8,482				57,918				122,382				218,567				152,377
Total Goods Cost of Revenue	$	23,061			$	68,391			$	134,359			$	233,060			$	170,233
Travel and Other Cost of Revenue
Third Party and Other	$	8,646			$	6,687			$	5,291			$	5,786			$	6,130
Direct		3,724				–				–				–				–
Total Travel and Other Cost of Revenue	$	12,370			$	6,687			$	5,291			$	5,786			$	6,130
Total Cost of Revenue
Third Party and Other	$	102,629			$	77,032			$	54,173			$	63,905			$	70,016
Direct		16,869				58,152				127,613				218,567				152,377
Total Cost of Revenue	$	119,498			$	135,184			$	181,786			$	282,472			$	222,393
% of Total Consolidated Revenue		21		%		24		%		32		%		44		%		37		%

Gross Profit
Local Gross Profit
Third Party and Other	$	324,890			$	318,178			$	262,272			$	243,662			$	281,363
Direct		636				54				1,219				–				–
Total Local Gross Profit	$	325,526			$	318,232			$	263,491			$	243,662			$	281,363
% of Total Consolidated Local Revenue		79.5	%	%		84.1	%	%		86.2	%	%		84.8	%	%		85.9	%	%
% of Total Consolidated Local Gross Billings		36.4	%	%		38.1	%	%		38.5	%	%		30.5	%	%		33.9	%	%
Goods Gross Profit
Third Party and Other	$	70,727			$	67,778			$	72,397			$	72,086			$	49,225
Direct		1,196				7,144				16,156				6,608				9,917
Total Goods Gross Profit	$	71,923			$	74,922			$	88,553			$	78,694			$	59,142
% of Total Consolidated Goods Revenue		75.7	%	%		52.3	%	%		39.7	%	%		25.2	%	%		25.8	%	%
% of Total Consolidated Goods Gross Billings		25.2	%	%		25.6	%	%		23.6	%	%		14.5	%	%		15.1	%	%
Travel and Other Gross Profit
Third Party and Other	$	41,807			$	39,997			$	34,722			$	33,474			$	38,504
Direct		529				–				–				–				–
Total Travel and Other Gross Profit	$	42,336			$	39,997			$	34,722			$	33,474			$	38,504
% of Total Consolidated Travel and Other Revenue		77.4	%	%		85.7	%	%		86.8	%	%		85.3	%	%		86.3	%	%
% of Total Consolidated Travel and Other Gross Billings		24.3	%	%		25.2	%	%		21.8	%	%		18.6	%	%		20.7	%	%
Total Gross Profit
Third Party and Other	$	437,424			$	425,953			$	369,391			$	349,222			$	369,092
Direct		2,361				7,198				17,375				6,608				9,917
Total Gross Profit	$	439,785			$	433,151			$	386,766			$	355,830			$	379,009
% of Total Consolidated Revenue		78.6	%	%		76.2	%	%		68.0	%	%		55.7	%	%		63.0	%	%
% of Total Consolidated Gross Billings		32.5	%	%		33.7	%	%		31.7	%	%		23.4	%	%		26.9	%	%

Operating Income Excl SBC, Acq-Related	$	67,590			$	71,934			$	50,488			$	13,703			$	51,153
Year-over-year growth		N/A				N/A				N/A				(24	)	%		(24	)	%
Operating Margin Excl SBC, Acq-Related (% of Total Consolidated revenue)		12.1		%		12.7		%		8.9		%		2.1		%		8.5		%
Year-over-year growth (bps)		4,534				2,853				930				(150	)			(360	)
Operating Income TTM Excl SBC, Acq-Related	$	21,541			$	155,784			$	207,964			$	203,715			$	187,278
Operating Margin TTM Excl SBC, Acq-Related (% of Total Consolidated TTM revenue)		1.1		%		7.6		%		9.5		%		8.7		%		7.9		%
Year-over-year growth (bps)		5,011				4,229				3,320				1,770				680

Operating Income (Loss)	$	39,639			$	46,485			$	25,438			$	(12,861	)		$	21,178
Year-over-year growth		N/A				N/A				N/A				14		%		(47	)	%
Operating Margin (% of Total Consolidated revenue)		7.1		%		8.2		%		4.5		%		(2.0	)	%		3.5		%
Year-over-year growth (bps)		4,673				3,391				457				100				(360	)
Operating (Loss) Income TTM	$	(76,599	)		$	70,913			$	96,590			$	98,701			$	80,240
Operating Margin TTM (% of Total Consolidated TTM revenue)		(4.1	)	%		3.5		%		4.4		%		4.2		%		3.4		%
Year-over-year growth (bps)		8,875				6,824				4,740				1,870				750

Net (Loss) Income Attributable to Common Stockholders		(11,695	)			28,386				(2,979	)			(81,089	)			(3,992	)
Weighted Average Basic Shares Outstanding		644,097				647,150				653,224				655,678				658,800
Weighted Average Diluted Shares Outstanding ⁽⁶⁾		644,097				663,123				653,224				655,678				658,800
Net (Loss) Earnings per Share
Basic	$	(0.02	)		$	0.04			$	(0.00	)		$	(0.12	)		$	(0.01	)
Diluted	$	(0.02	)		$	0.04			$	(0.00	)		$	(0.12	)		$	(0.01	)


	Q1 2012				Q2 2012				Q3 2012				Q4 2012				Q1 2013
The following is a quarterly reconciliation of Adjusted EBITDA to the most comparable U.S. GAAP financial measure, “Net (loss) income” and a quarterly reconciliation of operating income, excluding stock-based compensation and acquisition-related benefit (expense), net, to the most comparable U.S. GAAP financial measure, “Operating income (loss).” ⁽⁷⁾
Adjusted EBITDA	$	79,306			$	84,744			$	65,798			$	29,668			$	71,853
Depreciation and amortization		(11,716	)			(12,810	)			(15,310	)			(15,965	)			(20,700	)
Operating income, excluding stock-based compensation and acquisition-related benefit (expense), net		67,590				71,934				50,488				13,703				51,153
Stock-based compensation		(28,003	)			(27,084	)			(22,619	)			(26,411	)			(29,907	)
Acquisition-related benefit (expense), net		52				1,635				(2,431	)			(153	)			(68	)
Operating income (loss)		39,639				46,485				25,438				(12,861	)			21,178
Non Operating Items
Interest and other (expense) income, net		(3,539	)			57,367				617				(48,279	)			(5,064	)
Loss on equity method investments		(5,128	)			(3,428	)			(138	)			(1,231	)			(19	)
Provision for income taxes		(34,565	)			(66,875	)			(26,857	)			(17,676	)			(19,337	)
Net (loss) income	$	(3,593	)		$	33,549			$	(940	)		$	(80,047	)		$	(3,242	)

The following is a trailing twelve months reconciliation of Operating income, excluding stock-based compensation and acquisition-related benefit (expense), net, to the most comparable U.S. GAAP financial measure, “Operating (loss) Income.” ⁽⁷⁾
Operating income, excluding stock-based compensation and acquisition-related benefit (expense), net TTM	$	21,541			$	155,784			$	207,964			$	203,715			$	187,278
Stock-based compensation		(102,729	)			(91,095	)			(110,374	)			(104,117	)			(106,021	)
Acquisition-related benefit (expense), net		4,589				6,224				(1,000	)			(897	)			(1,017	)
Operating (loss) income TTM	$	(76,599	)		$	70,913			$	96,590			$	98,701			$	80,240

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.⁽⁸⁾
International Gross Billings growth, excluding FX		138		%		45		%		(4	)	%		9		%		(8	)	%
FX Effect		(11	)	%		(13	)	%		(8	)	%		(3	)	%		(1	)	%
International Gross Billings growth		127		%		32		%		(12	)	%		6		%		(9	)	%

Consolidated Gross Billings growth, excluding FX		108		%		47		%		11		%		25		%		5		%
FX Effect		(5	)	%		(9	)	%		(6	)	%		(1	)	%		(1	)	%
Consolidated Gross Billings growth		103		%		38		%		5		%		24		%		4		%

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.⁽⁸⁾
International Revenue growth, excluding FX		112		%		44		%		13		%		(14	)	%		(17	)	%
FX Effect		(10	)	%		(13	)	%		(10	)	%		(2	)	%		(1	)	%
International Revenue growth		102		%		31		%		3		%		(16	)	%		(18	)	%

Consolidated Revenue growth, excluding FX		95		%		53		%		38		%		31		%		8		%
FX Effect		(6	)	%		(8	)	%		(6	)	%		(1	)	%		–		%
Consolidated Revenue growth		89		%		45		%		32		%		30		%		8		%

The following is a reconciliation of free cash flow to the most comparable U.S. GAAP financial measure, “Net cash provided by operating activities.”
Net cash provided by operating activities	$	83,714			$	75,315			$	42,088			$	65,717			$	8,760
Purchases of property, equipment and capitalized software		(13,083	)			(26,709	)			(16,010	)			(40,034	)			(14,468	)
Free cash flow ⁽⁹⁾	$	70,631			$	48,606			$	26,078			$	25,683			$	(5,708	)

Net cash provided by operating activities (TTM)	$	356,221			$	392,517			$	370,194			$	266,834			$	191,880
Purchases of property, equipment and capitalized software (TTM)		(45,932	)			(62,401	)			(69,788	)			(95,836	)			(97,221	)
Free cash flow (TTM)	$	310,289			$	330,116			$	300,406			$	170,998			$	94,659

Net cash used in investing activities	$	(46,444	)		$	(60,153	)		$	(35,629	)		$	(52,753	)		$	(30,679	)
Net cash (used in) provided by financing activities	$	(8,275	)		$	24,158			$	2,707			$	(6,495	)		$	(9,432	)

Net cash used in investing activities (TTM)	$	(149,583	)		$	(184,552	)		$	(177,133	)		$	(194,979	)		$	(179,214	)
Net cash provided by financing activities (TTM)	$	746,824			$	771,404			$	765,503			$	12,095			$	11,028

Other Metrics
Active Customers⁽¹⁰⁾
North America		14.9				15.1				16.0				17.2				18.2
International		22.0				22.9				23.5				23.8				23.5
Total Active Customers		36.9				38.0				39.5				41.0				41.7

TTM Gross Billings / Average Active Customer ⁽¹¹⁾
North America	$	156			$	151			$	148			$	152			$	151
International	$	197			$	175			$	149			$	138			$	129
Consolidated	$	179			$	165			$	149			$	144			$	138

Headcount
Sales ⁽¹²⁾		5,735				5,587				5,087				4,677				4,566
% North America		21	%			20	%			24	%			25	%			28	%
% International		79	%			80	%			76	%			75	%			72	%
Other		6,813				7,233				6,779				6,717				6,433
Total Headcount		12,548				12,820				11,866				11,394				10,999

Category: News

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