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Groupon Announces First Quarter 2016 Results
Adds nearly 1 million new customers, boosts AEBITDA Guidance
-
Gross billings of
$1.47 billion -
Revenue of
$732.0 million -
Adjusted EBITDA of
$31.3 million -
GAAP loss per share of
$0.08 ; non-GAAP loss per share of$0.01 -
Operating Cash Flow of
$179.4 million for the trailing twelve month period; Free Cash Flow of$93.8 million for the trailing twelve month period -
Affirming fiscal year 2016 revenue guidance of
$2.75 billion to$3.05 billion and increased 2016 expected Adjusted EBITDA range to$85 million to$135 million
"We started the year making continued strides toward becoming a daily
habit in local commerce," said CEO
First Quarter 2016 Summary
-
Gross Billings were
$1.47 billion in the first quarter, down 5% from$1.55 billion in the first quarter of 2015, or 3% excluding the unfavorable impact of year-over-year changes in foreign exchange rates. The reduction in Gross Billings includes our continued restructuring efforts, country closures, and our initiative to de-emphasize low margin Shopping offerings.North America gross billings increased 5%, EMEA declined by 12%, and Rest of World declined by 17% on the same F/X neutral basis. Gross billings reflect the total dollar value of customer purchases of goods and services. -
Revenue was
$732.0 million in the first quarter 2016, compared with$750.4 million in the first quarter 2015. Revenue decreased 2% globally, or less than 1% excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter. On this F/X neutral basis,North America revenue increased 4%, EMEA declined 10% and Rest of World declined 8%. -
Gross profit was
$339.3 million in the first quarter 2016, compared with$347.4 million in the first quarter 2015. Gross profit declined 2% globally, but was flat excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter. -
Adjusted EBITDA, a non-GAAP financial measure, was
$31.3 million in the first quarter 2016, compared with$72.4 million in the first quarter 2015. -
Net loss attributable to common stockholders was
$49.1 million , or$0.08 per share. Non-GAAP net loss attributable to common stockholders was$4.6 million , or$0.01 per share. -
Global units declined 3% year-over-year to 52 million consistent with
restructuring efforts in international segments. Units in
North America increased 6%, EMEA units declined 7%, and Rest of World units declined 25%. Units are defined as vouchers and products sold before cancellations and refunds. -
Operating cash flow for the trailing twelve months ended
March 31, 2016 was$179.4
million. Free cash flow, a non-GAAP financial measure, was negative$96.7 million in the first quarter 2016, bringing free cash flow for the trailing twelve months endedMarch 31, 2016 to$93.8 million . -
Cash and cash equivalents as of
March 31, 2016 was$688.5 million , and we had no outstanding borrowings under our revolving credit facility. OnApril 4 , the company issued$250 million in aggregate principal amount of senior convertible notes, the proceeds of which are not reflected in our cash balance as ofMarch 31 .
Definitions and reconciliations of all non-GAAP financial measures are included below in the section titled "Non-GAAP Financial Measures" and in the accompanying tables.
Highlights
-
Groupon sold its one billionth unit in Q1.Groupon crossed the one billion-sold milestone with units sold of 52 million in the quarter and 6% unit growth inNorth America . -
North America Gross Profit grew 11% year-over-year.
North America gross profit grew 11% year-over-year to$215.9 million and gross margin increased to 23% of gross billings, a two-year high. -
Shopping Gross Margins increased year-over-year in all segments for
a second consecutive quarter. Shopping gross margins of 13.7%
increased 310 basis points year-over-year with increases of 390 basis
points in
North America , 200 basis points in EMEA and 320 basis points in Rest of World. All segments recorded a second consecutive quarter of year-over-year increases as we made progress on our initiatives to de-emphasize low margin Shopping offerings and drive more efficiency from our logistics network. -
North America added nearly 1 million active customers in the quarter. Marketing investments in customer acquisition resulted in an incremental 955,000 active customers inNorth America , as compared to the prior quarter, which is the highest quarterly increase in two years.North America reported 26.9 million active customers atMarch 31 . Active customers are customers that have purchased a voucher or product within the last twelve months. -
North America more than doubled active deals year-over-year. At the end of the first quarter 2016, on average, active deals were more than 700,000 globally and more than 425,000 inNorth America , an increase of over two-fold. -
Global SG&A declined by
$9m year-over-year on solid execution on our operational streamlining initiatives. SG&A in International markets declined by$18 million year-over-year as we exited 17 countries under our restructuring plan and consolidated key shared service functions into regional centers to improve customer service while gaining operating leverage.
Share Repurchase
During the first quarter 2016,
Outlook
Groupon's outlook for 2016 reflects current foreign exchange rates, as
well as expected marketing investments, continued progress on increasing
Shopping margins, and a reduction of our international footprint. We
continue to expect revenue of between
Groupon Names
In a separate release today,
Conference Call
A conference call will be webcast live today at
Non-GAAP Financial Measures
In addition to financial results reported in accordance with
We exclude the following items from one or more of our non-GAAP financial measures:
Stock-based compensation. We exclude stock-based compensation because it is primarily non-cash in nature and we believe that non-GAAP financial measures excluding this item provide meaningful supplemental information about our operating performance and liquidity.
Acquisition-related expense (benefit), net. Acquisition-related expense (benefit), net is comprised of the change in the fair value of contingent consideration arrangements and external transaction costs related to business combinations, primarily consisting of legal and advisory fees. The composition of our contingent consideration arrangements and the impact of those arrangements on our operating results vary over time based on a number of factors, including the terms of our business combinations and the timing of those transactions. We exclude acquisition-related expense (benefit), net because we believe that non-GAAP financial measures excluding this item provide meaningful supplemental information about our operating performance and facilitate comparisons to our historical operating results.
Depreciation and amortization. We exclude depreciation and amortization expenses because they are non-cash in nature and we believe that non-GAAP financial measures excluding these items provide meaningful supplemental information about our operating performance and liquidity.
Interest and Other Non-Operating Items. Interest and other non-operating items include: interest income, interest expense, gains and losses related to minority investments, and foreign currency gains and losses. We exclude interest and other non-operating items from certain of our non-GAAP financial measures because we believe that excluding these items provides meaningful supplemental information about our core operating performance and facilitates comparisons to our historical operating results.
Items That Are Unusual in Nature or Infrequently Occurring.
During the three months ended
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 prior-year period. We present foreign exchange rate neutral information to facilitate comparisons to our historical operating results.
Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) from continuing operations excluding income taxes, interest and other non-operating items, depreciation and amortization, stock-based compensation, acquisition-related expense (benefit), net and items that are unusual in nature or infrequently occurring. Our definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Adjusted EBITDA is a key measure used by our management and Board of Directors to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors.
Non-GAAP net income (loss) attributable to common stockholders and non-GAAP earnings (loss) per share adjust our net income (loss) attributable to common stockholders and earnings (loss) per share to exclude the impact of:
- stock-based compensation,
- amortization of acquired intangible assets,
- acquisition-related expense (benefit), net,
- items that are unusual in nature or infrequently occurring,
- non-operating foreign currency gains and losses related to intercompany balances and reclassifications of cumulative translation adjustments to earnings as a result of business dispositions or country exits,
- non-operating gains and losses from minority investments that we have elected to record at fair value with changes in fair value reported in earnings,
- income (loss) from discontinued operations and
- the income tax effect of those items.
We believe that excluding these items from our measures of non-GAAP net income (loss) attributable to common stockholders and non-GAAP earnings (loss) per share provides useful supplemental information for evaluating our operating performance and facilitates comparisons to our historical results by eliminating items that are non-cash in nature, relate to discrete events or are otherwise not indicative of the core operating performance of our ongoing business.
Free cash flow is a non-GAAP financial measure that comprises net
cash provided by (used in) operating activities from continuing
operations less purchases of property and equipment and capitalized
software from continuing operations. We use free cash flow 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
Note on Forward-Looking Statements
The statements contained in this release that refer to plans and
expectations for the next quarter, the full year or the future are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, that involve a number of risks and
uncertainties, and actual results could differ materially from those
discussed. The words "may," will," should," "could," "expect,"
anticipate," "believe," "estimate," intend," "continue" and other
similar expressions are intended to identify forward-looking statements.
The risks and uncertainties that could cause our results to differ
materially from those included in the forward-looking statements
include, but are not limited to, volatility in our revenue and operating
results; risks related to our business strategy, including our strategy
to grow our local marketplaces, marketing strategy and spend and the
productivity of those marketing investments and the impact of our shift
away from lower margin products in our Goods category; effectively
dealing with challenges arising from our international operations,
including fluctuations in currency exchange rates; retaining existing
customers and adding new customers, including as we increase our
marketing spend and shift away from lower margin products in our Goods
category; retaining and adding high quality merchants; cyber security
breaches; incurring expenses as we expand our business; competing
successfully in our industry; maintaining favorable payment terms with
our business partners; providing a strong mobile experience for our
customers; delivery and routing of our emails; product liability claims;
managing inventory and order fulfillment risks; integrating our
technology platforms; litigation; managing refund risks; retaining,
attracting and integrating members of our executive team; difficulties,
delays or our inability to successfully complete all or part of the
announced restructuring actions or to realize the operating efficiencies
and other benefits of such restructuring actions; higher than
anticipated restructuring charges or changes in the timing of such
restructuring charges; completing and realizing the anticipated benefits
from acquisitions, dispositions, joint ventures and strategic
investments; tax liabilities; tax legislation; compliance with domestic
and foreign laws and regulations, including the CARD Act and regulation
of the
You should not rely upon forward-looking statements as predictions of
future events. Although
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Summary Consolidated and Segment Results | ||||||||||||||||||||
(in thousands, except share and per share amounts) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
The financial results of Ticket Monster are presented as
discontinued operations in the accompanying condensed consolidated
financial statements and tables for the three months ended |
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Y/Y % | ||||||||||||||||||||
Growth | ||||||||||||||||||||
Three Months Ended |
Y/Y % | excluding | ||||||||||||||||||
2016 | 2015 |
Growth |
FX Effect(2) |
FX(2) |
||||||||||||||||
Gross Billings (1): | ||||||||||||||||||||
|
$ | 937,074 | $ | 893,977 | 4.8 | % | $ | (708 | ) | 4.9 | % | |||||||||
EMEA | 392,227 | 459,189 | (14.6 | ) | % | (13,120 | ) | (11.7 | ) | % | ||||||||||
Rest of World | 142,709 | 198,835 | (28.2 | ) | % | (21,873 | ) | (17.2 | ) | % | ||||||||||
Consolidated gross billings | $ | 1,472,010 | $ | 1,552,001 | (5.2 | ) | % | $ | (35,701 | ) | (2.9 | ) | % | |||||||
Revenue: | ||||||||||||||||||||
|
$ | 500,813 | $ | 479,882 | 4.4 | % | $ | (154 | ) | 4.4 | % | |||||||||
EMEA | 188,970 | 216,220 | (12.6 | ) | % | (6,268 | ) | (9.7 | ) | % | ||||||||||
Rest of World | 42,188 | 54,254 | (22.2 | ) | % | (7,702 | ) | (8.0 | ) | % | ||||||||||
Consolidated revenue | $ | 731,971 | $ | 750,356 | (2.5 | ) | % | $ | (14,124 | ) | (0.6 | ) | % | |||||||
Income (loss) from operations | $ | (47,333 | ) | $ | 5,295 | (993.9 | ) | % | $ | (229 | ) | (989.6 | ) | % | ||||||
Income (loss) from continuing operations | $ | (45,596 | ) | $ | (16,739 | ) | ||||||||||||||
Income (loss) from discontinued operations, net of tax | $ | — | $ | 6,284 | ||||||||||||||||
Net income (loss) attributable to |
$ | (49,119 | ) | $ | (14,273 | ) | ||||||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||
Continuing operations | $ | (0.08 | ) | $ | (0.03 | ) | ||||||||||||||
Discontinued operations | - | 0.01 | ||||||||||||||||||
Basic net income (loss) per share | $ | (0.08 | ) | $ | (0.02 | ) | ||||||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||
Continuing operations | $ | (0.08 | ) | $ | (0.03 | ) | ||||||||||||||
Discontinued operations | - | 0.01 | ||||||||||||||||||
Diluted net income (loss) per share | $ | (0.08 | ) | $ | (0.02 | ) | ||||||||||||||
Weighted average number of shares outstanding | ||||||||||||||||||||
Basic | 582,751,678 | 676,382,937 | ||||||||||||||||||
Diluted | 582,571,678 | 676,382,937 | ||||||||||||||||||
(1) | Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. | |
(2) |
Represents the change in financial measures that would have resulted
had average exchange rates in the reporting period been the same as
those in effect during the three months ended |
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Condensed Consolidated Statements of Cash Flows | ||||||||||
(in thousands) | ||||||||||
(unaudited) | ||||||||||
Three Months Ended |
||||||||||
2016 |
2015 (1) |
|||||||||
Operating activities | ||||||||||
Net income (loss) | $ | (45,596 | ) | $ | (10,455 | ) | ||||
Less: Income (loss) from discontinued operations, net of tax | — | 6,284 | ||||||||
Income (loss) from continuing operations | (45,596 | ) | (16,739 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||
Depreciation and amortization of property, equipment and software | 30,143 | 26,266 | ||||||||
Amortization of acquired intangible assets | 4,654 | 5,934 | ||||||||
Stock-based compensation | 30,756 | 35,144 | ||||||||
Restructuring-related long-lived asset impairments | 45 | — | ||||||||
Deferred income taxes | (2,310 | ) | 22 | |||||||
(Gain) loss, net from changes in fair value of contingent consideration | 3,442 | (279 | ) | |||||||
Loss from changes in fair value of investments | 1,100 | — | ||||||||
Change in assets and liabilities, net of acquisitions: | ||||||||||
Restricted cash | 505 | 3,245 | ||||||||
Accounts receivable | (3,223 | ) | (8,901 | ) | ||||||
Prepaid expenses and other current assets | 20,940 | (2,513 | ) | |||||||
Accounts payable | (2,850 | ) | 2,244 | |||||||
Accrued merchant and supplier payables | (112,425 | ) | (17,034 | ) | ||||||
Accrued expenses and other current liabilities | 10,848 | (2,470 | ) | |||||||
Other, net | (12,754 | ) | 18,688 | |||||||
Net cash provided by (used in) operating activities from continuing operations | (76,725 | ) | 43,607 | |||||||
Net cash provided by (used in) operating activities from discontinued operations | — | (24,355 | ) | |||||||
Net cash provided by (used in) operating activities | (76,725 | ) | 19,252 | |||||||
Net cash provided by (used in) investing activities from continuing operations | (20,778 | ) | (19,443 | ) | ||||||
Net cash provided by (used in) investing activities from discontinued operations | — | (624 | ) | |||||||
Net cash provided by (used in) investing activities | (20,778 | ) | (20,067 | ) | ||||||
Net cash provided by (used in) financing activities | (78,015 | ) | (35,838 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents, including cash classified within current assets held for sale | 10,668 | (30,199 | ) | |||||||
Net increase (decrease) in cash and cash equivalents, including cash classified within current assets held for sale | (164,850 | ) | (66,852 | ) | ||||||
Less: Net increase (decrease) in cash classified within current assets held for sale | — | (25,722 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | (164,850 | ) | (41,130 | ) | ||||||
Cash and cash equivalents, beginning of period | 853,362 | 1,016,634 | ||||||||
Cash and cash equivalents, end of period | $ | 688,512 | $ | 975,504 |
(1) |
The Company adopted the guidance in Accounting Standards Update
("ASU") 2016-09, Compensation - Stock Compensation
(Topic 718) - Improvements to Employee Share-Based Payment
Accounting, on |
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Condensed Consolidated Statements of Operations | ||||||||||
(in thousands, except share and per share amounts) | ||||||||||
(unaudited) | ||||||||||
Three Months Ended |
||||||||||
2015 | 2014 | |||||||||
Revenue: | ||||||||||
Third party and other | $ | 334,568 | $ | 360,121 | ||||||
Direct | 397,403 | 390,235 | ||||||||
Total revenue | 731,971 | 750,356 | ||||||||
Cost of revenue: | ||||||||||
Third party and other | 46,781 | 51,697 | ||||||||
Direct | 345,862 | 351,253 | ||||||||
Total cost of revenue | 392,643 | 402,950 | ||||||||
Gross profit | 339,328 | 347,406 | ||||||||
Operating expenses: | ||||||||||
Marketing | 89,765 | 52,533 | ||||||||
Selling, general and administrative | 280,988 | 289,847 | ||||||||
Restructuring charges | 12,444 | — | ||||||||
Acquisition-related expense (benefit), net | 3,464 | (269 | ) | |||||||
Total operating expenses | 386,661 | 342,111 | ||||||||
Income (loss) from operations | (47,333 | ) | 5,295 | |||||||
Other income (expense), net (1) | 3,486 | (19,927 | ) | |||||||
Income (loss) from continuing operations before provision (benefit) for income taxes | (43,847 | ) | (14,632 | ) | ||||||
Provision (benefit) for income taxes | 1,749 | 2,107 | ||||||||
Income (loss) from continuing operations | (45,596 | ) | (16,739 | ) | ||||||
Income (loss) from discontinued operations, net of tax | — | 6,284 | ||||||||
Net income (loss) | (45,596 | ) | (10,455 | ) | ||||||
Net income attributable to noncontrolling interests | (3,523 | ) | (3,818 | ) | ||||||
Net income (loss) attributable to |
$ | (49,119 | ) | $ | (14,273 | ) | ||||
Basic net income (loss) per share: | ||||||||||
Continuing operations | $ | (0.08 | ) | $ | (0.03 | ) | ||||
Discontinued operations | - | 0.01 | ||||||||
Basic net income (loss) per share | $ | (0.08 | ) | $ | (0.02 | ) | ||||
Diluted net income (loss) per share: | ||||||||||
Continuing operations | $ | (0.08 | ) | $ | (0.03 | ) | ||||
Discontinued operations | - | 0.01 | ||||||||
Diluted net income (loss) per share | $ | (0.08 | ) | $ | (0.02 | ) | ||||
Weighted average number of shares outstanding | ||||||||||
Basic | 582,751,678 | 676,382,937 | ||||||||
Diluted | 582,571,678 | 676,382,937 | ||||||||
(1) |
Other income (expense), net includes foreign currency gains (losses)
of |
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Condensed Consolidated Balance Sheets | ||||||||||
(in thousands, except share and per share amounts) | ||||||||||
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(unaudited) | ||||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 688,512 | $ | 853,362 | ||||||
Accounts receivable, net | 73,471 | 68,175 | ||||||||
Prepaid expenses and other current assets | 134,831 | 153,705 | ||||||||
Total current assets | 896,814 | 1,075,242 | ||||||||
Property, equipment and software, net | 193,036 | 198,897 | ||||||||
|
291,747 | 287,332 | ||||||||
Intangible assets, net | 32,769 | 36,483 | ||||||||
Investments (including |
177,553 | 178,236 | ||||||||
Deferred income taxes | 4,254 | 3,454 | ||||||||
Other non-current assets | 22,507 | 16,620 | ||||||||
Total Assets | $ | 1,618,680 | $ | 1,796,264 | ||||||
Liabilities and Equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 21,970 | $ | 24,590 | ||||||
Accrued merchant and supplier payables | 674,153 | 776,211 | ||||||||
Accrued expenses and other current liabilities | 406,578 | 402,724 | ||||||||
Total current liabilities | 1,102,701 | 1,203,525 | ||||||||
Deferred income taxes | 6,937 | 8,612 | ||||||||
Other non-current liabilities | 123,371 | 113,540 | ||||||||
Total Liabilities | 1,233,009 | 1,325,677 | ||||||||
Commitments and contingencies | ||||||||||
Stockholders' Equity | ||||||||||
Class A common stock, par value |
72 | 72 | ||||||||
Class B common stock, par value |
— | — | ||||||||
Common stock, par value |
— |
— |
||||||||
Additional paid-in capital | 1,997,930 | 1,964,453 | ||||||||
|
(708,490 | ) | (645,041 | ) | ||||||
Accumulated deficit | (953,542 | ) | (901,292 | ) | ||||||
Accumulated other comprehensive income (loss) | 48,354 | 51,206 | ||||||||
Total |
384,324 | 469,398 | ||||||||
Noncontrolling interests | 1,347 | 1,189 | ||||||||
Total Equity | 385,671 | 470,587 | ||||||||
Total Liabilities and Equity | $ | 1,618,680 | $ | 1,796,264 | ||||||
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Segment Information | ||||||||||
(in thousands) | ||||||||||
(unaudited) | ||||||||||
Three Months Ended |
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2016 | 2015 | |||||||||
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Gross billings (1) | $ | 937,074 | $ | 893,977 | ||||||
Revenue | $ | 500,813 | $ | 479,882 | ||||||
Segment cost of revenue and operating expenses (2) (3) | 512,261 | 455,216 | ||||||||
Segment operating income (2) | $ | (11,448 | ) | $ | 24,666 | |||||
Segment operating income as a percent of segment gross billings | (1.2 | )% | 2.8 | % | ||||||
Segment operating income as a percent of segment revenue | (2.3 | )% | 5.1 | % | ||||||
EMEA | ||||||||||
Gross billings (1) | $ | 392,227 | $ | 459,189 | ||||||
Revenue | $ | 188,970 | $ | 216,220 | ||||||
Segment cost of revenue and operating expenses (2) (3) | 183,054 | 196,568 | ||||||||
Segment operating income (2) | $ | 5,916 | $ | 19,652 | ||||||
Segment operating income as a percent of segment gross billings | 1.5 | % | 4.3 | % | ||||||
Segment operating income as a percent of segment revenue | 3.1 | % | 9.1 | % | ||||||
Rest of World | ||||||||||
Gross billings (1) | $ | 142,709 | $ | 198,835 | ||||||
Revenue | $ | 42,188 | $ | 54,254 | ||||||
Segment cost of revenue and operating expenses (2) (3) | 49,974 | 58,402 | ||||||||
Segment operating loss (2) | $ | (7,786 | ) | $ | (4,148 | ) | ||||
Segment operating loss as a percent of segment gross billings | (5.5 | )% | (2.1 | )% | ||||||
Segment operating loss as a percent of segment revenue | (18.5 | )% | (7.6 | )% | ||||||
(1) | Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. | |
(2) | Segment cost of revenue and operating expenses and segment operating income (loss) exclude stock-based compensation and acquisition-related expense (benefit), net. | |
(3) |
Segment cost of revenue and operating expenses for the three months
ended |
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Non-GAAP Reconciliation Schedules | ||||||||||||||||||||||||||
(in thousands, except share and per share amounts) | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Adjusted EBITDA, non-GAAP earnings attributable to common
stockholders and non-GAAP earnings per share are non-GAAP financial
measures. The Company reconciles Adjusted EBITDA to the most
comparable |
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The following is a quarterly reconciliation of Adjusted EBITDA to
the most comparable |
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Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | ||||||||||||||||||||||
Income (loss) from continuing operations | $ | (16,739 | ) | $ | (15,267 | ) | $ | (24,613 | ) | $ | (32,552 | ) | $ | (45,596 | ) | |||||||||||
Adjustments: | ||||||||||||||||||||||||||
Stock-based compensation (1) | 35,144 | 38,467 | 35,432 | 32,691 | 27,976 | |||||||||||||||||||||
Depreciation and amortization | 32,200 | 31,372 | 35,635 | 33,763 | 34,797 | |||||||||||||||||||||
Acquisition-related expense (benefit), net | (269 | ) | 505 | 1,064 | 557 | 3,464 | ||||||||||||||||||||
Restructuring charges | — | — | 24,146 | 5,422 | 12,444 | |||||||||||||||||||||
Gain on disposition of business | — | — | (13,710 | ) | — | — | ||||||||||||||||||||
Prepaid marketing write-off | — | — | 6,690 | — | — | |||||||||||||||||||||
Securities litigation expense | — | — | 37,500 | — | — | |||||||||||||||||||||
Non-operating expense (income), net | 19,927 | (2,941 | ) | 8,160 | 3,393 | (3,486 | ) | |||||||||||||||||||
Provision (benefit) for income taxes | 2,107 | 8,982 | (53,970 | ) | 23,736 | 1,749 | ||||||||||||||||||||
Total adjustments | 89,109 | 76,385 | 80,947 | 99,562 | 76,944 | |||||||||||||||||||||
Adjusted EBITDA | $ | 72,370 | $ | 61,118 | $ | 56,334 | $ | 67,010 | $ | 31,348 | ||||||||||||||||
(1) |
Includes stock-based compensation classified within cost of revenue,
marketing expense, and selling, general and administrative expense.
Non-operating expense (income), net, includes |
|||||||||||||||||||||||||
The following is a reconciliation of net income (loss) attributable
to common stockholders to non-GAAP net income (loss) attributable to
common stockholders and a reconciliation of diluted net income
(loss) per share to non-GAAP net income (loss) per share for the
three months ended |
||||||||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | (49,119 | ) |
|
||||||||||||||||||||||
Stock-based compensation (1) | 28,208 | |||||||||||||||||||||||||
Amortization of acquired intangible assets | 4,654 | |||||||||||||||||||||||||
Acquisition-related expense (benefit), net | 3,464 | |||||||||||||||||||||||||
Restructuring charges | 12,444 | |||||||||||||||||||||||||
Intercompany foreign currency losses (gains) and reclassifications of translation adjustments to earnings (2) | (5,470 | ) | ||||||||||||||||||||||||
Loss from changes in fair value of investments | 1,100 | |||||||||||||||||||||||||
Income tax effect of above adjustments | 88 | |||||||||||||||||||||||||
Non-GAAP net income (loss) attributable to common stockholders | $ | (4,631 | ) | |||||||||||||||||||||||
Diluted shares | 582,751,678 | |||||||||||||||||||||||||
Incremental diluted shares | — | |||||||||||||||||||||||||
Adjusted diluted shares | 582,751,678 | |||||||||||||||||||||||||
Diluted net income (loss) per share | (0.08 | ) | ||||||||||||||||||||||||
Impact of stock-based compensation, amortization of acquired intangible assets, acquisition-related expense (benefit), net, intercompany foreign currency losses (gains), items that are unusual in nature and infrequently occurring and related tax effects | 0.07 | |||||||||||||||||||||||||
Non-GAAP net income (loss) per share | $ | (0.01 | ) | |||||||||||||||||||||||
(1) |
Excludes |
|||||||||||||||||||||||||
(2) |
For the three months ended |
|||||||||||||||||||||||||
Foreign exchange rate neutral operating results are non-GAAP
financial measures. The Company reconciles foreign exchange rate
neutral operating results to the most comparable |
||||||||||||||||||||||||||
The effect on the Company's gross billings, revenue and income
(loss) from changes in exchange rates versus the |
||||||||||||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||||
At Avg. Q1 2015 | Exchange Rate | As | At Avg. Q4 2015 | Exchange Rate | As | |||||||||||||||||||||
Rates (1) |
Effect(2) |
Reported |
Rates (3) |
Effect(2) |
Reported | |||||||||||||||||||||
Gross billings | $ | 1,507,711 | $ | (35,701 | ) | $ | 1,472,010 | $ | 1,478,984 | $ | (6,974 | ) | $ | 1,472,010 | ||||||||||||
Revenue | 746,095 | (14,124 | ) | 731,971 | 734,872 | (2,901 | ) | 731,971 | ||||||||||||||||||
Income (loss) from operations | $ | (47,104 | ) | $ | (229 | ) | $ | (47,333 | ) | $ | (46,447 | ) | $ | (886 | ) | $ | (47,333 | ) | ||||||||
(1) |
Represents the financial statement balances that would have resulted
had average exchange rates in the reporting periods been the same as
those in effect during the three months ended |
|||||||||||||||||||||||||
(2) | Represents the increase or decrease in reported amounts resulting from changes in exchange rates from those in effect in the comparable prior periods. | |||||||||||||||||||||||||
(3) |
Represents the financial statement balances that would have resulted
had average exchange rates in the reporting periods been the same as
those in effect during the three months ended |
|||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||
Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | ||||||||||||||||||||||
EMEA Gross billings growth, excluding FX | 7 | % | 9 | % | (1 | ) | % | (2 | ) | % | (12 | ) | % | |||||||||||||
FX Effect | (18 | ) | (19 | ) | (14 | ) | (11 | ) | (3 | ) | ||||||||||||||||
EMEA Gross billings growth | (11 | ) | % | (10 | ) | % | (15 | ) | % | (13 | ) | % | (15 | ) | % | |||||||||||
Rest of World Gross billings growth, excluding FX | (1 | ) | % | 6 | % | — | % | (7 | ) | % | (17 | ) | % | |||||||||||||
FX Effect | (11 | ) | (15 | ) | (19 | ) | (14 | ) | (11 | ) | ||||||||||||||||
Rest of World Gross billings growth | (12 | ) | % | (9 | ) | % | (19 | ) | % | (21 | ) | % | (28 | ) | % | |||||||||||
Consolidated Gross billings growth, excluding FX | 10 | % | 10 | % | 6 | % | 4 | % | (3 | ) | % | |||||||||||||||
FX Effect | (8 | ) | (8 | ) | (8 | ) | (5 | ) | (2 | ) | ||||||||||||||||
Consolidated Gross billings growth | 2 | % | 2 | % | (2 | ) | % | (1 | ) | % | (5 | ) | % | |||||||||||||
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. | ||||||||||||||||||||||||||
Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | ||||||||||||||||||||||
EMEA Revenue growth, excluding FX | 13 | % | 9 | % | 2 | % | 3 | % | (10 | ) | % | |||||||||||||||
FX Effect | (19 | ) | (19 | ) | (15 | ) | (12 | ) | (3 | ) | ||||||||||||||||
EMEA Revenue growth | (6 | ) | % | (10 | ) | % | (13 | ) | % | (9 | ) | % | (13 | ) | % | |||||||||||
Rest of World Revenue growth, excluding FX | (8 | ) | % | (4 | ) | % | (5 | ) | % | (8 | ) | % | (8 | ) | % | |||||||||||
FX Effect | (10 | ) | (14 | ) | (18 | ) | (15 | ) | (14 | ) | ||||||||||||||||
Rest of World Revenue growth | (18 | ) | % | (18 | ) | % | (23 | ) | % | (23 | ) | % | (22 | ) | % | |||||||||||
Consolidated Revenue growth, excluding FX | 10 | % | 11 | % | 7 | % | 9 | % | (1 | ) | % | |||||||||||||||
FX Effect | (7 | ) | (8 | ) | (7 | ) | (5 | ) | (1 | ) | ||||||||||||||||
Consolidated Revenue growth | 3 | % | 3 | % | — | % | 4 | % | (2 | ) | % | |||||||||||||||
The effect on |
||||||||||||||||||||
Y/Y% | ||||||||||||||||||||
Exchange | Growth | |||||||||||||||||||
At Avg. Q1 | Rate |
|
|
Y/Y % | excluding | |||||||||||||||
2015 Rates (1) |
Effect (2) |
As Reported | As Reported | Growth | FX | |||||||||||||||
Local: | ||||||||||||||||||||
Third party and other | $ | 540,038 | $ | (415 | ) | $ | 539,623 | $ | 512,558 | 5.3 | % | 5.4 | % | |||||||
Travel: | ||||||||||||||||||||
Third party | 103,473 | (83 | ) | 103,390 | 96,678 | 6.9 | % | 7.0 | % | |||||||||||
Total services | 643,511 | (498 | ) | 643,013 | 609,236 | 5.5 | % | 5.6 | % | |||||||||||
Goods: | ||||||||||||||||||||
Third party | 8,515 | (210 | ) | 8,305 | 6,360 | 30.6 | % | 33.9 | % | |||||||||||
Direct | 285,756 | — | 285,756 | 278,381 | 2.6 | % | 2.6 | % | ||||||||||||
Total | 294,271 | (210 | ) | 294,061 | 284,741 | 3.3 | % | 3.3 | % | |||||||||||
Total gross billings | $ | 937,782 | $ | (708 | ) | $ | 937,074 | $ | 893,977 | 4.8 | % | 4.9 | % | |||||||
The effect on EMEA's gross billings by category from changes in
foreign exchange rates versus the |
||||||||||||||||||||
Y/Y% | ||||||||||||||||||||
Exchange | Growth | |||||||||||||||||||
At Avg. Q1 | Rate |
|
|
Y/Y % | excluding | |||||||||||||||
2015 Rates (1) |
Effect (2) |
As Reported | As Reported | Growth | FX | |||||||||||||||
Local: | ||||||||||||||||||||
Third party and other | $ | 180,262 | $ | (6,229 | ) | $ | 174,033 | $ | 217,598 | (20.0 | ) | % | (17.2 | ) | % | |||||
Travel: | ||||||||||||||||||||
Third party | 59,189 | (1,988 | ) | 57,201 | 65,065 | (12.1 | ) | % | (9.0 | ) | % | |||||||||
Total services | 239,451 | (8,217 | ) | 231,234 | 282,663 | (18.2 | ) | % | (15.3 | ) | % | |||||||||
Goods: | ||||||||||||||||||||
Third party | 57,626 | (1,853 | ) | 55,773 | 69,537 | (19.8 | ) | % | (17.1 | ) | % | |||||||||
Direct | 108,270 | (3,050 | ) | 105,220 | 106,989 | (1.7 | ) | % | 1.2 | % | ||||||||||
Total | 165,896 | (4,903 | ) | 160,993 | 176,526 | (8.8 | ) | % | (6.0 | ) | % | |||||||||
Total gross billings | $ | 405,347 | $ | (13,120 | ) | $ | 392,227 | $ | 459,189 | (14.6 | ) | % | (11.7 | ) | % | |||||
The effect on Rest of World's gross billings by category from
changes in foreign exchange rates versus the |
||||||||||||||||||||
Y/Y% | ||||||||||||||||||||
Exchange | Growth | |||||||||||||||||||
At Avg. Q1 | Rate |
|
|
Y/Y % | excluding | |||||||||||||||
2015 Rates (1) |
Effect (2) |
As Reported | As Reported | Growth | FX | |||||||||||||||
Local: | ||||||||||||||||||||
Third party and other | $ | 86,569 | $ | (11,275 | ) | $ | 75,294 | $ | 99,735 | (24.5 | ) | % | (13.2 | ) | % | |||||
Travel: | ||||||||||||||||||||
Third party | 28,918 | (4,990 | ) | 23,928 | 32,946 | (27.4 | ) | % | (12.2 | ) | % | |||||||||
Total services | 115,487 | (16,265 | ) | 99,222 | 132,681 | (25.2 | ) | % | (13.0 | ) | % | |||||||||
Goods: | ||||||||||||||||||||
Third party | 40,658 | (3,598 | ) | 37,060 | 61,289 | (39.5 | ) | % | (33.7 | ) | % | |||||||||
Direct | 8,437 | (2,010 | ) | 6,427 | 4,865 | 32.1 | % | 73.4 | % | |||||||||||
Total | 49,095 | (5,608 | ) | 43,487 | 66,154 | (34.3 | ) | % | (25.8 | ) | % | |||||||||
Total gross billings | $ | 164,582 | $ | (21,873 | ) | $ | 142,709 | $ | 198,835 | (28.2 | ) | % | (17.2 | ) | % | |||||
The effect on consolidated gross billings by category from changes
in foreign exchange rates versus the |
||||||||||||||||||||
Y/Y% | ||||||||||||||||||||
Exchange | Growth | |||||||||||||||||||
At Avg. Q1 | Rate |
|
|
Y/Y % | excluding | |||||||||||||||
2015 Rates (1) |
Effect (2) |
As Reported | As Reported | Growth | FX | |||||||||||||||
Local: | ||||||||||||||||||||
Third party and other | $ | 806,869 | $ | (17,919 | ) | $ | 788,950 | $ | 829,891 | (4.9 | ) | % | (2.8 | ) | % | |||||
Travel: | ||||||||||||||||||||
Third party | 191,580 | (7,061 | ) | $ | 184,519 | 194,689 | (5.2 | ) | % | (1.6 | ) | % | ||||||||
Total services | 998,449 | (24,980 | ) | 973,469 | 1,024,580 | (5.0 | ) | % | (2.6 | ) | % | |||||||||
Goods: | ||||||||||||||||||||
Third party | 106,799 | (5,661 | ) | 101,138 | 137,186 | (26.3 | ) | % | (22.2 | ) | % | |||||||||
Direct | 402,463 | (5,060 | ) | 397,403 | 390,235 | 1.8 | % | 3.1 | % | |||||||||||
Total | 509,262 | (10,721 | ) | 498,541 | 527,421 | (5.5 | ) | % | (3.4 | ) | % | |||||||||
Total gross billings | $ | 1,507,711 | $ | (35,701 | ) | $ | 1,472,010 | $ | 1,552,001 | (5.2 | ) | % | (2.9 | ) | % | |||||
(1) |
Represents the financial statement balances that would have resulted
had average exchange rates in the reporting period been the same as
those in effect during the three months ended |
|
(2) | Represents the increase or decrease in reported amounts resulting from changes in exchange rates from those in effect in the comparable prior year period. | |
|
|||||||||||||||||||||
Supplemental Financial Information and Business Metrics (9)(11) |
|||||||||||||||||||||
(financial data in thousands; active customers in millions) | |||||||||||||||||||||
(unaudited) | |||||||||||||||||||||
Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | |||||||||||||||||
Segments | |||||||||||||||||||||
North America Segment: | |||||||||||||||||||||
Gross Billings (1): | |||||||||||||||||||||
Local (2) Gross Billings | $ | 512,558 | $ | 499,378 | $ | 481,608 | $ | 531,154 | $ | 539,623 | |||||||||||
Travel Gross Billings | 96,678 | 102,908 | 101,801 | 89,389 | 103,390 | ||||||||||||||||
Gross Billings - Services | 609,236 | 602,286 | 583,409 | 620,543 | 643,013 | ||||||||||||||||
Gross Billings - Goods | 284,741 | 293,970 | 285,794 | 429,818 | 294,061 | ||||||||||||||||
Total Gross Billings | $ | 893,977 | $ | 896,256 | $ | 869,203 | $ | 1,050,361 | $ | 937,074 | |||||||||||
Year-over-year growth | 14 | % | 12 | % | 12 | % | 11 | % | 5 | % | |||||||||||
% Third Party and Other | 69 | % | 68 | % | 68 | % | 60 | % | % | 70 | % | % | |||||||||
% Direct | 31 | % | 32 | % | 32 | % | 40 | % | % | 30 | % | % | |||||||||
Gross BillingsTrailing Twelve Months (TTM) | $ | 3,415,687 | $ | 3,513,098 | $ | 3,608,015 | $ | 3,709,797 | $ | 3,752,894 | |||||||||||
Revenue (3): | |||||||||||||||||||||
Local Revenue | $ | 180,864 | $ | 172,461 | $ | 163,786 | $ | 184,201 | $ | 192,153 | |||||||||||
Travel Revenue | 19,989 | 21,958 | 21,394 | 18,390 | 20,914 | ||||||||||||||||
Revenue - Services | 200,853 | 194,419 | 185,180 | 202,591 | 213,067 | ||||||||||||||||
Revenue - Goods | 279,029 | 286,863 | 278,751 | 420,056 | 287,746 | ||||||||||||||||
Total Revenue | $ | 479,882 | $ | 481,282 | $ | 463,931 | $ | 622,647 | $ | 500,813 | |||||||||||
Year-over-year growth | 11 | % | 14 | % | 11 | % | 13 | % | 4 | % | |||||||||||
% Third Party and Other | 42 | % | 41 | % | 40 | % | 33 | % | % | 43 | % | % | |||||||||
% Direct | 58 | % | 59 | % | 60 | % | 67 | % | % | 57 | % | % | |||||||||
Revenue TTM | $ | 1,873,281 | $ | 1,930,632 | $ | 1,976,069 | $ | 2,047,742 | $ | 2,068,673 | |||||||||||
Gross Profit (4): | |||||||||||||||||||||
Local Gross Profit | $ | 154,776 | $ | 147,574 | $ | 138,798 | $ | 159,745 | $ | 164,018 | |||||||||||
% of North America Local Gross Billings | 30.2 | % | 29.6 | % | 28.8 | % | 30.1 | % | 30.4 | % | |||||||||||
Travel Gross Profit | 15,791 | 18,385 | 17,644 | 15,207 | 15,712 | ||||||||||||||||
% of North America Travel Gross Billings | 16.3 | % | 17.9 | % | 17.3 | % | % | 17.0 | % | % | 15.2 | % | % | ||||||||
Gross Profit - Services | 170,567 | 165,959 | 156,442 | 174,952 | 179,730 | ||||||||||||||||
% of North America Services Gross Billings | 28.0 | % | 27.6 | % | 26.8 | % | 28.2 | % | 28.0 | % | |||||||||||
Gross Profit - Goods | 23,923 | 30,598 | 34,801 | 44,329 | 36,213 | ||||||||||||||||
% of North America Goods Gross Billings | 8.4 | % | 10.4 | % | 12.2 | % | 10.3 | % | 12.3 | % | |||||||||||
Total Gross Profit | $ | 194,490 | $ | 196,557 | $ | 191,243 | $ | 219,281 | $ | 215,943 | |||||||||||
Year-over-year growth | 8 | % | 9 | % | 9 | % | 12 | % | 11 | % | |||||||||||
% Third Party and Other | 88 | % | 85 | % | 83 | % | 81 | % | 84 | % | |||||||||||
% Direct | 12 | % | 15 | % | 17 | % | 19 | % | 16 | % | |||||||||||
% of North America Total Gross Billings | 21.8 | % | 21.9 | % | 22.0 | % | 20.9 | % | 23.0 | % | |||||||||||
EMEA Segment: | |||||||||||||||||||||
Gross Billings: | |||||||||||||||||||||
Local Gross Billings | $ | 217,598 | $ | 198,553 | $ | 182,540 | $ | 197,445 | $ | 174,033 | |||||||||||
Travel Gross Billings | 65,065 | 59,544 | 64,916 | 59,836 | 57,201 | ||||||||||||||||
Gross Billings - Services | 282,663 | 258,097 | 247,456 | 257,281 | 231,234 | ||||||||||||||||
Gross Billings - Goods | 176,526 | 175,439 | 167,026 | 229,866 | 160,993 | ||||||||||||||||
Total Gross Billings | $ | 459,189 | $ | 433,536 | $ | 414,482 | $ | 487,147 | $ | 392,227 | |||||||||||
Year-over-year growth | (11 | ) | % | (10 | ) | % | (15 | ) | % | (13 | ) | % | (15 | ) | % | ||||||
Year-over-year growth, excluding FX | 7 | % | 9 | % | (1 | ) | % | (2 | )% | % | (12 | ) | % | ||||||||
% Third Party and Other | 77 | % | 76 | % | 75 | % | 70 | % | % | 73 | % | % | |||||||||
% Direct | 23 | % | 24 | % | 25 | % | 30 | % | % | 27 | % | % | |||||||||
Gross Billings TTM |
$ | 1,992,408 | $ | 1,942,689 | $ | 1,867,748 | $ | 1,794,354 | $ | 1,727,392 | |||||||||||
Revenue: | |||||||||||||||||||||
Local Revenue | $ | 82,536 | $ | 75,543 | $ | 70,781 | $ | 73,225 | $ | 61,886 | |||||||||||
Travel Revenue | 14,717 | 13,100 | 13,561 | 11,681 | 11,178 | ||||||||||||||||
Revenue - Services | 97,253 | 88,643 | 84,342 | 84,906 | 73,064 | ||||||||||||||||
Revenue - Goods | 118,967 | 115,404 | 114,945 | 163,420 | 115,906 | ||||||||||||||||
Total Revenue | $ | 216,220 | $ | 204,047 | $ | 199,287 | $ | 248,326 | $ | 188,970 | |||||||||||
Year-over-year growth | (6 | ) | % | (10 | ) | % | (13 | ) | % | (9 | ) | % | (13 | ) | % | ||||||
Year-over-year growth, excluding FX | 13 | % | 9 | % | 2 | % | 3 | % | (10 | ) | % | ||||||||||
% Third Party and Other | 51 | % | 48 | % | 48 | % | 41 | % | % | 44 | % | ||||||||||
% Direct | 49 | % | 52 | % | 52 | % | 59 | % | % | 56 | % | ||||||||||
Revenue TTM | $ | 946,457 | $ | 922,814 | $ | 892,029 | $ | 867,880 | $ | 840,630 | |||||||||||
Gross Profit: | |||||||||||||||||||||
Local Gross Profit | $ | 77,356 | $ | 70,270 | $ | 66,288 | $ | 68,966 | $ | 58,263 | |||||||||||
% of EMEA Local Gross Billings | 35.5 | % | 35.4 | % | 36.3 | % | 0.3 | % | 33.5 | % | |||||||||||
Travel Gross Profit | 12,400 | 11,939 | 12,323 | 10,732 | 10,215 | ||||||||||||||||
% of EMEA Travel Gross Billings | 19.1 | % | 20.1 | % | 19.0 | % | 17.9 | % | 17.9 | % | |||||||||||
Gross Profit - Services | 89,756 | 82,209 | 78,611 | 79,698 | 68,478 | ||||||||||||||||
% of EMEA Services Gross Billings | 31.8 | % | 31.9 | % | 31.8 | % | 31.0 | % | 29.6 | % | |||||||||||
Gross Profit - Goods | 25,481 | 21,878 | 24,905 | 43,026 | 26,412 | ||||||||||||||||
% of EMEA Goods Gross Billings | 14.4 | % | 12.5 | % | 14.9 | % | 18.7 | % | 16.4 | % | |||||||||||
Total Gross Profit | $ | 115,237 | $ | 104,087 | $ | 103,516 | $ | 122,724 | $ | 94,890 | |||||||||||
Year-over-year growth | (18 | ) | % | (26 | ) | % | (21 | ) | % | (14 | ) | % | (18 | ) | % | ||||||
% Third Party and Other | 87 | % | 86 | % | 86 | % | 77 | % | 82 | % | |||||||||||
% Direct | 13 | % | 14 | % | 14 | % | 23 | % | 18 | % | |||||||||||
% of EMEA Total Gross Billings | 25.1 | % | 24.0 | % | 25.0 | % | 25.2 | % | 24.2 | % | |||||||||||
Rest of World Segment: | |||||||||||||||||||||
Gross Billings: | |||||||||||||||||||||
Local Gross Billings | $ | 99,735 | $ | 100,403 | $ | 92,972 | $ | 83,430 | $ | 75,294 | |||||||||||
Travel Gross Billings | 32,946 | 31,263 | 30,709 | 25,369 | 23,928 | ||||||||||||||||
Gross Billings - Services | 132,681 | 131,666 | 123,681 | 108,799 | 99,222 | ||||||||||||||||
Gross Billings - Goods | 66,154 | 67,555 | 60,168 | 60,685 | 43,487 | ||||||||||||||||
Total Gross Billings | $ | 198,835 | $ | 199,221 | $ | 183,849 | $ | 169,484 | $ | 142,709 | |||||||||||
Year-over-year growth | (12 | ) | % | (9 | ) | % | (19 | ) | % | (21 | ) | % | (28 | ) | % | ||||||
Year-over-year growth, excluding FX | (1 | ) | % | 6 | % | — | % | (7 | )% | % | (17 | ) | % | ||||||||
% Third Party and Other | 98 | % | 97 | % | 96 | % | 95 | % | % | 95 | % | % | |||||||||
% Direct | 2 | % | 3 | % | 4 | % | 5 | % | % | 5 | % | % | |||||||||
Gross Billings TTM |
$ | 861,032 | $ | 840,243 | $ | 797,454 | $ | 751,389 | $ | 695,263 | |||||||||||
Revenue: | |||||||||||||||||||||
Local Revenue | $ | 30,281 | $ | 28,499 | $ | 26,372 | $ | 22,229 | $ | 22,082 | |||||||||||
Travel Revenue | 6,495 | 6,363 | 6,135 | 5,098 | 5,049 | ||||||||||||||||
Revenue - Services | 36,776 | 34,862 | 32,507 | 27,327 | 27,131 | ||||||||||||||||
Revenue - Goods | 17,478 | 18,204 | 17,870 | 18,870 | 15,057 | ||||||||||||||||
Total Revenue | $ | 54,254 | $ | 53,066 | $ | 50,377 | $ | 46,197 | $ | 42,188 | |||||||||||
Year-over-year growth | (18 | ) | % | (18 | ) | % | (23 | ) | % | (23 | ) | % | (22 | ) | % | ||||||
Year-over-year growth, excluding FX | (8 | ) | % | (4 | ) | % | (5 | ) | % | (8 | ) | % | (8 | ) | % | ||||||
% Third Party and Other | 91 | % | 87 | % | 86 | % | 82 | % | 85 | % | |||||||||||
% Direct | 9 | % | 13 | % | 14 | % | 18 | % | 15 | % | |||||||||||
Revenue TTM | $ | 244,326 | $ | 232,802 | $ | 217,476 | $ | 203,894 | $ | 191,828 | |||||||||||
Gross Profit: | |||||||||||||||||||||
Local Gross Profit | $ | 26,161 | $ | 24,567 | $ | 22,568 | $ | 18,889 | $ | 18,771 | |||||||||||
% of Rest of World Local Gross Billings | 26.2 | % | 24.5 | % | 24.3 | % | 22.6 | % | 24.9 | % | |||||||||||
Travel Gross Profit | 4,906 | 5,012 | 4,859 | 4,040 | 3,997 | ||||||||||||||||
% of Rest of World Travel Gross Billings | 14.9 | % | 16.0 | % | 15.8 | % | 15.9 | % | 16.7 | % | |||||||||||
Gross Profit - Services | 31,067 | 29,579 | 27,427 | 22,929 | 22,768 | ||||||||||||||||
% of Rest of World Services Gross Billings | 23.4 | % | 22.5 | % | 22.2 | % | 21.1 | % | 22.9 | % | |||||||||||
Gross Profit - Goods | 6,612 | 6,784 | 6,726 | 6,806 | 5,727 | ||||||||||||||||
% of Rest of World Goods Gross Billings | 10.0 | % | 10.0 | % | 11.2 | % | 11.2 | % | 13.2 | % | |||||||||||
Total Gross Profit | $ | 37,679 | $ | 36,363 | $ | 34,153 | $ | 29,735 | $ | 28,495 | |||||||||||
Year-over-year growth | (16 | ) | % | (20 | ) | % | (28 | ) | % | (23 | ) | % | (24 | ) | % | ||||||
% Third Party and Other | 99 | % | 99 | % | 99 | % | 99 | % | 100 | % | |||||||||||
% Direct | 1 | % | 1 | % | 1 | % | 1 | % | — | % | |||||||||||
% of Rest of World Total Gross Billings | 18.9 | % | 18.3 | % | 18.6 | % | 17.5 | % | 20.0 | % | |||||||||||
Consolidated Results of Operations: | |||||||||||||||||||||
Gross Billings: | |||||||||||||||||||||
Local Gross Billings | $ | 829,891 | $ | 798,334 | $ | 757,120 | $ | 812,029 | $ | 788,950 | |||||||||||
Travel Gross Billings | 194,689 | 193,715 | 197,426 | 174,594 | 184,519 | ||||||||||||||||
Gross Billings - Services | 1,024,580 | 992,049 | 954,546 | 986,623 | 973,469 | ||||||||||||||||
Gross Billings - Goods | 527,421 | 536,964 | 512,988 | 720,369 | 498,541 | ||||||||||||||||
Total Gross Billings | $ | 1,552,001 | $ | 1,529,013 | $ | 1,467,534 | $ | 1,706,992 | $ | 1,472,010 | |||||||||||
Year-over-year growth | 2 | % | 2 | % | (2 | ) | % | (1 | ) | % | (5 | ) | % | ||||||||
Year-over-year growth, excluding FX | 10 | % | 10 | % | 6 | % | 4 | % | (3 | ) | % | ||||||||||
% Third Party and Other | 75 | % | 74 | % | 74 | % | 66 | % | 73 | % | % | ||||||||||
% Direct | 25 | % | 26 | % | 26 | % | 34 | % | 27 | % | % | ||||||||||
Gross Billings TTM | $ | 6,269,127 | $ | 6,296,030 | $ | 6,273,217 | $ | 6,255,540 | $ | 6,175,549 | |||||||||||
Year-over-year growth | 7 | % | 6 | % | 3 | % | — | % | % | (1 | )% | % | |||||||||
Revenue: | |||||||||||||||||||||
Local Revenue | $ | 293,681 | $ | 276,503 | $ | 260,939 | $ | 279,655 | $ | 276,121 | |||||||||||
Travel Revenue | 41,201 | 41,421 | 41,090 | 35,169 | 37,141 | ||||||||||||||||
Revenue - Services | 334,882 | 317,924 | 302,029 | 314,824 | 313,262 | ||||||||||||||||
Revenue - Goods | 415,474 | 420,471 | 411,566 | 602,346 | 418,709 | ||||||||||||||||
Total Revenue | $ | 750,356 | $ | 738,395 | $ | 713,595 | $ | 917,170 | $ | 731,971 | |||||||||||
Year-over-year growth | 3 | % | 3 | % | — | % | 4 | % | (2 | ) | % | ||||||||||
Year-over-year growth, excluding FX | 10 | % | 11 | % | 7 | % | 9 | % | (1 | ) | % | ||||||||||
% Third Party and Other | 48 | % | 46 | % | 46 | % | 38 | % | 46 | % | |||||||||||
% Direct | 52 | % | 54 | % | 54 | % | 62 | % | 54 | % | |||||||||||
Revenue TTM | $ | 3,064,064 | $ | 3,086,248 | $ | 3,085,574 | $ | 3,119,516 | $ | 3,101,131 | |||||||||||
Year-over-year growth | 13 | % | 10 | % | 5 | % | 3 | % | 1 | % | |||||||||||
Gross Profit: | |||||||||||||||||||||
Local Gross Profit | $ | 258,293 | $ | 242,411 | $ | 227,654 | $ | 247,600 | $ | 241,052 | |||||||||||
% of Consolidated Local Gross Billings | 31.1 | % | 30.4 | % | 30.1 | % | 30.5 | % | 30.6 | % | |||||||||||
Travel Gross Profit | 33,097 | 35,336 | 34,826 | 29,979 | 29,924 | ||||||||||||||||
% of Consolidated Travel Gross Billings | 17.0 | % | 18.2 | % | 17.6 | % | 17.2 | % | 16.2 | % | |||||||||||
Gross Profit - Services | 291,390 | 277,747 | 262,480 | 277,579 | 270,976 | ||||||||||||||||
% of Consolidated Services Gross Billings | 28.4 | % | 28.0 | % | 27.5 | % | 28.1 | % | 27.8 | % | |||||||||||
Gross Profit - Goods | 56,016 | 59,260 | 66,432 | 94,161 | 68,352 | ||||||||||||||||
% of Consolidated Goods Gross Billings | 10.6 | % | 11.0 | % | 13.0 | % | 13.1 | % | 13.7 | % | |||||||||||
Total Gross Profit | $ | 347,406 | $ | 337,007 | $ | 328,912 | $ | 371,740 | $ | 339,328 | |||||||||||
Year-over-year growth | (5 | ) | % | (8 | ) | % | (7 | ) | % | (2 | ) | % | (2 | ) | % | ||||||
% Third Party and Other | 89 | % | 87 | % | 85 | % | 81 | % | 85 | % | |||||||||||
% Direct | 11 | % | 13 | % | 15 | % | 19 | % | 15 | % | |||||||||||
% of Total Consolidated Gross Billings | 22.4 | % | 22.0 | % | 22.4 | % | 21.8 | % | 23.1 | % | |||||||||||
Marketing | $ | 52,533 | $ | 57,007 | $ | 61,587 | $ | 83,208 | $ | 89,765 | |||||||||||
Selling, general and administrative | $ | 289,847 | $ | 288,721 | $ | 326,248 | $ | 287,976 | $ | 280,988 | |||||||||||
Adjusted EBITDA | $ | 72,370 | $ | 61,118 | $ | 56,334 | $ | 67,010 | $ | 33,923 | |||||||||||
% of Total Consolidated Gross Billings | 4.7 | % | 4.0 | % | 3.8 | % | 3.9 | % | 2.3 | % | |||||||||||
% of Total Consolidated Revenue | 9.6 | % | 8.3 | % | 7.9 | % | 7.3 | % | 4.6 | % | |||||||||||
Free cash flow is a non-GAAP financial measure. The following is a
reconciliation of free cash flow to the most comparable |
|||||||||||||||||||||
Q1 2015 (10) | Q2 2015 (10) | Q3 2015 (10) | Q4 2015 (10) | Q1 2016 | |||||||||||||||||
Net cash provided by (used in) operating activities from continuing operations | $ | 43,607 | $ | 13,325 | $ | (7,640 | ) | $ | 250,455 | $ | (76,725 | ) | |||||||||
Purchases of property and equipment and capitalized software from continuing operations | (18,294 | ) | (22,452 | ) | (27,735 | ) | (15,507 | ) | (19,952 | ) | |||||||||||
Free cash flow | $ | 25,313 | $ | (9,127 | ) | $ | (35,375 | ) | $ | 234,948 | $ | (96,677 | ) | ||||||||
Net cash provided by (used in) operating activities from continuing operations (TTM) | $ | 320,803 | $ | 358,576 | $ | 325,971 | $ | 299,747 | $ | 179,415 | |||||||||||
Purchases of property and equipment and capitalized software from continuing operations (TTM) | (85,761 | ) | (79,501 | ) | (88,598 | ) | (83,988 | ) | (85,646 | ) | |||||||||||
Free cash flow (TTM) | $ | 235,042 | $ | 279,075 | $ | 237,373 | $ | 215,759 | $ | 93,769 | |||||||||||
Net cash provided by (used in) investing activities from continuing operations | $ | (19,443 | ) | $ | (28,541 | ) | $ | (98,028 | ) | $ | (31,238 | ) | $ | (20,778 | ) | ||||||
Net cash provided by (used in) financing activities | $ | (35,838 | ) | $ | (141,557 | ) | $ | (14,793 | ) | $ | (323,597 | ) | $ | (78,015 | ) | ||||||
Net cash provided by (used in) investing activities from continuing operations (TTM) | $ | (105,821 | ) | $ | (102,205 | ) | $ | (181,187 | ) | $ | (177,250 | ) | $ | (178,585 | ) | ||||||
Net cash provided by (used in) financing activities (TTM) | $ | (198,627 | ) | $ | (221,354 | ) | $ | (216,683 | ) | $ | (515,785 | ) | $ | (557,962 | ) | ||||||
Other Metrics: | |||||||||||||||||||||
Active Customers (6) | |||||||||||||||||||||
|
24.6 | 24.9 | 25.2 | 25.9 | 26.9 | ||||||||||||||||
EMEA | 15.3 | 15.5 | 15.4 | 15.4 | 15.3 | ||||||||||||||||
Rest of World | 8.2 | 8.2 | 8.0 | 7.6 | 7.2 | ||||||||||||||||
Total Active Customers | 48.1 | 48.6 | 48.6 | 48.9 | 49.4 | ||||||||||||||||
TTM Gross Billings / Average Active Customer (7) | |||||||||||||||||||||
|
$ | 147 | $ | 148 | $ | 148 | $ | 149 | $ | 146 | |||||||||||
EMEA | 134 | 130 | 123 | 117 | 113 | ||||||||||||||||
Rest of World | 101 | 98 | 99 | 96 | 90 | ||||||||||||||||
Consolidated | 135 | 133 | 132 | 130 | 127 | ||||||||||||||||
Global headcount as of March 31, 2016 and 2015 was as follows: | |||||||||||||||||||||
Q1 2015 | Q1 2016 | ||||||||||||||||||||
Sales (8) | 4,429 | 3,711 | |||||||||||||||||||
% |
30 % |
34 % |
|||||||||||||||||||
% EMEA |
42 % |
42 % |
|||||||||||||||||||
% Rest of World |
28 % |
24 % |
|||||||||||||||||||
Other | 6,386 | 5,551 | |||||||||||||||||||
Total Headcount | 10,815 | 9,262 |
(1) | Represents the total dollar value of customer purchases of goods and services, excluding applicable taxes and net of estimated refunds. | |
(2) | Local represents deals from local merchants, deals with national merchants, and deals through local events. Other revenue transactions include advertising, payment processing and commission revenue. | |
(3) | Includes third party revenue, direct revenue and other revenue. Third party revenue is related to sales for which the Company acts as a marketing agent for the merchant. This revenue is recorded on a net basis. Direct revenue is primarily related to the sale of products for which the Company is the merchant of record. These revenues are accounted for on a gross basis, with the cost of inventory included in cost of revenue. Other revenue primarily consists of commission revenue, payment processing revenue and advertising revenue. | |
(4) | Represents third party revenue, direct revenue and other revenue reduced by cost of revenue. | |
(5) | Represents the change in financial measures that would have resulted had average exchange rates in the reporting periods been the same as those in effect in the prior year periods. | |
(6) | Reflects the total number of unique user accounts who have purchased a voucher or product from us during the trailing twelve months. | |
(7) | Reflects the total gross billings generated in the trailing twelve months per average active customer over that period. | |
(8) | Includes merchant sales representatives, as well as sales support from continuing operations. | |
(9) | Financial information and other metrics exclude Ticket Monster, which has been classified as discontinued operations. The Company sold a controlling stake in Ticket Monster in May 2015. | |
(10) | The Company adopted the guidance in ASU 2016-09 on January 1, 2016. ASU 2016-09 requires that all income tax-related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows. Previously, income tax benefits at settlement of an award were reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. The Company has elected to apply that change in cash flow classification on a retrospective basis, which has resulted in adjustments to net cash provided by (used in) operating activities, net cash used in financing activities, and free cash flow for the three-month and trailing twelve-month periods ended March 31, 2015, June 30, 2015, September 30, 2015 and December 31, 2015. | |
(11) | The definition, methodology and appropriateness of each of our supplemental metrics is reviewed periodically. As a result, metrics are subject to removal and/or change. | |
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