(Exact name of registrant as specified in its charter) | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
(Zip Code) | ||||
(Address of principal executive offices) | (Registrant's telephone number, including area code) | |||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
(d) | Exhibits: | |||||
Exhibit No. | Description | |||||
99.1* | ||||||
99.2* | ||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||
GROUPON, INC. | |
Date: February 18, 2020 | |
By: /s/ Melissa Thomas Name: Melissa Thomas Title: Chief Financial Officer, Chief Accounting Officer and Treasurer | |
• | Fourth quarter gross profit of $310 million; $1.2 billion for full year |
• | Fourth quarter income from continuing operations of $79 million; $14 million loss for full year |
• | Fourth quarter Adjusted EBITDA of $84 million; $227 million for full year |
• | Fourth quarter GAAP net income per diluted share of $0.13; net loss of $0.04 per diluted share for full year |
• | Fourth quarter non-GAAP net income per diluted share of $0.07; non-GAAP net income per diluted share of $0.13 for full year |
• | Operating cash flow of $71 million for the full year; free cash flow of $4 million for the full year |
• | Inventory: Build high-quality density in core cities and bring on merchants' full catalogs |
• | Modernization: Deliver a modern mobile experience for customers and new tools to help merchants grow their businesses |
• | Brand: Relaunch the Groupon brand and marketing strategy to move from deal-centric to a local experiences marketplace |
• | Cost: Reduce our costs and right-size our spend to support our go-forward business |
Annual Metrics | 2022 Outlook |
Unit growth % | High single-digits |
Gross Billings growth % | High single-digits |
Revenue growth % | Mid single-digits |
Adjusted EBITDA margin (1) | High teens |
Metric | Goal |
Gross Billings | Low double-digit growth |
Revenue Take Rate | 28% to 30% |
Adjusted EBITDA margin (1) | Mid 20% range |
Free cash flow conversion rate | 65%+ |
• | North America gross profit in the fourth quarter 2019 decreased 16% to $207.3 million primarily due to fewer customers, lower traffic and increased competition in our Goods category. The decrease was partially offset by higher gross profit per customer. In Local, gross profit decreased 6% to $169.7 million. Goods gross profit decreased 45% to $30.6 million. Gross profit in Travel decreased 41% to $6.9 million. |
• | North America active customers were 26.5 million as of December 31, 2019, and gross profit per active customer increased 5% for the year ended December 31, 2019. |
• | International gross profit in the fourth quarter 2019 decreased 13% to $102.8 million (11% FX-neutral) driven by intense competition in our Goods category, weak consumer sentiment in Europe, particularly in the United Kingdom, and a customer shift toward lower margin Local offerings. Local gross profit decreased 8% (6% FX-neutral). Goods gross profit decreased 28% (26% FX-neutral). Gross profit in Travel decreased 14% (11% FX-neutral). |
• | International active customers were 17.1 million as of December 31, 2019, and gross profit per active customer decreased 10% (5% FX-neutral) for the year ended December 31, 2019. |
• | Revenue was $612.3 million in the fourth quarter 2019, down 23% (23% FX-neutral). |
• | Gross profit was $310.0 million in the fourth quarter 2019, down 15% (15% FX-neutral). |
• | SG&A was $187.7 million in the fourth quarter 2019 compared with $194.6 million in the fourth quarter 2018. The decrease was primarily driven by lower performance-based compensation, partially offset by an increase in stock-based compensation. |
• | Marketing expense declined by 25% to $82.1 million in the fourth quarter 2019 as we continued to manage our marketing spend in line with our payback threshold. |
• | Other income, net was $39.3 million in the fourth quarter 2019, compared with $13.2 million of Other expense, net in the fourth quarter 2018 driven primarily by an observable price change for our SumUp investment in the fourth quarter 2019. |
• | Net income from continuing operations was $79.2 million in the fourth quarter 2019 compared with $49.9 million in the fourth quarter 2018. |
• | Net income attributable to common stockholders was $77.0 million, or $0.13 per diluted share, in the fourth quarter 2019, compared with net income attributable to common stockholders of $46.2 million, or $0.08 per diluted share, in the fourth quarter 2018. Non-GAAP net income attributable to common stockholders plus assumed conversions was $44.6 million, or $0.07 per diluted share, in the fourth quarter 2019, compared with $61.2 million, or $0.10 per diluted share, in the fourth quarter 2018. |
• | Adjusted EBITDA, a non-GAAP financial measure, was $83.8 million in the fourth quarter 2019, down from $104.6 million in the fourth quarter 2018. |
• | Global units sold were down 16% to 42.6 million in the fourth quarter 2019 largely driven by fewer customers and lower traffic. North America units were down 11% in Local and down 32% in Goods. International units were up 4% in Local and down 22% in Goods. |
• | Operating cash flow was $71.3 million for full year 2019, and free cash flow, a non-GAAP financial measure, was $4.0 million for the full year 2019. |
• | Cash and cash equivalents as of December 31, 2019 were $750.9 million, and we had no outstanding borrowings under our $400 million revolving credit facility. |
• | Revenue was $2.2 billion in 2019, down 16% compared with $2.6 billion in 2018. |
• | Gross profit was $1.2 billion in 2019, down 10% compared with $1.3 billion in 2018. |
• | Net loss from continuing operations was $14.3 million in 2019, compared with net income from continuing operations of $2.0 million in 2018. |
• | Net loss attributable to common stockholders was $22.4 million, or $0.04 per diluted share in 2019, compared with net loss attributable to common stockholders of $11.1 million, or $0.02 per diluted share in 2018. Non-GAAP net income attributable to common stockholders plus assumed conversions was $79.7 million, or $0.13 per diluted share in 2019, compared with $112.7 million, or $0.18 per diluted share in 2018. |
• | Adjusted EBITDA was $227.2 million in 2019, down 16% compared with $269.8 million in 2018. |
• | Global units sold declined 12% year-over-year to 150.9 million in 2019. |
• | In 2019, we repurchased 14.0 million shares for $45.2 million. |
• | Product: launch a new mobile app and expand bookable offers; |
• | Units: grow North America Local units year-over-year in the second half of 2020; |
• | Inventory: execute density strategy in 10 cities; |
• | Marketing: relaunch the brand and deploy a full-funnel marketing strategy; and |
• | SG&A: reset the cost base with the exit of Goods. |
• | stock-based compensation, |
• | amortization of acquired intangible assets, |
• | acquisition-related expense (benefit), net, |
• | special charges and credits, including restructuring charges, |
• | non-cash interest expense on convertible senior notes, |
• | 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, |
• | non-operating gains and losses from sales of minority investments, and |
• | income (loss) from discontinued operations. |
December 31, 2019 | December 31, 2018 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 750,887 | $ | 841,021 | |||
Accounts receivable, net | 54,953 | 69,493 | |||||
Prepaid expenses and other current assets | 82,073 | 88,115 | |||||
Total current assets | 887,913 | 998,629 | |||||
Property, equipment and software, net | 124,950 | 143,117 | |||||
Right-of-use assets - operating leases, net (1) | 108,390 | — | |||||
Goodwill | 325,017 | 325,491 | |||||
Intangible assets, net | 35,292 | 45,401 | |||||
Investments (including $1,405 and $84,242 at December 31, 2019 and December 31, 2018 at fair value) | 76,576 | 108,515 | |||||
Other non-current assets | 28,605 | 20,989 | |||||
Total Assets | $ | 1,586,743 | $ | 1,642,142 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 20,415 | $ | 38,359 | |||
Accrued merchant and supplier payables | 540,940 | 651,781 | |||||
Accrued expenses and other current liabilities | 260,192 | 267,034 | |||||
Total current liabilities | 821,547 | 957,174 | |||||
Convertible senior notes, net | 214,869 | 201,669 | |||||
Operating lease obligations (2) | 110,294 | — | |||||
Other non-current liabilities | 44,987 | 100,688 | |||||
Total Liabilities | 1,191,697 | 1,259,531 | |||||
Commitment and contingencies | |||||||
Stockholders' Equity | |||||||
Common stock, par value $0.0001 per share, 2,010,000,000 shares authorized; 771,697,087 shares issued and 565,814,732 shares outstanding at December 31, 2019; 760,939,440 shares issued and 569,084,312 shares outstanding at December 31, 2018 | 77 | 76 | |||||
Additional paid-in capital | 2,310,320 | 2,234,560 | |||||
Treasury stock, at cost, 205,882,355 and 191,855,128 shares at December 31, 2019 and December 31, 2018 | (922,666 | ) | (877,491 | ) | |||
Accumulated deficit | (1,032,876 | ) | (1,010,499 | ) | |||
Accumulated other comprehensive income (loss) | 39,081 | 34,602 | |||||
Total Groupon, Inc. Stockholders' Equity | 393,936 | 381,248 | |||||
Noncontrolling interests | 1,110 | 1,363 | |||||
Total Equity | 395,046 | 382,611 | |||||
Total Liabilities and Equity | $ | 1,586,743 | $ | 1,642,142 | |||
(1) | Represents operating lease assets recognized as a result of our adoption of Topic 842 on January 1, 2019, net of accumulated amortization. Refer to Item 8, Note 10, Leases, in our Annual Report on Form 10-K for the year ended December 31, 2019 for additional information. |
(2) | Represents the non-current portion of operating lease liabilities as a result of our adoption of Topic 842 on January 1, 2019. Refer to Item 8, Note 10, Leases, in our Annual Report on Form 10-K for the year ended December 31, 2019 for additional information. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue: | |||||||||||||||
Service | $ | 294,847 | $ | 318,824 | $ | 1,126,357 | $ | 1,205,487 | |||||||
Product | 317,469 | 481,103 | 1,092,558 | 1,431,259 | |||||||||||
Total revenue | 612,316 | 799,927 | 2,218,915 | 2,636,746 | |||||||||||
Cost of revenue: | |||||||||||||||
Service | 28,293 | 28,910 | 114,462 | 120,077 | |||||||||||
Product | 273,982 | 404,948 | 918,324 | 1,196,068 | |||||||||||
Total cost of revenue | 302,275 | 433,858 | 1,032,786 | 1,316,145 | |||||||||||
Gross profit | 310,041 | 366,069 | 1,186,129 | 1,320,601 | |||||||||||
Operating expenses: | |||||||||||||||
Marketing | 82,059 | 109,686 | 339,355 | 395,737 | |||||||||||
Selling, general and administrative | 187,671 | 194,562 | 806,945 | 870,961 | |||||||||||
Restructuring charges | 206 | (55 | ) | 31 | (136 | ) | |||||||||
Total operating expenses | 269,936 | 304,193 | 1,146,331 | 1,266,562 | |||||||||||
Income (loss) from operations | 40,105 | 61,876 | 39,798 | 54,039 | |||||||||||
Other income (expense), net | 39,273 | (13,176 | ) | (53,329 | ) | (53,008 | ) | ||||||||
Income (loss) from continuing operations before provision (benefit) for income taxes | 79,378 | 48,700 | (13,531 | ) | 1,031 | ||||||||||
Provision (benefit) for income taxes | 170 | (1,162 | ) | 761 | (957 | ) | |||||||||
Income (loss) from continuing operations | 79,208 | 49,862 | (14,292 | ) | 1,988 | ||||||||||
Income (loss) from discontinued operations, net of tax | 435 | — | 2,597 | — | |||||||||||
Net income (loss) | 79,643 | 49,862 | (11,695 | ) | 1,988 | ||||||||||
Net income attributable to noncontrolling interests | (2,602 | ) | (3,634 | ) | (10,682 | ) | (13,067 | ) | |||||||
Net income (loss) attributable to Groupon, Inc. | $ | 77,041 | $ | 46,228 | $ | (22,377 | ) | $ | (11,079 | ) | |||||
Basic net income (loss) per share: | |||||||||||||||
Continuing operations | $ | 0.14 | $ | 0.08 | $ | (0.04 | ) | $ | (0.02 | ) | |||||
Discontinued operations | 0.00 | — | 0.00 | — | |||||||||||
Basic net income (loss) per share | $ | 0.14 | $ | 0.08 | $ | (0.04 | ) | $ | (0.02 | ) | |||||
Diluted net income (loss) per share: | |||||||||||||||
Continuing operations | $ | 0.13 | $ | 0.08 | $ | (0.04 | ) | $ | (0.02 | ) | |||||
Discontinued operations | 0.00 | — | 0.00 | — | |||||||||||
Diluted net income (loss) per share | $ | 0.13 | $ | 0.08 | $ | (0.04 | ) | $ | (0.02 | ) | |||||
Weighted average number of shares outstanding | |||||||||||||||
Basic | 564,651,203 | 570,319,704 | 567,408,340 | 566,511,108 | |||||||||||
Diluted | 617,603,560 | 620,708,515 | 567,408,340 | 566,511,108 | |||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating activities | |||||||||||||||
Net income (loss) | $ | 79,643 | $ | 49,862 | $ | (11,695 | ) | $ | 1,988 | ||||||
Less: Income (loss) from discontinued operations, net of tax | 435 | — | 2,597 | — | |||||||||||
Income (loss) from continuing operations | 79,208 | 49,862 | (14,292 | ) | 1,988 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization of property, equipment and software | 21,424 | 24,346 | 91,410 | 101,330 | |||||||||||
Amortization of acquired intangible assets | 2,936 | 4,182 | 14,355 | 14,498 | |||||||||||
Stock-based compensation | 19,098 | 14,151 | 81,615 | 64,821 | |||||||||||
(Gain) loss on sale of investment | — | — | 412 | — | |||||||||||
Impairments of investments | 9,961 | — | 9,961 | 10,156 | |||||||||||
Upward adjustment for observable price change of investment | (51,397 | ) | — | (51,397 | ) | — | |||||||||
Deferred income taxes | (2,301 | ) | 1,575 | (1,485 | ) | (5,000 | ) | ||||||||
(Gain) loss from changes in fair value of investments | 3,526 | 752 | 72,497 | 9,064 | |||||||||||
Amortization of debt discount on convertible senior notes | 3,428 | 3,094 | 13,200 | 11,916 | |||||||||||
Change in assets and liabilities, net of acquisitions and dispositions: | |||||||||||||||
Accounts receivable | 996 | 11,840 | 13,577 | 32,057 | |||||||||||
Prepaid expenses and other current assets | 585 | 9,861 | 3,176 | 7,166 | |||||||||||
Right-of-use assets - operating leases | 6,602 | — | 26,226 | — | |||||||||||
Accounts payable | (509 | ) | 21,839 | (17,401 | ) | 5,805 | |||||||||
Accrued merchant and supplier payables | 106,951 | 169,480 | (109,176 | ) | (45,268 | ) | |||||||||
Accrued expenses and other current liabilities | 17,696 | 13,745 | (26,071 | ) | (31,430 | ) | |||||||||
Operating lease obligations | (9,591 | ) | — | (28,552 | ) | — | |||||||||
Other, net | (7,212 | ) | (911 | ) | (6,772 | ) | 13,752 | ||||||||
Net cash provided by (used in) operating activities from continuing operations | 201,401 | 323,816 | 71,283 | 190,855 | |||||||||||
Net cash provided by (used in) operating activities from discontinued operations | — | — | — | — | |||||||||||
Net cash provided by (used in) operating activities | 201,401 | 323,816 | 71,283 | 190,855 | |||||||||||
Investing activities | |||||||||||||||
Purchases of property and equipment and capitalized software | (15,474 | ) | (16,084 | ) | (67,328 | ) | (69,695 | ) | |||||||
Proceeds from sale of intangible assets | — | — | — | 1,500 | |||||||||||
Proceeds from sales and maturities of investments | 3,475 | — | 3,475 | 8,594 | |||||||||||
Acquisition of business, net of acquired cash | — | (298 | ) | — | (58,119 | ) | |||||||||
Acquisitions of intangible assets and other investing activities | (701 | ) | (1,115 | ) | (3,738 | ) | (18,262 | ) | |||||||
Net cash provided by (used in) investing activities from continuing operations | (12,700 | ) | (17,497 | ) | (67,591 | ) | (135,982 | ) | |||||||
Net cash provided by (used in) investing activities from discontinued operations | — | — | — | — | |||||||||||
Net cash provided by (used in) investing activities | (12,700 | ) | (17,497 | ) | (67,591 | ) | (135,982 | ) | |||||||
Financing activities | |||||||||||||||
Issuance costs for revolving credit agreement | — | — | (2,384 | ) | — | ||||||||||
Payments for repurchases of common stock | (1,469 | ) | (9,585 | ) | (45,631 | ) | (9,585 | ) | |||||||
Taxes paid related to net share settlements of stock-based compensation awards | (4,130 | ) | (5,467 | ) | (18,105 | ) | (24,105 | ) | |||||||
Proceeds from stock option exercises and employee stock purchase plan | — | 5 | 4,123 | 5,715 | |||||||||||
Distributions to noncontrolling interest holders | (2,248 | ) | (3,260 | ) | (10,935 | ) | (12,576 | ) | |||||||
Payments of finance lease obligations | (2,819 | ) | (7,734 | ) | (19,687 | ) | (33,023 | ) | |||||||
Payments of contingent consideration related to acquisitions | — | — | — | (1,815 | ) | ||||||||||
Payment of financing obligation related to acquisitions | — | (8,391 | ) | — | (8,391 | ) | |||||||||
Other financing activities | — | (637 | ) | — | (637 | ) | |||||||||
Net cash provided by (used in) financing activities | (10,666 | ) | (35,069 | ) | (92,619 | ) | (84,417 | ) | |||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash, including cash classified within current assets of discontinued operations | 6,009 | (1,922 | ) | (3,144 | ) | (11,209 | ) | ||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash, including cash classified within current assets of discontinued operations | 184,044 | 269,328 | (92,071 | ) | (40,753 | ) | |||||||||
Less: Net increase (decrease) in cash classified within current assets of discontinued operations | — | — | — | — | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 184,044 | 269,328 | (92,071 | ) | (40,753 | ) | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 568,613 | 575,400 | 844,728 | 885,481 | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 752,657 | $ | 844,728 | $ | 752,657 | $ | 844,728 | |||||||
Q4 2018 | Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | |||||||||||||||||||||||
North America Segment: | Q4 2019 | ||||||||||||||||||||||||||
Gross Billings (1): | Y/Y Growth | ||||||||||||||||||||||||||
Local | $ | 535,869 | $ | 502,309 | $ | 503,830 | $ | 511,173 | $ | 503,740 | (6.0) | % | |||||||||||||||
Travel | 71,948 | 92,083 | 84,029 | 71,144 | 58,756 | (18.3) | |||||||||||||||||||||
Goods | 319,922 | 174,638 | 147,354 | 133,076 | 204,481 | (36.1) | |||||||||||||||||||||
Total Gross Billings | $ | 927,739 | $ | 769,030 | $ | 735,213 | $ | 715,393 | $ | 766,977 | (17.3) | % | |||||||||||||||
Revenue: | |||||||||||||||||||||||||||
Local | $ | 199,523 | $ | 180,377 | $ | 177,082 | $ | 175,140 | $ | 188,439 | (5.6) | % | |||||||||||||||
Travel | 14,667 | 18,941 | 16,125 | 13,680 | 9,193 | (37.3) | |||||||||||||||||||||
Goods | 290,534 | 157,847 | 131,453 | 114,776 | 175,854 | (39.5) | |||||||||||||||||||||
Total Revenue | $ | 504,724 | $ | 357,165 | $ | 324,660 | $ | 303,596 | $ | 373,486 | (26.0) | % | |||||||||||||||
Gross Profit: | |||||||||||||||||||||||||||
Local | $ | 179,932 | $ | 161,082 | $ | 157,673 | $ | 155,032 | $ | 169,712 | (5.7) | % | |||||||||||||||
Travel | 11,839 | 15,268 | 12,806 | 10,717 | 6,948 | (41.3) | |||||||||||||||||||||
Goods | 55,814 | 33,452 | 28,105 | 26,326 | 30,624 | (45.1) | |||||||||||||||||||||
Total Gross Profit | $ | 247,585 | $ | 209,802 | $ | 198,584 | $ | 192,075 | $ | 207,284 | (16.3) | % | |||||||||||||||
Operating income (loss) | $ | 39,289 | $ | 5,336 | $ | (372 | ) | $ | 15,691 | $ | 45,073 | 14.7 | % | ||||||||||||||
International Segment: | Q4 2019 | ||||||||||||||||||||||||||
Gross Billings: | Y/Y Growth | FX Effect (2) | Y/Y Growth excluding FX (2) | ||||||||||||||||||||||||
Local | $ | 235,093 | $ | 207,396 | $ | 203,450 | $ | 204,823 | $ | 240,151 | 2.2 | 1.8 | 4.0 | % | |||||||||||||
Travel | 55,046 | 51,939 | 43,348 | 44,098 | 51,186 | (7.0) | 2.7 | (4.3) | |||||||||||||||||||
Goods | 211,180 | 147,643 | 138,934 | 129,064 | 164,886 | (21.9) | 2.4 | (19.5) | |||||||||||||||||||
Total Gross Billings | $ | 501,319 | $ | 406,978 | $ | 385,732 | $ | 377,985 | $ | 456,223 | (9.0) | 2.2 | (6.8) | % | |||||||||||||
Revenue: | |||||||||||||||||||||||||||
Local | $ | 84,751 | $ | 73,190 | $ | 69,995 | $ | 65,440 | $ | 78,986 | (6.8) | 1.6 | (5.2) | % | |||||||||||||
Travel | 10,654 | 8,737 | 8,077 | 8,003 | 9,275 | (12.9) | 2.4 | (10.5) | |||||||||||||||||||
Goods | 199,798 | 139,318 | 129,845 | 118,573 | 150,569 | (24.6) | 2.2 | (22.4) | |||||||||||||||||||
Total Revenue | $ | 295,203 | $ | 221,245 | $ | 207,917 | $ | 192,016 | $ | 238,830 | (19.1) | 2.1 | (17.0) | % | |||||||||||||
Gross Profit: | |||||||||||||||||||||||||||
Local | $ | 80,213 | $ | 68,978 | $ | 65,780 | $ | 61,183 | $ | 73,725 | (8.1) | 1.7 | (6.4) | % | |||||||||||||
Travel | 9,913 | 8,041 | 7,370 | 7,332 | 8,574 | (13.5) | 2.5 | (11.0) | |||||||||||||||||||
Goods | 28,358 | 19,195 | 20,398 | 17,350 | 20,458 | (27.9) | 2.3 | (25.6) | |||||||||||||||||||
Total Gross Profit | $ | 118,484 | $ | 96,214 | $ | 93,548 | $ | 85,865 | $ | 102,757 | (13.3) | 1.9 | (11.4) | % | |||||||||||||
Operating income (loss) | $ | 22,587 | $ | (3,141 | ) | $ | (6,767 | ) | $ | (11,054 | ) | $ | (4,968 | ) | (122.0) | % | |||||||||||
Consolidated Results of Operations: | |||||||||||||||||||||||||||
Gross Billings: | |||||||||||||||||||||||||||
Local | $ | 770,962 | $ | 709,705 | $ | 707,280 | $ | 715,996 | $ | 743,891 | (3.5) | 0.5 | (3.0) | % | |||||||||||||
Travel | 126,994 | 144,022 | 127,377 | 115,242 | 109,942 | (13.4) | 1.1 | (12.3) | |||||||||||||||||||
Goods | 531,102 | 322,281 | 286,288 | 262,140 | 369,367 | (30.5) | 1.0 | (29.5) | |||||||||||||||||||
Total Gross Billings | $ | 1,429,058 | $ | 1,176,008 | $ | 1,120,945 | $ | 1,093,378 | $ | 1,223,200 | (14.4) | 0.8 | (13.6) | % | |||||||||||||
Revenue: | |||||||||||||||||||||||||||
Local | $ | 284,274 | $ | 253,567 | $ | 247,077 | $ | 240,580 | $ | 267,425 | (5.9) | 0.5 | (5.4) | % | |||||||||||||
Travel | 25,321 | 27,678 | 24,202 | 21,683 | 18,468 | (27.1) | 1.1 | (26.0) | |||||||||||||||||||
Goods | 490,332 | 297,165 | 261,298 | 233,349 | 326,423 | (33.4) | 0.9 | (32.5) | |||||||||||||||||||
Total Revenue | $ | 799,927 | $ | 578,410 | $ | 532,577 | $ | 495,612 | $ | 612,316 | (23.5) | 0.8 | (22.7) | % | |||||||||||||
Gross Profit: | |||||||||||||||||||||||||||
Local | $ | 260,145 | $ | 230,060 | $ | 223,453 | $ | 216,215 | $ | 243,437 | (6.4) | 0.5 | (5.9) | % | |||||||||||||
Travel | 21,752 | 23,309 | 20,176 | 18,049 | 15,522 | (28.6) | 1.1 | (27.5) | |||||||||||||||||||
Goods | 84,172 | 52,647 | 48,503 | 43,676 | 51,082 | (39.3) | 0.7 | (38.6) | |||||||||||||||||||
Total Gross Profit | $ | 366,069 | $ | 306,016 | $ | 292,132 | $ | 277,940 | $ | 310,041 | (15.3) | 0.6 | (14.7) | % | |||||||||||||
Operating income (loss) | $ | 61,876 | $ | 2,195 | $ | (7,139 | ) | $ | 4,637 | $ | 40,105 | (35.2) | % | ||||||||||||||
Net cash provided by (used in) operating activities from continuing operations | $ | 323,816 | $ | (147,483 | ) | $ | (1,219 | ) | $ | 18,584 | $ | 201,401 | (37.8) | % | |||||||||||||
Free Cash Flow | $ | 307,732 | $ | (164,960 | ) | $ | (17,903 | ) | $ | 891 | $ | 185,927 | (39.6) | % | |||||||||||||
Q4 2018 | Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | |||||||||||||||||
Active Customers (3) | |||||||||||||||||||||
North America | 30.6 | 29.6 | 28.6 | 27.7 | 26.5 | ||||||||||||||||
International | 17.6 | 17.5 | 17.6 | 17.5 | 17.1 | ||||||||||||||||
Total Active Customers | 48.2 | 47.2 | 46.2 | 45.3 | 43.6 | ||||||||||||||||
TTM Gross Profit / Active Customer | |||||||||||||||||||||
North America | $ | 29.13 | $ | 29.72 | $ | 30.05 | $ | 30.56 | $ | 30.48 | |||||||||||
International | 24.46 | 24.00 | 23.37 | 22.51 | 22.11 | ||||||||||||||||
Consolidated | 27.42 | 27.59 | 27.51 | 27.45 | 27.19 | ||||||||||||||||
Consolidated Units | |||||||||||||||||||||
Local | 27,084 | 24,132 | 23,879 | 24,573 | 25,461 | ||||||||||||||||
Goods | 22,626 | 12,237 | 10,735 | 10,494 | 16,435 | ||||||||||||||||
Travel | 771 | 824 | 710 | 687 | 712 | ||||||||||||||||
Total consolidated units | 50,481 | 37,193 | 35,324 | 35,754 | 42,608 | ||||||||||||||||
Headcount | |||||||||||||||||||||
Sales (4) | 2,268 | 2,377 | 2,327 | 2,438 | 2,316 | ||||||||||||||||
Other | 4,308 | 3,928 | 3,952 | 4,036 | 4,029 | ||||||||||||||||
Total Headcount | 6,576 | 6,305 | 6,279 | 6,474 | 6,345 | ||||||||||||||||
(1) | Represents the total dollar value of customer purchases of goods and services. |
(2) | Represents the change in financial measures that would have resulted had average exchange rates in the reporting periods been the same as those in effect in the prior year periods. |
(3) | Reflects the total number of unique user accounts that have made a purchase during the TTM either through one of our online marketplaces or directly with a merchant for which we earned a commission. |
(4) | Includes merchant sales representatives, as well as sales support personnel. |
Q4 2018 | Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | ||||||||||||||||
Income (loss) from continuing operations | $ | 49,862 | $ | (41,170 | ) | $ | (37,645 | ) | $ | (14,685 | ) | $ | 79,208 | |||||||
Adjustments: | ||||||||||||||||||||
Stock-based compensation (1) | 14,251 | 16,411 | 26,563 | 19,543 | 19,098 | |||||||||||||||
Depreciation and amortization | 28,528 | 28,416 | 27,116 | 25,873 | 24,360 | |||||||||||||||
Acquisition-related expense (benefit), net | — | — | 28 | 5 | 6 | |||||||||||||||
Restructuring charges | (55 | ) | (67 | ) | (47 | ) | (61 | ) | 206 | |||||||||||
Other (income) expense, net | 13,176 | 46,855 | 28,494 | 17,253 | (39,273 | ) | ||||||||||||||
Provision (benefit) for income taxes | (1,162 | ) | (3,490 | ) | 2,012 | 2,069 | 170 | |||||||||||||
Total adjustments | 54,738 | 88,125 | 84,166 | 64,682 | 4,567 | |||||||||||||||
Adjusted EBITDA | $ | 104,600 | $ | 46,955 | $ | 46,521 | $ | 49,997 | $ | 83,775 | ||||||||||
(1) | Represents stock-based compensation expense recorded within Selling, general and administrative, Cost of revenue and Marketing. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) attributable to common stockholders | $ | 77,041 | $ | 46,228 | $ | (22,377 | ) | $ | (11,079 | ) | |||||
Less: Net income (loss) attributable to noncontrolling interest | (2,602 | ) | (3,634 | ) | (10,682 | ) | (13,067 | ) | |||||||
Net income (loss) | 79,643 | 49,862 | (11,695 | ) | 1,988 | ||||||||||
Less: Income (loss) from discontinued operations, net of tax | 435 | — | 2,597 | — | |||||||||||
Income (loss) from continuing operations | 79,208 | 49,862 | (14,292 | ) | 1,988 | ||||||||||
Less: Provision (benefit) for income taxes | 170 | (1,162 | ) | 761 | (957 | ) | |||||||||
Income (loss) from continuing operations before provision (benefit) for income taxes | 79,378 | 48,700 | (13,531 | ) | 1,031 | ||||||||||
Stock-based compensation | 19,098 | 14,251 | 81,615 | 64,821 | |||||||||||
Amortization expense of acquired intangibles | 2,936 | 4,182 | 14,355 | 14,498 | |||||||||||
Acquisition-related expense (benefit), net | 6 | — | 39 | 655 | |||||||||||
Restructuring charges | 206 | (55 | ) | 31 | (136 | ) | |||||||||
IBM patent litigation | — | — | — | 34,600 | |||||||||||
(Gain) loss from changes in fair value of investments | 3,526 | 752 | 72,497 | 9,064 | |||||||||||
(Gain) loss from sale of investment | — | — | 412 | — | |||||||||||
(Gain) loss on equity method investment | (51,397 | ) | — | (51,397 | ) | — | |||||||||
Intercompany foreign currency losses (gains) and reclassifications of translation adjustments to earnings | (4,744 | ) | 4,374 | 6,454 | 13,820 | ||||||||||
Non-cash interest expense on convertible senior notes | 3,428 | 3,094 | 13,200 | 11,916 | |||||||||||
Non-GAAP income (loss) from continuing operations before provision (benefit) for income taxes | 52,437 | 75,298 | 123,675 | 150,269 | |||||||||||
Less: Non-GAAP provision for income taxes | 6,716 | 11,656 | 38,573 | 29,512 | |||||||||||
Non-GAAP net income (loss) | 45,721 | 63,642 | 85,102 | 120,757 | |||||||||||
Net income attributable to noncontrolling interest | (2,602 | ) | (3,634 | ) | (10,682 | ) | (13,067 | ) | |||||||
Non-GAAP net income (loss) attributable to common stockholders | 43,119 | 60,008 | 74,420 | 107,690 | |||||||||||
Plus: Cash interest expense from assumed conversion of convertible senior notes (1) | 1,459 | 1,149 | 5,253 | 5,027 | |||||||||||
Non-GAAP Net Income (loss) attributable to common stockholders plus assumed conversions | $ | 44,578 | $ | 61,157 | $ | 79,673 | $ | 112,717 | |||||||
Weighted-average shares of common stock - diluted | 617,603,560 | 620,708,515 | 567,395,071 | 566,511,108 | |||||||||||
Incremental dilutive securities | — | — | 51,653,333 | 54,071,955 | |||||||||||
Weighted-average shares of common stock - non-GAAP | 617,603,560 | 620,708,515 | 619,048,404 | 620,583,063 | |||||||||||
Diluted net income (loss) per share | $ | 0.13 | $ | 0.08 | $ | (0.04 | ) | $ | (0.02 | ) | |||||
Impact of non-GAAP adjustments and related tax effects | (0.06 | ) | 0.02 | 0.17 | 0.20 | ||||||||||
Non-GAAP net income per share | $ | 0.07 | $ | 0.10 | $ | 0.13 | $ | 0.18 | |||||||
(1) | Adjustment to interest expense for assumed conversion of convertible senior notes excludes non-cash interest expense that has been added back above in calculating non-GAAP net income (loss) attributable to common stockholders. |
Q4 2018 | Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | |||||||||||||||
Net cash provided by (used in) operating activities from continuing operations | $ | 323,816 | $ | (147,483 | ) | $ | (1,219 | ) | $ | 18,584 | $ | 201,401 | |||||||
Purchases of property and equipment and capitalized software from continuing operations | (16,084 | ) | (17,477 | ) | (16,684 | ) | (17,693 | ) | (15,474 | ) | |||||||||
Free cash flow | $ | 307,732 | $ | (164,960 | ) | $ | (17,903 | ) | $ | 891 | $ | 185,927 | |||||||
Net cash provided by (used in) investing activities from continuing operations | $ | (17,497 | ) | $ | (18,115 | ) | $ | (17,235 | ) | $ | (19,541 | ) | $ | (12,700 | ) | ||||
Net cash provided by (used in) financing activities | $ | (35,069 | ) | $ | (27,777 | ) | $ | (31,581 | ) | $ | (22,595 | ) | $ | (10,666 | ) | ||||
Q4 2018 | Q4 2019 | Y/Y Growth | FX Effect | Y/Y Growth excluding FX (1) | |||||||||
International TTM Gross Profit / Active Customer | $24.46 | $22.11 | (9.6 | )% | 4.6 | % | (5.0 | )% | |||||
Consolidated TTM Gross Profit / Active Customer | $27.42 | $27.19 | (0.8 | )% | 1.6 | % | 0.8 | % | |||||
(1) | 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. |