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From what I could make out of the prospectus, the revenue number is the sum of the face value of all coupons sold. Since Groupon has to pay the merchants a pre
by bhangi 15y ago
From what I could make out of the prospectus, the revenue number is the sum of the face value of all coupons sold. Since Groupon has to pay the merchants a predetermined percentage of the face value, I'm having a tough time understanding why the entire face value should be considered as revenue. To take an analogy, this would be like Visa claiming the total value of transactions as revenue instead of the fees it charges the merchants for said transactions. Am I missing something?
- rganguly 15y agoYou're paying your money to Groupon, then they send a portion of the dollars to the merchant. You can assume that basically all of the cost of revenue line item is representative of the portion they send to the merchants.