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Personally I find the booking of the face value of their coupons kind of questionable or at least unsustainable. Yes it is revenue, but a typical "coupon" busin
by ojbyrne 15y ago
Personally I find the booking of the face value of their coupons kind of questionable or at least unsustainable. Yes it is revenue, but a typical "coupon" business would probably only count the fees received from merchants as top-line revenue (because the merchants would collect the money directly). So it makes the business look more viable than it really is. I can't see merchants continuing to accept that, and I bet larger deals (i.e. with Expedia) don't work that way.
- brown9-2 15y agoThis is an issue that doesn't seem to be getting much play in all of the discussion about Groupon's financials - for every $2 that comes in the door as revenue, $1 of that immediately is booked as a liability as well. I am far from an accountant or all that familiar with GAAP but it seems somewhat disingenuous.