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Groupon stripping out "discretionary online marketing expenses that are incurred primarily to acquire new subscribers” is akin to airline stripping out fuel cos
by VladRussian 15y ago
Groupon stripping out "discretionary online marketing expenses that are incurred primarily to acquire new subscribers” is akin to airline stripping out fuel costs as "discretionary expenses that are incurred primarily to acquire new miles".
Anyway, for example, during its last years, the well known large company i worked at, was steadily posting near neutral quarters on non-GAAP, excluding one time charges, basis. The only thing is that each quarter there would be at least a one "one time charge" that would result in the quarter being deep in red. Not surprisingly at all if one understands that the life and business in particular is just a sequence of one time events :)
(there is of course a very reasonable use of one-time charges - if company generates a profit, then good accountants would dig out some "one time charges" that would allow to decrease/avoid the profit tax)