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They count it as revenue before paying the merchant. Their true revenue is probably much lower than $500mm.
by lawdawg 14y ago
They count it as revenue before paying the merchant. Their true revenue is probably much lower than $500mm.
- thetrb 14y agoIf they keep ~50% of the coupon price wouldn't that just mean $250mm then? Still a big number.
- endtime 14y agoThey have 4000 employees. If they cost (salary + benefits + taxes + etc.) $100k a year each, on average, then that'd be $400m.
- zpconn 14y agoIt's amazing how many companies have tried to pull this little accounting trick, or variations of it. Most of them have failed or else fallen from glory.
- ebbv 14y agoAhhhh, ok. That seems like shady accounting to me, then. Calling any money "revenue" before the merchants get their share.
- jordo37 14y agoThat's not shady accounting, revenue is the income a company receives before handling any expenses, which in this case would include payment of merchants. This is why revenue is called the top-line - it represents the first number on any balance sheet before you subtract anything away.
- deleted 14y ago[deleted]