Direct Line Blog

SEC questions Groupon's IPO filing

Share this article:

The Securities and Exchange Commission has reportedly asked Groupon to define a term the daily deal company used in its official IPO filing, according to The Wall Street Journal.

The term, “adjusted consolidated segment operating income, (CSOI)” is a measure of the company's profits before expenses. Groupon filed to go public June 2.

The term is a means of making the company more attractive to investors, which has been a growing issue given that Groupon has never reported a profit. Despite nearly $650 million in income the first quarter of 2011, the fast-growing company reported a $413.4 million loss for 2010.

Customer acquisition, marketing and employee growth have contributed to the company's growing expenses. However, and the company lost approximately $98 million in Q1 2011, despite an adjusted CSOI that indicates the company is $81.6 million in the black, the Journal reported.

Share this article:
close

Next Article in Direct Line Blog

Sign up to our newsletters

Latest Jobs:


Company of the week


Concerned about growth? With over 25 years experience in the industry, the list experts at Fairfield Marketing Group possess the know-how to help immediately improve any domestic or international direct marketing effort. First-time and well-established mailers can rely on Fairfield Marketing Group's expertise to help launch campaigns into positive and profitable ventures.

Find out more here »

More in Direct Line Blog

Président Replaces Cheesy TV Spots with Digital

Président Replaces Cheesy TV Spots with Digital

Marketing + Cheese: What more could you want?

Unhidden YouTube Talent

Unhidden YouTube Talent

The problem with trends: Most brands find out about them when they're already cresting. But virality means getting behind a trend before it hits.

The Honeymoon's Over: How to Fix the Agency/Client Relationship

The Honeymoon's Over: How to Fix the Agency/Client ...

Marketers, if it annoys you when your agency leaves the toilet seat up—tell them. This and other tips on how to dispel the illusion of productivity.