Groupon : How Good Of A Deal It Is For Investors?
Must read for everybody. Entrepreneurs, investors and some of you may start with a pinch of salt but to most people that are aware of how most of these hyped VC darlings and highly ‘valued’ companies work, should be just a reminder of the hard reality and what to focus on. There was a lot of discussion on ‘Custom’ metrics that Groupon came up with to show to the world that it is actually doing great and making profits. But it turned out, they are all ‘gimmicks’ to hide costs and show profitable when it is actually loosing money. " Alright, you caught us. We're actually not making any money. In fact, we are really losing a lot of money ." This is the essence of Groupon's declaration last week that it will remove the controversial accounting metric called Adjusted Consolidated Segment Operating Income (ACSOI) from its financial statements. ACSOI essentially measures Groupon's profits before subtracting its subscriber-acquisition costs and stock option-based compe...
