Kara Swisher

Recent Posts by Kara Swisher

Here’s the Groupon S-1 IPO Filing: What the Heck Is Adjusted CSOI?

Here is Groupon’s S-1 that it just filed with the Securities and Exchange Commission.

In it, Groupon reveals a lot of information about who got what and what’s up with is financial performance.

One unusual metric the Chicago-based social buying site wants investors to pay attention to is something it is calling “Adjusted CSOI,” which is defined as adjusted consolidated segment operating income.

Let’s be clear, this is a number that does not include important costs, such as critical online marketing expenses to attract new customers to Groupon.

Such accounting is called non-GAAP (generally accepted accounting principles).

In 2010 and the first quarter of 2011, Groupon said its Adjusted CSOI was $60.6 million and $81.6 million, respectively.

On a GAAP basis, Groupon lost $413.4 million for 2010 and $113.9 million in the first three months of 2011.

Said Groupon about its accounting in its S-1 filing: “We believe Adjusted CSOI is an important measure of the performance of our business as it excludes expenses that are non-cash or otherwise not indicative of future operating expenses.”

Well, you be the judge:

grouponpdf


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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik