Oops.
On Friday, Groupon said it would change what it books as revenue after discussions with the Securities and Exchange Commission. It will now only count as revenue its commission on sales, rather than the total value of an online coupon. Previously, when it sold a restaurant gift certificate for $10, for instance, it would book the full amount, even though a portion went to the business owner.
http://online.wsj.com/...
That change reduces Groupon's stated revenue for 2010 to $312.9 million, down from the $713.4 million previously reported.
Hmm...
It would appear that about oh, fifty-six percent or so of Groupon's 2010 revenue turned out to be pass-through costs.
Now, I'm not a businessman nor an accountant, but I know enough that if I buy a widget from you for $5 and turn around to sell it for $10, I can certainly claim $10 in revenue. And I can make that $10 look really pretty as I push for my much heralded IPO. I could do that, but it would make me a shameless lying thief if I did. But then, I'm not a corporation like Groupon.
Hat tip to the SEC on this one for at least turning over some rocks and shining some sunlight into the muck....