Groupon Acquires Ruby On Rails Development Company Obtiva and Reveals Non-CSOI Financial Numbers
Groupon has announced that they have acquired Obtiva, a Ruby on Rails development company based in Chicago, Illinois. Groupon has been working closely with Obtiva since 2009 when the company only had a few engineers working for them. “We’re constantly impressed by how capable Obtiva developers are and we’re really looking forward to expanding the team,” said Groupon spokesperson Julie Mossler. In other related Groupon news, some of their financial figures have been revealed as the company has been scrutinized by the SEC.
Groupon had a net loss of $413.4 million on $713.4 million in revenue under GAAP. On an adjusted CSOI basis, Groupon reported income of $60.6 million. To come up with the adjusted CSOI figure, Groupon started with a line on the GAAP income statement called loss from operations, which was $420.3 million. Then Groupon excluded three expenses categories which included $241.5 million in online-marketing costs, $36.2 million in stock-based compensation, and $203.2 million of non-cash acquisition related costs from a company that they acquired in Europe. In Q1 2011, Groupon said adjusted CSOI was $81.6 million, loss from operations was $117.1 million, and net loss was $113.9 million.
“We consider adjusted CSOI to be an important measure for management to evaluate the performance of our business as it excludes certain non-cash expenses and discretionary online marketing expenses that are incurred primarily to acquire new subscribers,” stated the company. Groupon has filed to go public this autumn.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry