September 24, 2011

More Trouble for Groupon IPO: Groupon Restates Revenue, COO Exits - WSJ.com

This announcement should alert investors to be very wary should Groupon initiate an IPO. Was this high flying company cooking the books?

"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.

That change reduces Groupon's stated revenue for 2010 to $312.9 million, down from the $713.4 million previously reported.

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