Loss-making Groupon defines itself as profitable | Business blog | Business, finance, media and technology views from the Financial Times – FT.com

Ignoring GAAP in such a self-serving way surely qualifies as information irresponsibility.

The S-1 filing shows that Groupon had 83m subscribers at the end of March and its revenues rose from a total of $713m in 2010 to $645m in the first quarter of 2011 alone.

Meanwhile, it made a loss according to Generally Accepted Accounting Principles of $390m in 2010 and $103m in the first quarter of 2011.

…

How exactly does it “adjust” its operating income, you may ask? By ignoring both the cost of stock-based compensation and the huge amount it spends on online marketing.

Loss-making Groupon defines itself as profitable | Business blog | Business, finance, media and technology views from the Financial Times – FT.com