Monday, April 2, 2012

Summary Box: Groupon restatement sparks worries




GROWING PAINS: Groupon's announcement that its revenue and earnings were lower than what it reported in February is sparking fresh worries about the young company's business model.

WHAT HAPPENED: The online deals company said late Friday that it had to revise its previously issued fourth-quarter results to increase the amount it set aside for refunds to customers.

NOT THE FIRST TIME: Last year, the company got in trouble for including in its revenue the share of its sales that it turns over to a merchant running a deal. After regulators questioned its math, Groupon counted only the money it got to keep and reduced its reported revenue by roughly half.



Source & Image : Yahoo

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