Groupon 2013 Annual Report Download - page 7

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Non-GAAP Financial Measures
The accompanying letter to stockholders includes the following non-GAAP financial measures: adjusted EBITDA,
non-GAAP EPS and free cash flow. These non-GAAP financial measures are used in addition to and in conjunction
with results presented in accordance with U.S. GAAP, as presented in the accompanying Annual Report on Form
10-K. However, these measures are not intended to be a substitute for those reported in accordance with U.S.
GAAP. These measures may be different from non-GAAP financial measures used by other companies, even when
similar terms are used to identify such measures.
Adjusted EBITDA – Adjusted EBITDA is a non-GAAP financial measure that comprises net income (loss)
excluding income taxes, interest and other non-operating items, depreciation and amortization and acquisition-
related expense (benefit), net. The following is a reconciliation of adjusted EBITDA to the most comparable U.S.
GAAP financial measure, "Net loss."
Year Ended December 31, 2013
Net loss (88,946)$
Adjustments:
Stock-based compensation 121,462
Acquisition-related expense (benefit), net (11)
Depreciation and amortization 89,449
Non-operating items:
Loss (income) on equity method investments 44
Other expense (income), net 94,619
Provision for income taxes 70,037
Total adjustments 375,600
Adjusted EBITDA 286,654$
Non-GAAP EPS – Non-GAAP EPS represents diluted earnings per share excluding stock-based compensation,
acquisition-related expense (benefit), net and the impairment of Life Media Limited (F-tuan), a minority investment
in China. The following is a reconciliation of non-GAAP EPS to the most comparable U.S. GAAP financial
measure, “Diluted net loss per share.”
Year Ended December 31, 2013
Net loss attributable to common stockholders (95,393)$
Stock-based compensation 121,462
Acquisition-related expense (benefit), net (11)
Impairment of investment in F-tuan 85,521
Income tax effect of adjustments (38,504)
Net income attributable to common stockholders, excluding stock-based compensation,
acquisition-related expense (benefit), net and impairment of investment in F-tuan 73,075$
Diluted shares 663,910,194
Incremental diluted shares(1) 15,501,759
Ad jus ted d iluted s hares 679,411,953
Diluted net loss per share (0.14)$
Impact of stock-based compensation, acquisition-related expense (benefit), net and
impairment of investment in F-tuan and the related income tax effects 0.25
Diluted earnings per share excluding stock-based compensation, acquisition-related
expense (benefit), net and impairment of investment in F-tuan 0.11$
(1) Outstanding equity awards are not reflected in the diluted net loss per share calculation for the year ended December 31,
2013 because the effect would be antidilutive. However, those awards have been reflected in the calculation of diluted earnings
per share excluding stock-based compensation, acquisition-related expense (benefit), net and the impairment of a minority
investment in China for the year ended December 31, 2013 because they have a dilutive effect on that calculation.