Groupon 2011 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2011 Groupon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 123

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123

___________________________________________
Summarized below are the significant factors the Board considered in determining the fair value of the common stock underlying the Company's stock-
based awards granted to its employees through the third quarter of 2011, the last full period prior to our initial public offering on November 4, 2011.
Fiscal Year 2008 and Prior
We raised $4.7 million in net proceeds from the issuance convertible preferred stock in January 2008 and began operations with the launch of our first
market in Chicago in October 2008.
Fiscal Year 2009
First Quarter 2009.
In the first quarter, we generated revenue of less than $0.1 million for the first quarter of 2009 through continued to growth in
the Chicago market.
Second Quarter 2009.
In the second quarter, we launched our services in four additional markets (New York, Washington D.C., San Francisco and
Boston) and the total number of subscribers rose to approximately 0.2 million at June 30, 2009. We generated revenue of $1.2 million for the second
quarter of 2009.
Third Quarter 2009.
In the third quarter, we launched our services in 12 new markets across the United States and the total number of subscribers
increased to approximately 0.6 million at September 30, 2009. We generated revenue of $4.0 million for the third quarter of 2009.
Fourth Quarter 2009.
In the fourth quarter, we raised $29.9 million in net proceeds from the issuance of convertible preferred stock in
November 2009 and the total number of subscribers increased to approximately 1.8 million at December 31, 2009 as we launched our services in 13
additional markets across the United States. We generated revenue of $9.3 million for the fourth quarter of 2009.
Fiscal Year 2010
First Quarter 2010.
In the first quarter, the total number of subscribers increased to approximately 3.4 million as of March 31, 2010 as we launched
our services in 13 new markets across the United States. In addition, we launched our official Groupon application for the Apple iPhone and iPod
touch, which provides at no additional cost a more convenient buying and redemption process for both consumers and merchants. We generated
revenue of $20.3 million for the first quarter of 2010.
Second Quarter 2010.
In the second quarter, we raised $134.9 million in net proceeds from the issuance of convertible preferred stock in April 2010.
We also expanded our global presence to 80 markets and 16 countries in Europe and in Latin America with acquisitions. In addition, we acquired a
mobile development company in May 2010. We also launched our services in 20 additional markets across North America, including Toronto and
Vancouver, increasing the total
59
Three Months Ended Shares Underlying
Options
Weighted Average
Exercise Price ($)
March 31, 2008
—
—
June 30, 2008
60,000
0.015
September 30, 2008
960,000
0.015
December 31, 2008
1,200,000
0.015
March 31, 2009
600,000
0.025
June 30, 2009
5,628,000
0.045
September 30, 2009
6,516,000
0.080
December 31, 2009
1,746,000
0.255
March 31, 2010
11,250,000
1.210
June 30, 2010
2,242,800
1.675
September 30, 2010
3,736,400
2.245
December 31, 2010
301,200
3.475
March 31, 2011
120,000
7.900
June 30, 2011 (1)
38,000
0.015
(1) The 19,000 options granted in the three months ended June 30, 2011 have an exercise price of $0.03 because they were granted as part of a settlement agreement with a former employee.
The exercise price of these options represents the fair market value of the stock when the employee left the Company.