Groupon 2013 Annual Report Download - page 71

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63
the year ended December 31, 2011. The Goods category, which comprises the majority of our direct revenue for the year ended
December 31, 2012, was not launched until the second half of 2011. Therefore, the comparison of gross profit as a percentage of
revenue on direct revenue deals for the year ended December 31, 2012, as compared to the prior year, is not meaningful due to
the limited volume of direct revenue deals in 2011.
Gross Profit by Segment
Gross profit by segment for the years ended December 31, 2012 and 2011 was as follows:
Year Ended December 31,
2012 % of total 2011 % of total
(dollars in thousands)
North America:
Third party and other ........................ $ 617,212 38.2% $ 495,026 36.6%
Direct................................................. 38,097 2.4 — —
Total gross profit............................... 655,309 40.6 495,026 36.6
EMEA:
Third party and other ........................ 691,176 42.8 641,026 47.4
Direct................................................. (1,992) (0.1) 5,736 0.5
Total gross profit............................ 689,184 42.7 646,762 47.9
Rest of World:
Third party and other ........................ 273,602 16.9 209,763 15.5
Direct................................................. (2,563) (0.2) — —
Total gross profit............................ 271,039 16.7 209,763 15.5
Total gross profit.................................. $ 1,615,532 100.0% $ 1,351,551 100.0%
North America
North America segment gross profit increased by $160.3 million to $655.3 million for the year ended December 31, 2012,
as compared to $495.0 million for the year ended December 31, 2011. The increase in gross profit was comprised of a $122.2
million increase in third party and other gross profit and a $38.1 million increase in direct gross profit.
EMEA
EMEA segment gross profit increased by $42.4 million to $689.2 million for the year ended December 31, 2012, as
compared to $646.8 million for the year ended December 31, 2011. The increase in gross profit was comprised of a $50.2 million
increase in third party and other gross profit, partially offset by a $7.8 million decrease in direct gross profit.
Rest of World
Rest of World segment gross profit increased by $61.3 million to $271.1 million as of December 31, 2012, as compared
to $209.8 million as of December 31, 2011. The increase in gross profit was comprised of a $63.8 million increase in third party
and other gross profit, partially offset by a $2.5 million decrease in direct gross profit.