Groupon 2014 Annual Report Download - page 63

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59
because direct revenue includes the entire amount of gross billings, before deducting the cost of the related inventory, while third
party revenue is net of the merchant's share of the transaction price. Additionally, our Goods category has lower margins than our
Local category, primarily as a result of shipping and fulfillment costs related to direct revenue transactions.
Other Revenue
Other revenue decreased by $6.7 million to $13.7 million for the year ended December 31, 2013, as compared to $20.4
million for the year ended December 31, 2012, primarily due to a decrease in advertising revenue. Other revenue also includes
point of sale and payment processing revenue, which we launched in the third quarter of 2012, and commission revenue, which
we launched in the fourth quarter of 2013. Point of sale revenue, payment processing revenue and commission revenue were not
significant for the years ended December 31, 2013 and 2012, and we do not expect them to be material in the near term.
Revenue by Segment
Revenue by segment for the years ended December 31, 2013 and 2012 was as follows:
Year Ended December 31,
2013 % of total 2012 % of total
(dollars in thousands)
North America:
Third party and other ........... $ 745,563 29.0% $ 762,424 32.7%
Direct.................................... 775,795 30.1 403,276 17.2
Total segment revenue ...... 1,521,358 59.1 1,165,700 49.9
EMEA:
Third party ........................... 627,034 24.4 764,830 32.8
Direct.................................... 115,881 4.5 40,646 1.7
Total segment revenue ...... 742,915 28.9 805,476 34.5
Rest of World:
Third party ........................... 282,057 11.0 352,475 15.1
Direct.................................... 27,325 1.0 10,821 0.5
Total segment revenue ...... 309,382 12.0 363,296 15.6
Total revenue........................... $ 2,573,655 100.0% $ 2,334,472 100.0%