Groupon is one of those stories that the author so desparately wants to come true. From devising creative accounting, ACSOI (adjusted consolidated segment operating income), whatever that means....the CEO is hell-bent on justifying that it is the "correct" way to measure groupon's earnings considering its "unique" business model. Do all you can Mr. Mason, but nothing beats the KISS principle - Keep It Simple, Stupid. Creative accounting does not create value, solid revenues do and no one cares what your ACSOI measures as long as there are no cash flows.
In his latest letter to employees, Mr. Mason is trying to define "marketing" and how "marketing" for groupon is different than that for other companies. So now, we have a new accounting term and a new definition for "marketing".....hmmm....did they hire some avatar of Shakespere to help in the process..!!!. I'm wondering what's next, how to define cash ?
Mr. Mason here's my two cents - "Stop fiddling with english language to make sense, just show me the money"....
Groupon - Making sense out of nothing at all ?
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.