City Desk

LivingSocial Loses $558 Million

Woof. D.C.-based group-coupon company LivingSocial lost a lot of money last year. $558 million, to be exact. Reports the Post:

LivingSocial earned $245 million, with operating expenses of $686 million and other expenses of $117 million, leaving the loss of $558 million, according to the filing with the U.S. Securities and Exchange Commission.

A source close to LivingSocial, who was not authorized to speak publicly, said the $558 million includes more than $100 million in non-cash losses from acquisitions and stock compensation. LivingSocial bought several companies in 2011, many of which were purchased with non-cash methods such as stock warrants.

The source also said that the $245 million in revenue is what LivingSocial grossed after merchants in its daily deal space took their share.

Also of note: The company has 4,900 employees! We know it's not unusual for companies to operate at a loss (we do work in journalism, after all), but LivingSocial's rapid expansion and deep dive into the red makes us curious to see how well it does in the future.

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  • BuzzMc

    I cancelled long ago without ever taking it up on one offer. It's asking for junk mail. Looks like the rest of the world is realizing this too. Plus, they wouldn't even test me for a job. So there.

  • @SamuelMoore

    What's Groupon's latest filing?