LivingSocial Lost $650 Million in 2012
Looks like jobs weren't the only things being lost at LivingSocial in 2012. According to new SEC filings from investor Amazon.com, the D.C.-based deals company took a net loss of $650 million in 2012, even as its revenue doubled.
LivingSocial took in $536 million in revenue last year, compared to $862 million in operating expenses—a $326 million deficit. That's compared to $250 million in revenue and $669 million in operating losses in 2011.
The company lost an additional $579 million in "impairment" losses—write-downs on the intangible value of LivingSocial and companies it has purchased.
If you're thinking that $536 million minus $862 million in operating losses and $579 in impairment adds up to $905 instead of $650 million, you're right. In the SEC filings, Amazon attributes that additional $255 million to increases in noncash equity in companies LivingSocial bought at the start of 2012.
LivingSocial didn't respond to a request for comment. (Full disclosure: Washington City Paper also sells deals.)
Photo by Darrow Montgomery