Photo: Business Insider
Groupon rival LivingSocial lost $558 million in 2011, we’ve learned, looking at Amazon.com’s 10-K filing with the SEC.
LivingSocial’s 2011 revenues reached $245 million.
Amazon, which owns a large stake in LivingSocial, has to report LivingSocial financials because it’s an “equity method investment.”
Credit goes to GeekWire for first noticing this detail in Amazon’s filing.
The numbers Amazon reported do not give a complete picture of LivingSocial’s finacials. They don’t include revenues from two foreign joint ventures, and they only include the final quarter of another LivingSocial acquisition.
The 2011 loss is spectacularly huge relative to revenue, even for a startup like LivingSocial in hyper-growth mode. Also notable is the company’s relatively small size versus industry leader Groupon.
According to a source we spoke with who is close to the company, the loss reflects LivingSocial’s rapid addition of nearly 4500 employees and 17 international markets.
This source also says a huge chunk of LivingSocial’s losses are from the first half of last year, when LivingSocial and lots of other discount daily deal sites, including Groupon, were spending a lot more money on marketing then they are now.
The source close to LivingSocial says the compay’s gross billings – a non-GAAP figure, for sure – would have been around $750 million.
According to the 10-K, the book value of Amazon’s investment has gone up $16 million from September 30 to December 31, and now stands at $208 million.