City Paper is not for tourists
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.