The Washington Post

LivingSocial’s losses narrow in the second quarter

District-based deal purveyor LivingSocial narrowed its losses in the second quarter of the year, regulatory filings show, after enduring financial struggles that included steep losses, business closures and layoffs.

The company posted a net loss of $11 million for April, May and June, compared to the net loss of $32 million during the same period last year. Those figures have been adjusted to exclude businesses that LivingSocial no longer owns.

LivingSocial is a private company but its financial results are disclosed in Securities and Exchange Commission filings for, which owns roughly a third of its business. Amazon founder Jeffrey P. Bezos owns The Washington Post and its affiliated publications.

The filings show LivingSocial’s revenue for the second quarter totaled $75 million, down from $98 million during the same period in 2013. That decline may be attributed in part to LivingSocial’s sale of South Korea-based Ticket Monster to rival Groupon for $260 million. That deal closed in January.

“This quarter reflects our ongoing operational realignment, as well as our investment in new technologies and services, to help propel LivingSocial to the next stage of growth,” Dan Federico, the vice president of finance, said in a news release.

LivingSocial also posted a gross profit — typically the difference between sales and the cost of the goods or service, excluding overhead expenses and other fixed costs — of $59 million for the second quarter and its operating expenses were $87 million. In 2013, the company had gross profit of $73 million and operating expenses of $93 million for the second quarter.

The company named a new chief executive last week in Gautam Thakar, an executive at eBay and He replaces co-founder Tim O’Shaughnessy, who announced plans to step down as CEO back in January.

Steven Overly is a national reporter covering federal technology and energy policy with a focus on Capitol Hill. He previously covered the business of technology, biotechnology and venture capital.



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