Groupon Loses Second COO This Year — And Restates Revenue

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Groupon has lost its second COO in six months.

Back in March of this year, Rob Solomon, who joined the company in March 2010, announced that he would be leaving the company. A month later, Groupon hired former Google VP Margo Georgiadis to replace him.

And today, just five months after she joined the executive team, Groupon is announcing that Georgiadis is leaving the company to re-join Google as President, Americas. Given that Groupon is currently in the process of going public, this doesn’t seem to bode well for the company. In the blog post announcing the news, Groupon CEO Andrew Mason vaguely attributes the departure to the fact that Groupon added 8 members to its executive team since the beginning of the year, and says that it’s rare for any company to “bat 1000%”.

In addition to announcing Georgiadis’s departure, Groupon has also filed an amended S-1, which includes revised revenue numbers based on a change in accounting. In its previous filing, Groupon reported that it had $1.5B in revenue for the six months ended in June — it now reports $688M for the same time period. The key difference: before now, Groupon has included the full value of a purchased Groupon as part of its revenue figures, and now it’s only considering the portion of the Groupon that they actually keep (a significant percentage of each Groupon goes back to the merchant).

Finally, the revised S-1 also discusses Andrew Mason’s internal memo that leaked last month.

Here’s the Groupon blog post announcing Georgiadis’s departure:

As a fast-growing company, we’ve done a lot of hiring this year, including on our senior executive team. Since the beginning of this year, we’ve made a total of 8 additions – that’s 57% of the total executive team. It would have been great if I could say that we batted 1,000%, but that’s rarely the case; after five months at Groupon, Margo Georgiadis, our COO, has decided to return to Google (her former employer) in a new role as President, Americas.

We’ve built a fantastic team that has proven itself highly capable, so this change won’t have an impact on operations. In fact, we are using it as an opportunity to reorganize in a way that reflects our evolving strategic priorities. Sales, Channels, International, and Marketing will now report directly to me.

Here’s a note from Margo: “Groupon is a great company and I feel privileged to have worked there even for a short time. It was a hard decision to leave as the company is on a terrific path. I have complete confidence in the team’s ability to realize its mission.” We wish her well.