Groupon Inc. GRPN +3.84% said it was revising lower the financial results it reported for its fourth quarter, after discovering the company had to set aside more money for customer refunds. The online-coupon site, which went public in November, said its auditor, Ernst & Young, discovered a "material weakness in its internal controls" for the fiscal year. The accounting changes will reduce the Chicago company's revenue for the period by $14.3 million and reduce net income by $22.6 million, or 4 cents a share.
Of course the company is spinning this in their press release, reminding everyone that their operating cash flow hasn't changed, and CFO Jason Child is, obviously, still a fan, saying, "We remain confident in the fundamentals of our business, as our performance continues to highlight the value that we provide to customers and merchants.”
It's cool, Jason. These things happen. Just don't get defensive about it.