LivingSocial posted a net loss of $566 million for the third quarter after it wrote down the value of several daily deal firms it acquired last year.
The D.C.-based online deal purveyor spent millions of dollars from investors buying like-minded companies in foreign countries last year, and it is unclear whether the acquisitions can regain their value.
Overall, LivingSocial recorded about $124 million in revenue during the quarter, a 10 percent decline from the $138 million it pulled in during the second quarter. Meanwhile, operating expenses fell 17.5 percent, to $193 million.
LivingSocial is a privately held company; details about its quarterly financial results were disclosed in a message chief executive Tim O’Shaughnessy sent to employees Thursday that was obtained by Capital Business. (O’Shaughnessy is the son-in-law of Donald E. Graham, chairman and chief executive of The Washington Post Co.)
O’Shaughnessy’s note said the quarterly loss included $496 million related to the decline in value of recent acquisitions and an additional $45 million related to stock compensation and other items.