EFTA01377683.pdf

S-1/A Operating loss (85,361) (104,942) (150.491) (115.926) (126,641) Interest (income) and expense 5 (12) 1,058 615 995 Other (income) and expense (167) (950) 1,104 737 1,390 Loss before income tax (85,199) (103,980) (152,653) (117,278) (129,026) Provision (benefit) for income taxes 513 1,440 (257) 2,502 Net loss $ (85,199) $(104,493) $(154,093) $ (117,021) $ (131,528) 75 Table of Content., The following table sets forth share-based compensation expense for the periods shown: Nine Months Ended Year Ended December 31, September 30, 2012 2013 2014 2014 2015 (In thousands) ( dited) Product development $ 3,984 $ 8,820 $24,758 $ 16.907 $ 33,287 Sales and marketing 668 1,235 3,738 2,553 4,524 General and administrative 3,462 4,603 7,604 5,193 11,675 Total share-based compensation $ 8,114 $14,658 $36.100 $24,653 $ 49,486 Comparison of Nine Months Ended September 30, 2014 and 2015 Total Net Revenue The following table sets forth our total net revenue for the periods shown: Nine Months Ended September 30, $ 2014 2015 Change % Change (in thousands) (unaudited) Transaction revenue 501,468 $ 751,929 $250,461 50% Starbucks transaction revenue 86,508 95.199 8,691 10% Software and data product revenue 6,022 35,628 29,606 NM Hardware revenue 5,300 10,002 4,702 89% Total net revenue S 599,298 892,758 $293,460 49% Total net revenue for the nine months ended September 30, 2015. increased by $293.5 million, or 49%, compared to the nine months ended September 30, 2014. Transaction revenue for the nine months ended September 30, 2015, increased by $250.5 million, or 50%. compared to the nine months ended September 30, 2014. This increase was attributable to growth in GPV processed of $8.6 billion, or 51%, to $25.5 billion from $16.8 billion. The majority of growth in GPV was derived from new sellers added within the 12-month period ended September 30, 2015; a smaller portion was generated by growth in GPV from the payment activity of existing sellers that were approved to transact with us on or prior to September 30, 2014. Transaction revenue as a percentage of GPV remained constant period to period and contributed 84% of total net revenue in both the nine months ended September 30, 2015, and 2014. Starbucks transaction revenue for the nine months ended September 30, 2015, increased by $8.7 million, or 10%, compared to the nine months ended September 30, 2014. Starbucks transaction revenue contributed 11% of total net revenue in the nine months ended September 30, 2015, down from 14% in the nine months ended September 30, 2014. 76 Table of Contents http://vAnc..u:.gov/Archivestedgar/data/1512673AX$1119312515369092/d937622dsla.htm111/6/2015 7:37:12 AM( CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0074834 CONFIDENTIAL SDNY_GM_00221018 EFTA01377683