EFTA01377693.pdf

S-1/A Costs and expenses include share-based compensation expense as follows: Three Months Ended Dec. 31, Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31, Jun. 30, Sep. 30, 2013 2014 2014 2014 2014 2015 2015 2015 (in thousands) (unaudited) Share-Based Compensation Product devebpment $ 2.938 $ 4.265 $ 5.556 S 7.086 $ 7,851 S 8.958 $ 10.391 $ 13.938 Sales and marketing 411 644 839 1.070 1,185 1,429 1,345 1.750 General and administrative 1.533 1,310 1,707 2,176 2,411 3,074 3,496 5,105 Total share-based compensation $ 4,882 S 6,219 5 8,102 $ 10,332 5 11.447 $ 13,461 $ 15,232 5 20,793 The following table sets forth the key operating metrics and non-GAAP financial measures we use to evaluate our business for each of the periods indicated: Three Months Ended Dec. Mar. Jun. Dec. Mar. Jun. Sep. 31, 31, 30, Sep. 30, 31, 31, 30, 30, 2013 2014 2014 2014 2014 2015 2015 2015 (In thousands except GPV) (unaudited) Key Operating Metrics and non-GAAP Financial Measures GPV (in millions) $ 4.486 S 4,605 $ 5,789 $ 6,430 5 6.955 5 7,117 5 8,793 5 9,540 Adjusted Revenue $ 47,389 S 52.341 S 66.848 $ 75,100 $ 82,021 $ 89.213 $110.560 $117.849 Adjusted EBITDA 5(11 553) S(27,782) 3(16,220) $ (13,047) 3(10,692) 5(20,129) 5 859 (15.776) The following table presents a reconciliation of total net revenue to Adjusted Revenue for each of the periods indicated: Three Months Ended Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. 31, 31, 30, 30, 31, 31, 30, 30, 2013 2014 2014 2014 2014 2015 2015 2015 (in thousands) (unaudited) Adjusted R Reconciliation Total net revenue $165.976 $ 165.082 $206,796 $227.420 $250.894 5250.557 5310,013 $332.188 Less: Starbucics transaction revenue 33.754 26.466 30.147 29.895 36.516 29.237 33.630 32.332 Less: Transaction costs 84,833 86.275 109.801 122.425 132.357 132.107 165,823 182.007 Adjusted Revenue $ 47.389 $ 52.341 5 66.848 $ 75.100 $ 82.021 $ 89.213 5110.560 $117.849 88 Table of Contents The following table presents a reconciliation of net loss to Adjusted EBITDA for each of the periods indicated: Three Months Ended Dec. 31, Mar. 31, Jun. 30, Sep. 30, Dec. 31, Mar. 31, Jun. 30, Sep. 30, 2013 2014 2014 2014 2014 2015 2015 2015 (in thousands) (unaudited) Adjusted EBITDA Reconciliation Net loss $ (30.790) S (43.991) (35.364) (37,666) S (37,072) 5 (47,978) $ (29.620) $ (53,930) Starbucks transaction revenue (33,754) (26.466) (30,147) (29,895) (36.516) (29,237) (33.630) (32,332) Starbucks transaction costs 39,819 33,016 37,496 37,377 43,066 36,211 40,921 41.410 Share based compensation expense 4.882 6.219 8.102 10.332 11.447 13.461 15.232 20.793 Depreciation and amortization 2.852 3.794 3.919 5.130 5.743 5,546 6.410 6,570 Interest (income) and expense (4) 2 180 433 443 414 444 137 http://wn.a2e.gov/A vestedgarklata/I5I2673Aaa 193125I5369092/d937622dsla.honi 1 l/6/2015 7:37:12 AM] CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0074844 CONFIDENTIAL SDNY_GM_00221028 EFTA01377693