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Losses are mounting for LivingSocial

LivingSocial, the other social commerce company, is not yet a public company. But its results are public, thanks to the investment it received from Amazon (s AMZN). The Seattle-based retail and web services company reported its earnings earlier this week and in its 10-Q revealed that during the for the second quarter of 2012, LivingSocial lost $93 million on sales of $138 million.

In other words, it is burning about $90 million a quarter, tweets uber VC Bill Gurley of Benchmark Capital. Amazon gives its LivingSocial investment a book value of $271 million. Amazon invested $175 million in LivingSocial in December 2010. GroupOn (s GRPN) will announce its results on August 13.

2 Responses to “Losses are mounting for LivingSocial”

  1. How much cash could they possibly have left? They raised a lot of money, but several hundred million went to cash out founders and early investors and they aren’t doing enough revenue relative to those losses to be generating much cash from the float like Groupon does.

  2. It seems to be a bad week for tech. The Daily Deal industry seems to be taking a beating in the last few months. Groupon’s stocks seems to be on a steady decline. Now LivingSocial’s numbers come in low. Recently LivingSocial had to lay off some of their upper management.

    There still seems to be a lot of funding, just raised a ton of money and had a high evaluation.

    It look like the Summer Olympics and tech have something in common… they both have Gold, Silver and Bronze… “Divers”