November 27, 2021

Revenue

PwC Hits $45 Billion In Global Revenue In ‘New Equation’-less FY 2021

The FY 2021 numbers are in at PwC and global revenue rose 4.9% to $45.1 billion for the year ending June 30. Hey, nice job, everyone. And as you’d expect, Bob Mortiz is #PwCProud: “I’m tremendously proud of all we achieved in a challenging year, and the way we did it, leading with our values […]

Despite a 2.6% Increase In 2021, Grant Thornton Couldn’t Catch BDO USA In the Midtier Firm Revenue Pissing Contest

This just in from the purple gang: Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd., today announced record revenues of $1.97 billion for the fiscal year ended July 31, 2021. “In a changing and uncertain environment, we continue to remain agile and perform with excellence across our entire firm, including our […]

Don’t Worry About Deloitte Partners In the UK, They’re Doing Just Fine

The Financial Times yesterday wrote about the rich getting richer at the Queen’s Deloitte: Deloitte’s UK partners will receive an average payout of about £1m after the accounting firm’s profits rebounded from a pandemic slump last year, helped by the sale of its restructuring division. The share of profits to 700 equity partners is the […]

EY Rakes In $40 Billion In Global Revenue, Will Try Not to Suck So Much At Auditing

A day after Deloitte got the Big 4 revenue boasting season rolling yesterday, EY announced today that it pulled in a “solid” $40 billion ($39,959,000,000, to be exact) in revenue for the year ending June 30, a 7.3% increase over 2020’s $37.2 billion. But aside from all the patting each other on the back for […]

Deloitte Is the First Big 4 Firm to Clear $50 Billion In Global Revenue

Big 4 revenue bragging season is officially underway with Deloitte being the first out of the gate. But before we get to Deloitte’s haul for fiscal year 2021, let’s recap last year’s global revenue results: Deloitte: +3.9% to $47.6 billion PwC: +1.4% to $43 billion EY: +2.3% to $37.2 billion KPMG: -1.8% to $29.2 billion […]

BDO USA Did Not Feel the COVID Pinch In 2021

As of right now, BDO USA has locked down the sixth spot in the largest U.S. public accounting firms by revenue, after officially announcing this morning that its fiscal year 2021 revenue eclipsed $2 billion, an all-time high. Bravo Delta Oscar came in at $2,000,300,000 for the 12-month period ending April 30, representing a year-over-year […]

So How Much Did PwC U.K. Partners Rake In This Year?

Ferrari, Aston Martin, McLaren, Jaguar, and Mercedes-Benz dealerships in and around London probably have been bustling more than usual lately, and here’s why: PwC’s UK partners took home record pay this year after the firm’s profits rose by a quarter to a fresh high of almost £1.2bn on the boom in corporate dealmaking. Average profit […]

Number of the Day: $2.9 Billion

More specifically, $2,878,519,000. That’s how much revenue was pulled in by RSM US in fiscal year 2021, which ended April 30. While it’s not the eye-opening double-digit revenue increase that the House of Adams had in FY 2020, it’s still solid growth of 6.4% over last year during the height of the pandemic outbreak in […]

Mazars’ FY 2020 Global Revenue Wasn’t As Bland As Its New Logo

Last October Mazars made a huge deal about its new brand identity, including a revamped logo that we thought was as bland as paste. Maybe the firm could have added a little orange to it, ya know, in honor of its most famous client in the U.S. Whatever. It is what it is. But while […]

RSM’s Global Revenue Soared 9.2% in FY 2020 Because the Firm Spat In the Face of Adversity or Something Like That

The international firm formerly known as McGladrey was thrilled with the fact that its global revenue increased 9.2% from $5.7 billion in 2019 to $6.3 billion during the year of our COVID Lord 2020. RSM Global CEO Jean Stephens ruminated: “2020 has been a challenging year but our growth reflects the agility and resilience we […]

Number of the Day: $157 Billion

The year of our COVID Lord 2020 proved to be the biggest challenge the Big 4 firms have faced since the financial crisis, as the pandemic wreaked havoc on global revenue forecasts that looked so promising at the start of each firm’s fiscal year. Deloitte, PwC, EY, and KPMG had combined global revenue of approximately […]

0.7% Is How Much Grant Thornton’s Global Revenue Grew In 2020

Any kind of financial growth during a global pandemic, the likes of which we’ve never seen, should be touted as a win. So it’s no surprise that Grant Thornton’s global PR team really hyped up the fact that GT’s revenue (barely) went in the plus column (unlike KPMG’s) for the 2020 financial year that ended […]

Oof. KPMG’s 2020 Global Revenue Got All F’d Up By the Rona

I had it all planned out. Knowing that KPMG would likely announce its 2020 global revenue this week, I was going to give KPMG kudos and kongratulations and golf claps for finally hitting the $30 billion mark, which would be an all-time high for the firm. And then troll KPMG a little for being the […]

BDO Had a Pretty Decent FY 2020 Globally

While 2020 has been horrible and stressful for pretty much everyone and everything, BDO actually had its best year on record, revenue-wise. Those who know, know BDO hit the $10 billion mark in global revenue for the very first time, topping out at $10.3 billion for the financial year that ended Sept. 30. That’s about […]

Wayne Berson Admits He Is Driving Some People Crazy at BDO USA

In a wide-ranging interview with CJ Prince of Chief Executive magazine, BDO USA CEO Wayne Berson used “BDO” and “powerhouse” in the same sentence, said “no one wants to go to the 5th best firm” (you got dissed, RSM US) but “we don’t see ourselves as inferior to the Big Four,” and explained what CLIMB means […]

Grant Thornton’s Revenue Barely Moved the Needle In FY 2020

Because of the coronavirus pandemic, the petals on the Purple Rose of Chicago wilted some this year. Despite reporting a record high $1.92 billion in revenue for the fiscal year that ended on July 31, Grant Thornton’s revenue only increased 1% in FY 2020 over last year’s $1.9 billion. CEO Brad Preber commented: “Our success […]

Deloitte’s 3.9% Increase In FY 2020 Global Revenue Is the Smallest Growth In About 5 Years

After perusing Deloitte’s FY 2020 global revenue announcement and impact report today, I thought I’d highlight some of the good news and some of the bad news over the past 12 months for D-towners everywhere. First, the good: For the fifth consecutive year, Deloitte has won the Big 4 revenue dick-measuring contest by reporting $47.6 […]

EY Won’t Let a Mere 2.3% Increase In FY 2020 Global Revenue Ruin Its Thursday

The second contestant in the Big 4 global revenue pissing match came out with its FY 2020 financial results today, and EY continued to exert its dominance of third place. The Black and Yellow announced global revenue of $37.2 billion for the fiscal year that ended June 30, a 2.3% increase in U.S. currency terms […]

BDO USA Reports $1.8 Billion in FY 2020 Revenue, Wants Everyone to Know It Is the Most Resilient Firm Ever

The Little Dipper of accounting firms, BDO USA, announced today that its FY 2020 revenue increased 11.3% (I calculated 9.8%, but whatever) to $1.8 billion, up from $1.64 billion last fiscal year. That all looks great on paper, especially during this year of our COVID Lord 2020, but like RSM US, which also reported a […]

RSM US FY 2020 Revenue Results: $2.7 Billion and 4 Guardrails

The 2020 RSM US annual report is out, and boy is it a real page-turner. But I found what I was looking for in the “Our Perspective” portion of the report: RSM’s FY 2020 revenue. If you’ve perused INSIDE Public Accounting’s latest ranking of the top 100 public accounting firms in the U.S. based on […]

Thanks to the Rona, PwC’s Global Revenue Only Went Up a Measly 1.4% in FY 2020

Big 4 revenue gloating season kicked off today with PwC being first out of the gate. In a normal year, EY is typically first bragging about its third-place global revenue, then Deloitte, P. Dubs, and KPMG. But 2020 has been anything but normal, and that is reflected in PwC’s results for the most recent financial […]

Deloitte Is Already Bragging About How Great Its Global Revenues Are For FY 2020

PwC, EY, and KPMG are still looking at Deloitte’s tail lights. For the fifth straight year, Deloitte will win the Big 4 dick-measuring contest in terms of annual global revenue, according to an Australian Financial Review report. Deloitte expects a strong finish to the 2020 financial year despite the effects of the COVID-19 pandemic and […]

RSM’s 6.9% Increase In Global Revenue For 2019 Seems Respectable

Revenue growth for RSM’s global network of firms over the past few years has been steady, if not unremarkable. From 2014 to 2018, global revenue increased an average of about 5.3% each year. But everything was on the up and up for RSM in 2019. Other than what’s in this infographic, RSM wasn’t too transparent […]

Crowe Reports Not-So-Massive Global Revenue In 2019

What a difference a year makes. In 2018, Crowe Global hit and surpassed the $4 billion mark ($4.3 billion, to be exact) for the first time, thanks to massive revenue growth of 14% over the prior year. And backs were being patted in all of Crowe’s offices around the world: “The headline figures – in […]

Hey Look, Mazars Had a Decent 2019

I was so caught up last week reading and writing about Mazars USA’s scandalous poaching of three CohnReznick partners that I didn’t realize Mazars released its global revenue results for the financial year that closed on Aug. 31, 2019. It’s your typical revenue growth for a firm of Mazars’ size—up from €1.6 billion in 2018 […]

Grant Thornton Made a Little Magic Happen In 2019

Despite layoffs at its U.S. firm and general malaise about its audit practice in the U.K., Grant Thornton pulled a rabbit out of its hat and managed to increase global revenue by 5.1% to $5.72 billion in the 2019 financial year that ended on Sept. 30. Instead of me regurgitating all the numbers provided in […]

Let’s Kongratulate KPMG For Getting *This* Close to $30 Billion of Global Revenue In 2019

Coming off the heels of a better-than-expected 2019 financial year at its U.K. firm (revenues, anyway), puffy-chested KPMG announced today that its global revenue increased 6.2% in local currency terms (or 2.7% using actual mathematics) for the year ended Sept. 30. The three other Big 4 firms posted global revenue of at least $30 billion […]

KPMG U.K. Shocks the World by Having Somewhat Decent Revenue In 2019

When reports from across the pond started surfacing in September about the cost-cutting frenzy (you know, Project Zebra) going on at KPMG, accounting blabbermouths (like us) were salivating at the thought of how bad the firm’s 2019 revenue would be when the numbers were released in December. Well, that day has finally come, and believe […]

BDO Is the Little Dipper of Accounting Firms

While we patiently wait for KPMG’s 2019 global revenue results to be released sometime within the next week, BDO slid into our inboxes today announcing that its global revenue hit $9.6 billion in 2019, up from $9 billion last year. One of the keys to BDO’s growth is all the shopping the firm has done […]

PwC Earns Record Revenue of $42.4 Billion In FY 2019, Is Still the First Loser

Another Big 4 accounting firm has touted that it made more money in fiscal year 2019 than ever before. First, it was EY. Then it was Deloitte. Now today, PwC sent out its own masturbatory congratulatory press release, saying it achieved a record $42.4 billion in global revenue for the year ending June 30. That’s […]

Grant Thornton Reports 5.4% Increase In FY 2019 Revenue, Still Gloating About Its 2017 PCAOB Inspection Report

Grant Thornton sent out a snoozer of a press release earlier today announcing that its fiscal year 2019 revenue totaled $1.9 billion, up 5.4% from $1.8 billion in 2018. The only fun thing in the release is that GT is still taking a victory lap over its 2017 PCAOB inspection report, which found that only […]

PwC Equity Partner Pay Isn’t Too Shabby In the U.K.

Equity partners at PwC in the U.K. didn’t quite get the haul that their fellow equity partners at Deloitte U.K. got recently, but let’s just say they aren’t going hungry anytime soon. From the Financial Times: More than 900 equity partners, who share in PwC UK’s profits, will receive an average £765,000 for the year […]

With $46.2 Billion In Fiscal 2019 Global Revenue, Deloitte Should Continue to Rule the Big 4

Unless PwC’s global revenue for fiscal year 2019 increases 11.9% from last year, which likely won’t happen, Deloitte will remain No. 1 among the Big 4 firms in revenue for the fourth consecutive year. Deloitte announced today that revenue for FY 2019 was $46.2 billion, a 9.4% increase using the magical “local currency” terms and […]

RSM US Revenue Rose to $2.4 Billion In FY 2019

So says the RSM US 2019 annual report: That’s a 14% increase over the firm’s FY 2018 revenue of $2.14 billion. RSM’s fiscal year ends on April 30. There’s not a whole lot more to add because RSM doesn’t usually send out glitzy, congratulatory press releases on its year-end revenues like EY did today. But […]

RSM Pulled In $5.37 Billion In Revenue Globally In 2018

This slipped through the cracks, but it might be of interest to a few of you RSM fanboys and fangirls. RSM posts record revenues as consulting services power growth. Click here to read more: https://t.co/5EJKaHBnBT#RsmGlobal #revenue #RSMae #People pic.twitter.com/Vym6mOuC9j — RSMae (@RSM_ae) January 31, 2019 The $5.37 billion in global revenue the firm hauled in […]

Grant Thornton Topped $5.4 Billion in Global Revenue in 2018

It’s a dynamic time to be a GTer (unless you work in the U.K.), as Grant Thornton International announced this week that its network of firms around the world combined to reach a record $5.45 billion in revenue for the financial year that ended on Sept. 30, 2018. Global revenue grew 9.4% in U.S. dollar […]

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PwC Global Revenue Hits $41.3 Billion in Fiscal Year 2018

You can breathe a sigh of relief, Green Dot Nation—Deloitte remains the largest accounting firm in the world. We thought maybe, just maybe, PwC would overtake Deloitte for the No. 1 spot this year, but PwC’s global revenue of $41.3 billion for the fiscal year that ended June 30, 2018 fell short of Deloitte’s global […]

Grant Thornton Posts Revenue of $1.8 Billion in Fiscal Year 2018

[Updated with quote from Grant Thornton spokesperson.] The Purple Rose of Chicago put out a very skimpy press release this morning announcing that the U.S. firm’s revenue hit $1.8 billion for the fiscal year that ended July 31, 2018, up 3.4% over last fiscal year. And … that’s pretty much it. Not even a mention […]

Grant Thornton’s Revenue Didn’t Take Time Off

The Purple Rose of Chicago earned $1.45 billion in the U.S., beating last year's haul of $1.35 bil. Judging by Mike McGuire's canned quote, everything is on the up and up: “Our financial results are a direct reflection of the value we’re providing to our clients,” said Mike McGuire, chief executive officer of Grant Thornton […]

Auditor Phones in Auditing Revenue, Gets Totally Busted

The PCAOB posted 26 new inspection reports today, none of which were all that remarkable. But we did take a peek at MaloneBailey's, where we found this little nugget from Issuer C: In this audit, the Firm failed to perform sufficient procedures to determine whether the issuer properly recognized revenue. The issuer manufactured custom products […]

Grant Thornton’s Chosen Markets Netted the Firm Record-Breaking Revenue This Year

Not one to be left out of the "we made a metric shit ton of money this year, guys" party, Grant Thornton announced today the highest revenue in the firm's 90 year history. Considering a dollar could buy you a month's worth of groceries, a house, and a horse 90 years ago1, that's not saying […]

Just How Big a Share of EY’s Revenue Do Partners Get Anyway?

EY recently reported global combined revenue of $27.7 billion, or approximately eleventy bazillion in OMGdollars. Just how much of that do partners see? Unfortunately, we don't have US numbers, so UK numbers will have to do: Partners in the UK firm will receive an average £727,000 share in profits, an increase of 12% on last […]

PCAOB Issues Staff Audit Alert on Auditing Revenue Because Auditors Suck at Auditing Revenue

The PCAOB would like to see auditors get better at a lot of things; showing their work, testing controls, auditing in general. In particular, they would like to see auditors get better at auditing revenue because revenue is so dang important to the big picture here, people. "Revenue is one of the largest accounts in […]

KPMG Achieves Record Revenues In FY13, Still Behind the Other Three Big 4 Firms

Colin linked to KPMG's celebratory tweet in the roundup this morning but he failed to point out the best part. The celebration at KPMG was short-lived when they realized even if they made more money than ever, they still aren't making as much money as everyone else: KPMG International (KPMG) today announced record-high aggregated revenues […]

Grant Thornton Was the Most Dynamite Accounting Firm in 2012, Says Grant Thornton

Eddie Nusbaum & Co. put up a good number, $4.2 billion to be precise. That's 10.4% (USD) greater than last time around. That's pretty good. So good, the firm reports in its press release that "Grant Thornton led the six largest global accounting organizations in reported revenue growth rate for 2012." And that appears to be true. […]

Grant Thornton Is Going Places

Everyone's favorite tattoo parlor, Grant Thornton, has announced its revenues for the fiscal year ended, July 31, 2012 and things went pret-tay, pret-tay, pret-tay good. The $1.212 billion was so good, in fact, that it was a record for the firm and CEO Stephen Chipman says everything is going to plan: Grant Thornton’s strategy is […]

Groupon Got Some of Their Numbers Wrong

The Wall St. Journal reports: 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 […]

There’s Some Fuss About Groupon’s Revenue…or Profits…or Something

You may have heard that the company that encourages people to go broke by saving money, Groupon, filed a S-1 with the SEC last week to go public. It’s been a matter of hot debate as to whether this company is the real deal or simply another house of coupons. One matter that has several people sc is how the company accounts for its revenue. A reader dropped us this note yesterday:

Caleb

I am not one to bring up accounting questions on your blog as its not your web site’s background [Ed. note: Uh, you mean, accounting?]. I was wondering if you could post one question and make an exception as it relates to Groupon. How on earth did Groupon get away with Gross Revenue treatment and not net revenue? All my accounting friends from the Big 4 and even people who do not work on the Groupon audit at E&Y are stumped. All the literature points to net revenue which means they would not report gross revenue of 900 million but rather 200 million or so which represents their cut. Given how companies are valued on multiple of revenue this seems like a big issue. Any help would be appreciated by your readers.

Now it’s not exactly clear what our reader is referring to (feel free to comment below if you understand) but here’s a clip from the S-1:

Sorry for the squishiness. As you can see, Groupon is reporting revenue for 2010 of over $700 million (not sure about $900 million). They have a cost of revenue (aka cost of goods sold) of over $400 million with a “gross profit” of $279 million. Now, if you’re thinking “gross profit” should be “net revenue” you’re not alone.

From CNBC, there appears to be a debate over semantics:

Groupon accounts for its revenue differently than say eBay, and in a way that some say is misleading to potential investors. The company defines revenue as “the purchase price paid by customers.” Then there’s the issue of “the cost of revenue,” leaving the company with what it calls “gross profit,” which is “the amount of revenue we retain after paying an agreed upon percentage of the purchase price to the featured merchant.”

Here’s the thing: Many companies like eBay […], which also take a fee for transactions, would consider that “gross profit” number a “net revenue number.” UCLA Anderson School’s accounting lecturer Gordon Klein says the S-1 uses terms in a way he’s never used them before, and this unusual accounting tells him that investors should “run from the stock.” Others say this is a non-issue: Wedbush securities analyst Lou Kerner says that the company has done a totally adequate job outlining its accounting approach. Kerner says whether the company reports its revenue before or after direct costs should have zero impact on investors evaluation of the company.

And co-founder Andrew Mason admits that Groupon does things a little differently. Under a section entitled “We don’t measure ourselves in conventional ways” he writes, “we track gross profit [as a metric], which we believe is the best proxy for the value we’re creating.” But that’s all the explanation he gives. Later the filing states, “We believe gross profit is an important indicator for our business because it is a reflection of the value of our service to our merchants.” And under “How we measure our business” things are equally vague:

Gross profit. Our gross profit is the amount that we retain after paying our merchants an agreed upon percentage of the purchase price to the featured merchant. We believe gross profit is an important indicator for our business because it is a reflection of the value of our service to our merchants. Gross profit is influenced by the mix of deals we offer. For example, gross profit can vary depending on the category of product or service offered in a particular deal. Likewise, gross profit can be adversely impacted by offers that we make for the principal purpose of acquiring new subscribers or establishing our brand and building scale in a new market.

Throughout the S-1, the term “gross profit” is used 52 times. If you’re used to reading SEC Filings, the term may throw you off but ultimately the numbers are what theyare and the terms used seem secondary. If you believe “gross profit” is a bullshit metric for this business, fine that’s one thing but if they choose to use slightly unorthodox terminology, does that mean investors should ‘run from the stock’? Personally, I don’t happen to be customer of any of the banks underwriting this thing, so this of little consequence but accountants like to sweat the details, so feel free to make a case either way in the comments.