Groupon, Inc. · NASDAQ:GRPN
Groupon — Q4 2014 Earnings Presentation
23 slides from Groupon's earnings presentation, February 2015
Slide 1: 4Q14 Earnings
GROUPON 4Q14 Earnings February 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements The statements contained in this presentation that refer to plans and expectations for the next quarter, the full year or the future are forward-looking statements that involve a number of risks and uncertainties, and actual results could differ materially from those discu
Slide 3: Mission
Mission: To connect local commerce, increasing consumer buying power while driving more business to local merchants through price and discovery. 3
Slide 4: The Local Market is Large and Unique
The Local Market is Large and Unique Merchant Opportunity Local Commerce Opportunity >950K Groupon Featured Merchants LTD 1 ~$7.6B Gross Billings 2 ~2% of Merchants in Core Categories <0.1% of Local Commerce Marketplace Worldwide ~1% of Local Merchants Worldwide Source: Localeze/Neustar & Factual.co
Slide 5: Consumers Rely on Groupon When They Shop Locally
Consumers Rely on Groupon When They Shop Locally >260M cumulative subscribers >160M global monthly unique visitors 1 ~110M mobile downloads >100M units sold in Q4 alone 2 Subscribers, MUVs, and units as of December 31, 2014; mobile downloads as of January 31, 2015. (1) Monthly Unique Visitors is the
Slide 6: And We've Been Adding Supply to Build Our Marketplace
And We’ve Been Adding Supply to Build Our Marketplace ~370K active deals worldwide 1 >950K featured merchants life-to-date 2 >800K Merchant Pages released to be indexed on Google All data as of December 31, 2014 with the exception of Merchant Pages released to Google, which is as of February 12, 201
Slide 7: In 2015, We're Focused on Connecting the Two
In 2015, We’re Focused on Connecting the Two ~110M Mobile Downloads, >50% Mobile Transaction Mix ~370k Active Deals (including Local, Goods & ~10k merchants Travel) connected through our merchant tablet, rolling out beacons >50k >800K Merchant Coupons in NA Pages released to be indexed, Nearly 25M t
Slide 8: Key Metrics to Track Progress
Key Metrics to Track Progress 1 2 3 Active Customers Spend per Average Units $180 60.0 Active Customer 101M 53.9M 100.0 +23% $160 +$18 $155 y/y y/y 50.0 $140 $137 +81% 43.7M 80.0 y/y $120 40.0 $100 60.0 56M 30.0 $80 40.0 20.0 $60 $40 20.0 10.0 $20 0.0 $- 0.0 4Q13 4Q14 4Q13 4Q14 4Q13 4Q14 (1) Active
Slide 9: Financial Summary – Consolidated Quarterly
Financial Summary – Consolidated Quarterly 1 Gross Billings & Revenue Adjusted EBITDA USD, Millions USD, Millions Chart Title $2,084 $2,000 $87 $1,817 $1,819 $1,861 +31% Y/Y $1,593 $72 $67 $1,500 $59 $1,000 $40 +20% Y/Y $500 $925 $768 $758 $752 $757 $- 4Q13 1Q14 2Q14 3Q14 4Q14 4Q13 1Q14 2Q14 3Q14 4Q
Slide 10: Financial Summary – Consolidated Annual
Financial Summary – Consolidated Annual 1 Gross Billings & Revenue Adjusted EBITDA USD, Millions USD, Millions Chart Title AEBITDA $287 $8,000 $7,581 $260 $253 $7,000 +32% Y/Y $6,000 $5,757 $5,380 $5,000 $3,986 $4,000 $3,000 $2,000 +24% Y/Y $3,192 $2,574 $1,000 $745 $2,334 $(112) $1,610 $- $313 $(16
Slide 11: Expense Summary – Consolidated
Expense Summary – Consolidated % of Gross Billings Cost of Revenue Marketing and Order Discounts 1 USD, Millions USD, Millions 24% 20% 20% 20% 26% 4% 6% 5% 5% 5% $27 $42 $24 $24 $532 $12 $390 $372 $362 $377 $79 $64 $66 $57 $60 4Q13 1Q14 2Q14 3Q14 4Q14 4Q13 1Q14 2Q14 3Q14 4Q14 Marketing Order Discoun
Slide 12: Financial Summary – Segment
Financial Summary – Segment North America EMEA Rest of World USD, Millions USD, Millions USD, Millions Gross Billings & Revenue Gross Billings & Revenue Gross Billings & Revenue Chart Title $949 $700 $597 $575 $789 $782 $799 $600 $566 $561 $522 $537 $774 +20% Y/Y $514 +141% Y/Y $500 $483 $489 -1% +6
Slide 13: Financial Summary – Category
Financial Summary – Category 1 $515,000 $513,970 $512,940 $511,910 $510,880 $1 $509,850 $508,820 $507,790 $506,760 $505,730 $504,700 $503,670 $502,640 $501,610 $500,580 $499,550 $498,520 $497,490 $496,460 $495,430 $494,400 $493,370 $492,340 $491,310 $490,280 $489,250 $488,220 $487,190 $486,160 $485,
Slide 14: Financial Summary – Local
1 Financial Summary – Local North America EMEA Rest of World USD, Millions $1 $400 USD, Millions 80%$450 USD, Millions 90% $500 $499 $400 80% $350 70% $457 $461 $439 $447 $1 $350 70% $300 60% $400 $277 $262 $0 $300 60% $250 $242 50% $227 33% $219 32% $250 50% $300 31% 31% 30% $0 $200 40% 38% 40% $20
Slide 15: Financial Summary – Goods
Financial Summary – Goods North America EMEA Rest of World $400 USD, Millions 60%$400 USD, Millions 60%$400 USD, Millions 60% $369 $350 $350 $350 $336 50% 50% 50% $300 $286 $300 $300 $283 $289 $281 40% 40% 40% $248 $246 $250 $243 $243 $250 $250 $220 $200 30%$200 $191 $191 30%$200 30% $183 $150 $150
Slide 16: Financial Summary – Travel
Financial Summary – Travel 1 North America EMEA Rest of World USD, Millions 60% USD, Millions 60%$130 USD, Millions 60% $120 $120 $120 $118 $110 50% 50% 50% $100 $100 $100 $90 $85 $80 40% 40% $90 $85 40% $82 $80 $80 $80 $80 $77 $73 $71 $68 $68 $70 $64 $65 30% 30% 30% $60 $60 $60 23% 21% 21% $50 19%
Slide 17: Financial Summary – Cash Flow
Financial Summary – Cash Flow 1 Operating Cash Flow (TTM) Free Cash Flow (TTM) USD, Millions USD, Millions $289 $201 $218 $155 $189 $180 $124 $123 $93 $41 4Q13 1Q14 2Q14 3Q14 4Q14 4Q13 1Q14 2Q14 3Q14 4Q14 (1) Free cash flow is a non-GAAP financial measure. See appendix for a reconciliation to the mo
Slide 18: Other Financial Highlights
Other Financial Highlights ($ millions) ` 4Q12/31/11 2014 FY 2014 GAAP Earnings (Loss) per Share $0.01 $(0.11) 1 Non-GAAP EPS $0.06 $0.08 Operating Cash Flow $287M $289M Operating Cash Flow TTM $289M $289M Free Cash Flow 2 $266M $201M 2 Free Cash Flow TTM $201M $201M Cash and Cash Equivalents $1.1B
Slide 19: Appendix
Appendix 19
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA (in thousands) The following is a reconciliation of Adjusted EBITDA to the most comparable U.S. GAAP financial measure, “Net (loss) income”: 4Q13 1Q14 2Q14 3Q14 4Q14 Net (loss) income $(78,861) $(35,363) $(20,922) $(19,018) $11,384 Adjustments Stock-based com
Slide 21: Non-GAAP Reconciliations cont'd
Non-GAAP Reconciliations cont’d Non-GAAP Earnings Per Share (in thousands, except share and per share amounts) The following is a reconciliation of non-GAAP earnings per share to the most comparable U.S. GAAP financial measure, “Diluted net income (loss) per share”: Three Months Ended Year Ended Dec
Slide 22: Non-GAAP Reconciliations cont'd
Non-GAAP Reconciliations cont’d Free Cash Flow (in thousands) The following is a reconciliation of free cash flow (TTM) to the most comparable U.S. GAAP financial measure, “Net cash provided by operating activities (TTM)”: 4Q13 1Q14 2Q14 3Q14 4Q14 Net cash provided by operating activities (TTM) $218
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