Slide 1: Groupon 2nd Quarter Earnings
Groupon 2nd Quarter Earnings August 9th, 2023
Slide 2: Forward-looking statements and other information
Forward-looking statements and other information 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 within the meaning of Section 27A of the Securities Act of 1933, as amended, and Sectio
Slide 3: Agenda
Agenda Dušan Šenkypl Interim CEO ● CEO Commentary ● Financial Overview Jiří Ponrt CFO ● Updated Outlook ● Q&A Rana Kashyap SVP, Corp Dev & IR 3 3
Slide 4: CEO Commentary
CEO Commentary GROUPON
Slide 5: Groupon Snapshot
Groupon Snapshot By the Numbers Our Mission is to Become The Ultimate Destination Our Mission For Local Experiences and Services $1.7B $543M ~80M Q2 2023 TTM Q2 2023 TTM Visitor Billings Revenue Sessions / Month(2) Consumers Merchants Explorers who delight in Tailored campaigns Who We Serve discover
Slide 6: Second Quarter Update
Second Quarter Update Positive Signals • Revamped Team • Revenue Management • Performance Marketing • Significant Cost Savings Realized Negative Signals • Attrition • Cash Flow Adjusted EBITDA (AEBITDA) and Free Cash Flow are non-GAAP financial measures. See the appendix for a reconciliation to the mo
Slide 7: Transformation Plan Update
Transformation Plan Update Phase I Phase II Phase III Improve financial flexibility, management systems, Improve product, marketing, and sales Return to growth as the transformation strategy and operational efficiency takes hold Organization Rebuilding Assemble a High-Performance Team Rebuild Organizat
Slide 8: Assemble a High-Performance Team with a Focus on Operational Excellence
Assemble a High-Performance Team with a Focus on Operational Excellence Groupon Senior Leadership Team ● Joined 2023 ● Joined 2023 ● Joined 2022 ● Joined 2010 ● 25+ years of experience ● 25+ years of experience ● 21+ years of experience ● 23+ years of experience Prior Experience Prior Experience Pri
Slide 9: Rebuild Organization Structure, Business Processes, and Management Systems
Rebuild Organization Structure, Business Processes, and Management Systems Implement a Improve Our Management Reorganization Performance-Based System Culture • Break down silos and • Modern project • New leadership habits connect business management tools processes across • Revised compensation func
Slide 10: Tune Marketing Engine Towards Lower-Funnel Performance Channels
Tune Marketing Engine Towards Lower-Funnel Performance Channels Reducing reliance on promotions and rebuilding performance channels to position ourselves for growth Illustrative Mix of Paid Marketing and Promotions Paid Marketing Dashboard Paid Marketing Promotions Paid Marketing + Promotions 10 10
Slide 11: Raise Groupon's Product Experience to Modern Marketplace Standards
Raise Groupon’s Product Experience to Modern Marketplace Standards CONSUMER CONSUMER MERCHANT MERCHANT INTERNAL TOOLS ✔ Consumer web UX ✔ AI driven deal creation ✔ Deal Creation tool to unify ✔ Offers additional control and flexibility to improvements clients, allowing them to choose from a wide work
Slide 12: Fix the Supply-Side of Marketplace
Fix the Supply-Side of Marketplace Top Supply Evaluating Higher Improve Sales force Acquisition and Investments Into Efficiency Retention Our Sales Network • Merchant value proposition • Globalization and • Building efficient foundation standardization • Deal structure and ranking • Sales compensation
Slide 13: Financial Overview
Financial Overview GROUPON
Slide 14: 2Q23 Key Financial Results
2Q23 Key Financial Results 14 1) Adjusted EBITDA (AEBITDA) and Free Cash Flow are non-GAAP financial measures. See the appendix for a reconciliation to the most comparable U.S. GAAP financial measure, “Net income (loss)” and "Net cash provided by (used in) operating activities” 14
Slide 15: 2Q23 Key Operating Metrics
2Q23 Key Operating Metrics 15 1. Active Local Customers are defined as unique user accounts that have made a Local purchase during the TTM either through one of our online marketplaces or directly with a merchant partner for which we earned a commission. Excludes cross shoppers. 15
Slide 16: Creating an Efficient Cost Structure
Creating an Efficient Cost Structure New Mindset Of Frugality Increasing Efficiency Through Automation Of Business Processes Director-Level Headcount Reductions, Reducing Redundant Spend Decreasing Software / Cloud Spend Reducing Facilities Footprint 16 16
Slide 17: First Half 2023 Adjusted EBITDA to FCF Reconciliation
First Half 2023 Adjusted EBITDA(1) to FCF(1) Reconciliation Billings Change Drivers Capitalized Versus Prior Period Trade Accounts SG&A Facility Footprint Labor + Merchant Payable Cycle Deleveraging Payable Cycle 17 1) Adjusted EBITDA (AEBITDA) and Free Cash Flow are non-GAAP financial measures. See
Slide 18: Improve Groupon's Financial Flexibility
Improve Groupon’s Financial Flexibility Jan. 2023 Mar. 2023 Ongoing Potential Potential Restructuring Phase 2 Amendment to Credit Multi-Phase Cost Debt / Equity Monetization of Announcement Facility Reductions Financing Non-Core Assets Overview Of Non-Core Assets ● Offers end-to-end business gift ca
Slide 19: Updated outlook
Updated outlook ● 2H23 Topline: For our third and fourth quarter revenue expectations, we expect to see slight improvements in the rate of year-over-year declines each quarter. ○ As our transformation strategy takes hold, we expect to see an increase in year-over-year Local billings by early 2024, t
Slide 20: Appendix
Appendix
Slide 21: Non-GAAP Reconciliations: Adjusted EBITDA
Non-GAAP Reconciliations* Adjusted EBITDA - Quarterly (in thousands) *See Q2 2023 earnings press release posted on our Investor Relations website for additional information regarding non-GAAP financial measures 21
Slide 22: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations* Free Cash Flow (in thousands) *See Q2 2023 earnings press release posted on our Investor Relations website for additional information regarding non-GAAP financial measures 22