Slide 1: Groupon 1st Quarter Earnings
Groupon 1st Quarter Earnings May 9th, 2024
Slide 2: Agenda
Agenda Dusan Senkypl CEO ● CEO Commentary ● Financial Overview Jiri Ponrt CFO ● Guidance ● Q&A Rana Kashyap SVP, Corp Dev & IR 2 2
Slide 3: 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 (“Securitie
Slide 4: CEO Commentary
CEO Commentary GROUPON
Slide 5: First Quarter Key Takeaways
First Quarter Key Takeaways 1Q24 Financial Metrics 1Q24 Financial Snapshot • Revenue +1% vs last year Total Revenue (YoY % Change) Revenue by Geography (YoY % Change) ○ 2016 is the last time revenue grew on a consolidated basis • Ex Goods, North America +8% vs last year ○ Sequential growth in North
Slide 6: Marketplace management
Marketplace management Demand side Supply side Q1 traffic trends Strong performers ● Continued positive growth in paid traffic ● Things to do ● Improving trajectory of direct traffic and managed ● Enterprise channels ● North America Travel Paid Marketing Launching Regionalisation ● Delivered desired RO
Slide 7: Product Update - Performance drop investigation
Product Update - Performance drop investigation ● Performance issue starting mid-March: impressions ok, conversion drop ● Multiple issues detected and in process of being fixed ○ Fraud platform migration ○ Legacy search & relevance algorithm ● Priority #1 project for entire product & engineering team
Slide 8: Strategy - Short Term Focus & Outlook: Merchant Flywheel
Deal Quality: Deal Curation through Gifting: automation Promoting Premium Services Merchant Uniqueness: Promoting merchant's Creating new seasons for Merchants Videos / Reels USPs Outlook: Outlook: Outlook: AI deal generation Selling gift cards through Promoting USPs Groupon through videos Performan
Slide 9: Strategy - Short Term Focus & Outlook: Customer Flywheel
Redemption specifics Original Prices Accuracy Gifting - Key Seasons - Customer Education Outlook: Multiple gifting occasions all year round Gift Advisor Improved Personalisation Strategy Gift Packaging - Short Term Bookability 2.0: Seamless booking flow Focus & Outlook: incl. voucher auto redemption I
Slide 10: Financial Overview
Financial Overview GROUPON
Slide 11: 1Q24 Summary Financial Results
1Q24 Summary Financial Results Gross Billings ($M) Revenue ($M) Marketing ($M) Revenue as % of Gross Billings Gross Profit as % of Revenue Marketing as % of Gross Profit Contribution Profit ($M) Adjusted EBITDA1 ($M) Free Cash Flow1 ($M) Contribution Profit as % of Revenue 11 1) Adjusted EBITDA (AEBITDA
Slide 12: 1Q24 Key Operating Metrics
1Q24 Key Operating Metrics Active Customers1 (Million) Local Gross Billings ($M) North America International North America International Travel Gross Billings ($M) Goods Gross Billings ($M) 12 1) Reflects the total number of unique user accounts that have made a purchase during the trailing twelve mo
Slide 13: Creating an Efficient Cost Structure
Creating an Efficient Cost Structure New Mindset Of Frugality SG&A ($M) -27% year - over -year Increasing Efficiency Through Automation Of Business Processes Director-Level Headcount Reductions, Reducing Redundant Spend Decreasing Software / Cloud Spend Reducing Facilities Footprint 13 13
Slide 14: 1Q 2024 Adjusted EBITDA to FCF Reconciliation
1Q 2024 Adjusted EBITDA(1) to FCF(1) Reconciliation 1Q24 4Q23A 3Q23A 2Q23A 1Q23A 1 Adjusted EBITDA1 19.5 26.9 18.2 15.2 -4.9 (-) Capex -3.7 -3.4 -4.1 -2.3 -9.5 (-) Interest & Taxes -2.9 -4.0 -4.4 -2.1 -4.1 (+/-) Restructuring2 -0.5 2.9 -1.3 -3.7 -5.9 (+/-) Change in Net Working Capital -26.2 28.7 -2
Slide 15: Other Business Updates
Other Business Updates Balance Sheet Updates Italian tax case Completed transactions ● Groupon S.r.l. subject to 2012 tax assessment of ● $19M partial sale of SumUp investment $119.3 million relating to 2011 transfer pricing ● $80M Rights Offering ● $43M prepayment and termination of Credit ● We bel
Slide 16: Guidance
Guidance 2Q24 Guidance ($ Millions) 2024 Guidance ($ Millions) As of May 9th, 2024 Low-end High-end Low-end High-end Revenue $116 $122 $489 $515 (-10% year-over-year) (-5% year-over-year) (-5% year-over-year) (0% year-over-year) Adjusted EBITDA* $12 $17 $80 $100 Free Cash Flow* Negative Negative Pos
Slide 17: GROUPON
GROUPON
Slide 18: Appendix
Appendix
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations* Adjusted EBITDA - Quarterly (in thousands) *See Q1 2024 earnings press release posted on our Investor Relations website for additional information regarding non-GAAP financial measures 19
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations* Free Cash Flow (in thousands) *See Q1 2024 earnings press release posted on our Investor Relations website for additional information regarding non-GAAP financial measures 20
Slide 21: Supplemental Information
Supplemental Information 21