Slide 1: Groupon 3rd Quarter Earnings
Groupon 3rd Quarter Earnings November 12, 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: Third Quarter Key Takeaways
Third Quarter Key Takeaways Key Highlights 3Q24 Financial Snapshot • International Local ex Italy = -2% YoY Total Revenue (YoY % Change) Revenue by Geography (YoY % Change) • Strong summer season for North America Things To Do • 100% of North America mobile web + desktop traffic now our new front-end
Slide 6: International Local
International Local International Local Revenue1 (YoY % Change) Supply Led Playbook -2% (re)-Build Focused grow geo Sales capacity & focused -10% performance capacity management culture Main City Focused Increase Marketing Assortment plan starting with main categories INTL (Excluding Italy) Bring cu
Slide 7: North America Local
North America Local Basic Assortment Coverage Revenue (YoY % Change) 4Q22A 1Q23A 2Q23A 3Q23A 4Q23A 1Q24A 2Q24A 3Q24A 2Q24 vs 3Q24 Growth Rate ● Refunds and variable consideration moving from tailwinds to headwinds ● In 2Q24, revenue growth from marketing benefited from an easy year-over-year compare
Slide 8: New customer acquisition engine
New customer acquisition engine New Customer Activations (3 month average YoY % Change) ● Targeting marketing ROI of 100% 10% ● ROI measured based on the commissions we generate from a paid marketing campaign over how 0% much money we spent on the campaign ● Time to payback = 7 to 14 days -10% 1Q23A
Slide 9: Gifting
Gifting ● Gift purchases have been a strong growth area, showing a 50% year-over-year increase in the US for Q3. ● We see gifting as a major strategic opportunity, especially as we move into Q4. Our holiday brand campaign, 'Ungiftables,' showcases Groupon as the go-to source for experiential gifts f
Slide 10: Videos & Stories
Videos & Stories ● We're taking our deal curation to the next level by incorporating videos to enhance our offerings, partnering with micro-influencers to create engaging content. Additionally, we’ve just launched a feature that enables customers to share videos in their reviews ● This new content st
Slide 11: Merchant pages
Merchant pages ● Merchant Pages provide a dedicated space for showcasing a full list of each merchant's deals and offerings. Merchants can sell gift cards, share Stories, and engage users who want to learn more or subscribe for updates. ● These pages make it easy for users to explore all options fro
Slide 12: The Merchandised Page
The Merchandised Page ● Customized homepage for each category—such as "Things to Do," "Travel," and "Beauty"—featuring specific search and filter options. For "Things to Do," users can filter by activity type and location; in "Travel," they can search by destination, dates, and package type; while "Bea
Slide 13: Financial Overview
Financial Overview GROUPON
Slide 14: 3Q24 Summary Financial Results
3Q24 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 14 1) Adjusted EBITDA (AEBITDA
Slide 15: 3Q24 Key Operating Metrics
3Q24 Key Operating Metrics Active Customers1 (Million) Local Gross Billings ($M) North America International North America International Travel Gross Billings ($M) Goods Gross Billings ($M) 15 1) Reflects the total number of unique user accounts that have made a purchase during the trailing twelve mo
Slide 16: Creating an Efficient Cost Structure
Creating an Efficient Cost Structure SG&A ($ Millions) 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: Trailing twelve month Adjusted EBITDA to FCF Reconciliation
(1) Trailing twelve month Adjusted EBITDA to FCF (1) Reconciliation Q4'23 TTM Q1'24 TTM Q2'24 TTM Q3'24 TTM 3Q23 3Q24 Adjusted EBITDA1 55.5 79.8 81.1 77.6 18.2 14.8 (-) Capex -19.3 -13.4 -15.7 -15.0 -4.1 -3.4 (-) Interest & Taxes -14.5 -13.3 -16.7 -17.5 -4.4 -5.2 (+/-) Restructuring -8.1 -2.6 1.0 2.
Slide 18: Guidance
Guidance 4Q24 Guidance ($ Millions) 2024 Guidance ($ Millions) As of Nov 12th, 2024 Low-end High-end Low-end High-end Revenue $124 $131 $486 $493 (-10% YoY) (-5% YoY) (-6% year-over-year) (-4% year-over-year) Adjusted EBITDA* $14 $19 $65 $70 Free Cash Flow* Positive Positive Positive Positive * We d
Slide 19: GROUPON
GROUPON
Slide 20: Appendix
Appendix
Slide 21: Non-GAAP Reconciliations: Adjusted EBITDA
Non-GAAP Reconciliations* Adjusted EBITDA - TTM & Quarterly (in thousands) *See Q3 2024 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 - TTM & Quarterly (in thousands) *See Q3 2024 earnings press release posted on our Investor Relations website for additional information regarding non-GAAP financial measures 22