Slide 1: Groupon 2nd Quarter Earnings
Groupon 2nd Quarter Earnings July 30th, 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: Second Quarter Key Takeaways
Second Quarter Key Takeaways 2Q24 Financial Metrics 2Q24 Financial Snapshot • Revenue -3% vs last year Total Revenue (YoY % Change) Revenue by Geography (YoY % Change) ○ North America +3% vs last year • North America Local ○ +7% vs last year ○ 2nd quarter of growth ○ 2nd quarter of sequential growth
Slide 6: Supply: North America Local
Supply: North America Local North America Local Supply Drivers for North America Local Revenue (YoY % Change) ● Deal quality versus deal quantity ● Enterprise & Things To Do ● Regionalisation ● New Product Offering: Flash Sales Program ● Increasing new sales hiring + performance management 6 6
Slide 7: Marketing & Contribution Profit
Marketing & Contribution Profit ~2019 3Q21-4Q22 1Q23-2Q23 3Q23-1Q24 2Q24 Outlook Gross Profit as % ~50% ~83-87% ~86-87% ~88-90% 90.4% ~88-90% of Revenue Marketing as a % ~30% ~30-33% ~20-24% ~26-28% 32.4% ~30-35% of Gross Profit Contribution Profit ~35% ~58-62% ~66-70% ~64-66% 61.1% ~58-62% as % of Rev
Slide 8: Product & Engineering Update
Product & Engineering Update Investing to make our platform more efficient, stable and agile and increase the velocity of new product innovation ● Efficiency ○ Cloud cost optimization project ● Stability ○ Second Quarter site performance issue largely resolved ○ New site performance issue starting ear
Slide 9: Financial Overview
Financial Overview GROUPON
Slide 10: 2Q24 Summary Financial Results
2Q24 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 10 1) Adjusted EBITDA (AEBITDA
Slide 11: 2Q24 Key Operating Metrics
2Q24 Key Operating Metrics Active Customers1 (Million) Local Gross Billings ($M) North America International North America International Travel Gross Billings ($M) Goods Gross Billings ($M) 11 1) Reflects the total number of unique user accounts that have made a purchase during the trailing twelve mo
Slide 12: Creating an Efficient Cost Structure
Creating an Efficient Cost Structure SG&A ($ Millions) New Mindset Of Frugality SG&A ($M) Increasing Efficiency Through Automation Of Business Processes Director-Level Headcount Reductions, Reducing Redundant Spend Decreasing Software / Cloud Spend Reducing Facilities Footprint 12 12
Slide 13: 2Q 2024 Adjusted EBITDA to FCF Reconciliation
2Q 2024 Adjusted EBITDA (1) to FCF (1) Reconciliation 2Q24A 2Q23A Adjusted EBITDA1 16.5 15.2 (-) Capex -4.5 -2.3 (-) Interest & Taxes -5.4 -2.1 (+/-) Restructuring -0.1 -3.7 (+/-) Change in Net Working Capital 4.3 -51.7 1 Free Cash Flow 10.8 -44.5 Detail on Change in Net Working Capital (+/-) Acc. M
Slide 14: Trailing twelve month Adjusted EBITDA to FCF Reconciliation
(1) Trailing twelve month Adjusted EBITDA to FCF (1) Reconciliation Q2'24 LTM Q1'24 LTM Q4'23 LTM Adjusted EBITDA1 81.1 79.8 55.5 (-) Capex -15.7 -13.4 -19.3 (-) Interest & Taxes -16.7 -13.3 -14.5 (+/-) Restructuring 1.0 -2.6 -8.1 (+/-) Change in Net Working Capital -19.6 -75.6 -111.0 Free Cash Flow
Slide 15: Guidance
Guidance 3Q24 Guidance ($ Millions) 2024 Guidance ($ Millions) As of July 30th, 2024 Low-end High-end Low-end High-end Revenue $114 $120 $495 $515 (-10% YoY) (-5% YoY) (-4% year-over-year) (0% year-over-year) Adjusted EBITDA* $6 $11 $65 $80 Free Cash Flow* Negative Negative Positive Positive * We do
Slide 16: GROUPON
GROUPON
Slide 17: Appendix
Appendix
Slide 18: Non-GAAP Reconciliations: Adjusted EBITDA
Non-GAAP Reconciliations* Adjusted EBITDA - TTM & Quarterly (in thousands) *See Q2 2024 earnings press release posted on our Investor Relations website for additional information regarding non-GAAP financial measures 18
Slide 19: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations* Free Cash Flow - TTM & Quarterly (in thousands) *See Q2 2024 earnings press release posted on our Investor Relations website for additional information regarding non-GAAP financial measures 19
Slide 20: Supplemental Information
Supplemental Information 20