Groupon (NASDAQ:GRPN) Q1 2019 Earnings Call

0:01 If you go to mobile web as an example, you may already start to see some pretty dramatic changes to versions of the mobile web experience. And you're seeing everything from, as an example, you may already start to see some pretty dramatic changes to versions of the mobile web experience. And you're seeing everything from automatic rotating slots to horizontal. As an example, you may already start to see some pretty dramatic changes Thank you very much. Thank you. and a lot of different merchandising slots coming in just to improve search and browse discovery.

1:10 So we have some pretty significant changes that are already rotating in market and they're live. Just whether you're in a test cell or not, it's hard to say. But you're starting to see those already. But what you should think about changes that are already rotating in market and they're live, just whether you're in a test cell or not, it's hard to say. But you're starting to see those already. But what you should think about changes that are already rotating in market and they're live, just whether you're in a test cell or not, it's hard to say. But you're starting to see those already. But what you should think about there if you can, changes that are already rotating in market and they're live, just whether you're in a test cell or not, it's hard to say.

1:58 But you're starting to see those already. But what you should think about they're rotating in market and they're live, just whether you're in a test cell or not, it's hard to say. But you're starting to see those already. But what you should think about there is that We don't, unless we be rotating in market and they're live, just whether you're in a test cell or not, it's hard to say. But you're starting to see those already. But what you should think about there is that we don't, unless we, just whether you're in a test cell or not, it's hard to say. But you're starting to see those already. But what you should think about there is that we don't, unless we, one of those pieces that we're talking about, just whether you're in a test cell or not, it's hard to say. But you're starting to see those already. But what you should think about there is that we don't, unless we, one of those pieces that we're talking about, just whether you're in a test cell or not, it's hard to say.

2:55 But you're starting to see those already. But what you should think about there is that we don't, unless we, one of those pieces that we're trying to say, but you're starting to see those already. But what you should think about there is that We don't, unless we, one of those pieces that we're testing is just an outright winner, hard to say, but you're starting to see those already, but what you should think about there is that we don't, unless we, one of those pieces that we're testing is just an outright winner, hard to say, but you're starting to see those already, but what you should think about there is that we don't, unless we, one of those pieces that we're testing is just an outright winner, But you're starting to see those already. But what you should think about there is that we don't, unless we, one of those pieces that we're testing is just an outright winner.

3:52 You're starting to see those already. But what you should think about there is that we don't, unless we, one of those pieces that we're testing is just an outright winner, I would not expect a big bang change. You're starting to see those already. But what you should think about there is that Unless one of those pieces that we're testing is just an outright winner, I would not expect a big bang change. expect a big bang change. In general, I think you've seen historically when

6:18 brands and those can be pretty cold starts for consumers that are well trained in your existing UI. Instead, I would expect us not to do that. I would expect us not to do the big bang but more to feather in and those can be pretty cold starts for consumers. that are well-trained in your existing UI. Instead, I would expect us not to do that. I would expect us not to do the big bang, but more to feather in, and those can be pretty cold starts for consumers that are well-trained in your existing UI. Instead, I would expect us not to do that. I would expect us not to do the big bang, but more to feather in, and those can be pretty cold starts for consumers that are well-trained in your existing UI. Instead, I would expect us not to do that.

7:04 I would expect us not to do the big bang but more to feather in, and those can be pretty cold starts for consumers that are well-trained in your existing UI. Instead, I would expect us not to do that. I would expect us not to do the big bang but more to feather in, and those can be pretty cold starts for consumers that are well-trained in your existing UI. Instead, I would expect us not to do that. I would expect us not to do the big bang, but more to feather in, and those can be pretty cold starts for consumers that are well-trained in your existing UI. Instead, I would expect us not to do that. I would expect us not to do the big bang, but more to feather in starts for consumers. that are well-trained in your existing UI. Instead, I would expect us not to do that.

7:51 I would expect us not to do the big bang, but more to feather in our winning elements that we see for consumers that are well-trained in your existing UI. Instead, I would expect us not to do that. I would expect us not to do the big bang, but more to feather in our winning elements that we see for consumers that are well-trained in your existing UI. Instead, I would expect us not to do that. I would expect us not to do the big bang, but more to feather in our winning elements that we see for consumers that are well-trained in your existing UI. Instead, I would expect us not to do that. I would expect us not to do the big bang, but more to feather in our winning elements that we see consumers are interacting really productively with. And you're already seeing some of that happen in our core app. We have new filter bang, but more to feather in our winning elements that we see consumers are interacting really productively with.

8:53 and you're already seeing some of that happen in our core app. We have new filters, we have additional filter metrics and a bunch of other things that are making it easier for consumers to find what they're looking for but we're feathering those in as they win and as we go and I think that's just a healthier way for us to move. Unless we see just something just blow us away and consumers adopt it really aggressively immediately. But it's just not our experience there historically, especially not at scale. Unless we see just something just blow us away and consumers adopt it really aggressively immediately, but it's just not our experience there historically. and a number of others.

10:15 Not our experience there historically, especially not at scale. As far as Groupon Select, it's not something that we've dispersed adopted really aggressively immediately, but it's just not our experience there historically, especially not at scale. As far as Groupon Select, it's not something that we've dispersed adopted really aggressively immediately, but it's just not our experience there historically, especially not at scale. As far as Groupon Select, it's not something that we've dispersed adopted really aggressively immediately, but it's just not our experience there historically, especially not at scale. As far as Groupon Select, it's not something that we've dispersed adopted really aggressively immediately, but it's just not our experience there historically, especially not at scale. As far as Groupon Select, it's not something that we've adopted really aggressively immediately, but it's just not our experience there historically, especially not at scale. As far as Groupon Select, it's not something that we've on the site or in our apps. We're very excited about that program.

11:29 We think it has a lot of potential. But again, it's a membership-oriented program, so it's a little too early to start discussing what the – we're very excited about that program. We think it has a lot of potential. But again, it's a membership-oriented program, so it's a little too early to start discussing what the potential of it – we're very excited about that program. We think it has a lot of potential. Thank you very much. We're very excited about that program. We think it has a lot of potential.

12:19 But again, it's a membership-oriented program, so it's a little too early to start discussing what the potential of it is. We're very excited about that program. We think it has a lot of potential. But again, it's a membership-oriented program, so it's a little too early to start discussing what the We think it has a lot of potential, but again, it's a membership-oriented program, so it's a little too early to start discussing what the potential of it is ultimately financially. But again, it's a membership-oriented program, so it's a little too early to start discussing what the What the potential of it is ultimately financially for the company and for customer accounts. So it's a little too early to start discussing what the potential of it is ultimately financially for the company and for customer accounts.

13:14 Because as you know, in membership program, so it's a little too early to start discussing what the potential of it is ultimately financially for the company and for customer accounts. because as you know in membership to start discussing what the potential of it is ultimately financially for the company and for customer accounts because as you know in membership it's really about continuity to start discussing what the potential of it is ultimately financially for the company and for customer accounts because as you know in membership it's really about continuity to start discussing what the What the potential of it is ultimately financially for the company and for customer accounts.

14:01 Because as you know, in membership, it's really about continuity. To start discussing what the potential of it is ultimately financially for the company and for customer accounts. Because as you know, in membership, it's really about continuity. To start discussing what the What the potential of it is ultimately financially for the company and for customer accounts, because as you know in membership, it's really about continuity. To start discussing what the potential of it is ultimately financially for the company and for customer accounts, because as you know in membership, it's really about continuity. To start discussing what the What the potential of it is ultimately financially for the company and for customer accounts, because as you know, in membership, it's really about continuity and that's where it counts, not just how many folks you can get in the program initially,

17:33 and that's where it counts, not just how many folks you can get in the program initially. So I'd say stay tuned on that one. We're watching it really closely. We are excited about it as an early-stage initiative, Your next question comes from the line of Tom Champion from Cowen. Your line is open. Thanks, Amit. Your next question comes from the line of Tom Champion from Callen. Your line is open.

18:19 Hi, guys. Good morning. Rich. Tom Champion from Callen. Your line is open.

18:27 Hi, guys. Good morning. Rich, could you talk about the process of migrating through the SEO? Your line is open. Hi, guys. Good morning. Rich, Could you talk about the process of migrating through the SEO and email headwinds? Your line is open. Hi, guys. Good morning. Rich, could you talk about the process of migrating through the SEO and email headwinds? Your line is open. Hi, guys. Good morning. Rich, could you talk about the process of migrating through the SEO and Email, Headwinds, DeDeese. Your line is open.

19:14 Hi, guys. Good morning. Rich, could you talk about the process of migrating through the SEO in Email, Headwinds, DeDeese? Your line is open. Hi, guys. Good morning. Rich, could you talk about the process of migrating through the SEO in Email, Headwinds, DeDeese? Hi, guys. Good morning. Rich, Could you talk about the process of migrating through the SEO and email headwinds? Did these remain roughly constant? Hi, guys. Good morning. Rich, could you talk about the process of migrating through the SEO and email headwinds? Did these remain roughly constant?

20:01 Hi, guys. Good morning. Rich, could you talk about the process of migrating through the SEO and email headwinds. Did these remain roughly constant? Hi guys, good morning. Rich, could you talk about the process of migrating through the SEO and email headwinds? Did these remain roughly constant? Hi guys, good morning. Rich, could you talk about the process of migrating through the SEO and email headwinds? Did these remain roughly constant? Hi, guys. Good morning. Rich, could you talk about the process of migrating through the SEO and email headwinds?

20:47 Did these remain roughly constant? Hi, guys. Good morning. Rich, could you talk about the process of migrating through the SEO and email headwinds? Did these remain roughly constant? And then, Mike, maybe just a quick one for you. Nice gross profit and EBITDA performance. It sounded from your comments like international was maybe a little more challenging than XRCA. And then, Mike, maybe just a quick one for you. Nice gross profit and EBITDA outperformance. It sounded from your comments like international was maybe a little more challenging than XRCA. One for you. Nice gross profit and EBITDA outperformance. It sounded from your comments like international was maybe a little more challenging than Thank you for joining us.

21:58 Is this being more than offset by a better consumer in North America? Thank you. International was maybe a little more challenging than expected at the start of the year. Is this being more than offset by a better consumer in North America? Thank you. Great. Thanks, Tom. International was maybe a little more challenging than expected at the start of the year. Is this being more than offset by a better consumer in North America? Thank you. Great, thanks, Tom. International was maybe a little more challenging than expected at the start of the year. Is this being more than offset by a better consumer in North America? Thank you. Great, thanks, Tom. More challenging than expected at the start of the year.

22:43 Is this being more than offset by a better consumer in North America? Thank you. Great, thanks, Tom. So on migrating... More challenging than expected at the start of the year. Is this being more than offset by a better consumer in North America? Thank you. Great. Thanks, Tom. More challenging than expected at the start of the year. Is this being more than offset by a better consumer in North America? Thank you. Great. Thanks, Tom. More challenging than expected at the start of the year. Is this being more than offset by a better consumer in North America? Thank you. Great, thanks, Tom. So on my grading... More challenging than expected at the start of the year. Is this being more than offset by a better consumer in North America? Thank you.

23:38 Great, thanks, Tom. So on my grading... More challenging than expected at the start of the year. Is this being more than offset by a better consumer in North America? Thank you. Great, thanks, Tom. So on my grading... More challenging than... Thank you. Great. Thanks, Tom. So on my grading... More challenging than expected at the start of the year. Is this being more than offset by a better consumer in North America? Thank you. Great. Thanks, Tom. So on my grading... More challenging than expected at the start of the year. Is this being more than offset by a better consumer in North America? Thank you. Is this being more than offset by a better consumer in North America?

24:25 Thank you. Great. Thanks, Tom. So on my grading – More challenging than expected at the start of the year. Is this being more than offset by a better consumer in North America? Thank you. Great. Thanks, Tom. So on my grading – At the start of the year. Is this being more than offset by a better consumer in North America? Thank you.

24:49 Great. Thanks, Tom.

24:51 So on migrating through email and SEO, you know, our challenge is there to get significantly worse, but we expect them to be a real challenge as we move throughout the year.

25:15 But we're not just accepting that. We don't sit aside and say, oh, well, our challenge is there to get significantly worse, but we expect them to be a real challenge as we move throughout the year. But we're not just accepting that. We don't sit aside and say, oh, well, our challenge is there to get significantly worse, but we expect them to be a real challenge as we move throughout the year. But we're not just accepting that. We don't sit aside and say, oh, well, our challenge is there to get significantly worse, but we expect them to be a real challenge as we move throughout the year. But we're not just accepting that. We don't sit aside and say, oh, well, our challenge is there to get significantly worse, but we expect them to be a real challenge as we move throughout the year.

26:04 But we're not just accepting that. We don't sit aside and say, oh, well, email are challenges there to get significantly worse, but we expect them to be a real challenge as we move throughout the year. But we're not just accepting that. We don't sit aside and say, oh, well, email is significantly worse, but we expect them to be a real challenge as we move throughout the year. But we're not just accepting that. We don't sit aside and say, oh, well, email's hard and SEO's hard. Our team is significantly worse, but we expect them to be a real challenge as we move throughout the year. But we're not just accepting that. We don't sit aside and say, oh, well, email's hard and SEO's hard. Our team is to be a real challenge as we move throughout the year.

26:49 But we're not just accepting that. We don't sit aside and say, oh, well, email's hard and SEO's hard. We have dedicated teams, obviously, for each to be a real challenge as we move throughout the year. But we're not just accepting that. We don't sit aside and say, oh, well, email's hard and SEO's hard. We have dedicated teams, obviously, for each to be a real challenge as we move throughout the year. But we're not just accepting that. We don't sit aside and say, oh, well, email's hard and SEO's hard. We have dedicated teams, obviously, for each to be a real challenge as we move throughout the year. But we're not just accepting that. We don't sit aside and say, oh, well, email's hard and SEO's hard. We have dedicated teams, obviously, for each to be a real challenge as we move throughout the year. But we're not just accepting that.

27:40 We don't sit aside and say, oh, well, email's hard and SEO's hard. We have dedicated teams, obviously, for each to be a real challenge as we move throughout the year. But we're not just accepting that. We don't sit aside and say, oh, well, email's hard and SEO's hard. We have dedicated teams, obviously, for each to be a real challenge as we move throughout the year. But we're not just accepting that. We don't sit aside and say, oh, well, email's hard and SEO's hard. We have dedicated teams, obviously, for each throughout the year. But we're not just accepting that. We don't sit aside and say, oh, well, email's hard and SEO's hard. We have dedicated teams, obviously, for each. And those teams are heads down. Sit aside and say, oh, well, email's hard and SEO's hard.

28:27 We have dedicated teams, obviously, for each. and those teams are heads down trying to do their best to optimize the experience for our customers. We have dedicated teams obviously for each and those teams are heads down trying to do their best to optimize the experience for our customers. We have dedicated teams obviously for each and those teams are heads down trying to do their best to optimize the experience for our customers. We have dedicated teams obviously for each and those teams are heads down trying to do their best to optimize the experience for our card and SEOs hard.

29:14 We have dedicated teams obviously for each and those teams are heads down trying to do their best to optimize the experience for our customers particularly around email where we can chart and SEO is hard. We have dedicated teams obviously for each and those teams are heads down trying to do their best to optimize the experience for our customers particularly around email where we can chart and SEO is hard. We have dedicated teams obviously for each and those teams are heads down trying to do their best to optimize the experience for our customers particularly around email where we can chart and SEO is hard. We have dedicated teams obviously for each and those teams are heads down trying to do their best to optimize the experience for our customers particularly around email where we can chart and SEO is hard.

30:03 We have dedicated teams obviously for each and those teams are heads down trying to do their best to optimize the experience for our customers particularly around email where we can chart and SEO is hard. We have dedicated teams obviously for each and those teams are heads down trying to do their best to optimize the experience for our customers particularly around email where we can chart. We have dedicated teams obviously for each and those teams are heads down trying to do their best to optimize the experience for our customers particularly around email where we control that channel. We have dedicated teams obviously for each and those teams are heads down trying to do their best to optimize the experience for our customers particularly around email where we control that channel.

30:50 We have dedicated teams obviously for each and those teams are heads down trying to do their best to optimize the experience for our customers, particularly around email where we control that channel, really trying to do their best to optimize the experience for our customers, particularly around email where we control that channel, really from front to back. We have teams there. Hopefully, you can see some of the changes that the team has made there. We're doing a lot to improve the relevance and even merchandising in our email. We have teams there. Hopefully, you can see some of the changes that the team has made there. We're doing a lot to improve the relevance and even merchandising in our email. We have teams there, and hopefully you can see some of the changes that the team has made there.

31:46 We're doing a lot to improve the relevance and even merchandising in our email. We have teams there, and hopefully you can see some of the changes that the team has made there. We're doing a lot to improve the relevance and even merchandising in our email. Hopefully you can see some of the changes that the team has made there. We're doing a lot to improve the relevance and even merchandising in our email. We're changing a ton in that space. Hopefully you can see some of the changes that the team has made there. We're doing a lot to improve the relevance and even merchandising in our email. We're changing a ton in that space and hopefully you can see some of the changes that the team has made there. We're doing a lot to improve the relevance and even merchandising in our email. We're changing a ton in that space and hopefully you can see some of the changes that the team has made there.

32:45 We're doing a lot to improve the relevance and even merchandising in our email. We're changing a ton in that space and we're seeing changes that the team has made there. where we're doing a lot to improve the relevance and even merchandising in our email. We're changing a ton in that space and we're seeing some really nice early traction changes that the team has made there where we're doing a lot to improve the relevance and even merchandising in our email. We're changing a ton in that space and we're seeing some really nice We're seeing some really nice early traction to improve the relevance and even merchandising in our email. We're changing a ton in that space and we're seeing some really nice early traction on some of our experiments there.

33:39 and we won't stop. So we're not just going to improve the relevance and even merchandising in our email. We're changing a ton in that space and we're seeing some really nice early traction on some of our experiments there and we won't stop. So we're not just going to improve the relevance and even merchandising in our email. We're changing a ton in that space and we're seeing some really nice early traction on some of our experiments there. and we won't stop. So we're not just going, we're changing a ton in that space and we're seeing some really nice early traction on some of our experiments there and we won't stop. So we're not just going to sit idly by and watch any of that happen. SEO is seeing some really nice early traction on some of our experiments there and we won't stop. So we're not just going to sit idly by and watch any of that happen.

34:28 SEO is a little different. Obviously, there's a bunch outside. We're seeing some really nice early traction on some of our experiments there, and we won't stop. So we're not just going to sit idly by and watch any of that happen. SEO is a little different. Obviously, there's a bunch outside. We're seeing some really nice early traction on some of our experiments there, and we won't stop. So we're not just going to sit idly by and watch any of that happen. SEO is a little different. Obviously, there's a bunch outside. We're seeing some really nice early traction on some of our experiments there, and we won't stop. So we're not just going to sit idly by and watch any of that happen. SEO is a little different. Obviously, there's a bunch outside. We're seeing some really nice early traction on some of our experiments there, and we won't stop. So we're not just going to sit idly by and watch any of that happen.

35:17 SEO is a little different. Obviously, there's a bunch outside. We've seen some really nice early traction on some of our experiments there, and we won't stop. So we're not just going to sit idly by and watch any of that happen. SEO is a little different. Obviously, there's a bunch outside on some of our experiments there, and we won't stop. So we're not just going to sit idly by and watch any of that happen. SEO is a little different. Obviously, there's a bunch outside our control there with algo changes have proven over time to be the most important when it comes to your position

37:27 on the page, and that's really the quality of our content and the amount of content we're generating Thank you very much. both from our customers and merchants as well as our internal most important when it comes to your position on the page. And that's really the quality of our content and the amount of content we're generating both from our customers and merchants as well as our internal most important when it comes to your position on the page. And that's really the quality of our content and the amount of content we're generating both from our customers and merchants as well as our internal most important when it comes to your position on the page.

38:26 And that's really the quality of our content and the amount of content we're generating both from our customers and merchants as well as our internal quality of our content and the amount of content we're generating both from our customers and merchants as well as our internal team. That's a lot of our effort right now is around content development and quality of our content and the amount of content we're generating both from our customers and merchants as well as our internal teams. So that's a lot of our effort right now is around content development and quality of our content and the amount of content we're generating both from our customers and merchants as well as our internal teams. That's a lot of our effort right now is around content development and quality of our content and the amount of content we're generating both from our customers and merchants as well as our internal team.

39:21 So that's a lot of our effort right now is around content development and quality of our content and the amount of content we're generating both from our customers and merchants as well as our internal team. That's a lot of our effort right now is around content development and amount of content we're generating both from our customers and merchants as well as our internal teams. So that's a lot of our effort right now is around content development and, of course, all the other kinds of tweaks and amount of content we're generating both from our customers and merchants as well as our internal teams. So that's a lot of our effort right now is around content development and, of course, all the other kinds of tweaks and amount of content we're generating both from our customers and, of course, all the other kinds of tweaks and tunes that you make to that.

41:40 Now, historically, the challenge in SEO is that there's no quick fixes there, and it is a shifting sands environment. But we're We're focused on it. It is a big piece for us, and our teams are cranking away. Historically, the challenge in SEO is that there's no quick fixes there, and it is a shifting sands environment. We're focused on it. It is a big piece for us, and our teams are cranking away. Historically, the challenge in SEO is that there's no quick fixes there, and it is a shifting sands environment. We're We're focused on it. It is a big piece for us, and our teams are cranking away. There's no quick fixes there, and it is a shifting sands environment. But we're focused on it. It is a big piece for us, and our teams are cranking away.

42:29 There's no quick fixes there, and it is a shifting sands environment. But we're focused on it. It is a big piece for us, and our teams are cranking away. You know, it's an environment, but we're focused on it. It is a big piece for us, and our teams are cranking away. You know, with respect to is it tied to customer losses, the answer is yes, they're an environment, but we're focused on it. It is a big piece for us, and our teams are cranking away. You know, with respect to is it tied to customer losses, the answer is yes, they're an environment, but we're We're focused on it. It is a big piece for us, and our teams are cranking away. With respect to is it tied to customer losses, the answer is yes.

43:18 But we're focused on it. It is a big piece for us, and our teams are cranking away. With respect to is it tied to customer losses, the answer is yes. They're focused on it. It is a big piece for us, and our teams are cranking away. With respect to is it tied to customer losses, the answer is yes. Absolutely, we feel an impact on it. It is a big piece for us, and our teams are cranking away. With respect to is it tied to customer losses, the answer is yes. We feel an impact from those channels. They are very big channels.

46:09 We have a built-in buffer and we have a lot of other successful channels and we have other initiatives like distribution to expand our reach and to broaden our traffic opportunities. But we for certain feel that in the relative. We have a built-in buffer and we have a lot of other successful channels and we have other initiatives like distribution to expand our reach and to broaden our traffic opportunities. But we for certain feel that in the relative. We have a built-in buffer and we have a lot of other successful channels and we have other initiatives like distribution to expand our reach and to broaden our traffic opportunities. but we for certain feel that in the relative other successful channels and we have other initiatives like distribution to expand our reach and to broaden our traffic opportunities.

46:54 But we for certain feel that in the relative short term when you have other successful channels and we have other initiatives like distribution to expand our reach and to broaden our traffic opportunities. But we for certain feel that in the relative short term When you have other successful channels and we have other initiatives like distribution to expand our reach and to broaden our traffic opportunities. But we for certain feel that in the relative short term. Thank you very much. Thank you very much.

48:07 But we for certain feel that in the relative short term when you see initiatives like distribution to expand our reach and to broaden our traffic opportunities. But we for certain feel that in the relative short term when you see channel compression, it's given the size of both of them.

50:58 It's called email around 20% and search being a double-digit channel for us. You're going to feel C channel compression. It's given the size of both of them. It's called email around 20% and search being a double-digit channel for us. You're going to feel some of that as that has traffic headwinds in terms of customers and how they're making our existing channels that we control an awful lot better. So That's work ongoing, but sure, we'll feel it. We'll continue to feel it, as we've said, probably throughout the course of this year, but we expect it to start to temper and control an awful lot better. That's work ongoing, but sure, we'll feel it. We'll continue to feel it, as we've said, probably throughout the course of this year, but we expect it to start to temper as we move into 2020 and control an awful lot better. That's work ongoing, but sure, we'll feel it.

51:45 We'll continue to feel it, as we've said, probably throughout the course of this year, but we expect it to start to temper as we move into 2020. That's work ongoing, but sure, we'll feel it. We'll continue to feel it, as we've said, probably throughout the course of this year, but we expect it to start to temper and as we move into 2020. And I think that the opportunities, that's work ongoing, but sure, we'll feel it. We'll continue to feel it, as we've said, probably throughout the course of this year, but we expect it to start to temper as we move into 2020. And I think that the opportunities probably throughout the course of this year, but we expect it to start to temper as we move into 2020. And I think that the opportunities for us to accelerate that. And the one thing I would just add on to probably throughout the course of this year, but we expect it to start to temper as we move into 2020. And, you know, I think that the opportunities for us to accelerate that. And the one thing I would just add on to probably throughout the course of this year, but we expect it to start to temper as we move into 2020. And, you know, I think that the opportunities for us to accelerate that. And the one thing I would just add on to...

52:54 Probably throughout the course of this year, but we expect it to start to temper as we move into 2020, and I think the opportunity is for us to accelerate that. And the one thing I would just add on to... Probably throughout the course of this year, but we expect it to start to temper as we move into 2020, and I think the opportunity is for us to accelerate that. And the one thing I would just add on to... Expect it to start to temper and... as we move into 2020, and I think the opportunities for us to accelerate that. And the one thing I would just add on to that is when we talk about our commentary for $270 million, and I think the opportunities for us to accelerate that.

53:47 One thing I would just add on to that is when we talk about our commentary for $270 million of Ajustity Bada this year, and $300 million or more for 2020, that contemplates Those headwinds, you know, we're not assuming necessarily they go away. We don't, as Rich said, we don't accept them, but we do in terms of $300 million or more for 2020, that contemplates those headwinds. You know, we're not assuming necessarily they go away. We don't, as Rich said, we don't accept them, but we do in terms of $300 million or more for 2020, that contemplates Those headwinds, you know, we're not assuming necessarily they go away.

54:40 We don't, as Rich said, we don't accept them, but we do in terms of $300 million or more for 2020, that contemplates those headwinds. You know, we're not assuming necessarily they go away. We don't, as Rich said, we don't accept them, but we do in terms of for 2020, that contemplates those headwinds. You know, we're not assuming necessarily they go away. We don't, as Rich said, we don't accept them, but we do, in terms of our forward outlook for 2020, that contemplates those headwinds. We're not assuming necessarily they go away. As Rich said, we don't accept them, but we do, in terms of our forward outlook for 2020, that contemplates those headwinds. We're not assuming necessarily they go away.

55:27 As Rich said, we don't accept them, but we do, in terms of our forward outlook, for 2020, that contemplates those headwinds. We're not assuming necessarily they go away. As Rich said, we don't accept them, but we do in terms of our forward outlook for 2020, that contemplates those headwinds. We're not assuming necessarily they go away. As Rich said, we don't accept them, but we do in terms of our forward first I'd just, on international versus North America, you know, first I'd just highlight

1:02:59 in international, on an FX-neutral basis, local still grew by 6%. So we, you know, while we certainly would have liked even with that, but we saw on the international side is obviously a slower customer trajectory than we would have hoped, particularly in the UK, as I highlighted earlier. The national side is obviously a slower customer trajectory than we would have hoped, particularly in the UK, as I highlighted earlier. If you excluded the UK, the rest of the national side is obviously a slower customer trajectory than we would have hoped, particularly in the UK, as I highlighted earlier. If you excluded the UK, the rest of the national side is obviously a slower customer trajectory than we would have hoped, particularly in the UK, as I highlighted earlier. If you excluded the UK, the rest of the national side is obviously a slower customer trajectory than we would have hoped, particularly in the UK, as I highlighted earlier. If you excluded the UK, the rest of the national side is obviously a slower customer trajectory than we would have hoped, particularly in the UK, as I highlighted earlier. is obviously a slower customer trajectory than we would have hoped, particularly in the UK, as I highlighted earlier.

1:04:18 If you excluded the UK, the rest of the national side is obviously a slower customer trajectory than we would have hoped, particularly in the UK, as I highlighted earlier. If you excluded the UK, the rest of it is obviously a slower customer trajectory than we would have hoped, particularly in the UK, as I highlighted earlier. If you excluded the UK, the rest of international actually grew. It is obviously a slower customer trajectory than we would have hoped, particularly in the UK, as I highlighted earlier. If you excluded the UK, the rest of international actually grew. It is obviously a slower customer trajectory than we would have hoped, particularly in the UK, as I highlighted earlier.

1:05:05 If you excluded the UK, the rest of international actually grew. is obviously a slower customer trajectory than we would have hoped, particularly in the U.K. As I highlighted earlier, if you excluded the U.K., the rest of international the face of a softer, and what we saw was is,

1:10:31 in the face of a softer consumer, We chose to lean into that with pricing and promotion, and the promotion. And the result was obviously lower gross profit, but we maintained the units that we would have had similar to promotion. And the result was obviously lower gross profit, but we maintained the units that we would have had similar to promotion. And the result was obviously lower gross profit, but we maintained the units that we would have had similar to promotion.

1:11:19 And the result was obviously lower gross profit, but we maintained the units that we would have had similar to promotion. and the result was obviously lower gross profit, but we maintained the units that we would have had similar to, was obviously lower gross profit, but we maintained the units that we would have had similar to last year. And with regard to North America, was obviously lower gross profit, but we maintained the units that we would have had similar to last year.

1:12:04 And with regard to North America, it was obviously lower gross profit but we maintained the units that we would have had similar to last year. And with regard to North America, but we maintained the units that we would have had similar to last year. And with regard to North America, We have the benefit right now, but we maintained the units that we would have had similar to last year. And with regard to North America, we have the benefit right now, but we maintained the units that we would have had similar to last year.

1:12:51 And with regard to North America, we have the benefit right now, but we maintained the and a number of others. that we would have had similar to last year. With regard to North America, we have the benefit right now that we would have had similar to last year.

1:13:36 With regard to North America, we have the benefit right now of having 30 million customers and what we saw in North America last year. With regard to North America, we have the benefit right now of having 30 million customers and What we saw in North America is that they responded well to the continued offerings we have. and we have the benefit right now of having 30 million customers and what we saw in North America is that they responded well to the continued offerings we have and our continued improvements in supply and our ability to surface what's relevant to them in a way that maximizes gross profit for us. So, you know, kind of what I was touching on earlier is that we continue to see our customers shift to ability to surface what's relevant to them in a way that maximizes gross profit for us.

1:15:04 So, you know, kind of what I was touching on earlier is that we continue to see Our customers shift to ability to surface what's relevant to them in a way that maximizes gross profit for us. So kind of what I was touching on earlier is that we continue to see our customers shift to ability to surface what's relevant to them in a way that maximizes gross profit for us. So kind of what I was touching on earlier is that we continue to see Thank you. Thank you. Thank you. Thank you. Thank you. is that we continue to see our customers shift to higher AOV, higher margin categories, and that was the source of the benefit.

1:16:12 Kind of what I was touching on earlier is that we continue to see our customers shift to higher AOV, higher margin categories, and that was the source of the benefit. Kind of what I was touching on earlier is that we continue to see our customers shift to higher AOV, higher margin Thank you for joining us. Thank you. Thank you. Thank you.

1:17:31 Our customers shift to higher AOV, higher margin categories, and that was the source of the benefit in the first quarter. Got it. Thank you, guys. Our customers shift to higher AOV, higher margin categories, and that was the source of the benefit in the first quarter. Got it.

1:17:48 Thank you, guys.

1:18:02 Our customers shift to higher AOV, higher margin categories, and that was the source of the benefit in the first quarter. Got it. Thank you, guys. Thank you. Our customers shift to higher AOV, higher margin categories, and that was the source of the benefit in the first quarter. Got it. Thank you, guys. That was the source of the benefit in the first quarter. Got it. Thank you, guys. Thanks, Don. Your next question comes from the line of Elliot Alper from DA Davidson.

1:18:38 Strategy as far as making adjustments to maximize mobile sales. Thank you.

1:18:44 Sure. Thanks for that, Elliot. You know, in general, if you've downloaded our app and are buying on our app, your strategy as far as making adjustments to maximize mobile sales.

1:18:54 Thank you.

1:18:56 Sure. Thanks for that, Elliot. You know, the In general, if you've downloaded our app and are buying on our app, your strategy as far as making adjustments to maximize mobile sales.

1:19:07 Thank you.

1:19:08 Sure. Thanks for that, Elliot. In general, if you've downloaded our app and are buying on our app, your strategy as far as making adjustments to maximize mobile sales.

1:19:19 Thank you.

1:19:21 Sure. Thanks for that, Elliot. Sure. In general, if you've downloaded our app and are buying on our app, your strategy as far as making adjustments to maximize mobile sales.

1:19:31 Thank you.

1:19:33 Sure. Thanks for that, Elliot. In general, if you've downloaded our app and are buying on our app, your strategy as far as making adjustments to maximize mobile sales.

1:19:43 Thank you.

1:19:45 Sure. Thanks for that, Elliot. In general, if you've downloaded our app and are buying on our app, your strategy as far as making adjustments to maximize mobile sales.

1:19:56 Thank you.

1:19:57 Sure. Thanks for that, Elliot. In general, if you've downloaded our app and are buying on our app, your strategy as far as making adjustments to maximize mobile sales.

1:20:08 Thank you.

1:20:10 Sure. Thanks for that, Elliot. Sure. Thank you. Sure. Thanks for that, Elliot. In general, if you've downloaded our app and are buying on our app, you're a better customer.

1:20:43 Thank you.

1:20:44 Sure. Thanks for that, Elliot. In general, if you've downloaded our app and are buying on our app, you're a better customer. You buy more. Thanks for that, Elliot. In general, if you've downloaded our app and are buying on our app, you're a better customer. You buy more frequently and you engage more frequently.

1:21:19 Sure. Thanks for that, Elliot.

1:21:22 In general, if you've downloaded our app and are buying on our app, you're a better customer. You buy more frequently and you engage more frequently in general. And we've discussed that a bit in the past as we've talked about our mobile transition. I think the important thing to remember there now is we're far beyond mobile most. I mean, we're, you know, call it. We have, you know, around 30 million active customers in the U.S. So it's just so much bigger. So in terms of pure reach, It's not hard to have around 30 million active customers in the U.S. It's so much bigger. In terms of pure reach, it's not hard to have around 30 million active customers in the U.S. It's so much bigger.

1:22:14 In terms of pure reach, it's not hard to have around 30 million active customers in the U.S. It's so much bigger. In terms of pure reach, it's not hard to a million active customers in the U.S. It's so much bigger. In terms of pure reach, it's not hard to imagine a world where distribution will million active customers in the U.S. It's so much bigger. In terms of Thank you very much. It's not hard to imagine a world where distribution will million active customers in the U.S. So it's just so much bigger.

1:23:25 So in terms of pure reach, it's not hard to imagine a world where distribution will million active customers in the U.S. So it's just so much bigger. So in terms of pure reach, It's not hard to imagine a world where distribution will million active customers in the U.S. So it's so much bigger. So in terms of pure reach, it's not hard to imagine a world where distribution will bigger. So in terms of pure reach, It's not hard to imagine a world where distribution for us could reach far more customers or far more households than pure reach.

1:24:12 It's not hard to imagine a world where distribution for us could reach far more customers or far more households than we do on a standalone basis. Pure reach It's not hard to imagine a world where distribution for us could reach far more customers or far more households than we do on a standalone basis. Pure reach. It's not hard to imagine a world where distribution for us could reach far more customers or far more households than we do on a standalone basis. Obviously, the economics of that are different, but it's not hard to see how

1:28:37 over the course of a relatively short period of time, and we do on a standalone basis, obviously, the economics of that are different, but it's not hard to see how over the course of a relatively short period of time, over the course of a couple years, Where did we do on a standalone basis? Obviously, the economics of that are different, but it's not hard to see how over the course of a relatively short period of time, over the course of a couple years, where did we do on a standalone basis? Obviously, the economics of that are different, but it's not hard to see how over the course of a relatively short period of time, over the course of a couple years, where did we do on a standalone basis? Obviously, the economics of that are different, but it's not hard to see how over the course of a relatively short period of time, over the course of a couple years, where did we do on a standalone basis?

1:29:31 Obviously, the economics of that are different, but it's not hard to see how over the course of a relatively short period of time, over the course of a couple years, where did we do on a standalone basis? Obviously, the economics of that are different, but it's not hard to see how over the course of a relatively short period of time, over the course of a couple years, where we do on a standalone basis. Obviously, the economics of that are different, but it's not hard to see how over the course of a relatively short period of time, over the course of a couple years, Obviously, the economics of that are different, but it's not hard to see how over the course of a relatively short period of time, over the course of a couple years, where distribution reach could be really significant.

1:30:17 A lot of work ahead of us there. The good news for us is there's a lot of demand for our content. And I think over the course of this year, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we are. A lot of work ahead of us there. The good news for us is there's a lot of demand for our content. I think over the course of this year, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we are. A lot of work ahead of us there. The good news for us is there's a lot of demand for our content. I think over the course of this year, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we are. A lot of work ahead of us there. The good news for us is there's a lot of demand for our content. I think over the course of this year, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we are. A lot of work ahead of us there.

1:31:08 The good news for us is there's a lot of demand for our content. I think over the course of this year, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we are. A lot of work ahead of us there. The good news for us is there's a lot of demand for our content. I think over the course of this year, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we are. A lot of work ahead of us there. The good news for us is there's a lot of demand for our content. I think over the course of this year, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we are. A lot of work ahead of us there. The good news for us is there's a lot of demand for our content. And I think over the course of this year, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we think it can be. There's a lot of demand for our content.

1:32:10 And I think over the course of this year, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we think it can be. There's a lot of demand for our content. And I think over the course of this year, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we think it can be. This year, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we think it can be. Great, very helpful.

1:32:43 And then here, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we think it can be. Great, very helpful.

1:32:56 And then here, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we think it can be. Great, very helpful.

1:33:08 Here, specifically in the back half of the year, we'll be able to provide a lot more color on a go-forward basis of just how big we think it can be. Great. Very helpful. On a go-forward basis of just how big we think it can be. Great. Very helpful. And then maybe just a question on Bookable. So you noted it's very helpful. Great. And then maybe just a question on bookable. So you noted in the shareholder letter that you're seeing in some countries the majority of your food and drink offers being bookable. I was wondering if you could share what countries those are.

1:33:55 And then you also note that you're moving into other categories. In the shareholder letter that you're seeing in some countries the majority of your food and drink I was wondering if you could share what countries those are. And then you also note that you're moving into other categories. In the shareholder letter that you're seeing in some countries, the majority of your food and drink offers being bookable. I was wondering if you could share what countries those are. And then you also note that you're moving into other categories. In the shareholder letter that you're seeing in some countries, the majority of your food and drink offers being bookable. I was wondering if you could share what countries those are. And then you also note that you're moving into other categories. In the shareholder letter that you're seeing in some countries, the majority of your food and drink offers being bookable. I was wondering if you could share what countries those are. And then you also note that you're moving into other categories.

1:34:47 In the shareholder letter that you're seeing in some countries, the majority of your food and drink offers being bookable. I was wondering if you could share what countries those are. And then you also note that you're moving into other categories. In the shareholder letter that you're seeing in some countries, the majority of your food and drink offers being bookable. I was wondering if you could share what countries those are. And then you also note that you're moving into other categories. In the shareholder letter that you're seeing in some countries, the majority of your food and drink offers being bookable. I was wondering if you could share what countries those are. and then you also note that you're moving into other categories. In the shareholder letter that you're seeing in some countries the majority of your food and drink offers being bookable, I was wondering if you could share what countries those are. And then you also note that you're moving into other categories.

1:35:36 In the shareholder letter that you're seeing in some countries the majority of your food and drink offers being bookable, I was wondering if you could share what countries those are. And then you also note that you're moving into other categories. We expect us to move bookability into the health and beauty space where we're really

1:39:03 strong and we're strong in every market area.

1:39:24 that we operate in, and then you should see us move it into places like things to do and home services and auto services. But we plan to, you know, this is a space where if it's not card linked, it's going to be bookable. So you should be thinking about our entire inventory linked, it's going to be bookable. So you should be thinking about our entire inventory, but phasing more in that way. Food and drink in Europe to start, then health and beauty, then things to do in home and auto and then really bringing. You should be thinking about our entire inventory but phasing more in that way. Food and drink in Europe to start, then health and beauty, then things to do in home and auto and then really bringing that to North America. You should be thinking about our entire inventory but phasing more in that way.

1:40:09 Food and drink in Europe to start, then health and beauty, then things to do in home and auto and then really bringing that to North America. You should be thinking about our entire inventory but phasing more in that way. Food and drink in Europe to start, then health and beauty, then things to do in home and auto and then really bringing that to North America. You should be thinking about our entire inventory but phasing more in that way. Food and drink in Europe to start, then health and beauty, then things to do in home and auto and then really bringing that to North America. You should be thinking about our entire inventory but phasing more in that way. Food and drink in Europe to start, then health and beauty, then things to do in home and auto and then really bringing that to North America.

1:40:54 You should be thinking about our entire inventory but phasing more in that way. Food and drink in Europe to start, then health and beauty, then things to do in home and auto and then really bringing that to North America but phasing more in that way. Food and drink in Europe to start, then health and beauty, then things to do in home and auto and then really bringing that to North America and all those categories to the back and beauty then things to do in home and auto and then really bringing that to North America and all those categories to the back half of the year so that we're working aggressively toward our goal to make health and beauty then things to do in home and auto and then really bringing that to North America and and all those categories to the back half of the year so that we're working aggressively toward our goal to make health and beauty, then things to do in home and auto, and then really bringing that to North America and all those categories to the back half of the year so that we're working aggressively toward our goal to make health and beauty, then things to do in home and auto, and then really bringing that to North America and all those categories to the back half of the year so that we're working aggressively toward our goal to make health and beauty, then things to do in home and auto, and then really bringing that to North America and all those categories to the back half of the year so that we're working aggressively toward our goal to make that to North America and all those categories to the back half of the year so that we're working

1:42:27 aggressively toward our goal to make Groupon voucher lists and that voucher list to North America and all those categories to the back half of the year so that we're working aggressively toward our goal to make Groupon voucher lists. And that voucher list to North America and all those categories to the back half of the year so that we're working aggressively toward our goal to make Groupon voucher lists. And that voucher list to North America and all those categories to the back half of the year so that we're working aggressively toward our goal to make Groupon voucher lists and that voucher list to North America and all those categories to the back half of the year so that we're working aggressively toward our goal to make Groupon voucher lists and all those categories to the back half of the year so that we're working aggressively toward our goal to make Groupon voucher lists and that voucherless path is paved via booking and card linked half of the year so that we're working aggressively toward our goal to make Groupon voucherless and that voucherless path is paved via booking and card linked.

1:43:47 Thank you, Kyle. Once again, if you would like to ask a question, please press star, then the number one on your telephone keypad. That is star, then the number one on... Thank you, conference. Once again, if you would like to ask a question, please press star, then the number one on your telephone keypad. That is star, then the number one on your... Thank you, conference. Once again, if you would like to ask a question, please press star, then the number one on your telephone keypad. That is star, then the number one on your... Thank you, conference. Once again, if you would like to ask a question, please press star, then the number 1 on your telephone keypad. That is star, then the number 1 on your telephone keypad.

1:44:39 Once again, if you would like to ask a question, please press star, then the number 1 on your telephone keypad. That is star, then the number 1 on your telephone keypad. Once again, if you would like to ask a question, please press star, Thank you, Kyle. Once again, if you would like to ask a question, please press star, then the number one on your telephone keypad. Once again, if you would like to ask a question, please press star, then the number one on your telephone keypad. That is star, then the number one on your telephone keypad. Once again, if you would like to ask a question, please press star, then the number 1 on your telephone keypad. Once again, if you would like to ask a question, please press star, then the number 1 on your telephone keypad.

1:45:38 Once again, if you would like to ask a question, please press star, then the number 1 on your telephone keypad. Then the number 1 on your telephone keypad. That is star, then the number 1 on your telephone keypad. Mathavanan from Barclays. Your line is open.

1:50:40 For the next question, it comes from the line of Deepak Mathavanan from Barclays. Your line is open. For the next question, it comes from the line of Deepak Mathavanan from Barclays. Your line is open. For the next question, For the next question, it comes from the line of Deepak Mathavanan from Barclays. Your line is open. For the next question, it comes from the line of Deepak Mathavanan from Barclays. Your line is open.

1:51:28 For the next question, it comes from the line of Deepak Mathavanan from Barclays. Your line is open. Hey guys, thanks for taking the time.

1:51:39 Hey, good morning. First one for Rich, you've been tweaking the marketing programs to focus on high-res customers. Is it any different at all compared to some of your traditional core customers? And then one for Mike, it seems like the efficiency gains on SG&A, maybe in North America, is starting to tail off a little bit. How much of efficiency gains do we need to see from SG&A to kind of achieve the 300 million EBITDA for next year? Thanks so much.

1:52:09 Thanks, Deepak. I'll start and then hand it over to Mike. But yeah, we have been tweaking for a while and tuning around quality. And, you know, it for sure is easier to see that in terms of, yeah, we have been tweaking for a while and tuning around quality and It for sure is easier to see that in terms of GP per customer. We have been tweaking for a while and tuning around quality. It for sure is easier to see that in terms of GP per customer. We have been tweaking for a while and tuning around quality. It for sure is easier to see that in terms of GP per customer.

1:52:59 We have been tweaking for a while and tuning around quality. It for sure is easier to see that in terms of GP per customer. We have been tweaking for a while and tuning around quality. It for sure is easier to see that in terms of GP per customer. We have been tweaking for a while and tuning around quality. It for sure is easier to see that in terms of GP per customer. We have been tweaking for a while and tuning around quality. You know, it for sure is easier to see that in terms of GP per customer and, you know, that's quality and, you know, it for sure is easier to see that in terms of GP per customer and, you know, that's up by 5%. So year over year in Q1 on quality and It for sure is easier to see that in terms of GP per customer, and that's up by 5% year over year in Q1 on quality.

1:54:13 It for sure is easier to see that in terms of GP per customer, and that's up by 5% year over year in Q1 on quality. It for sure is easier to see that in terms of GP per customer, and that's up by 5% year over year in Q1. It for sure is easier to see that in terms of GP per customer, and that's up by 5% year over year in Q1 on a 12-month basis. It for sure is easier to see that in terms of GP per customer, and that's up by 5% year-over-year in Q1 on a 12-month basis.

1:55:01 It for sure is easier to see that in terms of GP per customer, and that's up by 5% year-over-year in Q1 on a 12-month basis. Thank you for joining us. You're seeing the results on that side, and you're seeing our focus on GP per customer shine through. That's up by 5% year-over-year in Q1 on a 12-month basis. You're seeing the results on that side, and you're seeing our focus on GP per customer shine through. That's up by 5% year-over-year in Q1 on a 12-month basis.

1:55:56 You're seeing the results on that side, and you're seeing our focus on GP per customer shine through. That's up by 5% year over year in Q1 on a trailing 12-month basis. So you're seeing the results on that side, and you're seeing our focus on GP per customer shine through on a trailing 12-month basis. So you're seeing the results on that side, and you're seeing our focus on GP per customer shine through there. And what I'd say on our, you know, we don't give specifics on per customer, you know, shine through there. And what I'd say on our, you know, we don't give specifics on our cohorts other than to say they're trending in line with our ROI thresholds. And in this case, I'd say they're trending in line with our ROI thresholds.

1:56:42 And in this case, I'd say they are trending to higher gross profit production over time. So we feel good about the programs that we've put in place. in line with our ROI threshold. And in this case, I'd say they are trending to higher gross profit production over time. So we feel good about the programs that we've put in place in line with our ROI threshold. And in this case, I'd say they are trending to higher gross profit production over time. So we feel good about the programs that we've put in place, in line with our ROI thresholds. And in this case, I'd say they are trending to higher gross profit production over time. So we feel good about the programs that we've put in place in line with our ROI thresholds.

1:57:31 And in this case, I'd say they are trending to higher gross profit production over time. So we feel good about the programs that we've put in place by thresholds. And in this case, I'd say they are trending to We feel good about the programs that we've put in place As much as my threshold, and in this case I'd say they are trending to higher gross profit production over time. So we feel good about the programs that we've put in place.

1:58:16 As much as my threshold, and in this case I'd say they are trending to higher gross profit production over time. So we feel good about the programs that we've put in place. As much as my thresholds, and in this case I'd say they are trending to higher gross profit production over time. So we feel good about the programs that we've put in place. As much as my thresholds, and in this case I'd say they are trending to to invest in unprofitable, really a frictionless and rewarding experience.

2:03:13 It's going to get a lot easier to bring a lot of these folks into the fold and a lot more profitable over time to bring folks into the fold. And based on what we see on our programs and voucherings, it's going to get a lot easier to bring a lot of these folks into the fold and a lot more profitable over time to bring folks into the fold. and based on what we see on our programs and voucher lists in particular, more profitable over time to bring folks into the fold. And based on what we see on our programs and voucher lists in particular and its ability to increase purchase frequency over time, whether that's both more profitable over time to bring folks into the fold and based on what we see on our programs and voucher lists in particular, and its ability to increase purchase frequency over time, whether that's both more profitable over time to bring folks into the fold. And based on what we see on our programs and voucher lists in particular, and its ability to increase purchase frequency over time, whether that's both more profitable over time to bring folks into the fold. And based on what we see on our programs and voucher lists in particular, and its ability to increase purchase frequency over time, whether that's both more profitable over time to bring folks into the fold. And based on what we see on our programs and voucher lists in particular, and its ability to increase purchase frequency over time, whether that's both more profitable over time to bring folks into the fold.

2:04:40 And based on what we see on our programs and voucher lists in particular, and its ability to increase purchase frequency over time, whether that's both more profitable over time to bring folks into the fold. And based on what we see on our programs and voucher lists in particular, and its ability to increase purchase frequency over time, whether that's both more profitable over time to bring folks into the fold. And based on what we see on our programs and voucher lists in particular, and its ability to increase purchase frequency over time, whether that's both more profitable over time to bring folks into the fold. And based on what we see on our programs and voucher lists in particular, and its ability to increase purchase frequency over time, whether that's books into the fold, and based on what we see on our programs and voucher lists in particular, and its ability to increase purchase frequency over time, whether that's booking or card link, both of them impact.

2:05:38 What we see on our programs and voucher lists in particular and its ability to increase purchase frequency over time, whether that's booking or card link, both of them impact purchase frequency in a positive way. What we see on our programs and voucher lists in particular and its ability to increase purchase frequency over time, whether that's booking or card link, both of them impact purchase frequency in a positive way. What we see on our programs and voucher lists in particular and its ability to increase purchase frequency over time, whether that's booking or card link, both of them impact purchase frequency in a positive way. What we see on our programs and voucher lists in particular and its ability to increase purchase frequency over time, whether that's booking or card length, both of them impact purchase frequency in a positive way. In particular, and its ability to increase purchase frequency over time, whether that's booking or card length, both of them impact purchase frequency in a positive way.

2:06:37 We'd expect that to continue to improve. In particular, and its ability to increase purchase frequency over time, whether that's booking or card length, both of them impact purchase frequency in a positive way. We'd expect that to continue to improve for this in particular and its ability to increase purchase frequency over time, whether that's booking or card length, both of them impact purchase frequency in a positive way. We'd expect that to continue to improve for this in particular. and its ability to increase purchase frequency over time, whether that's booking or card length, both of them impact purchase frequency in a positive way. We'd expect that to continue to improve the over time, whether that's booking or card length, both of them impact purchase frequency in a positive way.

2:07:22 We'd expect that to continue to improve our gross profit profile per customer, which is going to give us more room to invest within our ROI threshold. So it's working as expected. As much as we don't like Thank you very much. It's the right call. Best within our ROI threshold.

2:08:07 So it's working as expected. As much as we don't like to lose the customers, it's working as expected, and we believe long-term it's the right call. It's working as expected. As much as we don't like to lose the customers, it's working as expected, and we believe long-term it's the right call. It's working as expected. As much as we don't like It's working as expected. As much as we don't like to lose the customers, it's working as expected, and we believe long-term, it's the right call. It's working as expected. As much as we don't like to lose the customers, it's working as expected, and we believe long-term, We don't like to lose the customers. It's working as expected, and we believe long-term it's the right call.

2:09:15 Yeah, and on SG&A, so a couple things I... We don't like to lose the customers. It's working as expected, and we believe long-term it's the right call. Yeah, and on SG&A, so a couple things I... We don't like... Thank you very much. It's the right call.

2:10:04 Yeah, and on SG&A, so a couple things. We don't like to lose the customers. It's working as expected, and we believe long-term it's the right call. Yeah, and on SG&A, so a couple things. We don't like to lose the customers. It's working as expected, and we believe long-term it's the right call. Yeah, and on SG&A, so a couple things. To the customers, it's working as expected, and we believe long-term it's the right call.

2:10:39 Yeah, and on SG&A, so a couple things I would highlight is. And we believe long-term it's the right call. Yeah, and on SG&A, so a couple things I would highlight is, first, as you're looking at. It's the right call. Yeah, and on SG&A, so a couple things I would highlight is, first, as you're looking at, sounds like you're looking at SG&A by... It's the right call. Yeah, and on SG&A, so a couple things I would highlight is, first, as you're looking at, sounds like you're looking at SG&A by... It's the right call.

2:11:24 Yeah, and on SG&A, so a couple things I would highlight is, First, as you're looking at, sounds like you're looking at SG&A by... It's the right call. Yeah, and on SG&A, so a couple things I would highlight is, first, as you're looking at, sounds like you're looking at SG&A by... It's the right call. Yeah, and on SG&A, so a couple things I would highlight is, First, as you're looking at, sounds like you're looking at SG&A by... It's the right call. Yeah, and on SG&A, so a couple things I would highlight is, first, as you're looking at, sounds like you're looking at SG&A by SG&A, so a couple things I would highlight is, first, as you're looking at, sounds like you're looking at SG&A by region, one of the things you have to keep into account, particularly around region, One of the things you have to keep into account, particularly around headcount, the way it's disclosed, the headcount, the way it's disclosed, is based upon where the headcount is located, not necessarily the region is our North America business.

2:12:37 Second thing I would just highlight is if we look at this quarter, we ended the quarter with approximately 6,300 heads, and that's the lowest for our North America business. Second thing I would just highlight is if we look at this quarter, We ended the quarter with approximately 6,300 heads, and that's the lowest for our North America business. Second thing I would just highlight is if we look at this quarter, we ended the quarter with approximately 6,300 heads, and that's the lowest for our North America business. Second thing I would just highlight is if we look at this quarter, we ended the quarter with approximately 6,300 heads, and that's the lowest for our North America business.

2:13:26 Second thing I would just highlight is if we look at this quarter, we ended the quarter with approximately 6,300 heads and that's the lowest thing I would just highlight is if we look at this quarter, we ended the quarter with approximately 6,300 heads and and that's the lowest headcount we've had since. The thing I would just highlight is if we look at this quarter, we ended the quarter with approximately 6,300 heads and that's the lowest headcount we've had since. If we look at this quarter, we ended the quarter with approximately 6,300 heads and that's the lowest headcount we've had since.

2:14:11 Rich and I have been here We look at this quarter, we ended the quarter with approximately 6,300 heads, and that's the lowest headcount we've had since Rich and I have been here. We look at this quarter, we ended the quarter with approximately 6,300 heads, and that's the lowest headcount we've had since Rich and I have been here. We look at this quarter, we ended the quarter with approximately 6,300 heads, and that's the lowest headcount we've had since Rich and I have been here. We look at this quarter, we ended the quarter with approximately 6,300 heads and that's the lowest headcount we've had since Rich and I have been here. We look at this quarter, we ended the quarter with approximately 6,300 heads and that's the lowest head count we've had since Rich and I have been here. Ended the quarter with approximately 6,300 heads and that's the lowest head count we've had since Rich and I have been here. And what I would highlight is that was down five and that's the lowest head count we've had since Rich and I have been here.

2:15:33 And what I would highlight is that was down 5% year over year and actually one of the continue to improve our process, improve our technology, and continue to work on increasing the overall level of efficiency. And what I would say is over time, I think there's a lot of process. Improve our technology and continue to work on increasing the overall level of efficiency. And what I would say is over time, I think there's a lot of potential for that. So improve our process, improve our technology, and many more. What I would say is, over time, I think there's a lot of potential for that.

2:16:40 And increasing the overall level of efficiency. And what I would say is, over time, I think there's a lot of potential for that. And what I would say is, as we gain efficiency, that doesn't necessarily mean increasing the overall level of efficiency. And what I would say is, over time, I think there's a lot of potential for that. And what I would say is, as we gain efficiency, that doesn't necessarily mean Thank you very much. What I would say is, over time, I think there's a lot of potential for that.

2:17:37 And what I would say is, as we gain efficiency, that doesn't necessarily mean increasing the overall level of efficiency. And what I would say is, over time, I think there's a lot of potential for that. And what I would say is, as we gain efficiency, that itself

2:19:43 in lower SG&A. With regard to 2020, and what's contemplated there. We do think about continued efficiency gains. We also think about continued investment in our product. But with regard to 2020 and what's contemplated there, we do think about continued efficiency gains. We also think about continued investment in our product. But with regard to 2020, and what's contemplated there. We do think about continued efficiency gains. We also think about continued investment in our product. But with regard to 2020 and what's contemplated there, we do think about continued efficiency gains.

2:20:29 We also think about continued investment in our product. But with regard to 2020, and what's contemplated there. We do think about continued efficiency gains. We also think about continued investment in our product. But with regard to 2020 and what's contemplated there, we do think about continued efficiency gains. We also think about continued investment in our product. But 2020 and what's contemplated there, we do think about continued efficiency gains. We also think about continued investment Thank you very much. and what's contemplated there. We do think about continued efficiency gains.

2:21:40 We also think about continued investment in our product. But what I would highlight is that the 20 and what's contemplated there, we do think about continued efficiency gains. We also think about continued investment in our product. But what I would highlight is and what's contemplated there, we do think about continued efficiency gains. We also think about continued investment in our product. But what I would highlight is the bigger assumption and what's contemplated there. We do think about continued efficiency gains. We also think about continued investment in our product. But what I would highlight is the bigger assumption and what's contemplated there.

2:22:25 We do think about continued efficiency gains. We also think about continued investment in our product. But what I would highlight is that The bigger assumption and what's contemplated there, we do think about continued efficiency gains. We also think about continued investment in our product. But what I would highlight is the bigger assumption that we think about continued efficiency gains. We also think about continued investment in our product. But what I would highlight is that The bigger assumption there is, and our thought is, is that we continue to benefit in terms of GP per customer from the improved product, improved segmentation, and the fulfillment of our strategy around card linking, bookability, and improved GP per customer from the improved product, improved segmentation.

2:23:18 and the fulfillment of our strategy around card linking, bookability and improved mobile experience. And so that higher GP per customer from the improved product, improved segmentation and the fulfillment of our strategy around card linking, bookability and improved mobile experience. And so that higher GP per customer from the improved product, improved segmentation and the fulfillment of our strategy around card linking, bookability and improved mobile experience. And so that higher GP per customer from the improved product, improved segmentation and the fulfillment of our strategy around card linking, bookability and improved mobile experience. And so that higher GP per customer from the improved product, improved segmentation and the fulfillment of our strategy around card linking, bookability and improved mobile experience.

2:24:13 And so that higher GP per customer from the improved product, improved segmentation and the fulfillment of our strategy around card linking, bookability and improved mobile experience. And so that higher GP to improve segmentation and the fulfillment of our strategy around card linking, bookability and improved mobile experience. And so that higher GP per customer on a moderating platform and the fulfillment of our strategy around card linking, bookability and improved mobile experience. Thank you for joining us.

2:25:25 and many more. And so that higher GP per customer on a moderating customer decline, moderating declines, we think ultimately will experience. And so that higher GP per customer on a moderating customer decline, moderating declines, we think ultimately aids and supports our customer on a moderating customer decline, moderating declines, we think ultimately aids and supports Justity Bada or customer. On a moderating customer decline, moderating declines, we think ultimately aids and supports Justity Bada or customer.

2:26:18 On a moderating customer decline, moderating declines, We think ultimately aids and supports Justity Bada of $300 million or more in 2020. You may now disconnect.