GRPN - Earnings call transcript Q2 2024

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Operator

Hello, and welcome to Groupon's Second Quarter 2024 Financial Results Conference Call.

On the call today are CEO, Dusan Senkypl; CFO, Jiri Ponrt; and SVP of Corporate Development and Investor Relations, Rana Kashyap. [Operator Instructions] Today's conference call is being recorded.

Before we begin, Groupon would like to remind listeners that the following discussion and responses to your questions reflects management's views as of today, July 30th, 2024 only and will include forward-looking statements. Actual results may differ materially from those expressed or implied in the company's forward-looking statements. to information forward-looking or obligation result as no new of future undertakes update statements these a Groupon events.

its results Additional website factors makes information the information SEC, easily the Investor XX-Q. Relations included SEC, that financial on quarterly finding filings use way Groupon's information available investor.groupon.com We that on social company. Groupon other the release corporate press at in are files this Form could potentially including website in company about impact the and of with risks its earnings press and encourage report promptly to reports and its the the postings. or and as about company's with media releases a furnishes select governance investors

will release website. and which filings each call following and is its the the posted EBITDA adjusted SEC, Relation the non-GAAP their press cash measures, today, flow, Groupon's on of free company discuss with the in financial On Investor

disclosures measures, am happy You comparable over GAAP. And I that, find to including with measures turn under these the most measures these additional to to call the will of U.S. reconciliation regarding Dusan. non-GAAP

Dusan Senkypl

us thanks earnings It's all quarter to my with along pleasure which will second Hello for presentation I call. posted with prepared remarks. for refer of during investor to XXXX be remarks Today's website relations and a you. are joining our our on an investor

performance a overall a good related release contain the second significantly to and June In and our Slide the quarter addition, detail which quarter. After and quarter, with on press start our you numbers. XX-Q, was results. I X start our very encourage impacted quarter a finished will second to decent call site today's previously I disclosed review we to April issues, ended on with weak more where quarter cover

fifth EBITDA revenues the local, cementing adjusted straight sustained trailing and quarter second Our straight to quarter. We driven grew North adjusted grew XX a $XX approximately for both growth. continues generated million, second ability positive and to adjusted our where generate top investing straight improving strong to be months a sequentially, line America the while of to by customers inflect quarter of EBITDA of year-over-year performance EBITDA active

flow, negative million. $XX free million in return financial X resilient This After trailing X cash significantly basis, takes are a had months than where year that to flow, trailing performance flow foundation more XX our months we our working. Overall, position, and ago. free where we a compared is improved we to on enduring flow our to better Turning plan to the cash for cash cash positive future our a positive results builds a growth, our $XX financial positive free indicator year strengthens consistently XX flow is cash generated business transformation period were expected. positive

heavily hit Our have an with would in expecting supply cloud and right strong Based been product on business. June stability were results mainly to share June demonstrate marketing, unexpected working the to issues can proper that inflection today related the we our point when we project. growth. Unfortunately, July our grow due performance, again QX performance we functioning be for has to that site migration

to quarter within to resolve While handle able the we issue third impacting we temporary not be this July the will will things this which avoid to expect season. weighted are confident issue due is enough guidance to the of revising to we towards reflect we that August lost we are results, our and performance. quarter, down do our do quickly financial Therefore, quarter busy

remaining for mission to our I'm can growth engines and expected, ultimate to remain and restart committed services. harder is realize to projects local. growth and confident marketing; for will that our destination drivers I for we our more in discussing: and North America spend North the longer engineering. Slide and and supply While our into I America local; a, in decision product experiences Supply transformation is b, drivers issues plan. the site local of become we invest our reliability my X. time transformation c, are what the update taking than on

local, our America our back quarters supply focus. will our in to supply, while highlighted follow. North the several we side. can to we see business. X focus no As want from initially North of bullet in we transformation supply, starts highlight supply quarter results efforts there the later, And first drivers in improved everything We explain demand win positive if decided the of local, our in I with size given performance the plan America silver the to XXXX, is transformation one right on

First, we deals. the the over prioritizing quality deals are quantity of of

Our that a experiences. everyday exceptional vision is marketplace to curated build high quality with for value supply delivers

align several this with taken past to we've site the our quarters, from lower promise. Over brand decisive quality steps remove don't that deals

than curating deals, better deals remain per lower deals year total a presentation, substantial number deal our improved better We've in the is that progress enhanced images. visitor. the performing made While of also with are unique ago, and copy,

see our Second, enterprise and large to growth partners merchants, existing both adding new to we with brands relationships our from by continue expanding platform.

has alleys our and parks. robust water amusement things from ranging bowling summer, of showing in arrival to the with activities off, and parks to growth season busy kicked addition, family-friendly parks trampoline In do

to see growth expected We these in continued areas.

regionalization. regional on maintaining First and dedicated our by driving full new account under We existing committed to structure, growing managers completed teams market business, guided our -- Third, managers. focused with first and all freshness expert quarter

regionalization improved performance the second quarter. our market still saw in is local we efforts, it results our While in in early

merchants the about quarter, this performance incremental one quarter, freshness initiative over of and a XX-hour an a existing of kinds how sale the flash impressive In This on new second type flash in also but to that the the want our to supply offering merchants, highlight we promote. site. a I limited we engagement. We running merchant, isn't new underscores and performance drive jump program can concept for enhance deal a enterprise and Next, offerings dozen amazing period. with to engagement led sales an with tested just in first expanded

place, is gifting, this we expand the management local, our cross-sell initiative, relatively to The acquisition our developing into America supply and into business of business our to engine force properly case finally, that hiring. still X. investment a have sales an after greenlighted local to With compelling ready size ramp of culture beyond. Slide market growth products simply While expect in and our regional similar by support it up-sell the I XXXX base. And demonstrates our sales potential up a fine-tuning in performance inadequate existing is opportunity. and to new our for us current new to new sales North will are business ROI a the strong for establishing in cover in early I teams and

marketing to contribution profit. Turning and

will bottom over more line driving margins line to margins. With a line can base reallocating spend objective marketing cost channels believe to to-date. is of approach the which bottom drop line, our we to fixed over line a to at key our the time. contribution how in ROI I of top margin, of increasing and want one financial we context progress Our the few leverage to time, in marketing our and bottom minutes and scale one and improving faster explaining healthy incremental spend improved grow of we productive drivers is on top a that progress growth spend

to profit a XX%, range our incremental margins goods profit percentage allocated exiting Looking while the percentage first-party as as profit to XX% increased of gross XXXX, rose of XX% we economy the in into to post-COVID, Groupon about to After a gross business, when revenue still approximately revenue. back of were as reopening XX% the and XX% had goods first-party XX% we marketing. to contribution with

our to pulled with part channels. in business was However, on we lower-funnel rebuild campaigns performance marketing playbook, marketing transformation XXXX, back focus our rapidly. Starting our spend on declining of as

As over a gross the half in to first as of year, range a result, before to marketing the last XX% XX% back the dropped ramping last XX% of XX% to several quarters. profit to percentage

marketing scaling as marketing contributing that marketing further. -- XX% over continue achieving satisfactory profit of desire ROI In to our XX% long our quarter, operational we second achieved efficiently the as discussed faced gross spend us resulting but targets, our as to profit while revenue, previously blockers have targets. XX% efforts ROI maintain Simultaneously, increased can percentage ramping we We prevented from in gross of desired contribution successfully of profit, as we a spend a percentage revenue.

in XX% and our product we X. the our quarter to key marketplace is a in are to of gross platform transformation. percentage an investing is In product to increasing standards, to marketing XX% second what approximately raise profit modern of innovation XX% a with expect contribution of and a velocity agile. range. Slide indication profit the resources stable expect on our as more we as of XX% going of ahead, efficient, execute new XX% Rapidly experience percentage revenue order and pillar making a range, as gross significant revenue, forward can profit Looking the percentage this in pillar of we the

spending without Rewind and and engineering, First, a had very months high product we product return in innovation. but efficiency. XX satisfactory ago of

work second cloud more a In in stream shift to progress have ramped from cost further reduce our provider. last place workloads made year up ongoing still we good to we we quarter, environment project. projects a single-cloud one our platform a including to While the our making efficient, cloud costs, multi-cloud optimization

team, the second product bandwidth migrated to of product this last for costs cover to simpler meantime, from and be next. site the significant improved in latency platform a In has many the and year. The order, I slowing critical roadmap development. half impacted this rest will fully the be expect up several is and delivered delivery do our this our project lower of weeks, on stability, and this taking cloud project benefits Over which per project engineering we will future workloads the

Second, site stability.

largely inflection have anticipated on point for April growth from although there been performance, issues QX. room an performance June for Our still optimizations. we Based is our in further resolved,

issues I for the paid we of challenged channels. Despite line, within on to expect our platform our be a issues to which fully best of stability do. is migration our were peak round with our legacy cloud season to foundation. these in top quarter, However, to project, technology modernize of resolved projects site unable complex guidance are the efforts significantly accumulated we protect by encountered the this but both as debt impacted performance QX our site to performance impacting executing another managed our and participate related and things it primarily we technical to multiple and

number performance future. issues forward, site possibility additional going While limiting large of we projects in we of the are disregard entirely the can't

Third, agility.

to ability We out front-end roll application, Once which our building new new expect have and app have a platform allocated In made visitor. dramatically significant expected. We will resources accelerate will our new performance to the web launch but we much a we a to per new project product we single features. across increase some further as our enough have unique cycle. data share launch progress on on to our not to quarter, development I we as front-end second insights experience, now

front-end design web visitor. incremental to unique whereas site. per the it is blockers the Over our managed XXX% on new front-end we that fixing our new our still and couple our legacy further, consumer perform marketing as primarily a of monetization potential face related aren't bit legacy traffic, of form, XX versus smaller up visitors is sessions, mobile to friendly still new last platform how our performance mainly channels website positive front-end losing desktop. We channels need driven a Digging performance days, through any to is to in ensure more the to site outperforms new America on North ramp on

holiday second is quarter, believe to for on of in web for features deployed, we can time one have new of few consumer on we experiences drive North application our lot front-end front-end merchant are and Our fully QX In believe have America is new our which new presenting season. Once both goal most and excited the video. promise. in ramped it we the online a increased showed started video and is the about a medium great tests that the smalls site. a We engagement

only of ready back, Our step a ahead scale is have year our iterate to test stable, transformation to a video XXXX. Taking probably this pillar plan significant to fix there we it product in road our plan to still is own estimate the have second have made progress we are journey. before of infrastructure, reach and this our efficient continue half on long agile technology platform. my XX% complete and objective we and while My is to a a on key sometime throughout

our our growth ability over dependent have turn is I'll said our pace sustained on to projects. With business of to it and I in the that, to inflect our before, As Jiri. hands

Jiri Ponrt

our thank and in to I a is today. under bit discussion. advance our savings am you our everyone my will weather voice Dusan, joining Thanks, on business forward quarter use provide in for outlook. updated cost my who us to the looking well our I second other I further today to as progress and but today, actions, items, I'm results, into insights the time as financial apologize update

XX. to Turning Slide

$XXX X% gross year-over-year. was as our percentage Let's In consideration results. while into trends a Revenue as of billings Revenue second XX%, stable. quarter we of benefited $XXX variable a global we financial guidance. a were favorable from approximately of the was million, jump quarter, relatively increase end year-over-year, delivered high other decrease year-over-year, X% of summary the of an second X% million, above billings factors decrease

our a XX%, Moving of revenue as profit, was consistent to percentage the quarter. gross prior with

Going forward, Difficulty] for Marketing [Technical of $XX quarter XX% million, to as gross gross expense second was we expect XX% profit. XX% the a percent profit or range.

the and we than line EBITDA. range As XX% positive higher positive a of the top now in stay given EBITDA of previously Dusan, returns range, accelerating XX%. Adjusted was new as adjusted and percent by is as to million, this quarter our we focus straight marketing expect communicated to this on attractive profit gross growth, $XX recorded covered fifth of our

XX EBITDA adjusted Our million. is $XX months trailing

Turning a flow $XX quarter cash cash $XX free million. flow cash million million, to flow last $XX and was of versus flow, cash operating positive when year improvement second positive negative reported was strong free we

expenses to this of noted, cash equivalents. milestone our to excludes to credit quarter in a months Dusan cash, position letters business XX ended the million, $XX with the approximately second category, active hit. North of that million reported on million from We million for end, row. had customer million a down our our our grew was North prior active of flat positive takes and sequentially, other our against relates $XX you active customers sequentially worldwide our balance which assets. Slide primarily quarter and We Within in As our current count nice XX prepaid as cash in and customers sheet free X.X Please trailing America, note posted $XXX cash restricted XX. our and America cash goods when the exclude collateral quarter. outstanding for flow quarter

Italy from XX% a tax billings pause we favorable with previously demand. refund vouchers International an took took decision Local up rates local down Turning to billings $XXX local benefited North to $XXX of in disclosed increase million, local billings matter. Consolidated X% a a X% back, year-over-year, compared due we step delivered in prior to in America, local as mid-April billings year. sales with of local down the our prior category. the year. North America were compared million, Within

have billings declined Excluding Italy, X%. local international would

our growth consolidated billings the million, we still down Within In $XX quarter, travel X% category. travel year-over-year. Travel delivered America, to of Within to travel do billings North work has second year-over-year. more with was year-over-year. XX% X% down billings international, Moving

billings to our Consolidated XX% year-over-year. goods was Moving category. down $XX Goods million,

X% At and smaller near-term negative business. Slide becoming struggling our and Our part business is smaller we don't in goods is of trend. XX. any the change rapidly, declining revenues quarter of current see goods second and

expenses. Turning to operating

related expensing XX% and compensation million units. Including in stock X%, million in flat and quarter million, our and stock-based to almost amortization. quarter-over-quarter. stock-based disclosed Quarter-over-quarter, previously driven and Second our compensation up and was $X $X depreciation $XX was performance in it our by includes stock-based entirely or SG&A year-over-year increase compensation amortization, SG&A $X down SG&A depreciation million was

the of decision Given in to of our up hires, SG&A new no savings cloud expect our timing the second migration additional to in longer we our half and project year. investment in ramp this sales realize

investment compensation second the third in to our and on sales, fourth be SG&A our into increase depreciation the quarter. and expect on we quarter to similar slightly. our quarter Excluding amortization, Depending progress now stock-based first may and

year increase Finally, forward we stock units. Slide stock-based this to new our compensation given expect expenses performance going XX.

to expenses accounts flow. the Turning changes $XX we million quarter in second our to capital improvement to cash In free and XX. second our quarter, our was last This free outflow terms versus flow, generated $X was a million takes and first the supplier of improved main flow a cash positive more the issue to cash year-to-date and free concern in cost flow by negative free when million. Slide unfavorable better in year. negative The of our year, compared million, $XX of payable year impacted to cash other current capital our cash free related working performance accrued half was our deleveraging improvement $XXX last cycle related favorable driver net both change liabilities. Last going heavily base. working major

believe Given net variability due a basis. XX in to capital working on months it's flow timing, investors this cash we that for change free our quarter-to-quarter judge useful trailing more to -- in the

We our a where expected. flow the are indicator pleased months XX is on XX. a cash business transformation year flow trailing cash to that earlier our a positive positive see than to consistently ends free territory and plan period free This months negative generated basis, working. Slide return X XX trailing is

turning to guidance. Now

issued first X% Year-over-year change free better negative outlook. minus November low-end in Revenues management its at XXXX positive between would our revenue a adjusted X%, to flow. Management the from As update was for million slightly or X%, also and of of is that issuing year-over-year $XXX minus with between follows: the million, outlook like EBITDA July and third cash year $XXX to between quarter million, XXXX, guidance XX, decline prior million $XX as full XXXX. and $X XXXX XX% minus

lower slow While us half first our outlook site marketing a organization. EBITDA the $XX to expected, flow million from and the to than take increase is million, related stance million, was sales -- half for to for to $XX QX year down ramping free causing Positive year. cash remainder performance first the expectation Adjusted the to $XX performance issues due on year. Positive million between start of and up better and $XXX full the QX our to cautious spending

with you Finally, to I some models. would provide to like assist commentary additional your

a revenue the We percentage gross quarters. over expect as consolidated reported last X the we staying have billings range within of

expect positive While inflect we of timing still loaded to of quarter. The the depend as we to to factors, of year expect revenues towards will the our trajectory, delivery a final back-end front-end. projects the new sustained growth on consumer including certain the be variety now fourth more a trajectory such

We continue methods. with changes to explore payment our potential

Now possible that which of last deprioritized is that concern payment us, behind going it's we rebalance our year. will issue methods some the we

on comments few a make updates. business me other let closing, Before

completed non-core addition to in in First, the company's in to assets, including and completed transactions, intangible certain non-core April the sales the evaluate 'XX, monetization GiftCloud. assets of remaining the of including SumUp continues stake management

a as when non-core sales of be proceeds assurances currently could approximately of assets whether these will $XX Management While can to sale be no million. these there or consummated. believes assets non-core generate

the to of moving Italy. topic Second,

Italy. After of Italian Italy. evaluating a company received vouchers subsidiaries, options, we tax related As exit a the review Groupon Italy to a in of the operations options July negative of sale has in in previously and been in Groupon local business disclosed, local to the paused its April careful decided S.r.l. we XXXX, our for S.r.l. In XXXX, regarding assessment ruling one

of XX the connection financial up The does actions majority exposure payments an and include these overall to reductions pre-tax We expect positions, occur with with to not the of S.r.l. charges Groupon to reduction incur the approximately total of company restructuring the expected exceeds expected expect in that of exit. to XXXX. The million end by of are $X restructuring assets incremental

strong and made receivables minor start approximately quarter, third includes S.r.l. frustrated largely by approximately assets position As we cash I and of up intercompany in a while cash the XXXX, Groupon XX am XX, to are of weather to million this setback. million, December the EUR slow EUR of in X equivalents. Overall, has

While attractive like progress transformation for can am not in path, top our generate that long-term. With call would plan a straight transformation Operator? driving our for profitable open to line returns always that, we growth the your I focused the is shareholders over confident questions. on

Operator

from from comes Our Sean first ROTH Capital. question McGowan

Sean McGowan

it. Appreciate

that first end the kind the Your at did the is really and the the suggests of on given about accelerate. setback same, guidance business commentary the the question in staying high July third quarter

guess that quarter? setback the obviously is, a are So guidance in given high third unchanged the think more And kind quarter? expecting Are you will you in to the at the continue? you end I able how keep do the question that fourth of lot momentum

Jiri Ponrt

Yes. It's true.

our On side, the was other first quarter positive. more

also, that. are on And strengthening mainly building organization America. are our Northern in we So we sales

Sean McGowan

Okay. exit started And end timing of was at -- of what business of can disruption this comment on business what the of that to of rate the June? was affect your kind before and the you end was what the disruption at like

Jiri Ponrt

I if know, answer. don't I will

I had inflection will So in as close in. the we good, believe and point of maybe were start Dusan we comments, We chime very in we described to were will and June. part -- Dusan

are disclosing numbers. monthly We not

Dusan Senkypl

Yes.

the exact with be we development, mentioned thanks both on expecting will original the were issue. that for the about talking June point. the we Sean, disclose the question. based in the fixing number. can't very We results, So were as we We the happy inflection script, But

right now. best the you is can provide guidance this I So

Sean McGowan

results? is, the you expand work Last to June, you get need you do those that's driving you're harder Is that helpful. to feel question spending? the Or it That's Okay. increase you already marketing expand like to -- to getting marketing at is saw What in good you that this the spending results? had point? was because started it

Dusan Senkypl

with were with with general, were reasonable happy our very traffic supply. we and ability cost, Like we happy to the in performance bring our the very of

level would the if performing long-term. the June, have and trend If this platform expectations we -- -- as actually, we it. forward, that were as the continue we same in behind at So going guiding if would was site and

Operator

All right.

next Northland comes Our from question Brooks Bobby Capital. from

Robert Brooks

thing I back guess the to June want first of quarter. back jump the to kind I or go

obviously, you So conversion stability right? saw you what led May, and like? June believe about to really that? web it prior third third that an Was believe foot quarter quarter June talked strong the -- same could in the So just leading that maybe you site? issues you that have you site saw traffic guidance better conversion? be that looked came up inflection to you would of point, Was you but and exactly discuss that being type thinking the to April or more And more it to in you were were thinking July, what would what in

Dusan Senkypl

So on on efficient. the fixing is the April spending lower that which which we buying part. had you, were I that the the first conversion can question. less the traffic, or means were Thank marketing during also Like comment reflected in Bobby, external for the of we issues conversion website,

allowed scaling in higher what us in pretty first were fix So same of We our generate much level to of output performance May, the with able half marketing. up marketing were QX. we to website the from

mobile of And platform. -- we numbers next saw we it's new at web legacy incremental. on at mentioned, So platform. running We of I we were still in script, mentioned We it level there some just most is -- of that room we quarter a we the ramp-up and to point, as that were very see I the in the as still sustainable. terms high believe consider go,

So it driver would growth forward. be another of going

Robert Brooks

Understood. it. Got

Dusan Senkypl

Yes.

Robert Brooks

Cool.

payment so the better back conversion checkout discussed of then conversion that of been far easier rate, while too have return story options, rate I of terms see with clicks piece think a obviously, system with And in much less how going could guys conversion. major to about the here, to improve kind don't of that's improvement it's just the I right? growth And and you seen

if was amount if curious a probably could you but just in took And conversion? conversion over, when with run improve? XX of And how obviously, trended. X down do to July, talk a more of in improved? bit can little conversion X was think how maybe out you has out it stepped I XX is you broadly So of much on guys healthy now has much maybe a it of How terms it it already room

Dusan Senkypl

So conversion. like that while at positive quarter, same I need my out -- reason was to ] platform, like we is very did last some which [ time still while kind of is changes of number are some in about X At we the performance. which for we personal talking degrading And of terms rating legacy the XX. that were PCs and the of replace,

So partially, of the our in of platform. which replacing by some optimizations are offset parts, we were lower performance

conversion, So see there on is for in still specifically improvement way of the to opportunities We go. plenty further checkout.

Robert Brooks

web and and mentioned that out And how that in about wanted you rolled America, Got new and new rolled -- website roll-out make application before still -- in to it. then is first fourth you quarter it as the clearly, rolling North the prepared -- that remarks XXXX the I just you getting to just season. the fact wanted sure get I on get Is mentioned And quarter this or roll-out the focusing it out then America North before fourth well rolled holiday season? out out to internationally holiday maybe globally. understand and want

Dusan Senkypl

roll-out you time. new we talking platform So are for of the a mobile about that know long

in much like I with at right -- traffic every country X% we are the -- incremental country same Groupon. we At which America. of we very pretty have in time, So every or would say, are now, North very

and ramp-up So in it's North focus the not America that we business #X for didn't us. opportunity, size progress international, also the is given but in clear

as to win major huge upside if try QX. as be it from be will platform. in we will us still we for possible will for many America, we a So in a be as new see North But countries

Robert Brooks

business, terms one the of do that's of between force just bringing or into target revamped maybe maybe And maybe insight just right? -- the what's kind strategy shop, just, for in that that any merchant could mentioned. a you new and merchant last nationwide sign-ups kind chain question local you back -- if specifically, different just the on how go-to-market about exciting queue North and fold? you setups to just revamped the then new some me of does the And curious to aspect enterprise our bringing new little oil And video just about in business trampoline American in there? change? And color before was shop And merchants provide I curious you versus going -- a Cool. sales so, is local mentioned

Would that I or ask it guys you themselves. own their creating be provide a business could on money something where video spending summarizing be to that would merchant be your think you where interesting. the video are something

Dusan Senkypl

Okay.

with influencers. with are we time, can part. At merchants videos I the we So videos, hire. With video micro methods own from dozens several of creating one are trying our currently using or And have location, different the from a selected which big in we which video we start we same obtaining or for test. resources resources

us, the better numbers based see, wave, on will help their will scale be that it own we that way, in and able positioning we be do interested expect initiative merchants the to looking be So expect obviously, platform. up, by we to it mainly that can the conversions, will it because best on improve will us driven the will we videos, the get which so to but we by for are Groupon, we the first

business part of we your in split departments and question, terms the supply, enterprise have of first the business. into local On

part year-over-year. The And marketplace region, Enterprise So a regionalized if X location, transformation, SPA salespeople types we in started for on massages, biggest for are creating and one are more we actually. look sales the know ideal in or product or merchants. see how these us, because park group deals. into we force, positive part or focusing then trampoline very are specialized the last merchants, that are create benefits is targeting on investing asking the go we our this much was we in the And results bring position pretty place first will local where bring Groupon, for bring this the managers business QX it and were guide to when they have and growing guide there very the we different cycles. and which Market is are we the we managers. we quarter -- of market be call curated a go should those like. And one the trying enterprise

Robert Brooks

congrats Awesome. on the progress. I'll the to and queue. Really the appreciate color return

Operator

from Our comes Riopel Sachs. next from question Goldman Pierre

Pierre Riopel

capital just philosophy how This on Eric and in should just into at that force on supply. able prior? And as following help you on balancing investments, durable question on dive think local ultimately ultimately and ahead about for your look year remove to Goldman. investment those profitability We just and you reinvestment blockers and position look were business beyond. to investors priorities next factors deeper for confidence limited that key growth you accelerating Sheridan build the your up looking Maybe as the to you wanted allocation the is how sales Pierre

Dusan Senkypl

Okay.

or you I want the do take question it? Jiri, to So take should

Jiri Ponrt

I start, probably and add. No, you will can

position certainly significantly. improved So our

to We were of out able last going positive. adjusted cash concern. don't were -- X quarters, in -- We We quarters in have next X create are X them -- last positive EBITDA. of

can SG&A we were stable. think about now We bit decreased So the growth. We little financially costs. also our

and we cities, ROI. which in development marketing, a building we're allows a biggest now key long-term new building spend additional money Northern believe on us which also with market. And operating, be utilized to we business where therefore, can our future structure positive or potential, it is there starting the So we in which is regions are investing in Northern but only high because America, America to not --

Dusan Senkypl

bit to picture. little a more And maybe add

very and by step. go are step cautious really We

So as just expect or don't this don't project into force. sales the digit X see like a we with like investments numbers,

behind We have basic it, some some model. model

we by that both also it with financial to Groupon. major we model with accelerate, like will about once our in something adding numbers, the will will with If you QX, able this be a validate for We our and will for lot few talking not a shareholders salespeople the of be will be expansion. should we be And be but we shareholders. expense see which we share

Pierre Riopel

follow-up maybe helpful. Extremely one from And it. Got us. just

just some dynamics levels deeper the performance new talk of enabling Can whether an into of what's up how having your drivers improving, position to that the you to ability about that's your marketing ability investment curve, conversion to ROIs. of terms now and of just invest we investments? In about, remove or that about marketing you blockers the supply behind step you mention of maintaining talked and those your again should think

Dusan Senkypl

deals, overall with start to need the of very We say, We see a because to Groupon mix. courage, supply, complete performance lot had really different low-performing of I which It's helps website. remove position. in let's

the structure, significantly curating the simply you better. have images, have which the are if of better in deals, if selling deal better helps if deals you're deal We the of end the conversion you day,

So able traffic other must is And conversion before mentioned there conversion. to Google, more as have, on the simply we help more, a a had marketing because asking providers investment. And way bring of the potential, do to us was go, up something was targeting or we able are can which terms spend -- are to ROI, video we which Facebook it were also which and about ramping improving, are Bobby we us talking for the for were is with when us. I still we the about is to in partners

this that expect we So continue. trend will

Operator

everyone, This There for concludes joining. for call other today. are no you, questions. our Thank

investor.groupon.com. please to For go additional information,

Groupon (GRPN) 30 Jul 242024 Q2 Earnings call transcript