Summary of Groupon Conference Call - December 08, 2025 Company Overview - **Company**: Groupon (NasdaqGS:GRPN) - **Industry**: Digital Commerce - **Key Metrics**: - Billings: $1.6 billion - Revenue: $500 million - EBITDA: $70 million - Free Cash Flow: $60 million - Active Customers: 60 million - Merchants: 50,000 - Experiences Offered: 150,000 - **Geographic Presence**: Operates in 14 countries, primarily in North America and Western Europe [3][4] Strategic Transformation - **Management Changes**: New management team has been in place for three years, focusing on strategic transformation after a period of declining customer engagement and revenues [5][6] - **Current Focus Areas**: - Quality Orientation: Emphasizing higher quality experiences [6] - Hyper Local Strategy: Tailoring offerings based on geographic and category needs [6] - AI Integration: Leveraging AI for operational improvements and customer engagement [7][21][25] Financial Performance and Outlook - **Recent Performance**: Reported 18% growth in local billings in Q3, excluding Italy [5][6] - **Holiday Season Expectations**: Anticipates strong performance during the holiday season, with significant sales expected from experiences purchased as gifts [10][12][14] - **Customer Acquisition**: Added 300,000 new active customers in Q3 through lower funnel marketing strategies [18] Market Dynamics - **Consumer Behavior**: Experiences are increasingly popular as gifts, with a notable peak in purchases leading up to Christmas [14] - **Merchant Dynamics**: As the economy softens, merchants may seek more volume through platforms like Groupon, leading to increased promotions and brand acquisitions [16][17] AI and Technology Investments - **AI Utilization**: AI is being integrated across various functions, including deal structuring and customer engagement [21][23][25] - **Platform Modernization**: Significant investments in technology infrastructure, including a new customer data platform and cloud migration, are underway [36][38] Growth Opportunities - **Emerging Categories**: Potential for growth in food and drink, hotels, and live events, which currently represent a small percentage of overall billings [29][30][32] - **International Expansion**: Solid growth in key international markets (Spain, France, UK, Germany) with plans to leverage successful strategies from North America [34][35] Investment Priorities - **Capital Allocation**: Focus on long-term growth, technology investments, supply-side enhancements, and marketing [41][42] - **Free Cash Flow Generation**: Maintaining a stable cost base while investing in growth initiatives [43][44] Key Metrics for Investors - **Billings Growth Rate**: Identified as the most critical metric for tracking the company's progress and long-term potential [48][49]