Financial Data and Key Metrics Changes - The company reported a strong start to the year with Q1 results exceeding guidance on both billings and adjusted EBITDA, with a slight beat on revenue [6] - Global billings grew by 1.4% year over year, driven by North America Local, which saw an 11% year over year growth in billings, marking the first double-digit growth since February 2017, excluding the pandemic recovery period [6][11] - The company raised its guidance for billings growth rate from 2-4% to 3-5% for the full year, while keeping revenue and adjusted EBITDA guidance unchanged [11] Business Line Data and Key Metrics Changes - Within North America Local, the "Things to Do" segment grew billings by double digits for the fifth consecutive quarter, significantly outpacing industry trends [7] - The international local business, excluding Italy, showed approximately 5% year over year billings growth [8] Market Data and Key Metrics Changes - The top 10 cities in North America experienced double-digit growth in billings, indicating a successful hyperlocal strategy [6][10] - The company noted that the macro environment is favorable, contributing positively to the performance of enterprise clients [17] Company Strategy and Development Direction - The company is transitioning from a daily deals platform to a trusted destination for quality local experiences, focusing on marketplace health, platform modernization, and financial strength [9] - The leadership team has been strengthened with key appointments to enhance the company's strategic direction [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core business despite the sale of GiftCloud, which removed approximately $6 million in revenue and $4 million in adjusted EBITDA from consolidated results [11] - The company is optimistic about accelerating year-over-year growth in both billings and revenue for Q2 [11][12] Other Important Information - The company is leveraging AI to improve sales and operational efficiency, with plans to enhance customer experience and deal design [57][59] - The company is focusing on customer retention and increasing purchase frequency, with initiatives like the "Wow Deal" pilot showing promising early results [72][73] Q&A Session Summary Question: What is driving the strength in North American merchants doing more than $1 million in billings? - Management attributed the growth to a hyper geo approach and improved category management, focusing on quality deals and service [15][17] Question: How does the macro environment act as a tailwind for the business? - Management noted that the volatile macro environment has led to weakening traffic trends for some clients, presenting an opportunity for Groupon to deepen cooperation with existing clients and attract new brands [25][29] Question: Can you provide an update on international markets? - Management reported strong performance in international markets, particularly in Spain, with double-digit growth and improvements across major markets [35][36] Question: How is the company leveraging AI? - Management highlighted opportunities in sales and technology efficiency, with plans to ensure compatibility with major AI platforms [57][59] Question: What are the expectations regarding the GiftCloud sale? - Management indicated that the sale price was on the high end of expectations and that it would strengthen the cash position [61][66]

Financial Data and Key Metrics Changes - In Q4 2024, North America Local experienced an 8% growth in billings, recovering from a 19% decline in 2022, indicating a significant turnaround in marketplace health [10][12] - The company generated $69 million in adjusted EBITDA and $41 million in free cash flow for the full year, marking its first positive free cash flow since exiting the pandemic [11][12] - The cash position improved to $229 million compared to the previous year, providing a stronger foundation for growth [14] Business Line Data and Key Metrics Changes - North America Local saw a return to 8% billing growth, while International Local, excluding Italy, grew by 2%, with positive momentum across all major markets [13] - Key verticals such as Things to Do, enterprise brands, and gifting experienced double-digit growth [13] Market Data and Key Metrics Changes - The top five metro areas in North America achieved double-digit growth in Q4, reflecting the effectiveness of the targeted strategy [26][28] - Internationally, Spain showed strong performance, with some areas reaching 2019 levels, and positive trends were noted in the UK, France, and Germany [83] Company Strategy and Development Direction - The 2025 strategy focuses on winning in key markets through a city-by-city approach, prioritizing high-impact categories like Things to Do, beauty and wellness, and gifting [14] - The company aims to enhance customer retention through improved personalization and boost merchant success with enhanced tools [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to sustained growth in 2025, emphasizing the importance of platform stability and curated marketplace strategies [14][19] - The company anticipates slight improvements in customer acquisition and retention, with a focus on increasing transaction frequency [38][40] Other Important Information - The company is investing in platform modernization, including major migrations of its fraud detection platform and cloud infrastructure, which are expected to drive innovation and engagement [11] - Management noted that the impact of recent U.S. tariffs on the business would be minimal, as most revenue comes from local experiences rather than goods [92] Q&A Session Summary Question: What drove the local growth in the U.S.? - Management attributed the turnaround to improved platform stability and a strategic shift towards a curated marketplace focused on quality rather than quantity [19][20] Question: Were any lost loyal customers recovered? - Management indicated that improvements in platform stability led to better results across the board, including the recovery of some lost cohorts [22] Question: What drove the strength in the top five metro areas? - The growth was a result of targeted strategies and market management capabilities developed over the past two years [28][30] Question: Does the guidance include continued customer growth? - Management expects slight improvements in customer acquisition and retention, but does not anticipate significant changes [40] Question: What are the critical investments to drive purchase frequency? - Management highlighted the introduction of "wow deals" and improved communication with customers post-purchase as key strategies to increase purchase frequency [49][50] Question: How is the company attracting higher quality merchants? - The company focuses on a consultative sales approach, emphasizing value over deep discounts to attract quality merchants [66][68] Question: Will the company see counter-cyclical tailwinds if consumers face pressure? - Management believes that Groupon will be an attractive option for merchants with excess capacity and for consumers seeking value [72][73] Question: What metrics indicate improvement in gifting? - Gifting has gained importance, with double-digit shares of orders during peak holiday seasons, showing significant improvement compared to last year [77][78] Question: What are the drivers of growth within international markets? - Positive signals were noted in Spain, the UK, France, and Germany, with a focus on optimizing supply and marketing strategies [83][85] Question: How is the company managing employee turnover in sales? - Management acknowledged high turnover in sales but emphasized a strong performance-based compensation structure to retain top salespeople [88] Question: What is the expected impact of U.S. tariffs? - The impact is expected to be minimal, as the majority of the business is focused on local experiences rather than goods [92]