Groupon(US:GRPN)2023-08-09 22:40Financial Data and Key Metrics Changes - In Q2 2023, the company reported revenue of $129 million, a decline of 16% year-over-year, which is an improvement from Q1's decline of 21% [7][24] - Adjusted EBITDA for Q2 was $15 million, marking a return to positive generation after a negative EBITDA in Q1 [7][24] - Free cash flow experienced an outflow of $45 million, with cash reserves ending at $118 million, including $47 million drawn on the revolver [24][30] Business Line Data and Key Metrics Changes - Local billings totaled $320 million, down 12% year-over-year, with North America contributing $232 million (down 13%) and international contributing $88 million (down 9%) [26] - Goods billings were $42 million, down 31% year-over-year, while travel billings were $32 million, down 15% year-over-year [27] Market Data and Key Metrics Changes - The company had over 17 million active customers worldwide, with 8.7 million active local customers in North America, down 3% sequentially and 17% year-over-year [26] - Active local customers in international markets totaled 4.9 million, down 2% both sequentially and year-over-year [26] Company Strategy and Development Direction - The company aims to transform into the ultimate destination for local experiences and services, focusing on rebuilding the organization, revitalizing the marketplace, and strengthening the financial foundation [5][8] - A significant transformation plan is in place, with a focus on reducing reliance on promotional spending and improving the mix between paid marketing and promotional spend [12][13] - The company is adopting AI to enhance deal creation and improve marketing efficiency, aiming to be perceived as a marketing technology platform rather than just a discount portal [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced but expresses confidence in the transformation plan, expecting year-over-year improvements in financial results throughout 2023 [21][32] - The company is evaluating options to enhance liquidity, including potential asset monetization and seeking additional financing [30][31] Other Important Information - SG&A expenses for Q2 were $96 million, down 22% year-over-year, reflecting the benefits of cost-saving actions [27] - The company is exploring higher investments into its sales network to improve performance and efficiency [20] Q&A Session Summary Question: Cost guidance for the second half and EBITDA expectations - Management expects positive adjusted EBITDA for the second half of the year, with a potential increase in marketing reinvestment [36][38] Question: Details on the Giftcloud business - No specific disclosures were provided regarding the Giftcloud business as it is part of a larger entity [39][40] Question: Key opportunities and structural challenges - Management sees numerous opportunities across the organization and is working on improving the value proposition for merchants [42][43]