Groupon, Inc. Q2 FY2025 earnings call

• Strong global billings growth with 12% YOY increase. - Generated $25 million in positive free cash flow. - Proactive refinancing simplified capital structure. - Hyperlocal strategy delivering strong results, with North America enterprise brands showing 53% YOY growth. - Jiri Ponrt to assume COO role and Rana Kashyap to become CFO effective September 1. - Raised full-year billings guidance from 3%-5% to 7%-9% growth.

Global Billings grew 12% year-over-year. North America Local Billings increased 20% year-over-year, and International Local Billings (excluding Italy and Giftcloud) rose 15% year-over-year. Combined, the core local category (excluding Italy and Giftcloud) grew 19% and accounts for nearly 90% of billings. North America enterprise brands had an exceptional quarter with 26 brands generating over $1 million in quarterly billings, representing 53% year-over-year growth.

• Raised full-year billings guidance from 3%-5% growth to 7%-9% growth, reflecting strong momentum across the business.

• Actual results may differ materially from forward-looking statements as mentioned in the call, with additional risks detailed in SEC filings.

Q: Can you elaborate on AI-generated traffic and its impact?

A: Dusan Senkypl said AI traffic is incremental, seen as a tailwind, with strong double-digit growth monthly though it's a small part of total traffic.

Q: Progress in reengaging cohorts lost late last year?

A: Dusan stated they don't publish specific numbers but overall results show improvements in acquiring new customers and existing cohort performance.

Q: Italy settlement and reopening?

A: Jiri Ponrt said the settlement is not binding yet but if approved, Italy issues are over and they'll consider reopening Italy.

Q: Which initiatives are spurring growth?

A: Dusan mentioned new platform mobile next powering traffic, marketing engine including SEO and AI, and improvements in supply side management through micro category approach.

Q: Dynamic between billings growth and revenue growth?

A: Jiri Ponrt explained it's due to higher redemption, mix of categories, and enterprise deals influencing take rate.