Groupon, Inc. Q3 FY2025 earnings call

• Global billings grew 11% YOY, with core local category driving growth.
• Adjusted EBITDA was $18 million, and trailing 12 months free cash flow was $60 million.
• Net new active customers increased, with nearly 300,000 quarter-over-quarter and 1 million+ over last 4 quarters (excluding Italy).
• All 4 major international markets had double-digit growth, and North America's Chicago is the biggest city growing at nearly double the North America local rate.
• Deal page conversion rates improved 13% YOY in North America, and platform modernization is accelerating.

Global billings grew 11% year-over-year. The core local category represents 89% of billings, with North America local up 18% and international local (excluding Giftcloud) up 15% year-over-year. Adjusted EBITDA was $18 million, and trailing 12 months free cash flow reached $60 million.

• Aim for over 20% billings growth while generating strong adjusted EBITDA and free cash flow.
• Confidence in building the hyperlocal experience marketplace combining trust, curation, quality, and unbeatable value.

• Italian tax settlement with remaining amount ~$15 million, ongoing progress but fluid situation.
• Actual results may differ materially from forward-looking statements.

Q: Bobby Brooks asked about Chicago's growth and the playbook expansion.

A: Dusan Senkypl discussed reallocating sales resources to Chicago, iterating the process, and expanding focus to more cities.

Q: Eric Sheridan asked about purchase frequency and marketing balance.

A: Dusan Senkypl talked about tech limitations holding back purchase frequency improvement and brand advertising piloting with influencers.

Q: Bobby Brooks asked about buyback decision factors.

A: Rana Kashyap mentioned considering cash generation, investment priorities, market conditions, and share prices.

Q: Sean McGowan asked about travel performance.

A: Rana Kashyap discussed successful work with large enterprise travel brands this summer.

Q: Bobby Brooks asked about AI initiatives on customer-facing side.

A: Dusan Senkypl talked about search and relevance platform updates and website compatibility with AI engines.