Groupon, Inc. · NASDAQ:GRPN
Groupon — Q4 2021 Earnings Presentation
28 slides from Groupon's earnings presentation, Feb 28, 2022
Slide 1: GRPN Investor Presentation 4Q21
GRPN Investor Presentation 4Q21 February 28, 2022
Slide 2: Forward-looking statements and other information
Forward-looking statements and other information The statements contained in this presentation that refer to plans and expectations for the next quarter, the full year or the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Sectio
Slide 3: The destination for experiences
The destination for experiences. Where customers discover fun things to do & local businesses thrive 3
Slide 4: Leading local experiences marketplace
Beloved brand with global scale that connects millions of customers with merchants, known for providing value A leader in the fragmented Local Experiences Market ● Strong competitive position with Local merchants and a low/no-risk, transaction-based business model Leading local ● Executing strategy
Slide 5: A leading local marketplace with room to grow
1 Million+ ● Large and growing addressable Merchant partners worked with to market in local date ● Groupon’s two-sided marketplace has massive global A leading local 1.5 Billion+ scale Groupons sold to date marketplace with ● ~70% of our customer base room to grow started shopping with Groupon 2+ ye
Slide 6: Delivering on Merchant Partner and Customer Needs
Delivering on Merchant Partner and Customer Needs
Slide 7: New CEO Perspective: My first days
New CEO Perspective: My first 80 Days ● My approach: ○ Moving with a sense of urgency ○ Hearing directly from Groupon customers and merchant partners about their experiences on our marketplace ○ Understanding the data behind what makes our business successful and where we have opportunities to do mor
Slide 8: Groupon has amazing assets…
Groupon has amazing Global Scaled Platform Customers Information assets… Tremendous global scale Horizontal marketplace Untapped data assets and feedback network in our across 13 countries but we need to do current experience a better job of monetizing them We can roll out new growth We can drive cr
Slide 9: Groupon made foundational progress in 2021…
Grew our Local Category ● NA and International Active Local customer base grew three consecutive quarters ● 2021 NA Local Billings increased 22% y/y Controlled the Controllables: Groupon ● Hit 2021 NA inventory goals: made ○ Removed repeat restrictions on 80% of Deal inventory ○ Grew listings per Be
Slide 10: …But we have potential to deliver so much more
…But we have potential to deliver so much more impact We are building an even deeper understanding of marketplace dynamics and the most important elements of our customer and merchant partner Balancing the needs of Customers, Merchant Partners and value propositions Groupon 10
Slide 11: Merchant Partner Value Proposition
Merchant Partner Value Proposition Figuring out the fundamentals of a partnership that works better for our merchant partners ● Determine the most important role that Groupon needs to play for merchant partners ● Enhance merchant partner trust ● Better understand merchant partner economics ● Refine o
Slide 12: Customer Value Proposition
Customer Value Proposition Better understand customer intent and deliver a journey that will meet their needs ● Determine how we can create a more personalized customer journey ● Enhance customer trust ● Deliver great customer service 12
Slide 13: Next Steps
Next Steps Moving forward with a sense of urgency to define our enhanced mission Continue to evaluate our Quickly assess what is and On our Q1 2022 earnings call initiatives through the lens what isn’t working we will provide: of: “Is this good for the ● Operating priorities and customer?” and “Is th
Slide 14: Marketplace flywheel
Supply Density Merchant Partner Location and Self-Service Tools Personalization By consistently delighting our customers and merchant partners, we believe we can Amazing Merchant Amazing unlock a powerful Partner Experience Growth Customer Experience marketplace flywheel Scaled Global Customer Searc
Slide 15: Fourth Quarter Results
Fourth Quarter Results
Slide 16: Key fourth quarter results
Key fourth quarter results 23M 19M $621M $223M Active Units Billings Revenue Customers1 $195M $37M $499M Gross Profit Adjusted Cash EBITDA2 (as of 12/31)3 1. Active Customers are defined as unique user accounts that have made a purchase during the trailing twelve months ("TTM") either through one of o
Slide 17: Additional insights on fourth quarter results
Grew Q4 Global Local Billings - NA Local Billings up 32% and Intl. Local Billings up 45% y/y, despite the emergence of the Omicron variant in December Grew our high value, active Local customer base in NA and International, improving the composition of our customer base Additional insights on fourth
Slide 18: Improving the Composition of our Customer Base
NA Active Local Customers 1 10.8M 11.3M 10.4M 9.3M Improving the Composition of our Customer Base Focused on growing our high-value Local customer base and Q1 2021 Q2 2021 Q3 2021 Q4 2021 unlocking purchase frequency to capture more customer wallet share and drive more demand to Groupon merchant par
Slide 19: 1Q22 & FY22 Perspective
1Q22 & FY22 Perspective
Slide 20: 1Q22 outlook
Outlook 1Q22 outlook ● Revenue expected to be $160 million to $170 million ● Adjusted EBITDA expected to be breakeven Factors to Consider ● Expect global billings to decrease in Q1 vs Q4 due to impacts from the Omicron variant ● Outlook assumes Global Goods continues at Q4 y/y performance levels ● G
Slide 21: FY22 perspective
FY22 ● Local billings recovery expected to accelerate throughout 2022 in both North America and perspective International ● FY22 adjusted EBITDA expected to be more than $112 million and higher than FY21, excluding $31 million benefit from variable consideration revenue in 2021 ● Global Goods fully t
Slide 22: Leading local experiences marketplace
Beloved brand with global scale that connects millions of customers with merchants, known for providing value A leader in the fragmented Local Experiences Market ● Strong competitive position with Local merchants and a low/no-risk, transaction-based business model Leading local ● Executing strategy
Slide 23: Appendix
Appendix
Slide 24: Goods revenue presentation
Goods revenue presentation 1P vs. 3P example1: $100 customer purchase First Party Goods Third Party Goods Billings $100 $100 Billings don’t change; this is what our customer pays to Groupon In 3P model, Groupon revenue is the commission from the sale Revenue $100 $17 (net of merchant payment) Gross
Slide 25: Minority Investments Overview
● SumUp Holdings S.a.r.l. (“SumUp”) ○ Groupon has been a passive investor in SumUp, a privately-held, global payments service provider, since 2013 and currently holds a 2.4% non-controlling ownership interest Minority ○ There is no public market for SumUp securities at this time. ● Other Minority In
Slide 26: Non-GAAP Reconciliations: Adjusted EBITDA - Quarterly
Non-GAAP Reconciliations* Adjusted EBITDA - Quarterly (in thousands) *See Q4 2021 earnings release press release posted on our Investor Relations website for additional information regarding non-GAAP financial measures 26
Slide 27: Non-GAAP Reconciliations: Expected Adjusted EBITDA Range
Non-GAAP Reconciliations* Expected Adjusted EBITDA Range (in thousands) *See Q4 2021 earnings release press release posted on our Investor Relations website for additional information regarding non-GAAP financial measures 27
Slide 28: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations* Free Cash Flow (in thousands) *See Q4 2021 earnings release press release posted on our Investor Relations website for additional information regarding non-GAAP financial measures 28