The following is a summary of the Groupon, Inc. (GRPN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Groupon reported a 1% year-over-year growth in Q1 2024 due to growth in North American local and travel categories.
Q1 ended with $159 million in cash and cash equivalents, and Adjusted EBITDA over the last twelve months was $80 million.
Q1 global billings were down by 4% at $381 million while revenue was $123 million, a 1% increase year-over-year.
The company's gross profit was 90% of revenues with future expectations being between 87% - 90%.
Operating cash flow for Q1 was negative at $10 million, and free cash flow was negative at $14 million.
Business Progress:
There was growth in the North American local & travel sectors and an increase in active customers.
As part of a transformation plan, Groupon has restructured marketing channels, reduced promotional spending, and improved sales efforts.
A new connectivity solution was launched with a major accommodation merchant along with a regionalized sales management approach in the US.
A new front-end is in implementation stage, serving 3% of the web traffic in North America, with plans to expand to all regions by Q4.
Plans are in place to launch AI-enhanced deal content and increase the availability of bookable travel deals to enhance customer experience.
A performance-oriented compensation program for senior leadership has been rolled out.
Dusan Senkypl is the new permanent CEO, leading the company towards sustainable growth.
More details: Groupon IR
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