Groupon Inc (GRPN) 2024 Q2 法說會逐字稿

Hello, and welcome to Groupon's second quarter 2024 financial results conference call. On the call today, our CEO, Dusan Senkypl; CFO, Jiri Ponrt; and SVP of Corporate Development and Investor Relations, Rana Kashyap. (Operator Instructions) Today's conference call is being recorded.

大家好，歡迎參加 Groupon 2024 年第二季財務業績電話會議。在今天的電話會議上，我們的執行長 Dusan Senkypl；財務官，Jiri Ponrt；企業發展與投資者關係資深副總裁拉納‧卡什亞普 (Rana Kashyap)。（操作員指示）今天的電話會議正在錄音。

Before we begin, Groupon would like to remind listeners that the following discussion and responses to your questions reflect management's views as of today, July 30, 2024 only and will include forward-looking statements.

在開始之前，Groupon 謹提醒聽眾，以下討論和對您問題的答覆僅反映截至今天（2024 年 7 月 30 日）管理層的觀點，並將包含前瞻性陳述。

Actual results may differ materially from those expressed or implied in the company's forward-looking statements. Groupon undertakes no obligation to update these forward-looking statements as a result of new information or future events.

實際結果可能與公司前瞻性陳述中明示或暗示的結果有重大差異。Groupon 不承擔因新資訊或未來事件而更新這些前瞻性聲明的義務。

Additional information about risks and other factors that could potentially impact the company's financial results are included in its earnings press release and in its filings with the SEC, including its quarterly report on Form 10-Q.

有關可能影響公司財務表現的風險和其他因素的更多資​​訊包含在其收益新聞稿和向 SEC 提交的文件中，包括 10-Q 表格的季度報告。

We encourage investors to use Groupon's investor relations website at investor.groupon.com as a way of easily finding information about the company. Groupon promptly makes available on this website, the reports that the company files or furnishes with the SEC corporate governance information and select press releases and social media postings.

我們鼓勵投資人使用 Groupon 的投資人關係網站 Investor.groupon.com 作為輕鬆找到有關公司資訊的一種方式。Groupon 會及時在本網站上提供本公司提交的報告或向 SEC 提供的公司治理資訊以及精選新聞稿和社群媒體貼文。

On the call today, the company will discuss the following non-GAAP financial measures, adjusted EBITDA and free cash flow. In Groupon's press release and our filings with the SEC each of which is posted on this investor relation website. You will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures to the most comparable measures under US GAAP.

在今天的電話會議上，該公司將討論以下非 GAAP 財務指標、調整後 EBITDA 和自由現金流。Groupon 的新聞稿和我們向 SEC 提交的文件均發佈在本投資者關係網站上。您會發現有關這些非公認會計原則衡量標準的其他揭露，包括這些衡量標準與美國公認會計原則下最可比衡量標準的調節。

And with that, I'm happy to turn the call over to Dusan.

至此，我很高興將電話轉給杜桑。

Hello, and thanks for joining us for our second quarter 2024 earnings call. It's a pleasure to be with all of you. Today's prepared remarks are posted on our investor relations website, along with an investor presentation, which I will refer to during my remarks.

您好，感謝您參加我們的 2024 年第二季財報電話會議。很高興和大家在一起。今天準備好的發言稿以及投資者介紹會發佈在我們的投資者關係網站上，我將在發言中參考。

In addition, I encourage you to review our press release and 10-Q, which contain more detail on our second quarter results. I will start today's call on slide 5 and cover our second quarter numbers. After a weak start to the quarter where, April was significantly impacted related to previously disclosed site performance issues, we finished the quarter with a very good June and ended overall with a decent quarter.

此外，我鼓勵您查看我們的新聞稿和 10-Q，其中包含有關我們第二季業績的更多詳細資訊。我將從幻燈片 5 開始今天的電話會議並介紹我們的第二季數據。在本季度開局疲軟之後，四月份受到了先前披露的網站性能問題的嚴重影響，我們以非常好的六月份結束了本季度，並以一個不錯的季度結束了整體。

Our improving performance continues to be driven by North America local, while revenues grew year over year and active customers grew sequentially, both for the second straight quarter. We generated a fifth straight quarter of positive adjusted EBITDA and a second straight quarter of trailing 12 months adjusted EBITDA of approximately $80 million, cementing our ability to generate strong adjusted EBITDA while investing to inflect the topline to sustain growth.

我們不斷改善的業績持續受到北美本地業務的推動，營收年增，活躍客戶連續第二季成長。我們連續第五個季度實現正調整 EBITDA，連續第二季度過去 12 個月調整後 EBITDA 約為 8000 萬美元，鞏固了我們產生強勁調整後 EBITDA 的能力，同時進行投資以改變收入以維持增長。

Turning to cash flow, we had positive $11 million in free cash flow better than we expected. This takes our trailing 12 months free cash flow to positive $30 million. After enduring a three year period that the business consistently generated negative free cash flow on a trailing 12 month basis, our return to positive cash flow performance strengthens our financial position, built a more resilient foundation for future growth and is a positive indicator that our transformation plan is working.

談到現金流，我們的自由現金流為 1100 萬美元，好於我們的預期。這使得我們過去 12 個月的自由現金流達到 3000 萬美元。在經歷了三年來連續 12 個月產生負自由現金流之後，我們恢復正現金流表現增強了我們的財務狀況，為未來增長奠定了更有彈性的基礎，並且是我們轉型的積極指標計劃正在發揮作用。

Overall, our financial results are significantly improved compared to where we were one year ago. Our strong June results demonstrate that when we have the right supply working with proper functioning product and marketing, we can grow the business.

總體而言，與一年前相比，我們的財務表現有了顯著改善。我們六月強勁的業績表明，當我們擁有適當的供應、適當的產品和行銷時，我們就可以發展業務。

Based on our June performance, we were expecting to share today that Q3 would be an inflection point for growth. Unfortunately, our performance in July has been hit heavily again due to unexpected site stability issues, mainly related to cloud migration project.

根據我們 6 月的業績，我們預計今天會分享第三季將是成長的轉折點。不幸的是，由於意外的站點穩定性問題（主要與雲端遷移專案有關），我們 7 月的業績再次受到嚴重打擊。

While we are confident that we will handle this temporary issue within the quarter, we do not expect we will be able to resolve the issue quickly enough to avoid impacting our fourth quarter financial results, which is weighted towards July and August due to the busy things to do season.

雖然我們有信心在本季度內處理這個臨時問題，但我們預計我們無法足夠快地解決該問題，以避免影響我們第四季度的財務業績，由於繁忙的工作，該業績在7 月和8 月有所增加。

Therefore, we are revising down our guidance to reflect the first quarter of performance. While our transformation is taking longer and it's harder than unexpected, we remain committed to our transformation plan. I'm confident that we can restart the engines of growth and realize our mission to become the ultimate destination for local experiences and services.

因此，我們正在下調我們的指導，以反映第一季的業績。雖然我們的轉型需要更長的時間，而且比預想的更困難，但我們仍然致力於我們的轉型計劃。我相信，我們能夠重新啟動成長引擎，實現成為在地體驗和服務的終極目的地的使命。

I will spend my remaining time discussing A, what are the other supply drivers for growth in North America local, B, our decision to invest more into marketing and C, update on site reliability issues and our projects in product and engineering.

我將用剩下的時間討論 A，北美本地成長的其他供應驅動因素是什麼，B，我們決定加大對行銷的投資，C，更新現場可靠性問題以及我們在產品和工程方面的專案。

Slide 6, supply drivers for North America local. As we highlighted in our transformation plan back in the first quarter of 2023, everything starts with supply. If we win the right supply demand will follow. We initially decided to focus our supply transformation efforts in North America local, given the size of the business.

幻燈片6，為北美本地提供驅動。正如我們在 2023 年第一季的轉型計畫中所強調的那樣，一切都從供應開始。如果我們贏了，正確的供應需求就會隨之而來。考慮到業務規模，我們最初決定將供應轉型工作重點放在北美本地。

Six quarters later, we can see positive results from our focus. And while there is no one silver bullet to explain our improved performance in North America local, I want to highlight several drivers on the supply side.

六個季度後，我們可以看到我們的關注取得了積極的成果。雖然沒有一個靈丹妙藥可以解釋我們在北美本地的業績改善，但我想強調供應方面的幾個驅動因素。

First, we are prioritizing the quality of deals over the quantity of deals. Our vision is to build a curated marketplace with high-quality supply that delivers exceptional value for everyday experiences. Over the past several quarters, we've taken decisive steps to remove lower-quality deals from our side that don't align with this brand promise.

首先，我們優先考慮交易的品質而不是交易的數量。我們的願景是建立一個提供優質供應的精心策劃的市場，為日常體驗提供卓越的價值。在過去的幾個季度中，我們採取了果斷措施，取消了不符合品牌承諾的低品質交易。

While the total number of deals is lower than a year ago, the deals that remain are performing better per unique visitor. We've also made substantial progress in curating our deals with enhanced presentations, improved deal co-pay and better images.

雖然交易總數低於一年前，但剩餘交易的每位獨立訪客表現較好。我們在策劃交易方面也取得了實質進展，增強了演示、改進了交易共付額並提供了更好的圖像。

Second, we continue to see growth from our large enterprise merchants, both by expanding relationships with existing partners and adding new brands to our platform. In addition, with the arrival of summer, our busy things to do season has kicked off showing robust growth in family-friendly activities ranging from trampoline parks and bowling alleys to amusement parks and water parks. We expected to see continued growth in these areas.

其次，透過擴大與現有合作夥伴的關係以及在我們的平台上添加新品牌，我們繼續看到大型企業商家的成長。此外，隨著夏季的到來，我們忙碌的活動季節也拉開了序幕，從蹦床公園、保齡球館到遊樂園和水上樂園等適合家庭的活動呈現強勁增長。我們預計這些領域將持續成長。

Third, regionalization we completed our first full quarter under our new regional structure with dedicated teams focused on driving freshness and account managers committed to maintaining and growing existing business all guided by expert market managers. While it is still early in our regionalization efforts, we saw improved results in our local market performance in the second quarter.

第三，區域化，我們在新的區域結構下完成了第一個完整季度，專門的團隊專注於推動新鮮度，客戶經理致力於維護和發展現有業務，所有這些都由專家市場經理指導。雖然我們的區域化工作仍處於早期階段，但我們在第二季度看到了當地市場表現的改善。

Next, I want to highlight a new initiative it underscores how supply isn't just about the type of merchants, but also the kinds of offerings we can promote. In the first quarter, we tested a new flash sale concept with one enterprise merchant offering an amazing deal for a limited 48 hour period. This led to an impressive jump in performance and engagement.

接下來，我想強調一項新舉措，它強調供應不僅與商家類型有關，也與我們可以推廣的產品種類有關。在第一季度，我們測試了一種新的閃購概念，一家企業商家在 48 小時內提供了驚人的優惠。這導致了績效和參與的顯著提升。

We expanded this program in the second quarter, running over a dozen flash sales with existing merchants to drive incremental performance and enhance freshness and engagement on our site. While this is still a relatively early initiative similar to gifting, it demonstrates the potential for us to expand our business by developing new products to cross-sell and upsell into our existing supply base.

我們在第二季擴大了該計劃，與現有商家進行了十幾次限時搶購，以提高績效並提高網站的新鮮度和參與度。雖然這仍然是一個與禮品類似的相對較早的舉措，但它表明了我們透過開發新產品以交叉銷售和追加銷售到我們現有的供應基地來擴展業務的潛力。

And finally, after establishing a strong performance management culture and fine tuning the ROI of our new business acquisition engine for local, we are ready to ramp up new sales hiring. The current size of our sales force in North America is simply inadequate to properly cover the market opportunity. With a compelling business case and our regional teams in place, I have greenlighted and investment into sales that I expect will support our growth in local in 2025 and beyond.

最後，在建立了強大的績效管理文化並微調了本地新業務收購引擎的投資報酬率之後，我們準備好增加新的銷售招募。我們目前在北美的銷售團隊規模根本不足以正確掌握市場機會。憑藉令人信服的業務案例和我們到位的區域團隊，我已經批准了銷售投資，我預計這將支持我們在 2025 年及以後在當地的成長。

Slide 7, turning to marketing and contribution profit. Our progress in allocating and increasing marketing spend to more productive channels is one of the key drivers of our progress on improved topline to date. I want to spend a few minutes explaining how we approach marketing spend in the context of ROI and incremental margins.

投影片 7，轉向行銷和貢獻利潤。我們在向更有成效的管道分配和增加行銷支出方面取得的進展是我們迄今為止在改善營收方面取得進展的關鍵驅動力之一。我想花幾分鐘時間解釋一下我們如何在投資報酬率和增量利潤的背景下處理行銷支出。

With a fixed cost base that we believe we can leverage and scale over time, one of our financial objective is to grow our topline at a healthy contribution margin, which will drop to the bottom line, driving faster bottom line growth and improving bottom line margins over time.

我們相信，隨著時間的推移，我們可以利用和擴大規模的固定成本基礎，我們的財務目標之一是以健康的貢獻邊際增長我們的收入，這將下降到底線，推動更快的底線增長並提高底線利潤率隨著時間的推移。

Looking back to 2019, when we were still in the first party goods business, Groupon had approximately 35% contribution profit as a percentage of revenue. After exiting first party goods and with the economy reopening post COVID our incremental margins increased into the 60% range as gross profit as a percentage of revenue rose to 83% to 87%. While we allocated about 30% to 33% of gross profit to marketing. However, our business was declining rapidly.

回顧2019年，當我們還在第一方商品業務時，Groupon的貢獻利潤佔營收的比例約為35%。退出第一方商品後，隨著新冠疫情后經濟重新開放，我們的增量利潤率增加到 60%，毛利佔收入的百分比上升至 83% 至 87%。而我們將毛利的30%到33%分配給行銷。然而，我們的業務卻在快速下滑。

Starting in 2023, as part of our transformation playbook, we pulled back on marketing spend to rebuild our marketing campaigns with focus on lower funnel performance channels. As a result, marketing as a percentage of gross profit dropped to 20% to 24% in the first half of last year, before ramping back to the 26% to 28% range over the last several quarters.

從 2023 年開始，作為我們轉型手冊的一部分，我們削減了行銷支出，以重建我們的行銷活動，並專注於漏斗績效較低的管道。因此，行銷佔毛利的比例在去年上半年下降至 20% 至 24%，然後在過去幾季又回升至 26% 至 28%。

We have previously discussed our desire to continue ramping marketing spend as long as we can maintain our desired ROI targets, but faced operational brokers has prevented us from efficiently scaling our marketing efforts further.

我們之前已經討論過，只要我們能夠維持預期的投資回報率目標，我們就希望繼續增加行銷支出，但面臨的營運經紀人阻礙了我們進一步有效地擴大行銷工作。

In the second quarter, we successfully increased marketing spend to 32% of gross profit while achieving satisfactory ROI targets. Simultaneously, we achieved over 90% gross profit as a percentage of revenue, resulting in a 61% contribution profit as a percentage of revenue.

第二季度，我們成功地將行銷支出增加到毛利的 32%，同時實現了令人滿意的投資報酬率目標。同時，我們的毛利佔營收的比例超過90%，貢獻利潤佔營收的比例達61%。

Looking ahead, we expect the second quarter as an indication of what we can expect going forward with approximately 90% gross profit as a percentage of revenue, marketing as a percentage of gross profit in the 30% to 35% range and contribution profit as a percentage of revenue in the 58% to 62% range.

展望未來，我們預期第二季的毛利佔營收的比例約為 90%，行銷佔毛利的比例在 30% 至 35% 範圍內，貢獻利潤佔總收入的比例約為 90%。百分比在58% 至62% 範圍內。

Slide 8, a rapidly increasing the velocity of new product innovation is key pillar of our transformation. In order to execute on this pillar and raise our product experience to modern marketplace standards. We are investing significant resources in making our platform more efficient, stable and agile.

在投影片 8 中，快速提升的新產品創新速度是我們轉型的關鍵支柱。為了執行這一支柱並將我們的產品體驗提高到現代市場標準。我們正在投入大量資源，使我們的平台更有效率、穩定和敏捷。

First, efficiencies, rewind 18 months ago and we had very high spending in product and engineering, but without a satisfactory return of product innovation. While we made good progress last year making our platform more efficient, we still have ongoing projects in place to further reduce costs, including our cloud cost optimization project.

首先是效率，回顧 18 個月前，我們在產品和工程方面的支出非常高，但產品創新卻沒有得到令人滿意的回報。雖然我們去年在提高平台效率方面取得了良好進展，但我們仍在進行專案以進一步降低成本，包括我們的雲端成本優化專案。

In the second quarter, we ramped up one work stream to shift our cloud workloads from a multi-cloud environment to a single cloud provider. Over the last several weeks, we migrated many critical workloads and expect this project to be fully delivered in the second half of this year.

在第二季度，我們加強了一個工作流程，將我們的雲端工作負載從多雲環境轉移到單一雲端供應商。在過去的幾周里，我們遷移了許多關鍵工作負載，預計該專案將在今年下半年全面交付。

The benefits from this project will be lower cloud cost per order, improved latency and a simple platform to do future development. In the meantime, this project is taking up significant bandwidth for the product engineering team slowing delivering on the rest of our product roadmap and has impacted our site stability, which I will cover next.

該項目的好處是降低每個訂單的雲端成本、改善延遲以及為未來開發提供一個簡單的平台。同時，這個專案佔據了產品工程團隊的大量頻寬，減慢了我們產品路線圖其餘部分的交付速度，並影響了我們網站的穩定性，我將在接下來介紹這一點。

Second, site stability. Our performance issues from April have largely been resolved, although there is still room for further optimizations. Based on our June performance, we anticipated an inflection point for growth in Q3.

二、場地穩定性。4 月以來的效能問題已基本解決，但仍有進一步優化的空間。根據我們 6 月份的業績，我們預計第三季將出現成長轉折點。

However, we encountered another round of site performance issues primarily related to our cloud migration project, which significantly impacted the stability of our site and the performance of both paid and managed channels.

然而，我們遇到了另一輪網站效能問題，主要與我們的雲端遷移專案有關，這嚴重影響了我們網站的穩定性以及付費和託管管道的效能。

Despite our best efforts to protect our topline, we are challenged by a complex legacy platform with accumulated technical debt and executing on multiple projects to modernize our technology foundation. I expect these issues to be resolved within this quarter, but it is impacting our Q3 guidance as we were unable to fully participate in the peak season for things to do.

儘管我們盡最大努力保護我們的營收，但我們仍面臨著複雜的遺留平台的挑戰，該平台積累了技術債務，並執行多個專案來實現我們的技術基礎現代化。我預計這些問題將在本季內得到解決，但這會影響我們第三季的指導，因為我們無法充分參與旺季的活動。

While we are limiting the number of large projects going forever. We can't entirely disregard possibility of additional site performance issues in the future. Third agility, we have allocated significant resources to building a new front end, which we expect will dramatically increase our ability to roll out new features.

雖然我們永遠限制大型專案的數量。我們不能完全忽視未來出現其他網站效能問題的可能性。第三，敏捷性，我們分配了大量資源來建立新的前端，我們預計這將極大地提高我們推出新功能的能力。

Once we launch our new application, we will have a single platform across web and app to further accelerate our product development cycle. In the second quarter, we make progress on our projects to launch a new front-end experience, but not as much as I expected.

一旦我們推出新應用程序，我們將擁有一個跨網路和應用程式的單一平台，以進一步加快我們的產品開發週期。第二季度，我們在推出新前端體驗的專案上取得了進展，但沒有我預期的那麼多。

We now have enough data to share some insights on performance per unique visitor. Over the last 30 days, the new front end is incremental versus our legacy sites on a monetization per unique visitor. Digging in it a bit further, the positive performance is mainly driven through mobile website sessions, as our new front end design is more consumer friendly on smaller form factors versus our legacy design, whereas legacy still outperforms our new platform on desktop.

我們現在有足夠的數據來分享有關每位唯一訪客的效果的一些見解。在過去 30 天裡，與我們的舊網站相比，新前端在每位唯一訪客的貨幣化方面是增量的。進一步深入研究，積極的表現主要是透過行動網站會話推動的，因為與我們的傳統設計相比，我們的新前端設計在較小的外形尺寸上對消費者更加友好，而傳統設計仍然優於我們在桌面上的新平台。

We still face a couple of brokers to ramp up our new front end to 100% of North America web traffic, primarily related to how managed channels and performance marketing channels perform that needs fixing to ensure we aren't losing any potential visitors to our site.

我們仍然面臨著一些經紀人將我們的新前端提升到 100% 的北美網路流量，這主要與託管管道和效果行銷管道的執行方式有關，需要進行修復以確保我們不會失去網站的任何潛在訪客。

Our goal is to have the new front and fully ramped on both web and application in North America in time for the Q4 holiday season. Once we have our new front end deployed one of the new features which we are most excited about is video.

我們的目標是在第四季度假期期間及時在北美的網路和應用程式上推出新的戰線並全面啟動。一旦我們部署了新的前端，我們最興奮的新功能之一就是視訊。

We believe video is a great medium for presenting experiences online and believe it can drive increased consumer and merchant engagement on our site. In the second quarter, we started a few small tests that showed a lot of promise. Our plan is to continue to iterate and test our video product throughout the second half of this year and have it ready to scale sometime in 2025.

我們相信影片是線上呈現體驗的絕佳媒介，並相信它可以提高消費者和商家在我們網站上的參與度。在第二季度，我們開始了一些小測試，這些測試顯示出了很大的希望。我們的計劃是在今年下半年繼續迭代和測試我們的視訊產品，並準備在 2025 年的某個時候進行擴展。

Taking a step back, while we have made significant progress on a key pillar of our transformation plan to fix our technology infrastructure that is still our long road ahead before we reach my objective to have stable, efficient and agile platform. My own estimate is we are probably only 25% complete on this journey.

退一步說，雖然我們在轉型計劃的一個關鍵支柱上取得了重大進展，以修復我們的技術基礎設施，但在我們實現擁有穩定、高效和敏捷平台的目標之前，我們還有很長的路要走。我自己的估計是，我們的旅程可能只完成了 25%。

As I have said before, our ability to inflect our business to sustained growth in our hands and dependent on the pace of our projects.

正如我之前所說，我們控制業務持續成長的能力取決於我們專案的進度。

With that, I will turn it over to Jiri.

這樣，我就把事情交給吉里了。

Thank you, Dusan, and thank you as well to everyone who is joining us today. I apologize in advance for my voice as I'm a bit under the weather today, but I'm looking forward to our discussion. I will use my time today to provide further insights into our second quarter financial results, progress in our cost savings actions, update on the other business items and our updated outlook.

謝謝杜桑，也感謝今天加入我們的所有人。我提前為我的聲音道歉，因為我今天有點不舒服，但我期待我們的討論。我將利用今天的時間進一步了解我們第二季度的財務業績、成本節約行動的進展、其他業務項目的最新情況以及我們最新的展望。

Turning to slide 10, let's jump into our second quarter summary financial results. In the second quarter we delivered global billings of $374 million, a decrease of approximately 5% year over year. Revenue was $125 million, a decrease 3% year over year above the high end of guidance.

轉向投影片 10，讓我們進入第二季財務績效摘要。第二季度，我們的全球營收為 3.74 億美元，年減約 5%。營收為 1.25 億美元，比指導上限年減 3%。

Revenue as a percentage of gross billings was 33%, an increase of 1% year over year, as we benefited from favorable variable consideration plans while other sectors were relatively stable.

收入佔總營業額的百分比為 33%，年增 1%，因為我們受益於有利的可變對價計劃，而其他部門相對穩定。

Moving to our gross profit as a percentage of revenue was 90%, consistent with the prior quarter. Going forward, we expect gross profit as a percentage of revenue to remain in the 88% to 90% range. Marketing expense for the second quarter was $37 million or 32% of gross profit.

我們的毛利佔收入的百分比為 90%，與上一季一致。展望未來，我們預期毛利佔收入的百分比將維持在88%至90%的範圍內。第二季行銷費用為 3,700 萬美元，佔毛利的 32%。

As covered by Dusan, this is higher than our previously communicated range and given the attractive returns and our focus on accelerating topline growth. We now expect marketing as a percent of gross profit to stay in this new range of 30% to 35%.

正如杜桑所報導的，鑑於有吸引力的回報以及我們對加速營收成長的關注，這高於我們先前傳達的範圍。我們現在預計行銷佔毛利潤的百分比將保持在 30% 至 35% 的新範圍內。

Adjusted EBITDA was positive $16 million, as we recorded fifth straight quarter of positive adjusted EBITDA. Our trailing 12 months adjusted EBITDA is $81 million.

調整後 EBITDA 為正值 1,600 萬美元，我們連續第五個季度實現調整後 EBITDA 為正值。我們過去 12 個月調整後的 EBITDA 為 8,100 萬美元。

Turning to cash flow, second quarter operating cash flow was positive $15 million and free cash flow was positive $11 million, strong improvement versus last year when we reported free cash flow of negative $45 million.

談到現金流，第二季營運現金流為正 1,500 萬美元，自由現金流為正 1,100 萬美元，與去年我們報告的自由現金流為負 4,500 萬美元相比有了很大改善。

As Dusan noted, this takes our trailing 12 months free cash flow to positive $30 million, a nice milestone for our business to hit. We ended the quarter with $178 million in cash and cash equivalents. Please note that our cash position excludes $28 million of restricted cash, which primarily relates to collateral posted against our outstanding letters of credit and reported on our balance sheet in prepaid expenses and other current assets.

正如 Dusan 指出的那樣，這使我們過去 12 個月的自由現金流達到了 3000 萬美元，這對我們的業務來說是一個很好的里程碑。本季結束時，我們擁有 1.78 億美元的現金和現金等價物。請注意，我們的現金頭寸不包括 2800 萬美元的限制性現金，這主要與我們未償還信用證的抵押品有關，並在我們的資產負債表上以預付費用和其他流動資產的形式報告。

Slide 11, we have approximately 16 million active consumers worldwide as of quarter end, down 0.3 million from the prior quarter. In North America, our active customer count was flat sequentially and when you exclude our goods category our North America active customers grew sequentially for the second quarter in a row.

如圖 11 所示，截至季末，我們在全球擁有約 1,600 萬活躍消費者，比上一季減少了 30 萬人。在北美，我們的活躍客戶數量環比持平，當您排除我們的商品類別時，我們的北美活躍客戶數量連續第二季度環比增長。

Turning to our local category, consolidated local billings were $317 million, down 1% compared with the prior year. Within North America, we delivered local billings of $244 million, up 5% compared with the prior year.

說到本地類別，本地綜合帳單為 3.17 億美元，比上年下降 1%。在北美，我們交付了 2.44 億美元的本地帳單，比上年增長 5%。

North America local billings benefited from favorable refund rates and increase in demand. International local billings to custom, but down 17% year over year, as we took a decision to post sales of local outreach in Italy in mid-April, due to a previously disclosed (technical difficulty) excluding Italy, international local billings would have declined 9%.

北美本地帳單受益於優惠的退款率和需求的成長。國際本地帳單到海關，但年減 17%，因為我們決定在 4 月中旬發布義大利本地外展銷售，由於先前揭露的不包括義大利的（技術困難），國際本地帳單將會下降9%。

Moving to our travel category. In the second quarter, consolidated travel billings was $29 million, down 8% year over year. Within North America, we delivered travel billings growth of 1% year over year. Within international, there was still more work to do, but billings down 27% year over year.

轉到我們的旅行類別。第二季度，綜合旅行收入為 2,900 萬美元，年減 8%。在北美地區，我們的旅行帳單年增 1%。在國際範圍內，還有更多工作要做，但帳單比去年同期下降了 27%。

Moving to our goods category, consolidated goods billings was $28 million, down 34% year over year. Our current goods business is struggling and we do not see any near-term change in the negative trend. At 4% of second-quarter revenues and the declining rapidly, goods is becoming smaller and smaller part of our business.

轉向我們的商品類別，綜合商品帳單為 2800 萬美元，年減 34%。我們目前的商品業務正在苦苦掙扎，我們認為短期內這種負面趨勢不會有任何改變。商品佔第二季營收的 4%，而且還在迅速下降，商品在我們業務中所佔的比例越來越小。

Slide 12. Turning to our operating expense, second quarter SG&A was $77 million, down 20% year over year, and it include $6 million in stock-based compensation and $4 million in depreciation and amortization. Quarter over quarter, our SG&A was up almost $3 million or 4%, driven entirely by increase in stock-based compensation related to expenses, our previously disclosed performance stock units.

幻燈片 12。說到我們的營運費用，第二季的 SG&A 為 7,700 萬美元，年減 20%，其中包括 600 萬美元的股票薪酬和 400 萬美元的折舊和攤提。與上一季相比，我們的 SG&A 成長了近 300 萬美元，即 4%，這完全是由於與費用相關的股票薪酬（我們先前揭露的績效股票單位）的增加所致。

Including stock-based compensation and depreciation and amortization our SG&A was flat quarter over quarter. Given the timing of our cloud migration project and our decision to ramp up investment in new sales hires.

包括以股票為基礎的薪酬以及折舊和攤銷，我們的銷售、管理及管理費用較上月持平。考慮到我們的雲端遷移項目的時機以及我們決定增加對新銷售人員的投資。

We no longer expect to realize additional savings in our SG&A in the second half of this year. Excluding stock-based compensation, and depreciation amortization, we now expect SG&A in the third quarter to be similar to our first and second quarter.

我們不再期望在今年下半年實現SG&A 的額外節省。不包括以股票為基礎的薪酬和折舊攤銷，我們現在預計第三季的銷售及管理費用將與第一季和第二季相似。

Depending on the progress on our investment into sales, our fourth quarter may increase slightly. Finally, we expect stock-based compensation expenses to increase going forward this year, given our new performance documents.

根據我們銷售投資的進展情況，我們第四季可能會略有成長。最後，鑑於我們新的業績文件，我們預計今年基於股票的薪酬支出將會增加。

Slide 13, turning to free cash flow. In the second quarter, we generated positive $11 million of free cash flow of $55 million improvement compared to the free cash flow in the second quarter of last year. The main driver of our improved performance was better change in net working capital related to more favorable changes in our accounts payable and accrued expenses and other current liabilities.

投影片 13，轉向自由現金流。第二季度，我們產生了 1,100 萬美元的正自由現金流，與去年第二季度的自由現金流相比，增加了 5,500 萬美元。我們業績改善的主要驅動力是淨營運資本的更好變化，這與我們的應付帳款、應計費用和其他流動負債的更有利變化有關。

Last year, our working capital cycle was heavily impacted by both unfavorable supplier terms related to our going-concern issue and deleveraging of our cost base. This takes our year to date free cash flow to negative $3 million, a major improvement versus last year when first half free cash flow was negative $130 million.

去年，我們的營運資金週期受到與我們持續經營問題相關的不利供應商條款和成本基礎去槓桿化的嚴重影響。這使得我們今年迄今的自由現金流達到負 300 萬美元，與去年上半年自由現金流為負 1.3 億美元相比，這是一個重大進步。

Slide 14, given the quarter-to-quarter variability in change in net working capital due to timing, we believe that it's more useful for investors to judge our free cash flow on tailing 12 month basis. We are pleased to see our trailing 12 month free cash flow return to positive territory earlier than expected. This ends a three year period where the business consistently generated negative free cash flow on a trailing 12 month basis, and it's a positive indicator that our transformation plan is working.

在投影片 14 中，考慮到淨營運資本變動因時間因素而出現季度間變化，我們認為投資人以 12 個月為基礎來判斷我們的自由現金流更為有用。我們很高興看到我們過去 12 個月的自由現金流比預期更早恢復到正值。這結束了過去 12 個月企業持續產生負自由現金流的三年期，這是我們轉型計畫正在發揮作用的積極跡象。

Slide 15, now turning to guidance. As of July 30, 2024, management is issuing guidance for the third quarter of 2024 as follow. Revenues between $114 million and $120 million, or a decline year over year between minus 10% and minus 5%.

投影片 15，現在轉向指導。截至 2024 年 7 月 30 日，管理階層發布 2024 年第三季指引如下。營收在 1.14 億美元至 1.2 億美元之間，年減 -10% 至 -5%。

Positive adjusted EBITDA between $6 million and $11 million, negative free cash flow. Management would also like to update its full year 2024 outlook that was first issued in November '23. Year over year change at minus 4% to 0% is a low end slightly better from our prior outlook. While our first half year performance was better than expected. The slow start to Q3 related to site performance issues is causing us to take a cautious stance for the remainder of the year.

調整後的 EBITDA 為正值，介於 600 萬美元至 1,100 萬美元之間，自由現金流為負值。管理階層也希望更新於 2023 年 11 月首次發布的 2024 年全年展望。同比變化為負 4% 至 0%，是比我們之前的預期稍好一些的低端。雖然我們上半年的業績好於預期。由於網站效能問題，第三季開局緩慢，導致我們在今年剩餘時間內採取謹慎立場。

Positive adjusted EBITDA between $65 million and $80 million, down from $80 million to $100 million due to lower Q3 outlook and our expectation to increase spending on marketing and ramping up the sales organization. Positive free cash flow for the full year.

由於第三季前景較低以及我們預計增加行銷支出和擴大銷售組織，調整後的 EBITDA 正值介於 6,500 萬美元至 8,000 萬美元之間，從 8,000 萬美元降至 1 億美元。全年自由現金流為正。

Finally, I would like to provide some additional commentary to assist you with your models. We expect consolidated revenue as a percentage of gross billings staying within the range we have reported over the last five quarters. While we still expect revenues to inflate to sustain positive growth trajectory, we now expect the timing to be more back-end loaded towards the fourth quarter.

最後，我想提供一些額外的評論來幫助您建立模型。我們預計合併收入佔總帳單的百分比將保持在我們過去五個季度報告的範圍內。雖然我們仍然預期營收會膨脹以維持正成長軌跡，但我們現在預計第四季的後端負載會更大。

The final project story of the year will depend on a variety of factors, including the delivery of certain projects such as our new consumer front-end. We continue to explore potential changes with our payment methods. Now that our going concern issue is behind us, it's possible that we will rebalance some of the payment methods which were deprioritized last year.

今年的最終專案故事將取決於多種因素，包括某些專案的交付，例如我們的新消費者前端。我們將繼續探索付款方式的潛在變化。現在我們的持續經營問題已經過去，我們有可能會重新平衡一些去年被取消優先順序的支付方式。

Before closing, let me make a few comments on other business updates. First, in addition to the completed transactions, including the sales of non-core intangible assets completed in April '24. Management continues to evaluate the monetization of certain non-core assets, including the company's remaining stake in SumUp and GiftCloud.

在結束之前，讓我對其他業務更新發表一些評論。首先，除了已完成的交易外，還包括2024年4月完成的非核心無形資產的出售。管理階層持續評估某些非核心資產的貨幣化，包括公司在 SumUp 和 GiftCloud 的剩餘股權。

While there can be no assurances as to whether or when the sales of these non-core assets will be consummated. Management currently believes this non-core asset sales could generate proceeds of approximately $90 million.

但無法保證這些非核心資產的出售是否或何時完成。管理層目前認為，這次非核心資產出售可產生約 9,000 萬美元的收益。

Second, moving to the topic of Italy. As previously disclosed, we received a negative ruling related to tax assessment of one of our Italian subsidiaries, Groupon SRL. In April 24, Groupon SRL paused the sale of foreclosures in Italy and the company has been evaluating its options regarding operations in Italy.

其次，轉到義大利的話題。如同先前所揭露的，我們收到了與我們的義大利子公司之一 Groupon SRL 的稅務評估相關的負面裁決。4 月 24 日，Groupon SRL 暫停了在義大利取消抵押品贖回權的出售，該公司一直在評估其在義大利營運的選擇。

After careful review of options in July '24, we decided to exit the local business in Italy. We expect to incur total pretax restructuring charges of up to $7 million in connection with the exit. The restructuring actions are expected to include an overall reduction of approximately 33 positions. It's a majority of these reductions and payments expected to occur by the end of 2024.

在仔細審查了 24 年 7 月的選擇後，我們決定退出義大利當地業務。我們預計因退出而產生的稅前重組費用總額將高達 700 萬美元。重組行動預計將包括總體削減約 33 個職位。其中大部分削減和付款預計將在 2024 年底前完成。

The company does not expect incremental financial exposure that exceeds the assets of Groupon SRL as of December 31, 2023, Groupon SRL has assets of approximately EUR48 million made up a largely of intercompany receivables and includes approximately EUR1 million in cash and cash equivalents.

截至2023 年12 月31 日，該公司預計增量財務風險不會超過Groupon SRL 的資產。和現金等價物。

Overall, while I am frustrated by the slow start to the third quarter, we are in a strong position to weather this minor setback. While progress in transformation is not always a straight off, I'm confident that our transformation plan focused on driving profitable topline growth can generate attractive returns for our shareholders over the long term.

總的來說，雖然我對第三季的緩慢開局感到沮喪，但我們有能力度過這一小挫折。雖然轉型的進展並不總是一蹴而就，但我相信，我們專注於推動獲利收入成長的轉型計劃可以為我們的股東帶來有吸引力的長期回報。

With that we would like to open the call for your questions. Operator?

我們希望開始電話詢問您的問題。操作員？

(Operator Instructions)

（操作員說明）

Sean McGowan, Roth Capital.

肖恩·麥高恩，羅斯資本。

There we go. Okay, thank you. Appreciate it. First question is about the guidance at the high end kind of staying the same given this setback in July and the commentary on the third quarter suggests that the business really did accelerate.

我們開始吧。好的，謝謝。欣賞它。第一個問題是，考慮到 7 月的挫折，高端業務的指導是否保持不變，而第三季的評論表明該業務確實加速了。

So I guess the question is, how are you able to keep that guidance at the high end unchanged given the setback in the current quarter? You're obviously kind of expecting a lot more in the fourth quarter and do you think that momentum will continue?

所以我想問題是，鑑於本季度的挫折，您如何能夠保持高端指導不變？您顯然對第四季有更多期待，您認為這種勢頭會持續下去嗎？

Yes, it's true. On the other side of first quarter was more positive. So we are building on that. And also we are strengthening our sales organization, mainly in North America.

是的，這是真的。另一方面，第一季的情況更為積極。所以我們正在以此為基礎。我們也正在加強我們的銷售組織，主要是在北美。

Okay. Can you comment on kind of what the timing was of this disruption and what your exit rate of business was at the end -- before that disruption started to affect the business? Like what was there at the end of June?

好的。您能否評論一下這次中斷發生的時間以及您最終的業務退出率（在中斷開始影響業務之前）？例如六月底有什麼？

I don't know if I will answer so I will start maybe Dusan will chime in. We had a describing in Dusan part of the comments. We have a very good and we believe the very close to inflection point in June, we are not disclosing monthly numbers.

我不知道我是否會回答，所以我會開始，也許杜桑會插話。我們在杜桑中描述了部分評論。我們的情況非常好，我們相信 6 月已經非常接近拐點，但我們不會透露每月數據。

Yeah. So hi, Sean, thanks for the question. We were very happy with the development post the fixing the original issue. We can't disclose the exact number, but as we mentioned in the script, we were expecting based on June results, then we will be talking about the inflection point. So this is the best guidance I can provide you right now.

是的。嗨，肖恩，謝謝你的提問。我們對解決原始問題後的開發非常滿意。我們無法透露確切的數字，但正如我們在劇本中提到的，我們根據 6 月的結果進行預期，然後我們將討論轉折點。所以這是我現在可以為您提供的最佳指導。

Okay. That's helpful. Last question is the increase that you saw in June, was that had you already started to expand the marketing spending? Or what is it that's driving you to expand the marketing spending at this point is it because you're getting good results? Or do you feel like you need to work harder to get those results?

好的。這很有幫助。最後一個問題是您在六月看到的成長，是不是您已經開始擴大行銷支出了？或是什麼促使您此時擴大行銷支出，是因為您獲得了良好的結果嗎？或者您覺得需要更加努力才能獲得這些結果？

Like in general, we were very happy with our ability to bring traffic with the reasonable cost, and we were very happy with the performance of our supply. So that was behind it. If -- actually if -- and as we were guiding the expectations going forward, if we would have the site and platform performing at the same level as June, we would continue in this trend long term.

就像一般情況一樣，我們對我們以合理的成本帶來流量的能力感到非常滿意，我們對我們的供應性能也非常滿意。所以這就是背後的原因。如果——實際上如果——並且當我們指導未來的預期時，如果我們能讓網站和平台的表現與 6 月相同，我們將長期保持這一趨勢。

Okay. Thank you.

好的。謝謝。

Bobby Brooks, Northland Capital.

鮑比布魯克斯，北國資本。

Hey guys. Thanks for taking my question. I guess the first thing I kind of wanted to jump back or go back to the June quarter. So obviously, you talked about June being really strong and leading you to believe that third quarter would be an inflection point, right?

嘿夥計們。感謝您提出我的問題。我想我首先想跳回或回到六月季度。顯然，您談到 6 月非常強勁，讓您相信第三季將是一個拐點，對吧？

So could you maybe discuss what exactly you saw in June that led you to believe that? Was it better conversion? Was it the same type of conversion that you saw in April and May, but more web or just more foot traffic to the site? And prior to the site stability issues that came up in July, what were you thinking that -- what were you thinking third quarter guidance would have looked like?

那你能不能談談你在六月所看到的到底是什麼讓你相信了這一點？是不是轉化效果比較好？這是否與您在四月和五月看到的相同類型的轉化，但更多的網絡或只是更多的網站人流量？在 7 月出現網站穩定性問題之前，您認為第三季的指導會是什麼樣子？

So I can comment on the on the first part. Thank you, Bobby, be for the question. Like, we were fixing the conversion during the April or the issues which we had were reflected in the lower conversion of the website, which means that also buying external traffic spending on marketing is less efficient.

所以我可以對第一部分發表評論。謝謝你，鮑比，請回答這個問題。例如，我們在四月修復了轉換率，或者我們遇到的問題反映在網站轉換率較低上，這意味著購買外部流量用於行銷的效率較低。

So our output in May, what we were able to fix allowed us to generate higher performance from the website with pretty much same level of marketing. We were scaling up marketing in the first half of Q2. So I just consider the debt level sustainable.

因此，我們五月的產出，我們能夠修復的問題，使我們能夠在幾乎相同的行銷水平下從網站上獲得更高的性能。我們在第二季上半年擴大了行銷規模。所以我認為債務水準是可持續的。

We stills -- as I mentioned it in the script, we still believe that there is room to go and we were running most of the quarter on a legacy platform. And as we mentioned, we see -- at some point, we were at very high numbers in terms of ramp-up of mobile next new platform. We saw that it's incremental. So it would be another driver of growth going forward.

我們仍然——正如我在腳本中提到的那樣，我們仍然相信還有空間，而且我們本季的大部分時間都在舊平台上運行。正如我們所提到的，我們看到，在某些時候，我們在移動下一個新平台的提升方面處於非常高的水平。我們看到它是增量的。因此，這將是未來成長的另一個驅動力。

Got it understand.

明白了就明白了。

Yeah.

是的。

Cool. And so then kind of going back to conversion rate, obviously, that's a major piece of the return to growth story here, right? And while I see how conversion could improve with the better checkout system, a far less clicks and easier payment option, I don't think it's been discussed too much about just the rate of improvement that you guys have seen in terms of conversions.

涼爽的。那麼，回到轉換率，顯然，這是恢復成長故事的一個重要部分，對吧？雖然我看到透過更好的結帳系統、更少的點擊次數和更簡單的付款選項可以如何提高轉換率，但我認為人們並沒有過多地討論你們在轉換率方面看到的改進率。

So I was just curious if you could talk broadly on how conversion has trended and obviously probably stepped down a little bit in July, but maybe if conversion was a 2 out of 10 when you guys took over as of now, maybe 5 out of 10 with a healthy amount of room to run in terms of conversion. How much more do you think it can improve? And how much has it already improved.

所以我很好奇你是否可以廣泛地談談轉換率的趨勢，顯然在 7 月可能會有所下降，但如果你們現在接手時轉換率是十分之二，那麼也許十分之五在轉換方面有足夠的運行空間。您認為還可以改進多少？它已經改善了多少。

So like my personal rating is that we are 3 out of 10. And while -- the reason for that number is while we did some like very positive changes in terms of conversion. At the same time last quarter, I was talking about some legacy pieces of the platform, which we still need to replace, which very kind of degrading in performance.

所以我個人的評價是我們是 3 分（滿分 10 分）。而這個數字的原因是我們在轉換方面做了一些非常積極的改變。上個季度的同一時間，我談到了平台的一些遺留部分，我們仍然需要更換它們，這會導致效能下降。

So partially some our optimizations were offset by lower performance of parts, which we are replacing in the platform. So there is still way to go. We see plenty of opportunities for further improvement in conversion, specifically on the checkout.

因此，我們的一些優化部分被我們在平台中替換的部件性能較低所抵消。所以還有路要走。我們看到了很多進一步提高轉換率的機會，特別是在結帳方面。

Got it. And then I just wanted to make sure I understand this clearly, you've mentioned in the prepared remarks about the new web -- and the new website and application rollout and mentioned how in North America, you wanted to get that rolled out before the fourth quarter holiday season.

知道了。然後我只是想確保我清楚地理解這一點，您在有關新網路的準備好的評論中提到了新網站和應用程式的推出，並提到了您希望在北美地區如何在第四季度假期。

Is it still the thought that you want to get that rolled out internationally as well before the fourth quarter holiday season? And -- or is it now maybe just focusing on getting North America rolled out first and then in 2025 rollout -- rolling out globally.

您是否仍想在第四季假期之前將其推廣到國際市場？或者現在可能只是專注於首先在北美推出，然後在 2025 年推出——在全球推出。

So that we are talking about the rollout of a new mobile platform for a long time. So right now, we are very incremental in North America at the same time be I'd like 1% of traffic in pretty much every country which we have been Groupon.

因此，我們長期以來一直在談論新行動平台的推出。所以現在，我們在北美的流量成長非常快，同時我希望在我們加入 Groupon 的幾乎每個國家都能獲得 1% 的流量。

So it's not that we didn't progress also in international, but giving the business size and opportunity. The ramp up in North America is a clear focus number one for us. So we will try to be as many countries as possible as we see a major upside from new platform. But if we will be in North America it will still be a huge win for us for Q4.

因此，並不是我們在國際化方面沒有進步，而是我們提供了業務規模和機會。北美市場的成長顯然是我們的首要關注點。因此，當我們看到新平台的重大優勢時，我們將嘗試覆蓋盡可能多的國家。但如果我們在北美，這對我們第四季來說仍然是一個巨大的勝利。

Cool. And then just maybe one last question for me before going back to the queue is just, you mentioned about some exciting new enterprise merchant setups or sign-ups and the revamped merchant -- revamped sales force to target North American local business, right?

涼爽的。然後，在回到隊列之前，也許我要問的最後一個問題是，您提到了一些令人興奮的新企業商家設定或註冊，以及針對北美本地企業的改進後的商家——改進的銷售隊伍，對嗎？

And so just kind of curious about how do you -- what's kind of the go-to-market strategy in terms of bringing in new merchants into the fold? And specifically, maybe if that's different between our local trampoline shop versus a nationwide oil chain shop does that change?

所以我有點好奇你如何——在引進新商家方面採取什麼樣的市場策略？具體來說，也許我們當地的彈跳床店與全國性的石油連鎖店之間存在差異，這種情況會改變嗎？

And just any color and insights you can provide there? And maybe just a little curious on just the video aspect that you mentioned, think that could be interesting. Would that be something where you guys are spending money on creating your own video or it would be something where you ask the merchant to provide a video summarizing their business themselves.

您可以在那裡提供任何顏色和見解嗎？也許只是對你提到的影片方面有點好奇，認為這可能很有趣。這是你們花錢創建自己的影片的事情，還是你們要求商家提供一個影片來總結他們自己的業務的事情。

(inaudible) Okay. So I can start with the video part. With videos, we currently have several dozens of videos from merchants in one big location, which was selected for a test. And we are trying different methods from obtaining or creating video with our own resources or resources which we hire.

（聽不清楚）好的。所以我可以從視頻部分開始。視訊方面，我們目前在一個大的地點有幾十個商家的視頻，我們選擇了這個地點進行測試。我們正在嘗試使用我們自己的資源或我們僱用的資源來獲取或創建影片的不同方法。

At the same time, we are using micro influencers. So we are looking for the best ways, so that we can scale it up. Obviously, in the first wave, it will be mainly initiatives driven by us, by Groupon. But based on the numbers which we see, we expect that it will help us to improve the conversions. And we will expect that the merchants will be interested to do their own videos because we will be able to get better positioning on the platform.

同時，我們正在利用微觀影響者。因此，我們正在尋找最好的方法，以便我們能夠擴大規模。顯然，第一波浪潮主要是我們、Groupon 推動的舉措。但根據我們看到的數字，我們預計它將幫助我們提高轉換率。我們預計商家會有興趣製作自己的視頻，因為我們將能夠在平台上獲得更好的定位。

On the first part of your question in terms of supply, we have a department split into local business and enterprise business. So these are two very different product cycles. Enterprise business is targeting for enterprise merchants. And this is the part which we were focusing in the first place when we started the transformation and we see very positive results growing year over year.

關於你提到的第一部分供應問題，我們有一個部門分為本地業務和企業業務。所以這是兩個非常不同的產品週期。企業業務面向企業商戶。這是我們開始轉型時首先關注的部分，我們看到了非常正面的成果逐年成長。

The local part where we are investing more into sales force, it was regionalized in the last quarter in Q1 actually. And we have -- we call the position market managers. Market managers are pretty much specialized on one location, one region, and we are trying to create a guide or creating a guide holder, ideal curated Groupon marketplace should look like.

我們對銷售人員進行更多投資的本地部分，實際上是在第一季的最後一個季度進行了區域化。我們有——我們稱之為市場經理職位。市場經理幾乎專注於一個地點、一個地區，我們正在嘗試創建一個指南或創建一個指南持有者，理想的 Groupon 市場策劃應該是這樣的。

And then they are asking salespeople go and bring this trampoline park or go and bring the SPA or massages, because we know that there will be the biggest benefit for merchants for us for Groupon if we bring those types of deals.

然後他們要求銷售人員帶上這個彈跳床公園，或帶上 SPA 或按摩服務，因為我們知道，如果我們提供這些類型的優惠，將為 Groupon 的商家帶來最大的利益。

Awesome. So really appreciate the color and congrats on the progress. I'll return to the queue.

驚人的。所以真的很欣賞這種顏色並祝賀取得的進展。我會返回隊列。

Thank you.

謝謝。

Pierre Riopel, Goldman Sachs.

皮埃爾·裡奧佩爾，高盛。

Hi, everyone, and thank you for taking the question. This is Pierre on for Eric Sheridan at Goldman. Maybe just following up on the question on supply, we just wanted to dive deeper on your capital allocation philosophy and just key factors that help you build confidence in accelerating those sales force investments, how you were ultimately able to remove the blockers that limited investment prior?

大家好，感謝您提問。我是高盛的皮埃爾 (Pierre) 為 Eric Sheridan 發言。也許只是跟進供應問題，我們只是想更深入地了解您的資本配置理念，以及幫助您建立加速銷售人員投資信心的關鍵因素，以及您最終如何消除之前限制投資的障礙？

And how investors should and ultimately think about your priorities looking ahead and balancing reinvestment and profitability as you look to position the local business for durable growth as you look into next year and beyond? Thank you.

當您展望明年及以後，希望本地業務實現持久增長時，投資者應該如何並最終考慮您的優先事項以及平衡再投資和盈利能力？謝謝。

Okay. So Jiri, do you want to take the question or should I take it?

好的。Jiri，你想回答這個問題還是我應該回答？

No, I will start and you can probably add. So certainly our position improved significantly behind positive adjusted EBITDA. We don't have going concern. We were able to create next -- in last three quarters -- out of the last three quarters, two of them were cash positive.

不，我會開始，你也許可以添加。因此，我們的地位在正調整後的 EBITDA 後面肯定會顯著改善。我們沒有持續關注。我們能夠創造下一個 - 在過去的三個季度 - 在過去的三個季度中，其中兩個是現金正值。

So we can also now a little bit of thinking about the growth. We were financially stable, we decrease our G&A costs. So it allows us to not only spend money on marketing, but also building or starting building a long-term future in North America, which is our biggest market.

所以我們現在也可以稍微思考成長。我們的財務狀況穩定，我們降低了一般管理費用。因此，它使我們不僅可以在行銷上花錢，還可以在北美（我們最大的市場）建立或開始建立長期未來。

And therefore, we are now investing to a new additional business development structure in North America in the key cities, which we -- and regions where we are operating because we believe there is high potential, which can be utilized with positive ROI.

因此，我們現在正在北美主要城市以及我們運營的地區投資建立新的業務發展結構，因為我們相信潛力巨大，可以帶來積極的投資回報。

And maybe to add a little bit more picture. We are very cautious and go really step-by-step. So just don't expect or don't see this as a project with like eight digit numbers like investments into the sales force. We have a model behind it, some basic model. We will be like adding a lot of salespeople in the Q4, but it will not be a major expense for Groupon.

也許還可以添加更多圖片。我們非常謹慎，一步一步來。因此，不要期望或不要將其視為一個具有八位數數字的項目，例如對銷售團隊的投資。我們背後有一個模型，一些基本模型。我們將在第四季度增加大量銷售人員，但這不會成為 Groupon 的主要支出。

And once we validate our numbers, we will be able also to share with our shareholders by the financial model for expansions, if we see that we should accelerate. This will be something which we will be talking about both with you and with few shareholders.

一旦我們驗證了我們的數字，如果我們認為我們應該加速的話，我們也將能夠透過擴張的財務模型與我們的股東分享。這將是我們將與您和少數股東討論的事情。

Got it. Extremely helpful. And maybe just one follow up from us. In terms of your mention of your ability to remove blockers behind your marketing investment and now having an ability to step that up again and maintaining ROIs.

知道了。非常有幫助。也許只是我們一個後續的行動。你提到你有能力消除行銷投資背後的障礙，現在有能力再次加強這一點並保持投資報酬率。

Can you just talk about the drivers of what's enabling you to invest deeper into that performance marketing curve, whether that's just the supply position improving some of the conversion dynamics you talked about or how we should think about those new levels of investments? .

您能否談談使您能夠更深入地投資績效行銷曲線的驅動因素，無論是供應狀況改善了您談到的一些轉換動態，還是我們應該如何考慮這些新的投資水平？。

It's complete mix, we you need to start with supply because I really see Groupon in very different position. We had courage, let's say, to remove out of low-performing deals, which overall helps performance of the website.

這是一個完整的組合，我們需要從供應開始，因為我確實看到 Groupon 處於非常不同的位置。比方說，我們有勇氣剔除表現不佳的交易，這整體上有助於網站的表現。

We are curating the deals, which in the end of the day significantly helps the conversion of deals. If you have better images, if you have a better deal structure, if you are simply selling the deal better. So it was a must have which we had to do before we were ramping up investment.

我們正在策劃交易，這最終將極大地幫助交易轉換。如果你有更好的形象，如果你有更好的交易結構，如果你只是更好地銷售交易。因此，這是我們在加大投資之前必須要做的事情。

And as the conversion is improving, we are able to spend more because simply Google, Facebook and other marketing providers or partners for us are able for the ROI, which we are targeting brings more traffic to us.

隨著轉換率的提高，我們能夠花更多的錢，因為Google、Facebook 和其他行銷提供者或我們的合作夥伴就能夠實現投資回報率，我們的目標是為我們帶來更多的流量。

And I mentioned in terms of on -- when Bobby was asking about the potential, there is still a way to go. We were talking about video is something which can also help us with conversion. So we expect that this trend will continue.

我提到，當鮑比詢問潛力時，還有很長的路要走。我們談到影片也可以幫助我們轉換。因此我們預計這種趨勢將持續下去。

There are no other questions. This concludes our call for today. Thank you everyone for joining. For additional information please go to investor.groupon.com.

沒有其他問題了。我們今天的呼籲到此結束。感謝大家的加入。欲了解更多信息，請訪問investor.groupon.com。