Groupon, Inc. (NASDAQ:GRPN) Q3 2018 Earnings Conference Call Transcript

Nov 07, 2018 • 10:00 am ET


Groupon, Inc. (NASDAQ:GRPN) Q3 2018 Earnings Conference Call Transcript


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Good day, everyone, and welcome to Groupon's Third Quarter 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the company's formal remarks. (Operator Instructions) Today's conference call is being recorded.

For opening remarks, I would like to turn the call over to the VP of IR, Heather Davis. Please go ahead.

Heather Davis

Good morning, and welcome to Groupon's third quarter 2018 financial results conference call. On the call today are CEO, Rich Williams; and CFO, Mike Randolfi.

(Forward-Looking Cautionary Statements)

On the call today, we will also discuss the following non-GAAP financial measures; Adjusted EBITDA, FX-neutral results and free cash flow. In our press release and our filings with the SEC, each of which is posted on our IR website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with US GAAP. As we discuss our results during the call, note that all comparisons, unless otherwise stated, refer to year-over-year growth as reported, and all gross profit comparisons are FX-neutral, with the exception of gross profit per customer which are as reported.

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

Rich Williams

Thanks, Heather. As you've noticed, we're taking a different approach to our earnings communications beginning this quarter. As Groupon enters its second decade, our business has grown and grown more complex. Our goal is for our conversations with shareholders and analysts to evolve as well. So, we've added a shareholder letter to our earnings materials with the intent to provide you with more context on how we're operating and evolving both in the short and long-terms. At the same time, we'll pare down our prepared remarks to devote more time to Q&A and really focus on the details and nuances that are driving the business forward. We believe this combination will paint a more complete picture for why we're excited about the progress we're making, the opportunity in local, and the path we're forging to be the daily habit for millions of customers, a strong economic force for small businesses and a difference maker in local communities.

Before I turn the call over to Mike, let me take a moment to reflect on a milestone birthday. Ten years ago this month, Groupon was founded on the belief that local commerce was a vast opportunity that had largely been ignored by the Internet revolution and the rise of e-commerce. It was a simple idea, one that's been both challenging and rewarding to tackle. Local remains a vast opportunity. Small businesses are the backbone of nearly every community and few companies have made their success a priority in the way Groupon has. But local is also incredibly fragmented, and there are few blanket solutions to the challenges that merchants face. Over the last decade, no one has devoted the time and energy to local that Groupon has, and we believe what we've learned has us very well positioned for the next 10 years as