Groupon, Inc. (NASDAQ:GRPN) Q2 2020 Earnings Conference Call - Final Transcript
Aug 07, 2020 • 10:00 am ET
Good day, everyone, and welcome to Groupon's Second Quarter 2020 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 Chief Communications Officer, Jennifer Beugelmans. Please go ahead.
Good morning, and welcome to Groupon's second quarter 2020 financial results conference call. On the call today are our interim CEO, Aaron Cooper; and CFO, Melissa Thomas.
The following discussion and responses to your questions reflect management's views as of today, August 7, 2020, only and will include forward-looking statements. Actual results may differ materially from those expressed or implied in our forward-looking statements. Additional information about risks and other factors that could potentially impact our financial results is included in our earnings press release and in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31st, 2019, and subsequent quarterly reports on Form 10-Q. We encourage investors to use our 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.
On the call today, we will also discuss the following non-GAAP financial measures; adjusted EBITDA, free cash flow and FX-neutral results. In our press release and our filings with the SEC, each of which is posted on our Investor Relations website, you will find additional disclosures regarding the non-GAAP measures, including reconciliations of these measures to the most comparable measures under US GAAP.
As we discuss our results during this call, note that all comparisons, unless otherwise stated, refer to year-over-year growth as reported. All gross profit comparisons are FX neutral.
And with that, I'm happy to turn the call over to Aaron.
Thanks, Jennifer. And thanks to everyone for joining today. We are looking forward to giving you an update on our recent progress and further outlining our strategy and execution plan to win in local. When I was appointed the interim CEO in March, I had two primary objectives. The first was to work with the team to stabilize the business. At that time, COVID-19 had already begun to wreak havoc on the economy. Our local business had fallen nearly 80% and the world was entering a global shutdown. We were in a cash burn position, and we needed to accelerate and expand our plan to rightsize our cost structure.
I'm proud to say that over the past few months, we have stabilized the business and strengthened the balance sheet. Today, we have nearly $800 million of cash, and we generated over $70 million of free cash flow in Q2. We have created a substantially reduced cost structure and are on our way to take $225 million of fixed cost out of the business