Groupon, Inc.

Hello, and thanks for joining us for our second quarter 2025 earnings call. It's a pleasure to be with all of you. Yesterday, after the market closed, we released our earnings and posted our earnings commentary on our investor relationships website. Today, my plan is to make brief opening remarks and then open up the call for questions, both live from our analysts and several that were pre-submitted in advance. For more details on our quarterly performance, I encourage you to read our earnings commentary. In addition, I encourage you to review our press release and thank you, which contain more detail on our fourth quarter and full year results. I am pleased to report another strong quarter of accelerating growth. Global billings grew 12% year over year, marking continued acceleration in our growth trajectory. This was driven by strong performance in our core local category with North America local billings up 20% year over year and international local billings excluding Italy and gift cloud up 15% year over year. Combined, our core local category excluding Italy and gift cloud grew 19% and now represents nearly 90% of our billings. This validates the scalability of our marketplace transformation playbook and keeps us on track toward our target of accelerating global billings growth to over 20% by 2027. We generated strong positive free cash flow of 25 million, demonstrating our ability to drive profitable growth while investing in our platform and team. We also announced a proactive refinancing that meaningfully simplifies our capital structure and eliminates constraints, putting Groupon in a position to play offense. Our hyper-local strategy continues to deliver strong results. Our North America enterprise brands had an exceptionally strong quarter, with 26 brands generating over 1 million in quarterly billings, representing 53% year-over-year growth. North America Things to Do delivered strong double-digit growth for the sixth consecutive quarter, demonstrating market leadership during the crucial summer season with particular strength in amusement parks, parks, water parks, and multi-attraction tour passes. On the leadership front, I'm excited to announce that effective September 1st, Jiri Ponert will assume the role of Chief Operating Officer and Rana Kashyap will become our next Chief Financial Officer. Both have been instrumental in our transformation since joining in early 2023, and these changes reflect our commitment to developing leaders from within as we build towards our next chapter of growth. Looking ahead, we are raising our full-year billing guidance from 3% to 5% to 7% to 9% growth, reflecting the strong momentum we are seeing across our business. We see multiple levers driving accelerating growth and remain confident we are building the foundation for sustained long-term value creation. We are still in the early innings of a large opportunity to build a hyperlocal experience marketplace that combines trust, curation, quality, and unbeatable value with the network effects and unit economics of modern marketplaces. I would like to thank our team for their dedication and hard work that have made this progress possible. This journey has not been easy and their continued commitment to our mission and to our transformation has been really great. With that, let's open the call for questions.

Thanks, Dushan. Our first question is from Sean McGowan from Roth Capital Partners. Sean, you can now unmute your line.

Hi, can you hear me okay? Yes, we can. Great. Thank you. You mentioned in the commentary that you issued yesterday that you're seeing AI generated traffic or searches. Can you just elaborate a little bit more on that? Is that incremental? You think you're getting incremental traffic and business from that? And what is it that makes that more valuable? Yeah.