GRPN Investor Presentation

8/2/2019 GRPN Investor Presentation

1/26

Model Market Moats Advantages Results

December2011

InvestorPresenta3on


2/26


ANoteFromOurLawyersAll statementsmade in thispresenta6on,other than statements ofhistoricalfact, areor maybe deemed tobe forward-

lookingstatements.ThesestatementsarebasedonGrouponscurrentplansandexpecta6onsandinvolverisks,uncertain6es

andotherfactorsthatmay causeouractualresults, performanceorachievementstobedifferent fromany future results,

performanceandachievementsexpressedor impliedbythesestatements. Informa6onconcerningtheserisks,uncertain6esandotherfactors iscontainedundertheheadingsRiskFactorsand SpecialNoteRegardingForward-LookingStatements

and Industry Data and elsewhere in the Registra6on Statement on Form S-1 of Groupon filed with the Securi6es and

ExchangeCommission.Forward-lookingstatementsarebasedoninforma6onasofthedatethestatementsaremade,andwe

donotundertakeanyobliga6ontoupdateanyforward-lookingstatementorotherinforma6on,whetherasaresultofnew

informa6on,futureeventsorotherwise.

2


3/26


Drivers

Results

PowerfulModel

ExpandingthePlaGorm

EnormousMarket

DeepMoats

RapidCSOIMarginImprovement

Recordrowth

SignificantLeverage

InvestmentHighlights

3


4/26


Performancebasedadver3sing,plusrepeatcustomersformerchants

4

TheDeal:Upto90%offproducts

andservices

TheTippingPoint:Oncereached,the

dealison

SocialMedia:Customerssharedealsthroughemail&socialnetworks

Editorial:Ourwriterscreateaccurate

andengagingdescrip6ons

FinePrint:Merchantsetstermson

quan6ty,redemp6onandexpira6on

1

234

5

12345

TheAnatomyofaDeal


5/26


rouponWay

Cash&CustomersUpFront

RiskFree

LargeVolume

HighROI

Simple

EmailMarke3ng

OnlineMarke3ng

Print Broadcast

OldWay

PayUpFront&HopeforCustomers

WhyMerchantsLoveroupon

5


6/26


MarryingSupplyandDemandThroughPriceandDiscovery

Consumers

MARKETPLACE

Fe

aturedMerchants

Two-SidedMarketplace


7/26


AppliestoAllCategoriesLocalDeals Na3onalDeals Now!Deals

Travel Events oods

MoretoCome

7


8/26


Note:Representsthe2011es6matesofGlobalInternetretail,leisure&recrea6on,foodserviceandonlineadver6sing.Source:Euromonitor2011andIDC2011 8

Local+Online+Adver3sing

SeismicShiZinHowCommerceisConducted

IntlRetail$9.T

USRetail$2.9T

IntlLeisure,Recrea3on&Food

$.9T

USLeisure,Recrea3on&Food

$1.4T

lobalOnlineAdver3sing$79B

Mul3-Trillion

EnormousMarketOpportunity


9/26


AlreadyServingMarketsComprisingOver90%oflobalDP

Country

1stroupon

Sold

Mkt.Share

1 US Oct-08 #1

2 Canada Apr-10 #1

ermany May-10 #1

4 UK May-10 #1

5 France May-10 #1

6 Austria May-10 #1

7 Italy May-10 #1

8 Spain May-10 #1

9 Netherlands May-10 #1

10 Switzerland May-10 #2

11 Sweden May-10 #1

12 Poland May-10 #1

1 Turkey May-10 #1

14 Denmark May-10 #4

15 Finland May-10 #1

Country

1stroupon

Sold

Mkt.Share

16 Ireland May-10 #1

17 Norway May-10 #1

18 Belgium May-10 #1

19 Chile Jun-10 #1

20 reece Jun-10 #1

21 Portugal Jun-10 #1

22 Argen3na Jun-10 #1

2 Brazil Jun-10 #1

24 Mexico Jun-10 #2

25 Columbia Jun-10 #1

26 Japan Aug-10 #1

27 Russia Aug-10 #1

28 Peru Sep-10 #1

29 Taiwan Nov-10 #1

0 HongKong Nov-10 #1

Country

1stroupon

Sold

Mkt.Share

1 Singapore Nov-10 #1

2 Philippines Nov-10 #5

Uruguay Nov-10 #1

4 Israel Dec-10 #1

5 SouthAfrica Jan-11 #1

6 Malaysia Jan-11 #1

7 India Jan-11 #6

8 Romania Jan-11 #1

9 Ukraine Jan-11 #1

40 Australia Feb-11 #

41 SouthKorea Mar-11 #4

42 UnitedArabEmirates Mar-11 #

4 China Mar-11 #12

44 Indonesia Apr-11 #1

45 Newealand May-11 #2

Source:InternalCompanydataasof3Q2011.MarketshareisbasedontotalrevenuesastrackedbytheCompany9

lobalLeadership


10/26


Execu3ngatUnparalleledScale

Na3onalandlobalLeaderwithSignificantScaleAdvantage

Markets NorthAmerica

July-September2011(Units)

TimeSinceLaunch

WinningAlltheWayDowntotheCitybyCityLevel

SanFrancisco

August-September2011(Units)

TimeSinceLaunch

10


11/26


Opera3onalExcellence

Innova3on&Technology

Scale

Brand

Talent

HowWeWin

Model Market Advantages ResultsMoats

11


12/26


DailyDealProcess

DetailsVejng

FactCheck

VoiceEdit

CopyEdit

ImageDesign

DealCrea3on

QualityAssurance

SiteEdits

Editorial

Merchandising

Strategy

DealSelec3on

DealLoading

andTagging

Deal

InventoryReview

MarketPerformanceEvalua3on

DealForecas3ng

City

Planning

CityCoverageStrategy

Subscriber&PurchaseMapping

Live/Work/BuyDistricts

DemographicsPrice/DistanceElas3city



Scale

Brand

Talent

Qualityverifiedviawebandprimaryresearch

Checkmerchantwebsiteandreviewstocer3fypriceaccuracy

Humor

WeeklyDealPlan


1

2

5

6

7

10

9

48

CityPlanning

Lead

Research

Sales

DealQualityAssurance

MerchantServices

FinancialForecast

Editorial

DealLaunch

CustomerService

Redemp3on

Management

12


13/26




Scale

Brand

TalentDealQuality

Allaboutcura6on Rigorousmerchantqualitycontrol

SubmiedApproved

UniqueEditorialVoice

DailyDealDescrip3on:LikeMikeTyson,wineisusuallyrobust,isoZenboxed,andshouldneverinfluencetaooingdecisions.

Trust

TheGrouponPromise

80%ofcustomerservicecallsansweredwithin30seconds

Averageemailrespondedtowithin4tohours

13

AStrongandTrustedBrand


14/26




Scale

Brand

Talent

14

AndrewMasonCEO

JasonChildCFO

JasonHarinsteinSVPCorporateDevelopment DavidSchellhaseGeneralCounsel

BrianSchipperSVPHumanResources

JeffHoldenSVPProductManagement

RichWilliamsSVPGlobalMarke6ng

BrianToySVPEngineering&Opera6ons

AreatTeamtoLeadUs


15/26


Customers

Merchants

Opera3on

s

1.0

2.0

Data



Scale

Brand

Talent

Execu3ngonPreviouslyUnaddressableOpportuni3es

15

Dailydeals


16/26


MerchantMobileApp

ConsumerMobileApp

DealTypes Rewards

ROICalculator RubberbandMarke3ng

PlacesEarningsCalculator

Tooly Now!

Products

MerchantCenterOpera3onalExcellence


Scale

Brand

Talent

1


17/26


TheDensityAdvantage

Loca3ngSubscribers

Targe3ngDeals

17


18/26


On-demand,highlyperishabledealsLoca6on-basedsolu6onforconsumers

Inventorymanagementopportunityformerchants

roupon2.0:Now!

18


19/26


rouponNow!

DailyDeals

rouponRewards

Loyalty&Reten3on YieldManagement

CustomerAcquisi3on

Triforce:TheFounda3onofrouponOS

19


20/26


RewardsLoyaltyandReten3onforMerchants

20


21/26


Q1 Q2 Q Q4 Q1 Q2 Q

$40

$1,157

496%Y/YrossBillings

rossBillings Revenue2010 2011

426%Y/YRevenue

Unprecedentedrowth

21

($millions)

Note:GrossbillingsrepresentsthegrossamountwecollectfromcustomersforGrouponssold


22/26


Q2011Q22011

Rev

enueCompo

si3on

LongerTerm

100%DailyDeals

DailyDeals DailyDeals

etaways

DailyDeals

DiversifyingThroughNewCategories

22

oods

etaways

Live

Others


23/26


Cumula3veCustomers(inmillions)

16

2

0

Q12011 Q22011 Q2011

78%

54%

40%

Q12011 Q22011 Q2011

Marke3ngSpendas%ofRevenue

ProvenMarke3ngLeverage

23


24/26


=

$

Q22010

Contribu3onProfit

OurAverageCustomerSpentOver$170PerYearasofQ2011

Contribu3onProfit

ByQ2011

+$4Million

InvestmentInQ22010

-$18Million

19%

ROI

($millions)

+$6+$8

+$7

+$8

+$7

($18)

+$7

Q Q4 Q1 Q2 QQ2

Note:Contribu6onprofitdefinedasrevenuelesscostofrevenue,payrollandcommissioncostsandofflineandothermarke6ngcosts.AveragecustomerspendcalculatedasTTMgrossbillingsdividedbyaveragecumula6vecustomers

SignificantCustomerROI

24


25/26


QuarterlyCSOI($millions)

$(22) $(22)

$(11)

$19

$(14)

$(98)

$(62)

$(2)

Q42010 Q12011 Q22011 Q2011

NorthAmericanCSOI TotalCSOI

NorthAmericanCSOI

Marginof+12%

DemonstratedOpera3ngLeverage

25Note:CSOIisanon-GAAPfinancialmeasurethatrepresentstheconsolidatedopera6ng(loss)incomeofourtwosegments,NorthAmericaandInterna6onal,adjustedforacquisi6on-relatedcostsandstock-basedcompensa6onexpense;for

areconcilia6onofCSOItolossfromopera6onsseeourRegistra6onStatementonFormS-1filedwiththeSecuri6esandExchangeCommission


26/26


ThankYou

GRPN Investor Presentation

Documents

Transcript of GRPN Investor Presentation