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美國
證券交易委員會
華盛頓特區20549
表格 10-Q
根據第13或15(d)條規定的季度報告
證券交易所法案(1934年)
截至季度結束日期的財務報告2024年9月30日
或者
根據《證券交易法》第13或第15(d)條的過渡報告
證券交易法 1934年
過渡期從______到______
委託文件編號:001-398661-35335
Groupon,Inc。
(根據其章程規定的註冊人準確名稱)
特拉華27-0903295
(設立或組織的其他管轄區域)(納稅人識別號碼)
35 West Wacker Drive
60601
25樓
(郵政編碼)
芝加哥
Illinois
(773)
945-6801
,(主要行政辦公地址)(註冊人的電話號碼,包括區號)
根據法案第12(b)條註冊的證券:
每一類的名稱交易標誌在其上註冊的交易所的名稱
普通股,每股面值爲$0.0001
GRPN納斯達克全球精選市場
請在檢查標記處註明註冊人(1)是否已在證券交易法第13或15(d)條所規定的過去12個月(或註冊人需要提交此類報告的較短期間)內提交了所有必須提交的報告,並且(2)自過去90天以來一直受到此類提交要求的限制。
  沒有
請通過複選標記指示,申報人是否已根據第405條電子數據互動要求遞交了每一份Interactibe Data文件,適用於S-t法規第405條(本章第232.405條)規定的在過去12個月內(或申報人要求提交此類文件的更短期間)。
 沒有
勾選標記表明報告人是大型加速申報人,加速申報人,非加速申報人,更小的報告公司還是新興成長公司。有關「大型加速公告申報人、加速公告申報人,更小的報告公司和新興成長公司」的定義,請參見《交易法》規則120億2。
大型加速過濾器                             加速過濾器         
非加速報告人較小的報告公司
新興成長型公司
如果是新興成長型公司,在選中複選標記的同時,如果公司已選擇不使用根據證券交易法第13(a)條提供的任何新的或修訂後的財務會計準則的延長過渡期來符合新的或修訂後的財務會計準則,則表明該公司已選擇不使用根據證券交易法第13(a)條提供的任何新的或修訂後的財務會計準則的延長過渡期來符合新的或修訂後的財務會計準則。☐
請在複選標誌處註明公司是否爲殼公司(根據交易所法令第12b-2條的定義)。
是的 沒有 
截至2024年11月7日, 39,767,842 註冊人的普通股流通股數爲



目錄
頁面
第一部分. 財務信息
第二部分.其他信息









2



已定義術語和縮寫解釋
Groupon,Inc.(以下簡稱「公司」,「我們」,「我們的」,「我們」及類似術語均指Groupon,Inc.及其子公司,除非語境另有說明。除此之外,在本第10-Q表格的季度報告中,公司還使用了其他幾個術語,在下面的列表(「術語表」)中進行了定義:
縮略語描述
2011 Plan
公司的2011年激勵股票計劃,經修訂
2020年重組計劃
董事會於2020年4月批准了多階段重組計劃
2022年節約成本計劃
2022年8月董事會批准了多階段節約成本計劃
2022年重組計劃
董事會於2022年8月批准了重組計劃,該計劃包含在2022年成本節約計劃中
2024年行政PSUs
獎勵授予我們的行政團隊,根據我們股價的表現和服務條件獲得2024年PSU計劃下的PSUs
2026年票據
公司於2026年3月到期的1.125%可轉換優先債券
芝加哥西600號公司以前位於伊利諾伊州芝加哥的租賃總部
評估
外國司法管轄區對稅務評估的索賠,包括原始評估的預估利息增加部分。
會計準則更新會計準則更新
後備方Pale Fire Capital SICAV a.s.
Bank Secrecy Act銀行保密法案(1970年)
董事會公司董事會
CARD法案2009年信用卡責任和透明法案
現金抵押協議
2023年3月2日與摩根大通銀行簽訂的協議
普通股
每股面值$0.00001的公司普通股
薪酬委員會
董事會薪酬委員會
CPRA加利福尼亞隱私權法案
信貸協議
摩根大通銀行,N.A.,於2019年5月14日修訂並重新制定的信貸協議第二版本,隨時修訂,至2024年2月12日終止
EBITDA
利息、稅項、折舊與攤銷前利潤(一項非GAAP財務指標)
ESPP
2012年公司員工股票購買計劃
使擁有公司註冊證券類別10%以上股權的官員、董事或實際股東代表簽署人遞交表格3、4和5(包括修正版及有關聯合遞交協議),符合證券交易法案第16(a)條及其下屬規則規定的要求;
證券交易所法(1934年修改)第425條規定
到期日
2024年1月17日下午5:00,紐約時間,代表權益發行認購期截止日期
FASB財務會計準則委員會
普通會計準則
美國通用會計原則
GDPR
一般數據保護條例
意大利重組計劃
2024年7月,董事會批准退出意大利本地業務以及與此退出相關的重組行動
付款金額支付4310萬美元,終止根據信貸協議延伸進一步信貸的所有承諾
計算機電源供應器。
績效股票單位
限制性股票單位
受限股票單位
權益發行
董事會批准了8000萬美元的全力支持權益發行,於2023年11月20日開始向公司股東發行
季度報告
截至2024年6月30日的10-Q表季度報告
SEC證券交易委員會
證券法
1933年證券法, 經修訂版
股份購買協議
同意出售SumUp股份
銷售及行政支出銷售、一般和管理費用
SumUp
SumUp Holdings S.a.r.l,一傢俬人擁有的移動支付公司
最近十二個月過去十二個月
增值稅
增值稅
3



第一部分 財務信息
前瞻性聲明
本季度報告包含《證券法》第27條和《交易法》第21條規定的前瞻性聲明,包括關於未來經營業績和財務狀況、業務策略和計劃,以及我們未來業務和未來流動性目標的聲明。"可能","將","應該","可能","預期","預測","相信","估計","打算","持續"和其他類似表述旨在確定前瞻性聲明。我們主要根據我們對未來事件和財務趨勢的當前期望和預測,相信這些事件可能影響我們的財務狀況、經營業績、業務策略、短期和長期業務運營以及目標,以及財務需求。這些前瞻性聲明涉及可能導致我們實際結果與我們的前瞻性聲明中表述或暗示的結果實質上不同的風險和不確定性。這些風險和不確定性包括但不限於,我們執行並實現前進策略預期收益的能力;執行我們的業務和營銷策略;我們經營結果的波動性;由國際業務產生的挑戰,包括貨幣匯率波動、我們所在司法管轄區域的稅收、法律和監管發展以及烏克蘭和中東衝突導致的地緣政治動盪;全球經濟不確定性,包括通貨膨脹壓力的結果;美國和國際金融改革法律和法規,以及任何潛在貿易保護措施,如新增或增量關稅的影響;保留和吸納高質量商家和第三方業務夥伴;保留現有客戶並吸引新客戶;在我們的行業成功競爭;爲客戶提供強大的移動體驗;管理退款風險;保留和吸引我們的高管團隊和其他合格員工和人員;客戶和商家欺詐;與支付相關的風險;我們依賴電子郵件、互聯網搜索引擎和移動應用市場驅動我們市場的流量;網絡安全漏洞;維護和改善我們的信息技術基礎設施;依賴基於雲的計算平台;完成並實現收購、出售、合資和戰略投資預期收益;對少數投資缺乏控制;管理庫存和訂單履行風險;與產品和服務提供相關的索賠;保護我們的知識產權;維護強大的品牌;未來和待決訴訟影響;遵守國內外法律和法規,包括卡片法案、GDPR、CPRA以及互聯網和電子商務相關的其他隱私法律和法規;對我們的獨立承包商、代理工作者或員工分類的能力;我們能否糾正我公司材料缺陷的內部財務報告控制風險;與在我們網站上發佈或提供的信息或內容相關的索賠;暴露給比預期更大的稅務責任;採用稅法;我們能否使用我們的稅收屬性;如果我們成爲《銀行保密法》或其他反洗錢或貨幣傳輸法律或法規的對象將產生的影響;如有必要,我們籌集資本的能力;與我們融資渠道和未償債務相關的風險,包括我們2026年的票據;我們的普通股,包括我們股票價格的波動性;我們能否實現我們2026年票據有關限制性認購期權交易的預期收益;以及在我們2023年12月31日年度報告第I部分第1A項。我們在2024年3月31日,2024年6月30日和2024年9月30日報告的基本報表第I部分第1A項中討論的那些風險和其他因素,以及在本報告其他部分和我們在美國證券交易委員會的其他備案中出現的彙總財務報表,相關附註以及其他財務信息。此外,我們公司在一個競爭激烈且迅速變化的環境中運營。新的風險不時出現。我們的管理無法預測所有風險,也無法評估所有因素對我們業務可能造成的影響,或任何因素或因素組合可能導致實際結果與我們做出的任何前瞻性聲明實質上不同的程度。公司或其他任何人均不對前瞻性聲明的準確性和完整性負責。我們不承諾在本報告日期之後因任何原因公開更新任何前瞻性聲明,以使這些聲明符合實際結果或未來事件或情況。鑑於這些風險和不確定性,讀者被告以不過度依賴這些前瞻性聲明。

4


項目1. 基本報表和附加資料

GROUPON, INC.
縮表合併資產負債表
(以千為單位,股票和每股金額除外)
(未經審核)

2024年9月30日2023年12月31日
資產
流動資產:
現金及現金等價物$159,710 $141,563 
應收帳款淨額40,126 50,373 
預付費用及其他流動資產 46,775 63,647 
全部流動資產246,611 255,583 
不動產、設備及軟體,淨值20,326 30,530 
租賃資產-營運租賃,淨額2,830 2,197 
商譽178,685 178,685 
無形資產,扣除累計攤銷5,170 11,404 
投資74,823 74,823 
递延所得税11,864 11,639 
其他非流動資產7,705 6,095 
資產總額$548,014 $570,956 
負債及股權(赤字)
流動負債:
短期借款$ $42,776 
應付帳款12,749 15,016 
應付商戶及供應商款項152,262 209,423 
應計費用及其他流動負債99,237 101,939 
流動負債合計264,248 369,154 
可轉換優先票據,淨額227,650 226,470 
營運租賃負債933 2,382 
其他非流動負債14,973 13,262 
總負債507,804 611,268 
承諾和或許事項(請參閱附註6)
股東權益(赤字)
普通股,面值$13,404,540,截至2024年6月30日已發行股票數為13,404,540股,截至2023年12月31日已發行股票數為13,312,568股0.0001 每份股份, 100,500,000 授權股數; 50,057,026 截至2023年12月31日,分別有股發行並; 39,762,909 於2024年9月30日股份總數; 42,147,266 於2023年12月31日已發行股份及 31,853,149 於2023年12月31日股份總數
5 4 
資本公積額額外增資2,432,705 2,337,565 
按成本核算的庫藏股 10,294,117 截至2024年9月30日及2023年12月31日時之股數
(922,666)(922,666)
累積虧損(1,458,265)(1,449,887)
其他綜合損益(損失)累積額(11,785)(5,647)
總共Groupon,Inc.股東權益(赤字)39,994 (40,631)
非控制權益216 319 
資本總額(赤字)40,210 (40,312)
總負債及權益(赤字)$548,014 $570,956 


參閱簡明合併基本報表附註。
5

GROUPON,INC.
綜合損益及綜合收益(虧損)總合財務報表
(以千為單位,股票和每股金額除外)
(未經審核)

截至9月30日的三個月 九個月截至九月三十日
2024202320242023
營收$114,479 $126,474 $362,178 $377,194 
營業成本11,584 15,796 36,059 48,840 
毛利潤102,895 110,678 326,119 328,354 
營業費用:
行銷36,258 28,898 101,587 76,013 
銷售、總務和行政費用71,327 80,016 222,937 277,913 
重組及相關費用
896 2,228 613 10,333 
資產出售盈利
  (5,160) 
總營業費用108,481 111,142 319,977 364,259 
營業收入(虧損)(5,586)(464)6,142 (35,905)
其他收入(費用),淨額22,429 (39,525)5,264 (41,260)
稅前(收益)損失扣除所得稅預備金(利益)16,843 (39,989)11,406 (77,165)
所得稅費用(效益)2,321 817 17,802 4,258 
凈利潤(虧損)14,522 (40,806)(6,396)(81,423)
歸屬於非控制權益的淨(收益)損失(594)(552)(1,982)(1,689)
歸屬於Groupon, Inc.的淨利(損)$13,928 $(41,358)$(8,378)$(83,112)
每股凈收益:
基本
$0.35 $(1.31)$(0.22)$(2.68)
稀釋
$0.33 $(1.31)$(0.22)$(2.68)
加權平均已發行流通股數:
基本
39,748,268 31,500,489 38,966,238 31,039,668 
稀釋
45,014,446 31,500,489 38,966,238 31,039,668 
綜合收益(虧損):
凈利潤(虧損)$14,522 $(40,806)$(6,396)$(81,423)
其他綜合損益:
外幣翻譯調整之未實現損益淨變動(23,092)11,141 (6,138)11,038 
綜合收益(損失)(8,570)(29,665)(12,534)(70,385)
綜合(收入)損失歸屬於非控股權益(594)(552)(1,982)(1,689)
歸屬於Groupon, Inc.的綜合收益(損失) $(9,164)$(30,217)$(14,516)$(72,074)

參閱簡明合併基本報表附註。
6

GROUPON, INC.
股東權益(赤字)簡明綜合財務報表
(以千為單位,除股份數以外)
(未經審計)




Groupon, Inc.股東權益(赤字)
 普通股票資本公積金庫藏股累積虧損累積其他全面收益(損失)Groupon, Inc.股東權益總額(赤字)非控股權益總權益(赤字)
股份數量股份數量
2023年12月31日餘額42,147,266 $4 $2,337,565 (10,294,117)$(922,666)$(1,449,887)$(5,647)$(40,631)$319 $(40,312)
綜合收益(損失)— — — — — (12,271)12,352 81 765 846 
IPO擔保(扣除發行成本)
7,079,646 1 79,618 — — — — 79,619 — 79,619 
RSU的分配
55,162 — — — — — — — — — 
根據ESPP發行的股份
5,388 — 28 — — — — 28 — 28 
與股票基礎補償獎勵凈股份結算相關的稅金代扣(15,130)— (356)— — — — (356)— (356)
權益類獎勵的股票基礎補償— — 2,427 — — — — 2,427 — 2,427 
對非控制權益持有人的分紅派息— — — — — — — — (827)(827)
2024年3月31日止結餘49,272,332 $5 $2,419,282 (10,294,117)$(922,666)$(1,462,158)$6,705 $41,168 $257 $41,425 
綜合收益(損失)— — — — — (10,035)4,602 (5,433)623 (4,810)
RSU和PSU的分配
877,372 — — — — — — — — — 
與股票為基礎的薪酬獎勵的淨股份結算相關的稅款代扣(151,446)— (1,967)— — — — (1,967)— (1,967)
股票為基礎的薪酬在歸屬於權益類別的獎勵上— — 6,465 — — — — 6,465 — 6,465 
對非控制權益持有人的分紅派息— — — — — — — — (703)(703)
2024年6月30日餘額49,998,258 $5 $2,423,780 (10,294,117)$(922,666)$(1,472,193)$11,307 $40,233 $177 $40,410 
綜合收益(損失)— — — — — 13,928 (23,092)(9,164)594 (8,570)
RSUs和PSUs的授予
56,513 — — — — — — — — — 
根據ESPP發行的股份
6,224 — 64 — — — — 64 — 64 
與股票為基礎的薪酬獎勵的淨股份結算相關的稅款代扣(3,969)— (69)— — — — (69)— (69)
股份類股票酬勞— — 8,930 — — — — 8,930 — 8,930 
對非控制權益持有人的分紅派息— — — — — — — — (555)(555)
2024年9月30日結餘50,057,026 $5 $2,432,705 (10,294,117)$(922,666)$(1,458,265)$(11,785)$39,994 $216 $40,210 

7

GROUPON, INC.
股東權益(赤字)簡明綜合財務報表
(以千為單位,除股份數以外)
(未經審計)



格魯普股份有限公司股東權益(赤字)
普通股 額外支付資本庫務股票累積赤字累計其他綜合收益(虧損)群浦公司股東權益總額(赤字)非控制權益總資本(赤字)
股票金額股票金額
二零二二年十二月三十一日結餘40,786,996 $4 $2,322,672 (10,294,117)$(922,666)$(1,394,477)$2,942 $8,475 $383 $8,858 
綜合收益(虧損)— — — — — (29,147)(5,848)(34,995)534 (34,461)
RSU 和 PSU 的權益
420,471 — — — — — — — — — 
根據 ESPP 發行的股份
33,803 — 246 — — — — 246 — 246 
與股票基本補償獎項淨股結算有關的預扣稅(140,819)— (1,031)— — — — (1,031)— (1,031)
股票分類獎勵的股票賠償— — 2,547 — — — — 2,547 — 2,547 
分派給非控股權益持有人— — — — — — — — (637)(637)
二零二三年三月三十一日結餘41,100,451 $4 $2,324,434 (10,294,117)$(922,666)$(1,423,624)$(2,906)$(24,758)$280 $(24,478)
綜合收益(虧損)— — — — — (12,607)5,745 (6,862)603 (6,259)
RSU 和 PSU 的權益
689,050 — — — — — — — — — 
與股票基本補償獎項淨股結算有關的預扣稅(268,367)— (1,207)— — — — (1,207)— (1,207)
股票分類獎勵的股票賠償— — 7,809 — — — — 7,809 — 7,809 
分派給非控股權益持有人— — — — — — — — (692)(692)
二零二三年六月三十日結餘41,521,134 $4 $2,331,036 (10,294,117)$(922,666)$(1,436,231)$2,839 $(25,018)$191 $(24,827)
綜合收益(虧損)— — — — — (41,358)11,141 (30,217)552 (29,665)
行使股票期權
437,500 2,625 2,625 2,625 
RSU 和 PSU 的權益
250,709 — — — — — — — — — 
根據 ESPP 發行的股份
12,076 — 61 — — — — 61 — 61 
與股票基本補償獎項淨股結算有關的預扣稅(89,184)— (980)— — — — (980)— (980)
股票分類獎勵的股票賠償— — 4,088 — — — — 4,088 — 4,088 
分派給非控股權益持有人— — — — — — — — (571)(571)
二零二三年九月三十日止餘額42,132,235 $4 $2,336,830 (10,294,117)$(922,666)$(1,477,589)$13,980 $(49,441)$172 $(49,269)
參閱簡明合併基本報表附註。
8

GROUPON,INC.
簡明財務報表現金流量表
(以千為單位)
(未經審計)
 九個月截至九月三十日
 20242023
營運活動  
凈利潤(虧損)$(6,396)$(81,423)
調整以便調和 凈利潤相對於營運活動現金提供者:
財產、設備和軟體的折舊和攤銷21,903 34,110 
取得無形資產攤銷2,609 6,206 
股票酬勞17,682 13,771 
投資公平價值變動溢利(損失)
 25,751 
外匯(收益)虧損,凈(4,801)9,528 
外國增值稅評估
8,692  
資產出售盈利
(5,160) 
資產及負債變動:
應收帳款10,678 10,225 
預付費用及其他流動資產19,294 14,357 
租賃財產 − 經營租賃1,830 7,985 
應付帳款(2,290)(49,082)
應付商戶及供應商款項(57,749)(52,497)
應計費用及其他流動負債(9,616)(44,716)
營運租賃負債(4,618)(22,011)
終止租約提前支付(1,832)(9,724)
其他,淨值(1,295)5,035 
營運活動之淨現金提供(使用)量(11,069)(132,485)
投資活動
購買資產和設備以及資本化軟體(11,591)(15,917)
售賣資產所得,扣除費用
9,116 1,475 
取得無形資產及其他投資活動(595)(2,523)
投資活動提供的(使用的)淨現金(3,070)(16,965)
融資活動
根據循環信貸協議支付借款款項(42,776)(28,300)
權益發行所得,扣除發行成本
79,619  
與以股份為基礎的薪酬獎勵淨股份結算相關的稅金(1,457)(3,126)
50,000(2,457)473 
籌資活動提供的淨現金32,929 (30,953)
匯率變動對現金、現金等價物及限制性現金的影響1,788 34 
現金、現金等價物及受限現金的淨增(減)20,578 (180,369)
期初现金、现金等价物及受限现金 (1)
167,638 281,696 
期末现金、现金等价物及受限现金 (1)
$188,216 $101,327 
        
九個月截至九月三十日
20242023
現金流量資訊的補充披露:
支付利息的現金$3,013 $5,713 
所得稅支付10,527 4,833 
購買資產和設備及資本化軟體相關負債增加(減少)185 (1,999)
我們租賃責任的補充現金流資訊
支付與經營租賃負債計量有關之金額的現金$4,559 $21,032 
作為營業租賃負債獲得的使用權資產為$33,874和$124,868。2,383 543 

9

GROUPON,INC.
簡明財務報表現金流量表
(以千為單位)
(未經審計)
(1)以下表格提供了截至2024年9月30日、2023年12月31日、2023年9月30日和2022年12月31日的簡明合併資產負債表內報告金額與上述現金、現金等價物和受限現金之調解(單位:千元):
2024年9月30日2023年12月31日2023年9月30日2022年12月31日
現金及現金等價物$159,710 $141,563 $86,085 $281,279 
報預期及其他流動資產内的受限現金28,506 26,075 15,242 417 
現金、約略等同於現金及受限制的現金$188,216 $167,638 $101,327 $281,696 
見附註至精簡合併財務報表。
10

GROUPON, INC.
基本報表附註
(未審核)

備註 1。 業務描述和簡報基礎
公司資料
Groupon, Inc.及其子公司自2008年10月開始運營,是一個全球規模的雙邊市場,通過提供商品和服務將消費者與商家聯繫起來,通常以折扣價格提供。消費者通過我們的移動應用程式和網站訪問這些市場。
我們的業務被分為 兩個 個部分:北美洲和國際。參見附注 13, 分段資訊,以獲得更多資訊。
未經審計的中期財務資訊
我們已按照GAAP和SEC的適用法規,為中期財務報告準備了附屬的綜合總合基本報表。這些綜合總合基本報表尚未經審核,在我們看來包含所有調整,包括正常的週期性調整和應計數項,以便對所呈現的綜合總合資產負債表、綜合損益表、現金流量表和股東權益(或欠債)公正呈現。應閱讀這些綜合總合基本報表和附註,並搭配我們截至2023年12月31日年度報告中包含的經審計綜合基本報表和附註。
合併原則
簡明的合併財務報表包括Groupon,Inc.及其全部擁有的子公司,我們行使控制權的大部分持股子公司以及我們是主要受益人的變動利益實體。所有關聯公司帳戶和交易在合併中已被消除。子公司外部股東的權益顯示在簡明的合併財務報表中作為非控股權益。對我們沒有控制金融權益的實體的投資按公允價值或已公告價格變動和損耗經適當調整的成本進行核算。
估計的使用
依據GAAP準則準備基本報表需要管理層進行估計和假設,並會影響簡明綜合財務報表及附註中所報告的金額。我們基本報表中的估計包括但不限於以下內容:未兌換禮券的變量考量; 所得稅; 租賃; 商譽、其他無形資產和長壽資產的初始評估和後續減值測試; 投資; 應收款項; 客戶退款和其他儲備金; 或有負債; 以及財產、設備和軟體及無形資產的可用壽命。實際結果可能與這些估計有實質差異。
重新分類
基本報表之前期間的簡明合併財務報表已進行某些重分類,以符合當前期間的呈現形式。
採用新會計準則
在2024年9月30日結束的三個月和九個月內,沒有採納任何新的會計準則。
11


GROUPON, INC.
總部簡明合併基本報表附註(續)
(未經審計)
最近發布的會計準則
在2023年11月,FASB發布了ASU 2023-07。 分部報告(主題280):改善可報告分部披露 擴展了每年和中期披露要求,主要是透過關於定期提供給首席營運決策者的重要部門費用的額外披露,並納入利潤或損失的部門計量。該要求還要求解釋首席營運決策者如何使用部門的利潤或損失計量來評估部門績效並分配資源。 本ASU對於2023年12月15日後開始的財政年度和2024年12月15日後開始的財政年度內的中期時段生效。公司正在評估這項指引可能對我們的披露產生的影響。
2023年12月,FASB發布了ASU 2023-09(第740號課題) 改進所得稅披露。ASU 2023-09要求公司每年披露有效稅率協調中的具體類別,並提供有關滿足定量門檻的協調項目的額外資訊。此外,ASU 2023-09要求公司披露更多關於所支付所得稅的信息。ASU 2023-09將從2025年1月1日開始的年度週期生效,並將採用前瞻性基礎,並選擇性地回顧性地應用該標準。公司正在評估ASU 2023-09的披露影響。 所得稅(第740號題目):所得稅披露的改善,(“ASU 2023-09”)。 ASU 2023-09要求實體披露具體的稅率調和類別,以及按司法管轄區分離披露所得稅等其他披露增強功能。對於公開實體,ASU 2023-09從2024年12月15日開始的年度期間起生效,允許提前適用。公司正在評估與新標準相關的披露要求。 要求公司在其所得稅率調解中披露特定額外資訊並提供符合定量閾值的調解項目的額外資訊。 本頒布公報自2024年12月15日後開始生效。 公司正在評估本指引可能對我們的披露產生的影響。
註 2。 商譽和長期資產
商譽
截至2024年9月30日和2023年12月31日,我們的商譽餘額為$178.7 百萬。在截至2024年9月30日的九個月內,未出現任何商譽活動。所有商譽均在我們的北美板塊中。

長期資產
在2024年3月,我們與第三方簽訂協議,以現金對價售出某些無形資產的權利,金額為$10.0 百萬,並附有許可回購條款,允許在我們的業務正常運作中持續使用該等資產。該筆交易於2024年4月完成,並帶來了$5.0 百萬的稅前利潤。該稅前利潤在截至2024年9月30日的九個月的簡明合併運營報表中以資產出售利潤形式呈現。現金活動在簡明合併現金流量表的投資部分中呈現,並包括收到的現金對價$10.0百萬,減去$1.0百萬的費用。這些資產位於我們的北美業務部門內。

以下表格摘要了2024年9月30日和2023年12月31日的無形資產(以千元計):
2024年9月30日2023年12月31日
總額資產價值累計攤銷淨攜帶價值總額資產價值累積攤銷淨資產價值
商戶關係$19,823 $19,823 $ $18,842 $17,944 $898 
商標名稱9,585 9,081 504 9,459 8,753 706 
專利 (1)
1,250 945 305 13,235 7,237 5,998 
其他無形資產10,517 6,156 4,361 9,318 5,516 3,802 
總計$41,175 $36,005 $5,170 $50,854 $39,450 $11,404 
(1) 净带入价值变动主要是由于某些无形资产的出售。
12

GROUPON, INC.
總部簡明合併基本報表附註(續)
(未經審計)
無形資產的攤銷是使用直線法在其估計使用壽命內進行計算,其區間從 110 年。與無形資產相關的攤銷費用為三個月截至2024年和2023年的0.4 百萬和 $2.0 百萬美元,截至2024年和2023年的九個月的攤銷費用為2.6 百萬和 $6.2 百萬美元。截至2024年9月30日,與無形資產相關的預估未來攤銷費用如下(以千為單位): 在2024年9月30日,與無形資產相關的預估未來攤銷費用如下(以千為單位):

2024年剩餘金額$405 
20251,524 
20261,235 
20271,069 
2028853 
此後84 
總計$5,170 
注意:3。 投資
截至2024年9月30日及2023年12月31日,我們在其他股權投資方面的帳面價值為$74.8 百萬,涉及我們對SumUp的非控股股權利益,我們的可供出售證券和公允價值選擇投資帳面價值為 。截至2024年9月30日結束的三個月和九個月內,我們的投資的公允價值沒有變動。
其他股权投资指的是以成本调整为准的、没有明确可确定公允价值的股权投资。在2023年第三季度,我们对我们在SumUp的投资进行了重新计量,导致价值下降$25.8 百万。此重新计量代表非现金投资活动。此损失是由于欧元基础上的股价下降以及美元对欧元的外汇贬值驱动的。重新计量导致的亏损分类在2023年9月30日止三个月和九个月的综合损益表的其他收入(费用),净中。

以下表格概述了我們對投資的百分比所有權,截至下面所注明的日期:
2024年9月30日和2023年12月31日
其他股權投資 1%19%
可供出售證券 1%19%
公允價值選擇投資10%19%
備註4。 補充簡明綜合資產負債表和綜合收支表信息
以下表格總結了2024年9月30日和2023年12月31日的預付費用和其他流動資產(單位:千元):
2024年9月30日2023年12月31日
預付款項$10,812 $9,799 
所得稅應收2,582 5,349 
雲端實施成本之遞延,淨額 (1)
389 14,627 
限制性現金 (2)
28,506 26,075 
其他4,486 7,797 
預付費用及其他流動資產總額$46,775 $63,647 
(1) 這筆延遲的雲端實施成本減少,與攤銷相關。
(2) 主要包括與我們保函相關的現金抵押品。詳見附註5, 融資安排, 有關更多資訊.
13

GROUPON, INC.
總部簡明合併基本報表附註(續)
(未經審計)
以下表格摘要了2024年9月30日和2023年12月31日的其他非流動資產(以千元計):
2024年9月30日2023年12月31日
延遲支付合同取得成本,淨額
$2,921 $2,940 
其他4,784 3,155 
其他非流動資產總額$7,705 $6,095 
以下表格总结了截至2024年9月30日和2023年12月31日的应计费用和其他流动负债(以千元计):
2024年9月30日2023年12月31日
退款備付金$4,233 $4,445 
薪資和福利11,630 10,717 
已計提的行銷費用10,160 8,771 
客戶信用額度23,834 26,595 
營運租賃負債
4,173 7,121 
應納所得稅款
6,164 1,072 
外國增值稅評估 (1)
8,874  
應計顧問和專業費用
3,475 4,295 
其他26,694 38,923 
總應計費用及其他流動負債$99,237 $101,939 
(1) 請參閱附註6, 承諾和條件,以獲取額外信息。
下表总结了2024年9月30日和2023年12月31日的其他非流动负债(单位:千美元):
2024年9月30日2023年12月31日
應付有關收入稅的責任$11,261 $9,373 
递延所得税2,553 2,525 
其他1,159 1,364 
其他非流動負債總額$14,973 $13,262 
以下表格彙總了2024年和2023年9月30日結束的三個月和九個月的其他收入(費用),淨額(以千為單位):
截至9月30日的三個月 九個月截至九月三十日
2024202320242023
利息收入$1,480 $1,002 $3,811 $9,749 
利息支出(2,111)(2,834)(6,037)(13,949)
投資淨公允價值變動溢(損)利 (1)
 (25,847) (25,847)
外幣兌換淨利(損)及其他 (2)
23,060 (11,846)7,490 (11,213)
其他綜合損益數額,淨額
$22,429 $(39,525)$5,264 $(41,260)
(1) 2023年9月30日結束的三個月和九個月的投資公平價值變動收益(虧損)是因為對我們在SumUp的投資重新計量。請參見註3。 投資 以獲取額外資訊。
(2)截至2024年9月30日止三個月和九個月的外幣匯兌淨及其他,主要是由於我們與子公司之間的內部結餘出現有利的外幣波動。
14

GROUPON, INC.
總部簡明合併基本報表附註(續)
(未經審計)
備註 5。 融資安排
可轉換高級票據,到期於2026年
2026年票據的利率為 1.125每年3月15日和9月15日向後支付,年實際有效利率為 1.83%。2026年票據將於2026年3月15日到期,如有提早贖回、贖回或轉換,則另行處理。
2026年票據的攜帶金額截至2024年9月30日和2023年12月31日如下(單位:千元):
2024年9月30日2023年12月31日
本金金額$230,000 $230,000 
較少:債務折扣(2,350)(3,530)
負債的淨攜帶金額$227,650 $226,470 
基於缺乏市場觀察數據,我們將2026年票據的公平價值分類為第3級測量,例如我們的股票價格波動及我們的負債成本。截至2024年9月30日和2023年12月31日,2026年票據的估計公平價值 $206.2 百萬 和$141.9 萬,是使用格點模型確定的。
截至2024年和2023年9月30日止三個月和九個月,我們對2026年的票據確認的利息成本如下(以千為計):
截至九月三十日止三個月, 截至九月三十日止九個月
2024202320242023
合約利益$539 $647 $1,916 $1,941 
債務折扣攤銷395 388 1,180 1,158 
總計 $934 $1,035 $3,096 $3,099 
帽式看漲交易
關於2026年債券,我們進行了私下協商的限制看漲交易。這些限制看漲交易涵蓋的是對2026年債券最初所承載的普通股份數量,且受到慣例調整的影響。這些限制看漲交易預計通常會減少我們的普通股在任何2026年債券轉換時的潛在稀釋,並/或抵銷我們需要支付的任何超出轉換債券本金金額的現金支付,該稀釋和/或抵銷受到最初為$的上限限制104.80 (這代表納斯達克全球貨幣2021年3月22日最後報告的我們普通股拋售價格的% 100)受限制看漲交易條款規定的特定調整影響
Convertible Senior Notes due 2027

On November 12, 2024, the Company entered into privately-negotiated agreements (the “Exchange and Subscription Agreements”) with a limited number of existing holders of the Company’s currently outstanding 2026 Notes (such existing holders, the “Offering Participants”). The Offering Participants are institutional “accredited investors” (within the meaning of Rule 501(a)(1), (2), (3) or (7) promulgated under the Securities Act of 1933, as amended (the “Securities Act”)) and/or “qualified institutional buyers” (as defined in Rule 144A under the Securities Act).
根據交換及認購協議,本公司將 (i) 兌換 $176.3發行參與者持有的 2026 年債券總本金額百萬元總本金額176.3本公司新發行的總本金百萬 6.25% 2027 年到期的可換股高級保證債券(「2027 年債券」)(「交易所」)及 (ii) 發行並出售給某些發行參與者 $21.02027 年債券的百萬元總本金額,其現金收益總額為 $20.0百萬 (代表發行價格為 95%)(「認購交易」,並與交易所一起,「交易」)。2027 年債券預計將發行至
在證券法第4(a)(2)條的規定下,定向增發的認購方免除登記。公司正在依賴這項免登記的豁免,部分是基於認購方在交易和認購協議中所作的陳述。
2027年債券的初始換股比率將是33.333股公司普通股,面值$0.0001 每$1,000 2027年債券的初始換股價格為約$30 每股),適用慣例調整。2027年債券將可按照公司選擇,換股為普通股、現金和普通股的組合。除非此類資產出售,否則公司可能需要支付2027年債券本金的 2.5%,以年利率計算,以補償未將某些資產作為2027年債券擔保品的情況,除非該資產出售。
預計交易將於2024年11月12日左右結束,視常規結束條件而定。
循環信用協議
2024年2月,我們預先支付$43.1百萬,以用部分從權益發行籌得的$80.0百萬為代價終止根據信貸協議取得進一步信貸的所有承諾。清償金額包括$42.8百萬本金、$0.1百萬利息和$0.2百萬費用。權益發行的條款允許公司將籌得款項用於一般企業用途,包括償還債務。我們並不受信貸協議的任何提前終止罰款的約束。支付清償金額終止了我們根據信貸協議的義務,除了正常和習慣的生存條款。此外,根據我們現有的保證金協議,我們保留了最初在信貸協議下可使用的信用證的取得權。
截至2024年9月30日和2023年12月31日,根據現金擔保協議和信貸協議所承諾的信用證金額及未償借款如下(單位:千元):
二零二四年九月三十日二零三年十二月三十一日
信用證(1)
$26,456 $25,200 
借貸
 42,776 

(1)根據現金抵押協議,所有信用狀均需要保證金,並列為簡明合併資產負債表上的受限制現金。詳見附註4, 補充簡明合併資產負債表和營運表資訊, 以獲取更多資訊.
注意事項 6. 承諾和應付款項
截至2024年9月30日及本報告日期,我們的合同義務和承諾沒有實質性改變,與我們在2023年10-K表格年報中列示的金額相比,僅有下文所述的情況除外。
合約義務
2024年7月,我們終止了與其中一家雲計算服務商相關的合約義務,並與同一家供應商簽訂了新的合約義務。因此,預計未來淨支付金額將減少$2.7 百萬,剩餘2024年部分將減少$3.0 百萬,2025年將減少$15.0 百萬,並且2026年將增加$9.3 百萬,從而將總未來淨支付金額增加$百萬。
此外,Gropupon S.r.l.已尋求並獲得分期付款計畫的批准,其中臨時付款可能按比例分期存入每月分期付款。參見附註10, 所得稅 有關信息,請參閱該頁。
法律事項和其他應變措施
15

GROUPON, INC.
總部簡明合併基本報表附註(續)
(未經審計)
我們不時參與與業務運作有關的各種法律訴訟。例如,我們目前正參與商戶提起的法律訴訟、僱傭和相關事項、知識產權侵權訴訟、顧客訴訟、股東根據美國證券法提出的索賠、消費者集體訴訟以及指控違反州消費者保護或隱私法等訴訟。
截至2024年9月30日,我們就葡萄牙增值稅估稅提起上訴,涉及2013年至2015年期間約xx百萬美元,包括罰款和利息。4.3 在2023年11月和2024年5月下級法院做出否定裁決後,我們向最高級法院提起最終上訴。在2024年10月31日,我們得知最高級法院拒絕審理我們的上訴,相關稅務估算變為最終並於第四季度到期。截至2024年6月30日的季度,我們在總體綜合財務狀況表中記錄xx百萬美元的條件性負債,並在營運總表中認列有關銷售、總務及行政費用中的xx百萬美元稅款和罰款,以及其他收入(費用)淨額中xx百萬美元的利息費用。我們目前擁有一筆xx百萬美元的銀行保證,以應對該項估算,並作為2024年9月30日我們總體綜合財務狀況表中限制性現金來進行分類。4.1講只是一這裡需要翻譯或增值增值稅已為其他可追溯賬套及2024年3.3講只是一這裡需要翻譯以操由於2024年,我們積極的對於可大量或可増值稅稅以所需0.8我們目前持有一筆與該項估算相關的xx百萬美元銀行保證,作為截至2024年9月30日我們總體綜合財務狀況表中限制現金的分類。3.9講只是一這裡需要翻譯作為2024年
In 2015, we lodged an appeal in the Portuguese courts relating to a Portugal VAT assessment for the periods from 2011 to 2012 of up to $4.6 million, inclusive of penalties and interest through September 30, 2024. On October 31, 2024, we learned we received a negative ruling at the lowest level court. We expect to lodge an appeal to the second-level court and assert factual and legal challenges to the assessment. We recorded a contingent liability of $4.6 million in our Condensed Consolidated Balance Sheets as of September 30, 2024. We also recognized expenses in our Condensed Consolidated Statement of Operations for $3.7 million of taxes and penalties within Selling, general and administrative and $0.9 million of interest expense within Other income (expense), net. The Company recorded this liability after concluding that an adverse outcome is now probable, in light of the developments described above. We currently have a bank guarantee of $4.2 million in place relating to the assessment that is classified as restricted cash in our Condensed Consolidated Balance Sheets as of September 30, 2024.
A Groupon subsidiary in Italy, Groupon S.r.l., is presently litigating a tax dispute with the Italian tax authorities relating to a $125.4 million assessment, inclusive of taxes, penalties and interest through September 30, 2024. A hearing on the second-level appeal was held on September 24, 2024. On October 1, 2024, the court issued an unfavorable ruling on the appeal in favor of the Italian tax authorities. We are awaiting the official filing of the ruling that will include the rationale for the court’s decision. When the ruling of the second-level appellate court is ultimately issued, Groupon S.r.l. will have six months from that date to appeal to the Italian Supreme Court. If Groupon S.r.l. loses that appeal, Groupon S.r.l. plans to further challenge the Assessment and seek relief in an international Mutual Agreement Procedure that involves the tax authorities of Ireland and Italy. The Company continues to believe that the assessment, which primarily relates to transfer pricing on transactions occurring in 2011, is without merit. The subsidiary continues to vigorously defend itself in this matter and believes it will prevail on the merits of the case. Refer to Note 10, Income Taxes for additional information.
In June 2023, Groupon was granted final approval of a settlement that resolved four shareholder derivative lawsuits in relation to a previously settled lawsuit that alleged that Groupon and certain of its officers made materially false and/or misleading statements or omissions regarding its business, operations and prospects, specifically as it relates to reiterating its full year guidance on November 4, 2019 and the Groupon Select program. Under the settlement, Groupon agreed to undertake certain corporate reforms. The Court awarded attorneys' fees in the amount of $950,000 to Plaintiffs' counsel. That amount was covered under Groupon's insurance policies and was paid directly by Groupon's insurance carriers in July 2023.
In addition, third parties have from time to time claimed, and others may claim in the future, that we have infringed their intellectual property rights. We are subject to intellectual property disputes, including patent infringement claims, and expect that we will continue to be subject to intellectual property infringement claims as our services expand in scope and complexity. In the past and/or at present, we have litigated patent infringement and other intellectual property-related claims, including pending litigation or trademark disputes relating to, for example, our Goods category, some of which involved or could have involved potentially substantial claims for damages or injunctive relief. We may also become more vulnerable to third-party claims as laws such as the
16

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
Digital Millennium Copyright Act are interpreted by the courts, and we become subject to laws in jurisdictions where the underlying laws with respect to the potential liability of online intermediaries are either unclear or less favorable. We believe that additional lawsuits alleging that we have violated patent, copyright or trademark laws may be filed against us. Intellectual property claims, whether meritorious or not, are time consuming and often costly to resolve, could require expensive changes in our methods of doing business or the goods we sell, or could require us to enter into costly royalty or licensing agreements.
We also are subject to consumer claims or lawsuits relating to alleged violations of consumer protection or privacy rights and statutes, some of which could involve potentially substantial claims for damages, including statutory or punitive damages. Consumer and privacy-related claims or lawsuits, whether meritorious or not, could be time consuming, result in costly litigation, damage awards, fines and penalties, injunctive relief or increased costs of doing business through adverse judgment or settlement, or require us to change our business practices, sometimes in expensive ways.
We are also subject to, or in the future may become subject to, a variety of regulatory inquiries, audits, and investigations across the jurisdictions where we conduct our business, including, for example, inquiries related to consumer protection, employment matters and/or hiring practices, marketing practices, tax, unclaimed property and privacy rules and regulations. Any regulatory actions against us, whether meritorious or not, could be time consuming, result in costly litigation, damage awards, fines and penalties, injunctive relief or increased costs of doing business through adverse judgment or settlement, require us to change our business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources, materially damage our brand or reputation, or otherwise harm our business.
We establish an accrued liability for loss contingencies related to legal, regulatory and indirect tax matters when the loss is both probable and reasonably estimable. Those accruals represent management's best estimate of probable losses and, in such cases, there may be an exposure to loss in excess of the amounts accrued. For certain of the matters described above, there are inherent and significant uncertainties based on, among other factors, the stage of the proceedings, developments in the applicable facts of law, or the lack of a specific damage claim. However, we believe that the amount of reasonably possible losses in excess of the amounts accrued for those matters would not have a material adverse effect on our business, consolidated financial position, results of operations or cash flows. Our accrued liabilities for loss contingencies related to legal, regulatory and indirect tax matters may change in the future as a result of new developments, including, but not limited to, the occurrence of new legal matters, changes in the law or regulatory environment, adverse or favorable rulings, newly discovered facts relevant to the matter, or changes in the strategy for the matter. Regardless of the outcome, litigation and other regulatory matters can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
Indemnifications
In connection with the disposition of our operations in Latin America in 2017, we recorded $5.4 million in indemnification liabilities for certain tax and other matters upon the closing of the transactions as an adjustment to the net loss on the dispositions within discontinued operations at their fair value. We estimated the indemnification liabilities using a probability-weighted expected cash flow approach. Our remaining indemnification liabilities were $2.8 million as of September 30, 2024. We estimate that the total amount of obligations that are reasonably possible to arise under the indemnifications in excess of amounts accrued as of September 30, 2024 were approximately $11.7 million.
In the normal course of business to facilitate transactions related to our operations, we indemnify certain parties, including employees, lessors, service providers, merchants and counterparties to investment agreements and asset and stock purchase agreements with respect to various matters. We have agreed to hold certain parties harmless against losses arising from a breach of representations or covenants, or other claims made against those parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. We are also subject to increased exposure to various claims as a result of our divestitures and acquisitions. We may also become more vulnerable to claims as we expand the range and scope of our services and are subject to laws in jurisdictions where the underlying laws with respect to potential liability are either unclear or less favorable. In addition, we have entered into indemnification agreements with our officers,
17

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
directors and underwriters, and our bylaws contain similar indemnification obligations that cover officers, directors, employees and other agents. 
Except as noted above, it is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, any payments that we have made under these agreements have not had a material impact on our operating results, financial position or cash flows.
NOTE 7. STOCKHOLDERS' EQUITY (DEFICIT) AND COMPENSATION ARRANGEMENTS
Groupon, Inc. Incentive Plan
In August 2011, we established the 2011 Plan under which options, RSUs and PSUs for up to 13,775,000 shares of Common Stock are authorized for future issuance to employees, consultants and directors. The 2011 Plan is administered by the Compensation Committee. In June 2024, at the Company's annual meeting of stockholders, the Company's stockholders approved an amendment to the 2011 Plan to increase the number of authorized shares by 7,000,000. Accordingly, a total of 20,775,000 shares of Common Stock have been authorized for issuance under the 2011 Plan. As of September 30, 2024, 6,066,177 shares of Common Stock were available for future issuance under the 2011 Plan.
Restricted Stock Units
The RSUs generally have vesting periods between one and four years and are amortized on a straight-line basis over their requisite service period.
The table below summarizes RSU activity for the nine months ended September 30, 2024:
RSUs
Weighted-Average Grant Date Fair Value (per unit)
Unvested at December 31, 2023745,840 $10.61 
Granted647,433 10.71 
Vested(566,679)8.72 
Forfeited(143,460)12.93 
Unvested at September 30, 2024683,134 $11.46 
As of September 30, 2024, $5.8 million of unrecognized compensation costs related to unvested RSUs are expected to be recognized over a remaining weighted-average period of 1.34 years.
Stock Options
On March 30, 2023, we issued 3,500,000 units of stock options with a per share value of $0.95, a strike price of $6.00 and vesting over two years. The exercise price of stock options granted is equal to the fair market value of the underlying stock on the date of grant. The contractual term for these stock options expires three years from the grant date. The fair value of stock options on the grant date is amortized on a straight-line basis over the requisite service period.
18

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
The fair value of stock options granted is estimated on the date of grant using the Black-Scholes-Merton option-pricing model. Expected volatility is based on Groupon's historical volatility over the estimated expected life of the stock options. The expected term represents the period of time the stock options are expected to be outstanding. The risk-free interest rate is based on yields on U.S. Treasury STRIPS with maturity similar to the estimated expected life of the stock options. The weighted-average assumptions for stock options granted are outlined in the following table:
Dividend yield0.0 %
Risk-free interest rate4.1 %
Expected term (in years)2
Expected volatility78.2 %
The table below summarizes stock option activity for the nine months ended September 30, 2024:
OptionsWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (in years)
Aggregate Intrinsic Value (in thousands)
Total outstanding at December 31, 2023(1)
3,062,500 $6.00 2.2520,948 
Exercised  — — 
Total outstanding at September 30, 2024
3,062,500 6.00 1.5011,576 
Exercisable at September 30, 20242,187,500 $6.00 1.50$8,269 
(1) Consists of 2,187,500 outstanding (unvested) stock options and 875,000 exercisable stock options as of December 31, 2023, as presented within our Annual Report on Form 10-K.
As of September 30, 2024, there was $0.8 million of total unrecognized compensation costs related to unvested stock options granted under the 2011 Plan. That cost is expected to be recognized over a weighted-average period of 0.5 years. The total fair value of shares vested during the nine months ended September 30, 2024 was $1.2 million.
These stock options were granted to our Chief Executive Officer, who is based in the Czech Republic. Taxes on stock options in the Czech Republic are payable upon the sale of the underlying shares. The Company's tax liability is determined by multiplying the applicable tax rate by the difference between the value of the shares underlying the options on the date of exercise and the aggregate exercise price of the options. These taxes will be recognized in the Condensed Consolidated Statement of Operations upon any subsequent sale of the shares acquired upon exercise of the options.
Performance Share Units
We have previously granted PSUs that vest in shares of our Common Stock upon the achievement of financial and operational targets specified in the respective award agreement. Based on our financial and operational results for the year ended December 31, 2023, 422,368 shares became issuable upon vesting of PSUs following the Compensation Committee's certification in April 2024. In May 2024, we also granted the 2024 Executive PSUs.
The 2024 Executive PSUs may only be earned if certain stock price hurdles are met and the recipient satisfies certain service conditions. The achievement of the stock price hurdles is measured during a period that begins nine months after the award date of May 1, 2024 and ends on May 1, 2027. The 2024 Executive PSUs have four stock price hurdles: $14.86, $20.14, $31.01, and $68.82. The shares awarded under the 2024 Executive PSU award are divided equally between four tranches corresponding to achievement of each stock price hurdle. Once the stock price hurdle is achieved, a service condition must also be met before the shares will vest. Specifically, the service condition for: (i) 33% of the award will be met after the first anniversary of the award date; (ii) an additional 33% of the award will be met after the second anniversary of the award date; and (ii) the final 34% of the award will be met after the third anniversary of the award date. The 2024 Executive PSUs are subject to downward adjustments by the Compensation Committee. We determined these awards are subject to a
19

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
market condition, and therefore used a Monte Carlo simulation to calculate the grant date fair value of the awards and the related derived service period. The three year service condition period exceeds the derived service period and therefore we will recognize the expense over the three year requisite service period. The key inputs used in the Monte Carlo simulation were the risk-free rate of 4.46%, dividend yield of 0.0% and our stock price volatility of 95.73%.
In October 2024, the Compensation Committee approved a cash incentive award, which is required to be settled in cash upon vesting. The award, in the amount of 261,365 PSUs, is subject to the same market and performance conditions as the 2024 Executive PSUs and is subject to continued employment through each vesting date. The cash settlement will be calculated by multiplying the closing stock price on each vesting date by the number of shares that would have otherwise vested if the award provided for equity settlement. Total compensation expense to be recognized for the award will be based on remeasurement of the award at each interim reporting period through the final vesting date. The Company's compensation plan limits cash awards to $5.0 million per annum.
Both our PSUs and the 2024 Executive PSUs are subject to continued service through the period dictated by the award and certification by the Compensation Committee that the specified performance conditions have been achieved.
The table below summarizes PSU activity for the nine months ended September 30, 2024:
PSUs
Weighted-Average Grant Date Fair Value (per unit)
2024 Executive PSUs
Weighted-Average Grant Date Fair Value (per unit)
Unvested at December 31, 2023506,324 $6.34  $ 
Granted16,417 16.68 3,537,145 13.59 
Vested(422,368)6.35   
Forfeited(83,956)6.31   
Unvested at September 30, 202416,417 $16.68 3,537,145 $13.59 
As of September 30, 2024, $35.8 million of unrecognized compensation costs related to unvested PSUs are expected to be recognized over a remaining weighted-average period of 1.71 years.
Rights Offering
In November 2023, the Board approved an $80.0 million fully backstopped Rights Offering to our stockholders of record of our Common Stock, as of the close of business on November 20, 2023.

The Rights Offering was made through the distribution of non-transferable subscription rights to purchase shares of Common Stock at a subscription price of $11.30 per share and otherwise on such terms and subject to such conditions as may be required to comply with any applicable Nasdaq Global Market stock exchange rules and regulations. The Expiration Date for the subscription period for the Rights Offering ended on January 17, 2024.

The Rights Offering was fully backstopped by Pale Fire Capital SICAV a.s., the Backstop Party, an entity affiliated with (i) Dusan Senkypl, the Company’s Chief Executive Officer and a member of the Board, and (ii) Jan Barta, a member of the Board. The Backstop Party had a binding commitment to (i) fully exercise its pro rata subscription right prior to the Expiration Date of the Rights Offering and (ii) fully purchase any and all unsubscribed shares in the Rights Offering following the Expiration Date at the same price and on the same terms and conditions as other participants in the Rights Offering.

On January 22, 2024, we announced the closing of our $80.0 million fully backstopped Rights Offering for shares of our Common Stock, par value $0.0001 per share.

Pursuant to the terms of the Rights Offering, 7,079,646 shares of Common Stock were purchased at $11.30 per share, generating $80.0 million in gross proceeds, less issuance costs incurred. As detailed below, the Rights Offering was oversubscribed, and the subscriptions, inclusive of the exercise of all over-subscription privileges, well exceeded $80.0 million, the maximum aggregate offering size of the Rights Offering.
20

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)

Through the exercise of both basic subscription rights and over-subscription privileges, the Backstop Party subscribed for approximately 7.1 million shares and other stockholders subscribed for approximately 9.7 million shares. The Company issued 4,574,113 shares of Common Stock via the exercise of the basic subscription rights and 2,505,533 shares of Common Stock via the exercise of over-subscription privileges. The Backstop Party purchased approximately 3.1 million shares of Common Stock in connection with the Rights Offering.
NOTE 8. REVENUE RECOGNITION
Refer to Note 13, Segment Information, for revenue summarized by reportable segment and category for the three and nine months ended September 30, 2024 and 2023.
Customer Credits
We issue credits to customers that can be applied to future purchases through our online marketplaces. Credits are primarily issued as consideration for refunds and, to a lesser extent, for customer relationship purposes. The following table summarizes the activity in the liability for customer credits for the nine months ended September 30, 2024 (in thousands):
Customer Credits
Balance as of December 31, 2023$26,595 
Credits issued49,567 
Credits redeemed (1)
(48,812)
Breakage revenue recognized(3,580)
Foreign currency translation64 
Balance as of September 30, 2024$23,834 
(1)Customer credits can be redeemed through our online marketplaces for goods or services provided by a third-party merchant and revenue is recognized on a net basis as the difference between the carrying amount of the customer credit liability derecognized and the amount due to the merchant for the related transaction. Customer credits are typically used within one year of issuance.
Costs of Obtaining Contracts
Incremental costs to obtain contracts with third-party merchants, such as sales commissions, are deferred and recognized on a straight-line basis over the expected period of the merchant arrangement, generally from 12 to 18 months. Deferred contract acquisition costs are presented in Prepaid expenses and other current assets and Other non-current assets on the Condensed Consolidated Balance Sheets. As of September 30, 2024 and December 31, 2023, deferred contract acquisition costs were $3.9 million and $3.9 million.
The amortization of deferred contract acquisition costs is classified within Selling, general and administrative expense in the Condensed Consolidated Statements of Operations. We amortized $1.4 million and $1.8 million of deferred contract acquisition costs for the three months ended September 30, 2024 and 2023 and $4.4 million and $6.2 million for the nine months ended September 30, 2024 and 2023.
Allowance for Expected Credit Losses on Accounts Receivable
Accounts receivable primarily represents the net cash due from credit card and other payment processors and from merchants and performance marketing networks for commissions earned on consumer purchases. The carrying amount of receivables is reduced by an allowance for expected credit losses that reflects management's best estimate of amounts that will not be collected. We establish an allowance for expected credit losses on accounts receivable based on identifying the following customer risk characteristics: size, type of customer and payment terms offered in the normal course of business. Receivables with similar risk characteristics are grouped into pools. For each pool, we consider the historical credit loss experience, current economic conditions, bankruptcy filings, published or estimated credit default rates, age of the receivable and any recoveries in assessing the lifetime expected credit losses.
21

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
The following table summarizes the activity in the allowance for expected credit losses on accounts receivable for the nine months ended September 30, 2024 (in thousands):
Allowance for Expected Credit Losses
Balance as of December 31, 2023$2,856 
Change in provision(380)
Write-offs(245)
Foreign currency translation29 
Balance as of September 30, 2024$2,260 
Variable Consideration for Unredeemed Vouchers
For merchant agreements with redemption payment terms, the merchant is not paid its share of the sale price for a voucher sold through one of our online marketplaces until the customer redeems the related voucher. If the customer does not redeem a voucher with such merchant payment terms, we retain all of the gross billings for that voucher, rather than retaining only our net commission. We estimate the variable consideration from vouchers that will not ultimately be redeemed using our historical voucher redemption experience and recognize that amount as revenue at the time of sale. We apply a constraint to ensure it is probable that a significant reversal of revenue will not occur in future periods. We recognized variable consideration from unredeemed vouchers that were sold in a prior period of $0.2 million and $5.2 million for the three months ended September 30, 2024 and 2023, and $10.1 million and $6.2 million for the nine months ended September 30, 2024 and 2023. When actual redemptions differ from our estimates, the effects could be material to the Condensed Consolidated Financial Statements.
NOTE 9. RESTRUCTURING AND RELATED CHARGES
Italy Restructuring Plan
In July 2024, Groupon S.r.l.'s Board approved the exit of the local business in Italy and the related restructuring actions associated with the exit. We expect to incur pre-tax charges of up to $3.0 million in connection with these restructuring actions. The restructuring actions are expected to include an overall reduction of approximately 33 positions, with the majority of these reductions and severance-related payments expected to occur by the end of 2024. Substantially all of the pre-tax charges are expected to be paid in cash and will relate to employee severance and compensation benefits, with an immaterial amount of charges related to other exit costs. We have incurred total pre-tax charges of $0.9 million for statutorily required amounts and there have been no cash payments as of September 30, 2024. In October 2024, we paid $1.4 million related to severance and one-time termination benefits under the Italy Restructuring Plan. The remaining severance and one-time termination benefit costs are expected to be paid by the end of 2024. Costs incurred related to the Italy Restructuring Plan are classified as Restructuring and related charges on the Condensed Consolidated Statements of Operations. All activity is within our International segment.

2022 and 2020 Restructuring Plans
In August 2022 and April 2020, we initiated Board-approved restructuring plans. Costs incurred related to the restructuring plans are classified as Restructuring and related charges on the Condensed Consolidated Statements of Operations. The restructuring activities are summarized by plan in the sections below.

2022 Restructuring Plan
In August 2022, we initiated the 2022 Cost Savings Plan, a multi-phase cost savings plan designed to reduce our expense structure to align with our go-forward business and financial objectives. The 2022 Cost Savings Plan included the 2022 Restructuring Plan, approved by our Board in August 2022. The 2022 Restructuring Plan, including the first phase initiated August 2022, second phase initiated January 2023 and the third phase initiated July 2023 is expected to include an overall reduction of approximately 1,150 positions globally through natural attrition or involuntary termination. The majority of these reductions were completed as of March
22

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
31, 2023 and the remainder expected to occur by the end of 2024. We have incurred total pre-tax charges of $21.3 million since the inception of the 2022 Restructuring Plan. A majority of the pre-tax charges have been paid in cash and relate to employee severance and compensation benefits, with an immaterial amount of charges related to other exit costs.
The following tables summarize activity by segment related to the 2022 Restructuring Plan for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended September 30, 2024
Employee Severance and Benefit Costs (Credits) (1)
Other Exit CostsTotal Restructuring Charges (Credits)
North America$ $ $ 
International5  5 
Consolidated$5 $ $5 
(1)The employee severance and benefits costs for the three months ended September 30, 2024 are related to the termination of approximately 3 employees.
Three Months Ended September 30, 2023
Employee Severance and Benefit Costs (Credits) (1)
Other Exit CostsTotal Restructuring Charges (Credits)
North America$690 $ $690 
International652  652 
Consolidated$1,342 $ $1,342 
(1)The employee severance and benefits costs for the three months ended September 30, 2023 are related to the termination of approximately 70 employees.
Nine Months Ended September 30, 2024
Employee Severance and Benefit Costs (Credits) (1)
Other Exit CostsTotal Restructuring Charges (Credits)
North America55 1 56 
International(164) (164)
Consolidated(109)1 (108)

(1)The employee severance and benefits costs for the nine months ended September 30, 2024 are related to the termination of approximately 15 employees and the release of our estimated accrual for certain severance benefits upon expiration of the eligible payout period.
23

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
Nine Months Ended September 30, 2023
Employee Severance and Benefit Costs (Credits) (1)
Other Exit CostsTotal Restructuring Charges (Credits)
North America$5,256 $1,037 $6,293 
International4,543  4,543 
Consolidated$9,799 $1,037 $10,836 
(1)The employee severance and benefits costs for the nine months ended September 30, 2023 are related to the termination of approximately 440 employees.
The following table summarizes restructuring liability activity for the 2022 Restructuring Plan (in thousands):
Employee Severance and Benefit CostsOther Exit CostsTotal
Balance as of December 31, 2023
$544 $44 $588 
Charges payable in cash and changes in estimate (1)
(109)1 (108)
Cash payments(249)(45)(294)
Foreign currency translation(36) (36)
Balance as of September 30, 2024
$150 $ $150 
(1)Primarily relates to the release of our estimated accrual for certain severance benefits upon expiration of the eligible payout period.
2020 Restructuring Plan
In April 2020, the Board approved the 2020 Restructuring Plan. Our actions under this plan were substantially completed in 2021 and our current and future charges or credits will be from changes in estimates. For additional plan details, see Part II, Item 8, Note 13. Restructuring and Related Charges in our Annual Report on Form 10-K for the year ended December 31, 2023.
The following tables summarize activity by segment related to the 2020 Restructuring Plan for the three and nine months ended September 30, 2024 and 2023 (in thousands):

Three Months Ended September 30, 2024
Employee Severance and Benefit Costs (Credits)
Legal and Advisory Costs (Credits)
Lease-related Charges (Credits)Total Restructuring Charges (Credits)
North America
$ $ $ $ 
International(25)(5) (30)
Consolidated$(25)$(5)$ $(30)

24

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
Three Months Ended September 30, 2023
Employee Severance and Benefit Costs (Credits)
Legal and Advisory Costs (Credits)
Lease-related Charges (Credits)Total Restructuring Charges (Credits)
North America$44 $5 $660 $709 
International (1)
(214)(49)440 177 
Consolidated$(170)$(44)$1,100 $886 
(1) The credit recorded during the three months ended September 30, 2023 primarily relates to the release of our estimated accrual for certain severance benefits upon expiration of the eligible payout period.
Nine Months Ended September 30, 2024
Employee Severance and Benefit Costs (Credits)
Legal and Advisory Costs (Credits)
Lease-related Charges (Credits)Total Restructuring Charges (Credits)
North America (1)
$ $ $(293)$(293)
International 10 83 93 
Consolidated$ $10 $(210)$(200)
(1) The credit recorded during the nine months ended September 30, 2024 primarily relates to an over contribution of estimated real estate taxes in 2023 for the terminated lease at 600 West Chicago.
Nine Months Ended September 30, 2023
Employee Severance and Benefit Costs (Credits)
Legal and Advisory Costs (Credits)
Lease-related Charges (Credits)Total Restructuring Charges (Credits)
North America$44 $7 1,204 $1,255 
International (1)
(2,696)(97)1,035 (1,758)
Consolidated$(2,652)$(90)$2,239 $(503)
(1) The credit recorded during the nine months ended September 30, 2023 primarily relates to the release of our estimated accrual for certain severance benefits upon expiration of the eligible payout period.
25

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
As part of our 2020 Restructuring Plan, we terminated, vacated or modified several of our leases. In January 2023, we exercised our option to early terminate our lease at 600 West Chicago that expired in January 2024, which required us to pay a fee of $9.6 million with our early termination notice. As of September 30, 2024, all of our leases that were part of the 2020 Restructuring Plan have expired or have been terminated. For the three and nine months ended September 30, 2024, our restructuring activity related to those leases had immaterial activity. Rent expense, including amortization of the right-of-use asset and accretion of the operating lease liability, sublease income, termination and modification gains and losses, and other variable lease costs related to the leased facilities vacated as part of our 2020 Restructuring Plan are presented within Restructuring and related charges in the Condensed Consolidated Statements of Operations. As of September 30, 2023, the current and non-current liabilities associated with these leases were presented within Accrued expenses and other current liabilities and Operating lease obligations in the Condensed Consolidated Balance Sheets.
The following table summarizes restructuring liability activity for the 2020 Restructuring Plan (in thousands):
Employee Severance and Benefit CostsOther Exit CostsTotal
Balance as of December 31, 2023
$839 $214 $1,053 
Charges payable in cash and changes in estimate 10 10 
Cash payments(119)(162)(281)
Foreign currency translation(22)(5)(27)
Balance as of September 30, 2024 (1)
$698 $57 $755 
(1)Substantially all of the cash payments for the 2020 Restructuring Plan costs have been disbursed.
NOTE 10. INCOME TAXES
Our income tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items.
Provision (benefit) for income taxes and Income (loss) before provision (benefit) for income taxes for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
Provision (benefit) for income taxes$2,321 $817 $17,802 $4,258 
Income (loss) before provision (benefit) for income taxes$16,843 $(39,989)$11,406 $(77,165)
Our U.S. Federal income tax rate is 21%. The primary factor impacting the effective tax rate for the three and nine months ended September 30, 2024 and 2023 was the pretax losses incurred in jurisdictions that have valuation allowances against their net deferred tax assets. For the three and nine months ended September 30, 2024 and 2023, we continue to maintain a full valuation allowance against all U.S. federal and state deferred tax assets. We expect that our consolidated effective tax rate in future periods will continue to differ significantly from the U.S. federal income tax rate as a result of our tax obligations in jurisdictions with profits and valuation allowances in jurisdictions with losses.
We are currently under audit by several foreign jurisdictions. It is likely that the examination phase of some of those audits will conclude in the next 12 months. There are many factors, including factors outside of our control, which influence the progress and completion of those audits. We are subject to claims for tax assessments by foreign jurisdictions, including a proposed assessment for $125.4 million, inclusive of estimated incremental interest from the original Assessment. The subsidiary subject to the Assessment is Groupon S.r.l., one of the Company's Italian subsidiaries with operations relating specifically to the local voucher business in Italy. In December 2023, Groupon S.r.l. received an unfavorable ruling at the lowest court level, but lodged a second-level appeal, based on what it believes to be meritorious defenses to the Assessment. The hearing was held on September 24, 2024. On October 1, 2024, the second-level court indicated that it intends to issue an unfavorable
ruling on the appeal and in favor of the Italian tax authorities. The court has not yet issued a full opinion with its rationale. When the decision of the second-level court is ultimately issued, Groupon S.r.l. will have six months from that date to appeal that decision to the Italian Supreme Court. The Company continues to believe that the Assessment is without merit and Groupon S.r.l. intends to pursue a prompt appeal to the Italian Supreme Court. If Groupon S.r.l. loses that appeal, Groupon S.r.l. plans to further challenge the Assessment and seek relief in an international Mutual Agreement Procedure that involves the tax authorities of Ireland and Italy.
Under Italian tax court procedures, taxpayers are required to deposit “provisional payments” while tax appeals are pending, which are held in trust by tax authorities and returned to the taxpayer if the taxpayer prevails on the appeal. At present, Groupon S.r.l. would be required to deposit provisional amounts equal to two-thirds of the assessed amount. However, Groupon S.r.l. has sought and obtained approval of installment plans whereby the provisional payments may be deposited in monthly installments over seventy-two months. To date, Groupon S.r.l. has made all monthly installment payments. However, contemporaneous with its appeal to the Supreme Court, Groupon S.r.l. intends to seek a full stay of the provisional payment obligations.

Additionally, unrelated to the tax matter above, in July 2024, Groupon S.r.l. received final assessments of approximately $33.1 million related to a 2017 distribution made to its parent entity. On October 18, 2024, Groupon S.r.l. lodged an appeal to the first-tier court. We do not expect the hearing to occur in 2024. We believe this assessment is also without merit and Groupon S.r.l. intends to vigorously defend against such assessment.

No liability has been recorded for either Groupon S.r.l. tax assessment matter discussed above. In addition to any potential increases in our liabilities for uncertain tax positions from the ultimate resolution of these assessments, we believe it is reasonably possible that reductions of up to $6.3 million in unrecognized tax benefits may occur within the 12 months following September 30, 2024 upon closing of income tax audits or the expiration of applicable statutes of limitations.

In general, it is our practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations or remit such earnings in a tax-efficient manner. Additionally, an actual repatriation from our non-U.S. subsidiaries could be subject to foreign and U.S. state income taxes. Aside from limited exceptions for which the related deferred tax liabilities recognized as of September 30, 2024 and December 31, 2023 are immaterial, we do not intend to distribute earnings of foreign subsidiaries for which we have an excess of the financial reporting basis over the tax basis of our investments and therefore have not recorded any deferred taxes related to such amounts. The actual tax cost resulting from a distribution would depend on income tax laws and circumstances at the time of distribution. Determination of the amount of unrecognized deferred tax liability related to the excess of the financial reporting basis over the tax basis of our foreign subsidiaries is not practical due to the complexities associated with the calculation.
NOTE 11. FAIR VALUE MEASUREMENTS
Fair value is defined under GAAP as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability.
In determining fair value, we use valuation approaches within the fair value measurement framework. We have fair value option investments and available-for-sale securities that we measure using the income approach. We have classified these investments as Level 3 due to the lack of observable market data over fair value inputs such as cash flow projections and discount rates.
There was no material activity in the fair value of recurring Level 3 fair value measurements for the three and nine months ended September 30, 2024 and 2023.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Certain assets and liabilities are measured at fair value on a nonrecurring basis, including assets that are written down to fair value as a result of an impairment or modified due to an observable price change in an orderly transaction.
26

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
We did not record any significant nonrecurring fair value remeasurements for the three and nine months ended September 30, 2024.
We recognized a non-cash remeasurement of our investment in SumUp of $25.8 million during the three and nine months ended September 30, 2023. See Note 3, Investments, for additional information.
Estimated Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
Our financial instruments not carried at fair value consist primarily of accounts receivable, restricted cash, short-term borrowings, accounts payable, accrued merchant and supplier payables and accrued expenses. The carrying values of those assets and liabilities approximate their respective fair values as of September 30, 2024 and December 31, 2023 due to their short-term nature.
NOTE 12. INCOME (LOSS) PER SHARE
Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options, RSUs, PSUs, ESPP shares, convertible senior notes and capped call transactions. If dilutive, those potentially dilutive securities are reflected in diluted net income (loss) per share using the treasury stock method, except for the convertible senior notes, which are subject to the if-converted method.
27

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
The following table sets forth the computation of basic and diluted net income (loss) per share of Common Stock for the three and nine months ended September 30, 2024 and 2023 (in thousands, except share amounts and per share amounts):
Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
Basic and diluted net income (loss) per share:
Numerator
Net income (loss) $14,522 $(40,806)$(6,396)$(81,423)
Less: Net income (loss) attributable to noncontrolling interests594 552 1,982 1,689 
Basic net income (loss) attributable to common stockholders
$13,928 $(41,358)$(8,378)$(83,112)
Diluted net income (loss) attributable to common stockholders
13,928 (41,358)(8,378)(83,112)
Plus: Interest expense from assumed conversion of convertible senior notes
710    
Net income (loss) attributable to common stockholders plus assumed conversions
$14,638 $(41,358)$(8,378)$(83,112)
Denominator
Shares used in computation of basic net income (loss) per share
39,748,268 31,500,489 38,966,238 31,039,668 
Weighted-average effect of diluted securities:
Stock options
1,613,858    
RSUs
272,224    
ESPP shares
3,696    
Convertible senior notes due 2026
3,376,400    
Shares used in computation of diluted net income (loss) per share
45,014,446 31,500,489 38,966,238 31,039,668 
Net income (loss) per share:
Basic
$0.35 $(1.31)$(0.22)$(2.68)
Diluted
$0.33 $(1.31)$(0.22)$(2.68)
28

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
The following weighted-average potentially dilutive instruments are not included in the diluted net income (loss) per share calculations above because they would have had an antidilutive effect on the net income (loss) per share:
Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
RSUs
85,171 1,108,379 806,857 1,695,383 
Stock options 3,309,783 3,062,500 2,282,890 
PSUs
  280,807 959 
ESPP shares
 7,923 12,001 34,119 
Convertible Senior notes due 2026 (1)
 3,376,400 3,376,400 3,376,400 
Capped call transactions3,376,400 3,376,400 3,376,400 3,376,400 
Total3,461,571 11,178,885 10,914,965 10,766,151 
(1)We apply the if-converted method in computing the effect of our convertible senior notes on diluted net income (loss) per share, whereby the numerator of our diluted net income (loss) per share computations is adjusted for interest expense, net of tax, and the denominator is adjusted for the number of shares into which the convertible senior notes could be converted. The effect is only included in the calculation of income (loss) per share for those instruments for which it would reduce income (loss) per share. See Note 5, Financing Arrangements, for additional information.
As of September 30, 2024, there were up to 3,553,562 shares of Common Stock issuable upon vesting of outstanding 2024 Executive PSUs and PSUs that were excluded from the table above as the applicable market and performance conditions were not satisfied as of the end of the period. As of September 30, 2023, there were up to 724,487 shares of Common Stock issuable upon vesting of outstanding PSUs that were excluded from the table above as the performance conditions were not satisfied as of the end of the period.
29

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
NOTE 13. SEGMENT INFORMATION
The segment information reported in the tables below reflects the operating results that are regularly reviewed by our chief operating decision maker to assess performance and make resource allocation decisions. Our operations are organized into two segments: North America and International. Our measure of segment profitability is contribution profit, defined as gross profit less marketing expense, which is consistent with how management reviews the operating results of the segments. Contribution profit measures the amount of marketing investment needed to generate gross profit. Other operating expenses are excluded from contribution profit as management does not review those expenses by segment.
The following table summarizes revenue by reportable segment and category for the three and nine months ended September 30, 2024 and 2023 (in thousands):    
Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
North America revenue:
Local$81,479 $88,558 $259,646 $255,412 
Goods2,491 3,801 8,361 13,646 
Travel2,919 2,577 11,373 10,971 
Total North America revenue (1)
86,889 94,936 279,380 280,029 
International revenue:
Local23,473 26,900 70,624 79,539 
Goods2,734 3,054 7,448 11,029 
Travel1,383 1,584 4,726 6,597 
Total International revenue (1)
$27,590 $31,538 $82,798 $97,165 
(1)North America includes revenue from the United States of $85.6 million and $93.9 million for the three months ended September 30, 2024 and 2023 and $275.4 million and $276.0 million for the nine months ended September 30, 2024 and 2023. There were no other individual countries that represented more than 10% of consolidated total revenue for the three and nine months ended September 30, 2024 and 2023. Revenue is attributed to individual countries based on the location of the customer.
The following table summarizes cost of revenue by reportable segment and category for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
North America cost of revenue:
Local$8,453 $10,970 $25,535 $33,369 
Goods292 678 1,071 2,420 
Travel406 814 2,029 2,731 
Total North America cost of revenue9,151 12,462 28,635 38,520 
International cost of revenue:
Local1,859 2,533 5,656 7,571 
Goods383 563 1,200 1,883 
Travel191 238 568 866 
Total International cost of revenue$2,433 $3,334 $7,424 $10,320 
30

GROUPON, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(unaudited)
The following table summarizes contribution profit by reportable segment for the three and nine months ended September 30, 2024 and 2023 (in thousands):
截至9月30日的三個月 九個月截至九月三十日
2024202320242023
北美洲
營收$86,889 $94,936 $279,380 $280,029 
營業成本9,151 12,462 28,635 38,520 
行銷28,643 18,990 79,902 48,740 
貢獻利潤49,095 63,484 170,843 192,769 
國際
營收27,590 31,538 82,798 97,165 
營業成本2,433 3,334 7,424 10,320 
行銷7,615 9,908 21,685 27,273 
貢獻利潤17,542 18,296 53,689 59,572 
Consolidated
營收114,479 126,474 362,178 377,194 
營業成本11,584 15,796 36,059 48,840 
行銷36,258 28,898 101,587 76,013 
貢獻利潤66,637 81,780 224,532 252,341 
銷售、總務和行政費用71,327 80,016 222,937 277,913 
重組及相關費用
896 2,228 613 10,333 
資產出售盈利
  (5,160) 
營業收入(虧損)$(5,586)$(464)$6,142 $(35,905)
以下表格彙總了截至2024年9月30日和2023年12月31日報告節段的總資產(以千為單位):
2024年9月30日2023年12月31日
總資產:
北美洲 (1)
$435,616 $465,213 
國際 (1)
112,398 105,743 
合併總資產$548,014 $570,956 
(1)北美洲包含了2024年9月30日和2023年12月31日的美國資產$429.8 百萬和 $460.2 百萬。截至2024年9月30日和2023年12月31日,沒有其他個別國家代表超過總資產10%。
31


項目2。管理層對財務狀況和營運結果的討論和分析
我們的財務狀況和業務運作的下述討論和分析應與我們的基本報表和相關附註一起閱讀,其包含於本季報告表格10-Q的第一部分條款1下。本討論中含有關於我們業務和運作的前瞻性陳述。由於許多因素,包括我們在第二部分條款1A下描述的因素,我們實際的結果可能與目前預期有很大不同, 風險因素和本報告的其他部分一樣,請參閱第一部分前瞻性陳述 有關信息,請參閱該頁。
概觀
groupon是一個全球規模的雙邊市場,將消費者與商家聯繫在一起。消費者通過我們的移動應用程式和網站訪問我們的市場。我們在兩個範疇進行業務,即北美和國際市場,涵蓋三個類別,本地服務、商品和旅遊。請參見項目1,附註13。 節點資訊 有關其他信息的補充,請參閱本報告書及公司向美國證券交易委員會提交的其他報告和資料,投資者應仔細考慮我們 2023 年度報告書第 I 部分第 1A 項以及其後向美國證券交易委員會提交的其他報告和文件中披露的風險因素。
我們的策略是成為值得信賴的市場,讓客戶前往購買本地服務和體驗。我們計劃通過與本地商家建立長期關係來增加營業收入,藉由加強庫存選擇和改善客戶體驗來提升庫存策展和改進便利性,以促進客戶需求和購買頻率。
我們從本地、商品和旅行類別產生服務營業收入。 營業收入主要代表從代表第三方商家出售商品或服務而賺取的淨佣金。營業收入以淨值報告,即從客戶收取的購買價格減去應支付給第三方商家的購買價格部分。當客戶通過我們的網站和手機應用程式訪問的數字優惠券購買零售商家的商品時,我們也能賺取佣金。
我們正在投入大量資源,讓我們的平台更高效、穩定和靈活。通過提升我們的科技,我們的客戶群可以享受最先進的體驗,實現新產品創新的無縫執行,帶來改善的客戶體驗和客戶滿意度。
2022年成本節約計畫
2022年8月,我們啟動了2022年成本節約計劃,包括2022年8月的第一階段,2023年1月的第二階段和2023年7月的第三階段,旨在減少我們的支出結構並配合我們前進的業務和財務目標。2022年成本節約計劃包括2022年重組計劃,以及通過其他行動實現的其他計劃節省,例如在自然租約終止時減少我們的設施佔地面積(或通過執行現有租約中的期權),與某些服務供應商重新協商合約安排,並繼續做出選擇性決策,消除空缺職位而非重新雇用。2022年重組計劃預計全球總體將減少約1,150個職位,其中大多數削減工作已於2023年3月31日前完成,其餘預計將在2024年底前完成。自2022年重組計劃啟動以來,我們已經遭受了總計2130萬美元的稅前費用。大多數稅前費用已以現金支付,與員工遣散費和補償福利相關,與其他退出費用相關的費用微不足道。詳見條款1,附註9。 重組及相關費用,以獲取額外信息。
32


How We Measure Our Business
We use several operating and financial metrics to assess the progress of our business and make decisions on where to allocate capital, time and technology investments. Certain of the financial metrics are reported in accordance with GAAP and certain of those metrics are considered non-GAAP financial measures. As our business evolves, we may make changes to the key financial and operating metrics that we use to measure our business. For further information and reconciliations to the most applicable financial measures under GAAP, refer to our discussion under Non-GAAP Financial Measures in the Results of Operations section.
Operating Metrics
Gross billings is the total dollar value of customer purchases of goods and services. Gross billings is presented net of customer refunds, order discounts and sales and related taxes. The substantial majority of our revenue transactions are comprised of sales of vouchers and similar transactions in which we collect the transaction price from the customer and remit a portion of the transaction price to the third-party merchant who will provide the related goods or services. For these transactions, gross billings differs from Revenue reported in our Condensed Consolidated Statements of Operations, which is presented net of the merchant's share of the transaction price. Gross billings is an indicator of our growth and business performance as it measures the dollar volume of transactions generated through our marketplaces. Tracking gross billings also allows us to monitor the percentage of gross billings that we are able to retain after payments to merchants. However, we are focused on achieving long-term gross profit and Adjusted EBITDA growth.
Units are the number of purchases during the reporting period, before refunds and cancellations, made either through one of our online marketplaces, a third-party marketplace, or directly with a merchant for which we earn a commission. We do not include purchases with retailers using digital coupons accessed through our websites or mobile applications in our units metric. We consider units to be an important indicator of the total volume of business conducted through our marketplaces. We report units on a gross basis prior to the consideration of customer refunds and therefore units are not always a good proxy for gross billings.
Active customers are unique user accounts that have made a purchase during the TTM either through one of our online marketplaces or directly with a merchant for which we earned a commission. We consider this metric to be an important indicator of our business performance as it helps us to understand how the number of customers actively purchasing our offerings is trending. Some customers could establish and make purchases from more than one account, so it is possible that our active customer metric may count certain customers more than once in a given period. We do not include consumers who solely make purchases with retailers using digital coupons accessed through our websites or mobile applications in our active customer metric, nor do we include consumers who solely make purchases of our inventory through third-party marketplaces with which we partner.
Our gross billings and units for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
Gross billings$373,392 $418,847 $1,128,145 $1,208,730 
Units 8,684 10,116 26,370 30,210 
Our active customers for the trailing twelve months ended September 30, 2024 and 2023 were as follows (in thousands):
Trailing Twelve Months Ended September 30,
20242023
TTM active customers
15,455 17,013 
33


Financial Metrics
Revenue is earned through transactions on which we generate commissions by selling goods or services on behalf of third-party merchants. Revenue from those transactions is reported on a net basis as the purchase price collected from the customer for the offering less an agreed upon portion of the purchase price paid to the third-party merchant. Revenue also includes commissions we earn when customers make purchases with retailers using digital coupons accessed through our digital properties.
Gross profit reflects the net margin we earn after deducting our Cost of revenue from our Revenue.
Adjusted EBITDA is a non-GAAP financial measure that we define as Net income (loss) from operations excluding income taxes, interest and other non-operating items, depreciation and amortization, stock-based compensation and other special charges and credits, including items that are unusual in nature or infrequently occurring. For further information and a reconciliation to Net income (loss), refer to our discussion under Non-GAAP Financial Measures in the Results of Operations section.
Free cash flow is a non-GAAP financial measure that comprises Net cash provided by (used in) operating activities less purchases of property and equipment and capitalized software. For further information and a reconciliation to Net cash provided by (used in) operating activities, refer to our discussion in the Liquidity and Capital Resources section below.
The following table presents the above financial metrics for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
Revenue$114,479 $126,474 $362,178 $377,194 
Gross profit102,895 110,678 326,119 328,354 
Adjusted EBITDA14,767 18,221 50,763 28,515 
Free cash flow(19,666)(17,975)(22,660)(148,402)
Operating Expenses
Marketing expense consists primarily of online marketing costs, such as search engine marketing and advertising on social networking sites and affiliate programs. Additionally, compensation expense for marketing employees is classified within marketing expense. We record these costs within Marketing on the Condensed Consolidated Statements of Operations when incurred. From time to time, we have offerings from well-known national merchants for customer acquisition and activation purposes, for which the amount we owe the merchant for each voucher sold exceeds the transaction price paid by the customer. Our gross billings from those transactions generate no revenue and our net cost (i.e., the excess of the amount owed to the merchant over the amount paid by the customer) is classified as marketing expense. We evaluate marketing expense as a percentage of gross profit because it gives us an indication of how well our marketing spend is driving gross profit performance.
SG&A expenses include selling expenses such as sales commissions and other compensation expenses for sales representatives, as well as costs associated with supporting the sales function such as technology, telecommunications and travel. General and administrative expenses include compensation expense for employees involved in customer service, operations, technology and product development, as well as general corporate functions, such as finance, legal and human resources. Additional costs in general and administrative include depreciation and amortization, rent, professional fees, litigation costs, travel and entertainment, recruiting, maintenance, certain technology costs and other general corporate costs. We evaluate SG&A expense as a percentage of gross profit because it gives us an indication of our operating efficiency.
Restructuring and related charges represent severance and benefit costs for workforce reductions, impairments and other facilities-related costs and professional advisory fees. See Item 1, Note 9, Restructuring and Related Charges, for additional information about our restructuring plans.
34


Factors Affecting Our Performance
Attracting and retaining local merchants. As we focus on our local experiences marketplace, we depend on our ability to attract and retain merchants who are willing to offer their experiences on our platform. Merchants can withdraw their offerings from our marketplace at any time, and their willingness to continue offering services through our marketplace depends on the effectiveness of our marketplace offering. We are focused on improving our marketplace offering and merchant value proposition by exploring opportunities to better balance the needs of merchant partners, customers and Groupon, for example, by offering flexible deal structures.
Acquiring and retaining customers. To acquire and retain customers to drive higher volumes on our platform from new and existing customers, we are focused on strengthening our product offering, improving the attractiveness of our offerings, and rebuilding our performance marketing campaigns.
Impact of macroeconomic conditions. We have been, and may continue to be, impacted by adverse consequences of the macroeconomic environment, including but not limited to, inflationary pressures, higher labor costs, labor shortages, supply chain challenges and resulting changes in consumer and merchant behavior. We will continue to monitor the impact of macroeconomic conditions on our business.

35


Results of Operations
North America
Operating Metrics
North America segment gross billings and units for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
20242023% Change20242023% Change
Gross billings
Local$248,751 $260,425 (4.5)%$723,391 $714,121 1.3 %
Goods11,234 18,749 (40.1)39,703 64,764 (38.7)
Travel15,078 19,811 (23.9)63,870 62,090 2.9 
Total gross billings$275,063 $298,985 (8.0)$826,964 $840,975 (1.7)
Units
Local5,376 5,426 (0.9)%15,787 15,651 0.9 %
Goods379 706 (46.3)1,439 2,446 (41.2)
Travel61 79 (22.8)256 249 2.8 
Total units5,816 6,211 (6.4)17,482 18,346 (4.7)
North America TTM active customers for the trailing twelve months ended September 30, 2024 and 2023 were as follows (in thousands):
Trailing Twelve Months Ended September 30,
20242023% Change
TTM active customers
10,158 10,452 (2.8)%
Comparison of the Three Months Ended September 30, 2024 and 2023:
North America gross billings, units and TTM active customers decreased by $23.9 million, 0.4 million and 0.3 million for the three months ended September 30, 2024 compared with the prior year period. The decline in our Goods and Travel categories is primarily due to an overall decline in demand. Additionally, during the three months ended September 30, 2023, we had a favorable impact in our Local category from phasing out our COVID-19 refund practices, with no comparable activity during the three months ended September 30, 2024, which contributed to the decrease in our Local category during the current period compared with the prior year period.
Comparison of the Nine Months Ended September 30, 2024 and 2023:
North America gross billings and units decreased by $14.0 million and 0.9 million for the nine months ended September 30, 2024 compared with the prior year period. These declines are primarily due to a decline in demand for our Goods category, which resulted in fewer unit sales. The decrease in gross billings is partially offset by favorable refund rates for our Local category.
36


Financial Metrics
North America segment revenue, cost of revenue and gross profit for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
20242023% Change20242023% Change
Revenue
Local$81,479 $88,558 (8.0)%$259,646 $255,412 1.7 %
Goods2,491 3,801 (34.5)8,361 13,646 (38.7)
Travel2,919 2,577 13.3 11,373 10,971 3.7 
Total revenue$86,889 $94,936 (8.5)$279,380 $280,029 (0.2)
Cost of revenue
Local$8,453 $10,970 (22.9)%$25,535 $33,369 (23.5)%
Goods292 678 (56.9)1,071 2,420 (55.7)
Travel406 814 (50.1)2,029 2,731 (25.7)
Total cost of revenue$9,151 $12,462 (26.6)$28,635 $38,520 (25.7)
Gross profit
Local$73,026 $77,588 (5.9)%$234,111 $222,043 5.4 %
Goods2,199 3,123 (29.6)7,290 11,226 (35.1)
Travel2,513 1,763 42.5 9,344 8,240 13.4 
Total gross profit$77,738 $82,474 (5.7)$250,745 $241,509 3.8 
Gross margin (1)
31.6 %31.8 %33.8 %33.3 %
% of Consolidated revenue75.9 %75.1 %77.1 %74.2 %
% of Consolidated cost of revenue79.0 78.9 79.4 78.9 
% of Consolidated gross profit75.6 
/
74.5 76.9 73.6 
(1)Represents the percentage of gross billings that we retained after deducting the merchant's share from gross billings.
Comparison of the Three Months Ended September 30, 2024 and 2023:
North America revenue, cost of revenue and gross profit decreased by $8.0 million, $3.3 million and $4.7 million for the three months ended September 30, 2024 compared with the prior year period. The decrease in revenue and gross profit is primarily due to an increase in Local voucher redemption rates in the current period. Additionally, during the three months ended September 30, 2023, we had a favorable impact in our Local category from phasing out our COVID-19 refund practices, with no comparable activity during the three months ended September 30, 2024, which contributed to the decreases in our Local category during the current period. The decline is also partially attributable to a decline in demand for our Local and Goods categories. The decrease in cost of revenue is primarily due to a decrease in payroll costs.
Comparison of the Nine Months Ended September 30, 2024 and 2023:
North America revenue and cost of revenue decreased by $0.6 million and $9.9 million while gross profit increased $9.2 million for the nine months ended September 30, 2024 compared with the prior year period. Revenue remained flat which was primarily due to a decline in demand for our goods category, offset by favorable refund rates for our Local category. The decrease in cost of revenue is primarily due to a decrease in payroll costs. Gross profit increased due to revenue remaining flat and a decrease in cost of goods sold.


37


Marketing and Contribution Profit
We define contribution profit as gross profit less marketing expense. North America marketing and contribution profit for the three and nine months ended September 30, 2024 and 2023 was as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
20242023% Change20242023% Change
Marketing$28,643 $18,990 50.8 %$79,902 $48,740 63.9 %
% of Gross profit36.8 %23.0 %31.9 %20.2 %
Contribution profit$49,095 $63,484 (22.7)%$170,843 $192,769 (11.4)%
Comparison of the Three Months Ended September 30, 2024 and 2023:
North America marketing expense and marketing expense as a percentage of gross profit increased for the three months ended September 30, 2024 compared with the prior year period, primarily driven by an increased investment in our performance marketing campaigns.
North America contribution profit decreased for the three months ended September 30, 2024 compared with the prior year period, primarily due to an increase in marketing expense.
Comparison of the Nine Months Ended September 30, 2024 and 2023:
North America marketing expense and marketing expense as a percentage of gross profit increased for the nine months ended September 30, 2024 compared with the prior year period, primarily driven by an increased investment in our performance marketing campaigns.
North America contribution profit decreased for the nine months ended September 30, 2024 compared with the prior year period, primarily due to an increase in marketing expense.
International
Operating Metrics
International segment gross billings and units for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
20242023% Change20242023% Change
Gross billings
Local$76,793 $93,645 (18.0)%$234,758 $275,133 (14.7)%
Goods13,877 16,923 (18.0)42,780 59,179 (27.7)
Travel7,659 9,294 (17.6)23,643 33,443 (29.3)
Total gross billings$98,329 $119,862 (18.0)$301,181 $367,755 (18.1)
Units
Local2,475 3,306 (25.1)%7,622 9,496 (19.7)%
Goods352 550 (36.0)1,137 2,182 (47.9)
Travel41 49 (16.3)129 186 (30.6)
Total units2,868 3,905 (26.6)8,888 11,864 (25.1)
International TTM active customers for the trailing twelve months ended September 30, 2024 and 2023 were as follows (in thousands):
Trailing Twelve Months Ended September 30,
20242023% Change
TTM active customers
5,297 6,561 (19.3)%
38


Comparison of the Three Months Ended September 30, 2024 and 2023:
International gross billings, units and TTM active customers decreased by $21.5 million, 1.0 million and 1.3 million for the three months ended September 30, 2024 compared with the prior year period. The Local category decrease was primarily attributable to the exit of our Local business in Italy and a decline in demand. The decline in our Goods and Travel categories were primarily attributable to an overall decline in demand. In addition, there was a $1.6 million favorable impact on gross billings from year-over-year changes in foreign currency exchange rates.
Comparison of the Nine Months Ended September 30, 2024 and 2023:
International gross billings and units decreased by $66.6 million and 3.0 million for nine months ended September 30, 2024 compared with the prior year period. These declines were primarily attributable to an overall decline in demand across all categories. The Local category decrease was also partially attributable to the exit of our Local business in Italy. In addition, there was a $3.4 million favorable impact on gross billings from year-over-year changes in foreign currency exchange rates.
Financial Metrics
International segment revenue, cost of revenue and gross profit for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
20242023% Change20242023% Change
Revenue
Local$23,473 $26,900 (12.7)%$70,624 $79,539 (11.2)%
Goods2,734 3,054 (10.5)7,448 11,029 (32.5)
Travel1,383 1,584 (12.7)4,726 6,597 (28.4)
Total revenue$27,590 $31,538 (12.5)$82,798 $97,165 (14.8)
Cost of revenue
Local$1,859 $2,533 (26.6)%$5,656 $7,571 (25.3)%
Goods383 563 (32.0)1,200 1,883 (36.3)
Travel191 238 (19.7)568 866 (34.4)
Total cost of revenue$2,433 $3,334 (27.0)$7,424 $10,320 (28.1)
Gross profit
Local$21,614 $24,367 (11.3)%$64,968 $71,968 (9.7)%
Goods2,351 2,491 (5.6)6,248 9,146 (31.7)
Travel1,192 1,346 (11.4)4,158 5,731 (27.4)
Total gross profit$25,157 $28,204 (10.8)$75,374 $86,845 (13.2)
Gross margin (1)
28.1 %26.3 %27.5 %26.4 %
% of Consolidated revenue24.1 %24.9 %22.9 %25.8 %
% of Consolidated cost of revenue21.0 21.1 20.6 21.1 
% of Consolidated gross profit24.4 25.5 23.1 26.4 
(1)Represents the percentage of gross billings that we retained after deducting the merchant's share from gross billings.
Comparison of the Three Months Ended September 30, 2024 and 2023
International revenue, cost of revenue and gross profit decreased by $3.9 million, $0.9 million and $3.0 million for the three months ended September 30, 2024 compared with the prior year period. The decreases were primarily attributable to the exit of our Local business in Italy. Revenue and gross profit also had favorable impacts of $0.5 million and $0.5 million from year-over-year changes in foreign currency exchange rates.
39


Comparison of the Nine Months Ended September 30, 2024 and 2023
International revenue, cost of revenue and gross profit decreased $14.4 million, $2.9 million and $11.5 million compared with the prior year period. The Local category decrease was primarily attributable to the exit of our Local business in Italy and a decline in demand. The decline in our Goods and Travel categories were primarily attributable to an overall decline in demand. Despite decreasing revenue, revenue and gross profit had favorable impacts of $1.0 million and $1.0 million from year-over-year changes in foreign currency exchange rates.
Marketing and Contribution Profit
International marketing and contribution profit for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
20242023% Change20242023% Change
Marketing$7,615 $9,908 (23.1)%$21,685 $27,273 (20.5)%
% of Gross profit30.3 %35.1 %28.8 %31.4 %
Contribution profit$17,542 $18,296 (4.1)%$53,689 $59,572 (9.9)%
Comparison of the Three Months Ended September 30, 2024 and 2023:
International marketing expense and marketing expense as a percentage of gross profit decreased for the three months ended September 30, 2024 compared with the prior year period, primarily due to traffic declines and a lower investment in our online marketing spend.
International contribution profit decreased for the three months ended September 30, 2024 compared with the prior year period, primarily due to a decrease in gross profit.
Comparison of the Nine Months Ended September 30, 2024 and 2023:
International marketing expense and marketing expense as a percentage of gross profit decreased for the nine months ended September 30, 2024 compared with the prior year period, primarily due to traffic declines and a lower investment in our online marketing spend.

International contribution profit decreased for the nine months ended September 30, 2024 compared with the prior year period, primarily due to a decrease in gross profit.
Consolidated Operating Expenses
Operating expenses for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
% Change20242023% Change
Marketing$36,258 $28,898 25.5 %$101,587 $76,013 33.6 %
Selling, general and administrative (1)
71,327 80,016 (10.9)222,937 277,913 (19.8)
Restructuring and related charges
896 2,228 (59.8)613 10,333 (94.1)
Gain on sale of assets
— — — (5,160)— — 
Total operating expenses$108,481 $111,142 (2.4)$319,977 $364,259 (12.2)
% of Gross profit:
Marketing35.2 %26.1 %31.2 %23.1 %
Selling, general and administrative69.3 %72.3 %68.4 %84.6 %
(1)The three and nine months ended September 30, 2024 includes $8.8 million and $17.5 million of stock-based compensation expense and $3.8 million and $13.2 million of depreciation and amortization expense. The three and nine months ended September 30, 2023 includes $3.8 million and $13.6 million of stock-based compensation expense and $6.4 million and $20.3 million of depreciation and amortization expense.
40


Comparison of the Three Months Ended September 30, 2024 and 2023:
Marketing expense and marketing expense as a percentage of gross profit increased for the three months ended September 30, 2024 compared with the prior year period, due to an increased investment in our North America performance marketing campaigns.
SG&A and SG&A as a percentage of gross profit decreased for the three months ended September 30, 2024 compared with the prior year period, primarily due to a decrease in cloud costs.
Restructuring and related charges decreased for the three months ended September 30, 2024 compared with the prior year period, primarily due to a decrease in severance and benefits costs related to our 2022 Restructuring Plan, partially offset by an increase in charges related to the Italy Restructuring Plan. See Item 1, Note 9, Restructuring and Related Charges, for additional information.
Comparison of the Nine Months Ended September 30, 2024 and 2023:
Marketing expense and marketing expense as a percentage of gross profit increased for the nine months ended September 30, 2024 compared with the prior year period, due to an increased investment in our North America performance marketing campaigns.
SG&A and SG&A as a percentage of gross profit decreased for the nine months ended September 30, 2024 compared with the prior year period, primarily due to a decrease in payroll and cloud costs.

Restructuring and related charges decreased for the nine months ended September 30, 2024 compared with the prior year period, primarily due to a decrease in severance and benefit costs related to our 2022 Restructuring Plan, partially offset by an increase in charges related to the Italy Restructuring Plan. See Item 1, Note 9, Restructuring and Related Charges, for additional information.
Gain on sale of assets increased for the nine months ended September 30, 2024 compared with the prior year period, primarily due to a gain from the sale of certain intangible assets. See Item 1, Note 2, Goodwill and Long-Lived Assets, for additional information.
Consolidated Other Income (Expense), Net
Other income (expense), net includes interest expense, interest income and foreign currency gains and losses, primarily resulting from intercompany balances with our subsidiaries that are denominated in foreign currencies.
Other income (expense), net for the three and nine months ended September 30, 2024 and 2023 was as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
Other income (expense), net$22,429 $(39,525)$5,264 $(41,260)
Comparison of the Three Months Ended September 30, 2024 and 2023:
The change in Other income (expense), net for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023 is primarily related to a $34.9 million change in net foreign currency gains (losses). The remainder of the fluctuation is due to a remeasurement of our investment in SumUp in the amount of $25.8 million during the three months ended September 30, 2023 with no comparable activity during the three months ended September 30, 2024.
Comparison of the Nine Months Ended September 30, 2024 and 2023:
The change in Other income (expense), net for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 is primarily related to a $18.7 million change in foreign currency gains and losses.The remainder of the fluctuation is due to a remeasurement of our investment in SumUp in the amount of $25.8 million during the nine months ended September 30, 2023 with no comparable activity during the nine months ended September 30, 2024.
41


Consolidated Provision (Benefit) for Income Taxes
Provision (benefit) for income taxes for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
20242023% Change20242023% Change
Provision (benefit) for income taxes$2,321 $817 184.1 %$17,802 $4,258 NM
Effective tax rate13.8 %(2.0)%156.1 %(5.5)%
Comparison of the Three and Nine Months Ended September 30, 2024 and 2023:
The effective tax rates for the three and nine months ended September 30, 2024 and 2023 were impacted by pretax losses incurred in jurisdictions that have valuation allowances against their net deferred tax assets. For the three and nine months ended September 30, 2024 and 2023, we continue to maintain a full valuation allowance against all U.S. federal and state deferred tax assets. We expect that our consolidated effective tax rate in future periods will continue to differ significantly from the U.S. federal income tax rate as a result of our tax obligations in jurisdictions with profits and valuation allowances in jurisdictions with losses. See Item 1, Note 10, Income Taxes, for additional information relating to tax audits and assessments and regulatory and legal developments that may impact our business and results of operations in the future.
42


Non-GAAP Financial Measures
In addition to financial results reported in accordance with GAAP, we have provided the following non-GAAP financial measures: Adjusted EBITDA, free cash flow and foreign currency exchange rate neutral operating results. Those non-GAAP financial measures are intended to aid investors in better understanding our current financial performance and prospects for the future as seen through the eyes of management. We believe that those non-GAAP financial measures facilitate comparisons with our historical results and with the results of peer companies who present similar measures (although other companies may define non-GAAP measures differently than we define them, even when similar terms are used to identify such measures). However, those non-GAAP financial measures are not intended to be a substitute for those reported in accordance with GAAP.
Adjusted EBITDA. Adjusted EBITDA is a non-GAAP performance measure that we define as Net income (loss) excluding income taxes, interest and other non-operating items, depreciation and amortization, stock-based compensation and other special charges and credits, including items that are unusual in nature or infrequently occurring. Adjusted EBITDA is a key measure used by our management and Board to evaluate operating performance, generate future operating plans and make strategic decisions for the allocation of capital. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board. However, Adjusted EBITDA is not intended to be a substitute for Net income (loss).
We exclude stock-based compensation expense and depreciation and amortization because they are primarily non-cash in nature and we believe that non-GAAP financial measures excluding those items provide meaningful supplemental information about our operating performance and liquidity. For the three and nine months ended September 30, 2024 and 2023, special charges and credits included charges related to our 2022 and 2020 Restructuring Plans, Gain on sale of assets and Foreign VAT assessments. We exclude special charges and credits from Adjusted EBITDA because we believe that excluding those items provides meaningful supplemental information about our core operating performance and facilitates comparisons with our historical results. For the Foreign VAT assessments, we also considered the fact we ceased operations in Portugal in 2016 and it is not part of our ongoing business. Since we ceased operations, we have not engaged in any revenue-generating or payroll-related activity and do not intend to engage in these activities in Portugal in the future.
The following is a reconciliation of Adjusted EBITDA to the most comparable GAAP financial measure, Net income (loss), for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
Net income (loss)$14,522 $(40,806)$(6,396)$(81,423)
Adjustments:
Stock-based compensation8,890 3,889 17,682 13,771 
Depreciation and amortization6,895 12,568 24,512 40,316 
Restructuring and related charges
896 2,228 613 10,333 
Gain on sale of assets
— — (5,160)— 
Foreign VAT assessments (1)
3,672 — 6,974 — 
Other (income) expense, net (2)
(22,429)39,525 (5,264)41,260 
Provision (benefit) for income taxes2,321 817 17,802 4,258 
Total adjustments245 59,027 57,159 109,938 
Adjusted EBITDA$14,767 $18,221 $50,763 $28,515 
(1) The Foreign VAT assessments adjustment excludes related interest expense of $0.9 million for the three months ended September 30, 2024 and $1.7 million for the nine months ended September 30, 2024 as the interest expense is included within Other (income) expense, net. See Item 1, Note 6, Commitments and Contingencies, for additional information.

(2) Includes a $25.8 million remeasurement of our investment in SumUp during the three and nine months ended September 30, 2023. See Item 1, Note 3, Investments, for additional information.

43


Free cash flow. Free cash flow is a non-GAAP liquidity measure that comprises Net cash provided by (used in) operating activities less purchases of property and equipment and capitalized software. We use free cash flow to conduct and evaluate our business because, although it is similar to cash flow, we believe that it typically represents a more useful measure of cash flows because purchases of fixed assets, software developed for internal use and website development costs are necessary components of our ongoing operations. Free cash flow is not intended to represent the total increase or decrease in our cash balance for the applicable period.
Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. In addition, free cash flow reflects the impact of the timing difference between when we are paid by customers and when we pay merchants and suppliers. Therefore, we believe it is important to view free cash flow as a complement to our Condensed Consolidated Statements of Cash Flows. For a reconciliation of free cash flow to the most comparable GAAP financial measure, see Liquidity and Capital Resources below.
Foreign currency exchange rate neutral operating results. Foreign currency exchange rate neutral operating results show current period operating results as if foreign currency exchange rates had remained the same as those in effect in the prior year period. Those measures are intended to facilitate comparisons to our historical performance.
The following tables represent the effect on our Condensed Consolidated Statements of Operations from changes in exchange rates versus the U.S. dollar for the three and nine months ended September 30, 2024 (in thousands):
Three Months Ended September 30, 2024
At Avg. Q3 2023 Rates (1)
Exchange Rate Effect (2)
As Reported
Gross billings$371,759 $1,633 $373,392 
Revenue113,974 505 114,479 
Cost of revenue11,549 35 11,584 
Gross profit102,425 470 102,895 
Marketing36,180 78 36,258 
Selling, general and administrative71,186 141 71,327 
Restructuring and related charges
863 33 896 
Income (loss) from operations(5,804)218 (5,586)
Nine Months Ended September 30, 2024
At Avg. Q3 2023 Rates (1)
Exchange Rate Effect (2)
As Reported
Gross billings$1,124,715 $3,430 $1,128,145 
Revenue361,161 1,017 362,178 
Cost of revenue35,995 64 36,059 
Gross profit325,166 953 326,119 
Marketing101,421 166 101,587 
Selling, general and administrative222,448 489 222,937 
Restructuring and related charges
586 27 613 
Income (loss) from operations5,871 271 6,142 
(1)     Represents the financial statement balances that would have resulted had exchange rates in the reporting period been the same as those in effect in the prior year period.
(2)     Represents the increase or decrease in the reported amount resulting from changes in exchange rates from those in effect in the prior year period.
44




Liquidity and Capital Resources
Our principal source of liquidity is our cash balance totaling $159.7 million as of September 30, 2024. The Company’s cash requirements are subject to change as business conditions warrant and opportunities arise. Additionally, with the Rights Offering and debt prepayment and termination of our Credit Agreement in February 2024, we believe that the Company has sufficient liquidity to support its overall ongoing operational needs within the next 12 months.
We are subject to claims for tax assessments by foreign jurisdictions, including a proposed assessment for $125.4 million (€112.1 million), inclusive of estimated incremental interest from the original Assessment. The subsidiary subject to the Assessment is Groupon S.r.l., one of the Company's Italian subsidiaries with operations relating specifically to the local voucher business in Italy. In December 2023, Groupon S.r.l. received an unfavorable ruling at the lowest court level, but lodged a second-level appeal, based on what it believes to be meritorious defenses to the Assessment. The hearing was held on September 24, 2024. On October 1, 2024, the second-level court indicated that it intends to issue an unfavorable ruling on the appeal and in favor of the Italian tax authorities. The court has not yet issued a full opinion with its rationale. When the decision of the second-level court is ultimately issued, Groupon S.r.l. will have six months from that date to appeal that decision to the Italian Supreme Court. The Company continues to believe that the Assessment is without merit and Groupon S.r.l. intends to pursue a prompt appeal to the Italian Supreme Court. If Groupon S.r.l. loses that appeal, Groupon S.r.l. plans to further challenge the Assessment and seek relief in an international Mutual Agreement Procedure that involves the tax authorities of Ireland and Italy.
Under Italian tax court procedures, taxpayers are required to deposit “provisional payments” while tax appeals are pending, which are held in trust by tax authorities and returned to the taxpayer if the taxpayer prevails on the appeal. At present, Groupon S.r.l. would be required to deposit provisional amounts equal to two-thirds of the assessed amount. However, Groupon S.r.l. has sought and obtained approval of installment plans (the second of which was issued on November 7, 2024) whereby the provisional payments may be deposited pro rata in monthly installments over seventy-two months. To date, Groupon S.r.l. has made all monthly installment payments. However, contemporaneous with its appeal to the Supreme Court, Groupon S.r.l. intends to seek a full stay of the provisional payment obligations. Groupon S.r.l. expects a hearing on the possible stay of provisional payments to take place in early 2025. If Groupon S.r.l. does not succeed in staying the provisional payment obligation, Groupon S.r.l. will consider its options, including making monthly installment payments up to the amount of its assets, or undertaking further restructuring actions. The total payments due in 2024 and 2025 under the terms of the installment plans are €3.4 million ($3.8 million) and €13.2 million ($14.7 million), respectively. Such amounts are recorded as Other non-current assets within the Condensed Consolidated Balance Sheets when cash is remitted.
The Company does not expect the tax assessment to result in financial exposure that exceeds the assets of Groupon S.r.l. as of December 31, 2023, nor do we expect any related developments to impact the ability of the Company to meet its obligations outside of Groupon S.r.l. See Item 1, Note 10, Income Taxes for additional information.
Our net cash flows from operating, investing and financing activities for the three and nine months ended September 30, 2024 and 2023 were as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
Cash provided by (used in):
Operating activities$(16,258)$(13,855)$(11,069)$(132,485)
Investing activities(3,442)(5,469)(3,070)(16,965)
Financing activities(691)1,183 32,929 (30,953)
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Our free cash flow for the three and nine months ended September 30, 2024 and 2023 and a reconciliation to the most comparable GAAP financial measure, Net cash provided by (used in) operating activities, for those periods were as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,
2024202320242023
Net cash provided by (used in) operating activities$(16,258)$(13,855)$(11,069)$(132,485)
Purchases of property and equipment and capitalized software (3,408)(4,120)(11,591)(15,917)
Free cash flow$(19,666)$(17,975)$(22,660)$(148,402)
Our revenue-generating transactions are primarily structured such that we collect cash up-front from customers and pay third-party merchants at a later date, either based upon the customer's redemption of the related voucher or fixed payment terms, which are generally biweekly, throughout the term of the merchant's offering.
Our cash balances fluctuate significantly throughout the year based on many variables, including changes in gross billings, the timing of payments to merchants and suppliers and the mix of transactions between Goods, Travel and Local.
Net cash provided by (used in) operating activities
For the nine months ended September 30, 2024, our net cash used in operating activities was $11.1 million as compared with net cash used in operating activities of $132.5 million in the prior period. The improved cash flow from operating activities is primarily due to our cost cutting measures as a result of the impacts of our 2022 Restructuring Plan.
Net cash provided by (used in) investing activities
For the nine months ended September 30, 2024, our net cash used in investing activities was $3.1 million as compared with net cash used in investing activities of $17.0 million in the prior period. The improved cash flow from investing activities is primarily due to $9.1 million of net proceeds from the sale intangible assets and fewer purchases of property and equipment and capitalized software during the nine months ended September 30, 2024.
Net cash provided by (used in) financing activities
For the nine months ended September 30, 2024, our net cash provided by financing activities was $32.9 million as compared with net cash used in financing activities of $31.0 million in the prior period. The improved cash flow from financing activities is primarily due to $79.6 million of proceeds received from the Rights Offering, partially offset by an increase of $14.5 million in payments of borrowings under our revolving credit facility.
In January 2024, we announced the closing of our $80.0 million fully backstopped Rights Offering for shares of our Common Stock. Pursuant to the terms of the Rights Offering, 7,079,646 shares of Common Stock were purchased at $11.30 per share, generating $80.0 million in gross proceeds to the Company. See Item 1, Note 7, Stockholders' Equity (Deficit) and Compensation Arrangements, for additional information.
In February 2024, we prepaid $43.1 million to terminate all commitments to access further credit under the Credit Agreement using a portion of the $80.0 million in proceeds received from the Rights Offering. The terms of the Rights Offering permit the Company to use the proceeds for general corporate purposes, including the repayment of debt. We were not subject to any early termination penalties under the Credit Agreement. The payment of the Payoff Amount terminated our obligations under the Credit Agreement, except for ordinary and customary survival terms. In addition, we retained access to letters of credit, originally available under the Credit Agreement. See Item 1, Note 5, Financing Arrangements, for additional information.
In 2021, the Company issued the 2026 Notes in the principal amount of $230.0 million, which mature on March 15, 2026. The Company is continuously considering capital markets in order to enhance our capital structure.
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On November 12, 2024, The Company entered into the Exchange and Subscriptions Agreements with a limited number of Offering Participants. The Offering Participants are institutional “accredited investors” (within the meaning of Rule 501(a)(1), (2), (3) or (7) promulgated under the Securities Act of 1933, as amended (the “Securities Act”)) and/or “qualified institutional buyers” (as defined in Rule 144A under the Securities Act).
Pursuant to the Exchange and Subscription Agreements, the Company will (i) exchange $176.3 million aggregate principal amount of 2026 Notes held by the Offering Participants for $176.3 million aggregate principal amount of the Company’s newly-issued 6.25% Convertible Senior Secured Notes due 2027 (the “2027 Notes”) (the “Exchange”) and (ii) issue and sell to certain Offering Participants $21.0 million aggregate principal amount of 2027 Notes for gross cash proceeds of $20.0 million (representing an issue price of 95%) (the “Subscription Transactions” and together with the Exchange, the “Transactions”). The 2027 Notes are expected to be issued to the Offering Participants in a private placement exempt from registration in reliance on Section 4(a)(2) of the Securities Act. The Company is relying on this exemption from registration based in part on representations made by the Offering Participants in the Exchange and Subscription Agreements.
The initial conversion rate of the 2027 Notes will be 33.333 shares of Company Common Stock, per $1,000 principal amount of 2027 Notes (equivalent to an initial conversion price of approximately $30 per share), subject to customary adjustments. The 2027 Notes will be convertible into Common Stock or a combination of cash and Common Stock, at the Company’s election. The Company may be required to pay additional interest of 2.5% per annum of the 2027 Notes in the event that it fails to pledge certain of its assets as part of the collateral for the 2027 Notes, unless such assets are sold.
The Transactions are expected to close on or around November 12, 2024, subject to customary closing conditions.
As of September 30, 2024, we had $59.9 million in cash held by our international subsidiaries, which is primarily denominated in Euros, British Pounds Sterling, Canadian dollars, Indian Rupees, Polish Zloty, Swiss Franc, and, to a lesser extent, Australian dollars. In general, it is our practice and intention to re-invest the earnings of our non-U.S. subsidiaries in those operations or remit such earnings in a tax-efficient manner. We have not, nor do we anticipate the need to, repatriate funds to the United States to satisfy domestic liquidity needs arising in the ordinary course of business.

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Contractual Obligations and Commitments
Our contractual obligations and commitments as of September 30, 2024, did not materially change from the amounts set forth in our 2023 Annual Report on Form 10-K, except as disclosed in Item 1, Note 6, Commitments and Contingencies.
Off-Balance Sheet Arrangements
We did not have any off-balance sheet arrangements as of September 30, 2024.
Significant Accounting Policies and Critical Accounting Estimates
The preparation of Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts and classifications of assets and liabilities, revenue and expenses, and related disclosure of contingent liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
Management's Discussion and Analysis of Financial Condition and Results of Operations is based upon our Condensed Consolidated Financial Statements, which have been prepared in accordance with GAAP. Our significant accounting policies are discussed in Part II, Item 8, Note 2, Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year ended December 31, 2023. In addition, refer to the critical accounting estimates under Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2023.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We have operations both within the United States and internationally, and we are exposed to market risks in the ordinary course of our business, including the effect of foreign currency fluctuations, interest rate changes and inflation. Information relating to quantitative and qualitative disclosures about these market risks is set forth below.
Foreign Currency Exchange Risk
We transact business in various foreign currencies other than the U.S. dollar, principally the Euro, British Pound Sterling, Canadian dollar, Indian Rupee, Polish Zloty, Swiss Franc, and, to a lessor extent, Australian dollar, which exposes us to foreign currency risk. For the three and nine months ended September 30, 2024, we derived approximately 24.1% and 22.9% of our revenue from our International segment. Revenue and related expenses generated from our international operations are generally denominated in the local currencies of the corresponding countries. The functional currencies of our subsidiaries that either operate or support these markets are generally the same as the corresponding local currencies. However, the results of operations of, and certain of our intercompany balances associated with, our international operations are exposed to foreign currency exchange rate fluctuations. Upon consolidation, as exchange rates vary, our revenue and other operating results may differ materially from expectations, and we may record significant gains or losses on the re-measurement of intercompany balances.
We assess our foreign currency exchange risk based on hypothetical changes in rates utilizing a sensitivity analysis that measures the potential impact on working capital based on a 10% change (increase and decrease) in currency rates. We use a current market pricing model to assess the changes in the value of the U.S. dollar on foreign currency denominated monetary assets and liabilities. The primary assumption used in this model is a hypothetical 10% weakening or strengthening of the U.S. dollar against those currency exposures as of September 30, 2024 and December 31, 2023.
As of September 30, 2024, our net working capital deficit (defined as current assets less current liabilities) from subsidiaries that are subject to foreign currency translation risk was $7.3 million. The potential increase in this working capital deficit from a hypothetical 10% adverse change in quoted foreign currency exchange rates would be $0.7 million. This compares with a $21.7 million working capital deficit subject to foreign currency exposure as of December 31, 2023, for which a 10% adverse change would have resulted in a potential increase in this working capital deficit of $2.2 million.
Interest Rate Risk
Our cash balance as of September 30, 2024, consists of bank deposits so exposure to market risk for changes in interest rates is limited. The 2026 Notes have an aggregate principal amount of $230.0 million and bear interest at a fixed rate, so we have no financial statement impact from changes in interest rates. However, changes in market interest rates impact the fair value of the 2026 Notes along with other variables such as our credit spreads and the market price and volatility of our Common Stock. See Item 1, Note 5, Financing Arrangements, for additional information. We have $5.1 million of lease obligations as of September 30, 2024. Interest rates on existing leases typically do not change unless there is a modification to a lease agreement and as such, we do not believe that the interest rate risk on the lease obligations is significant.
Inflation Risk
Our business is affected by changes to our merchants' and customers' discretionary spend. We expect such discretionary spend limitations to continue, and if we do not see increased overall demand for discounted goods and services to help offset these limitations on individual merchants and customers, our business, financial condition and results of operations could be adversely impacted. Additionally, increased inflation could negatively impact our business by driving up our operating costs. Our costs are subject to inflationary pressures, and if those pressures become significant, we may not be able to offset such higher costs through price increases or other cost efficiency measures. Our inability or failure to do so could harm our business, financial condition and results of operations.
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ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of September 30, 2024.
Based on that evaluation and because of the previously-reported material weaknesses in internal control over financial reporting, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of September 30, 2024.
Notwithstanding the material weakness in our internal control over financial reporting, our Chief Executive Officer and Chief Financial Officer have concluded that the Condensed Consolidated Financial Statements present fairly, in all material respects, our financial position, results of operations and cash flows in accordance with GAAP.
Remediation Plan and Status
Management, with the oversight of the audit committee of our Board, has dedicated resources and efforts to improve our internal controls over financial reporting and has taken action to remediate such material weakness. Actions include taking steps towards the automation of certain complex accounting calculations, adding detective analytical management review controls, adding controls to reconcile source data across accounts, and enhancing review procedures within account reconciliations. While the Company has improved its control activities, the material weakness identified in the prior year remains unremediated as of September 30, 2024 and the Company’s remediation efforts will continue to take place throughout 2024.
The material weakness cannot be considered remediated until the applicable controls have operated for a sufficient period of time and management has concluded, through testing, that these controls are designed and operating effectively. Accordingly, we will continue to monitor and evaluate the effectiveness of our internal control over financial reporting in the areas affected by the material weakness described above.
Changes in Internal Control over Financial Reporting
Except for the enhancements to controls to address the material weakness, there were no changes in our internal control over financial reporting identified in management’s evaluation pursuant to Rules 13a-15(d) or 15d-15(d) of the Exchange Act during the quarter ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Limitations on Effectiveness of Controls and Procedures
In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
For a description of our material pending legal proceedings, please see Item 1, Note 6, Commitments and Contingencies, to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
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ITEM 1A. RISK FACTORS
There have been no material changes from the risk factors previously disclosed in Part I, Item 1A, Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2023.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Recent Sales of Unregistered Securities
During the three months ended September 30, 2024, we did not issue any unregistered equity securities.
Issuer Purchases of Equity Securities
As of September 30, 2024, there have been no changes to our Board authorized share repurchase program. For additional information, please refer to Part II, Item 5, Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities in our Annual Report on Form 10-K for the year ended December 31, 2023.
The following table provides information about purchases of shares of our Common Stock during the three months ended September 30, 2024 related to shares withheld upon vesting of RSUs for minimum tax withholding obligations:
Date
Total Number of Shares Purchased (1)
Average Price Paid Per ShareTotal Number of Shares Purchased as Part of Publicly Announced ProgramMaximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under Program
July 1-31, 20241,419 $16.74 — — 
August 1-31, 20241,445 13.60 — — 
September 1-30, 20241,105 10.85 — — 
Total3,969 $13.96 — — 
(1)Total number of shares delivered to us by employees to satisfy the mandatory tax withholding requirement upon vesting of stock-based compensation awards.
ITEM 5. OTHER INFORMATION
During the three months ended September 30, 2024, none of our officers or directors adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.
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ITEM 6. EXHIBITS
Exhibit
Number
Description
10.1
10.2
10.3
10.4
10.5
10.6
10.7
10.8
31.1
31.2
32.1
101.INS**XBRL Instance Document
101.SCHXBRL Taxonomy Extension Schema Document
101.CALXBRL Taxonomy Extension Calculation Linkbase Document
101.DEFXBRL Taxonomy Extension Definition Linkbase Document
101.LABXBRL Taxonomy Extension Label Linkbase Document
101.PREXBRL Taxonomy Extension Presentation Linkbase Document
104 **Cover Page Interactive Data File
____________________________________
* Management contract of compensatory plan or arrangement.
** The XBRL Instance Document and Cover Page Interactive Data File do not appear in the Interactive Data File because their XBRL tags are embedded within the Inline XBRL document
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 12th day of November 2024.
GROUPON, INC.
By: 
/s/ Jiri Ponrt
  Name:Jiri Ponrt
  Title:Chief Financial Officer

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