Groupon, Inc. (NASDAQ:GRPN) Q2 2022 Earnings Conference Call August 9, 2022 10:00 AM ET
Company Participants
Jennifer Beugelmans - Chief Communications Officer
Kedar Deshpande - CEO & Director
Damien Schmitz - Interim CFO
Conference Call Participants
Trevor Young - Barclays Bank
Eric Sheridan - Goldman Sachs Group
Operator
Good day, everyone, and welcome to Groupon's Second Quarter 2022 Financial Results Conference Call. [Operator Instructions]. Today's conference call is being recorded. For opening remarks, I would like to turn the call over to the Chief Communications Officer, Jennifer Beugelmans. Please go ahead.
Jennifer Beugelmans
Hello, and welcome to Groupon's Second Quarter 2022 Financial Results Conference Call. On the call today are CEO, Kedar Deshpande; and Interim CFO, Damien Schmitz. The following discussion and responses to your questions reflect management's views as of today, August 9, 2022 only and will include forward-looking statements. Actual results may differ materially from those expressed or implied in our forward-looking statements. Additional information about risks and other factors that could potentially impact our financial results is included in our earnings press release and in our filings with the SEC, including our annual report on Form 10-K.
We encourage investors to use our Investor Relations website at investor.groupon.com as a way of easily finding information about the company. Groupon promptly makes available on this website the reports that the company files or furnishes with the SEC, corporate governance information and select press releases and social media postings.
On the call today, we will also discuss the following non-GAAP financial measures: adjusted EBITDA, adjusted EBITDA margin, free cash flow and FX-neutral results. In our press release and our filings with the SEC, each of which is posted on our Investor Relations website, you will find additional disclosures regarding the non-GAAP measures, including reconciliations of these measures to the most comparable measures under U.S. GAAP. And with that, I'm happy to turn the call over to Kedar.
Kedar Deshpande
Hello, and thanks for joining us. We delivered local billings of $361 million, up 5% from the first quarter. While we have stabilized the business, we are still not stimulating the customer engagement we need to grow the business. And as a result, our customer retention and purchase frequency metrics are not where we want them to be. Bottom line, our overall performance is not at the levels we anticipated, and we know we must do better.
On the merchant side of our marketplace, macro headwinds have persisted. Labor availability is still constrained and many merchants with limited capacity have been able to raise prices. This means that these merchants have not needed discounts to bring customers through their doors, so many merchants are not leveraging the Groupon marketplace to sell discounted inventory as they have in the past.