Groupon (NASDAQ:GRPN) executives outlined priorities around marketplace density, personalization, artificial intelligence and merchant acquisition during a live investor discussion on X, while reiterating that the session did not include new financial information or updates to guidance issued Aug. 6.
Chief Executive Officer Dušan Šenkypl said the company is seeking to make its marketplace more relevant to younger consumers through a combination of new products, organic and paid marketing, influencer partnerships and more personalized user experiences. He highlighted the company’s “mystery vacations” product, in which customers pay $199 to $299 per person for a trip before learning the destination, as an example of an experience-oriented offering aimed at younger users.
AI, Personalization and Marketplace Quality
The CEO described AI as a major potential distribution channel, particularly because younger consumers are adopting AI tools more quickly. Groupon recently shared an example of an AI Deal Advisor that can recommend deals through a conversational interface, he said.
Personalization remains central to the company’s product strategy. Šenkypl said Groupon is using early signals such as a visitor’s device, location, browser and initial clicks to identify customer preferences and present more relevant deals. The company is also using AI to review customer communications, redemption signals, reviews and support interactions to identify problems with individual offers.
“Sometimes it means turn off the deal, sometimes it means talk to merchant and change the deal,” Šenkypl said. He added that Groupon can also improve deal descriptions and layouts when customers find the terms unclear.
He said sustainable growth depends on a marketplace engine with three components: sufficient supply and sales capabilities, effective merchandising and customer trust, and higher purchase frequency. Purchase frequency is currently the company’s core priority, he said.
While active customers grew, units declined 7%, which Šenkypl said indicates customers are purchasing higher-value local inventory but are doing so less frequently. Groupon’s small-business merchant base in North American local was slightly lower year over year because new merchant acquisition fell short of expectations, although existing-merchant supply increased.
The company aims to roughly double new-merchant productivity so that new merchants account for about 10% of North American local supply, Šenkypl said. Groupon is developing a multi-touch merchant acquisition engine using voice AI, email, SMS, sales-representative matching and paid campaigns based on local supply needs.
Focus on Existing Markets and Categories
Rather than expanding broadly into new countries, Groupon is prioritizing deeper coverage in its current markets, particularly major cities where it can build marketplace density. Šenkypl said cities with higher marketplace density posted strong double-digit growth in the second quarter.
Groupon is also resuming operations in Italy, where it has a sizable merchant base that remained interested in working with the company, he said.
Within North American local, Šenkypl said health, beauty and wellness remains soft and is a focus area for renewed merchant acquisition and fresher inventory. By contrast, the Things to Do category grew at a double-digit rate in the second quarter. He said the company sees potential to use social marketing, influencers and newer deal formats to support categories that need improvement.
Chief Financial Officer Rana Kashyap said the company’s approach is not to move away from value, but to focus on deals that offer both attractive pricing and a quality experience. He said Groupon wants to avoid “bargain basement, buyer beware” shopping experiences that may produce a deep discount but discourage customers from returning.
Groupon’s most loyal customers represent about 25% of the active customer base but generate 45% of revenue, Šenkypl said. The company is focusing on retention, re-engagement and moving customers from first purchases to subsequent purchases, including through its mobile application.
Capital Allocation and SumUp Stake
Kashyap said Groupon holds a small minority stake in SumUp that it considers non-core. Groupon would consider monetizing the stake through an IPO or a pre-IPO secondary transaction if an attractive commercial opportunity emerges, he said, though timing remains uncertain.
If the stake is sold, Kashyap said Groupon would evaluate how to reinvest proceeds under its capital-allocation framework. He said the core business generates positive cash flow and does not require additional capital under current plans.
The company’s first capital priority remains organic growth, Kashyap said, followed by opportunistic decisions involving debt reduction and potential share repurchases. He said Groupon does not have a formal leverage target and is not seeking to become highly leveraged.
On convertible debt, Kashyap pointed to the company’s prior refinancings as evidence of its focus on limiting dilution. He said Groupon refinanced notes with a $30 conversion strike price and later issued 2030 notes with a conversion strike in the $50 range, a level that would imply an enterprise value above $2 billion.
Management did not provide 2027 guidance or a long-term free-cash-flow margin target. However, Kashyap reiterated that the company sees an opportunity for bookings growth above 20%, while noting that growth remains uneven across cities and categories.
About Groupon (NASDAQ:GRPN)
Groupon, Inc operates an online marketplace that connects subscribers with local merchants offering discounted goods, services and experiences. Through its website and mobile applications, Groupon provides time-limited deals across categories such as restaurants, travel, beauty and wellness, home services, and consumer products. Merchants partner with Groupon to attract new customers and drive foot traffic, leveraging the platform’s targeted marketing tools and large subscriber base to promote special offers and vouchers.
Founded in Chicago in 2008 by Andrew Mason, Eric Lefkofsky and Brad Keywell, Groupon pioneered the daily-deals model, quickly growing its user community and merchant network.
