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Groupon Announces New and Updated Gifting Functionality

December 7, 2023

Chicago - December 7, 2023 – Groupon, Inc. (GRPN) - Just in time for the gifting season Groupon announces key new features across web and app, taking a bold step towards becoming the go-to gifting destination. With significant upgrades to its gifting tools, the company reaffirms its commitment to redefine local commerce, focusing on delivering an enhanced and seamless gift experience for both merchants and users as the platform continues its innovative evolution. Groupon's New Features include:

• Personalized Gift Vouchers: Adding a personalized touch with a range of design options in easy to share formats.
• Flexible Gift Cards: Providing recipients a variety of experiences to choose from.
• Hassle-Free Management: Ensuring adaptability with easy gift exchange and return options.
• A dedicated Gift Page for an enhanced gifting experience.
• Gift Filters integrated into the Browse Page for a more personalized selection.

With 60% of customers preferring experiential gifts over tangible items, and 40% leaning towards gifts from local or small businesses*, these new features make Groupon perfectly placed to tap into the thriving gifting market. Groupon promises a holistic gifting platform with swift digital delivery options, customizable vouchers, and a smooth exchange process. The focus is to elevate the experience for gift recipients at every stage.

“Over the past few years, we've seen a consistent rise in the demand for gifts and gift vouchers on Groupon. Notably, in the final days leading up to the holidays, we've experienced an impressive sevenfold increase in gifting sales in comparison to an average shopping day, a trend observed in both 2021 and 2022. Additionally, following the  launch of our new gifting functionality we've witnessed a remarkable 20% year-over-year growth in gifting sales in the following two weeks. While this growth is from a very small base, we believe our latest updates strategically position Groupon to seamlessly meet this growing demand, showcasing our commitment to providing customers with unparalleled convenience and choice during the holiday season” commented Marie Havličková, VP, Strategy at Groupon. 

The enhancements cater to the needs and desires of Groupon's customers by providing an array of convenient and personalized gifting options. This includes instant gifting, where gifts can be swiftly delivered via email or printable formats, ensuring a seamless and swift gifting experience. Groupon has become a one-stop-shop for all gifting needs, offering a wide variety of giftable deals and gift cards.

Enhanced Gifting Options for a Personalized Experience

In the midst of a strategic shift towards a gift-centric focus, Groupon is also pleased to announce the global launch of the new Groupon Gift Cards. Gift Cards, available in general or themed options like Experience or Travel, add a personalized touch and can be redeemed for versatile Groupon bucks, without limitations on any deal category. In the US and the UK, Groupon is also introducing the Super Gift Card, a multi-brand option, can be redeemed for various brand rewards through Groupon’s partner Giftcloud.

To make the holiday season even more festive and user-friendly, the Exclusive Gifting Page is introduced by Groupon. This dedicated page features highly giftable deals, simplifying the process for both customers and merchants to discover the perfect gift, based on the recipient's preferences, persona, or budget.

Elevating Local Commerce: Groupon's Vision for the Future

Businesses partnering with Groupon's gifting initiative gain access to a thriving marketplace. The platform allows year-round sale of gift vouchers, establishing a steady revenue stream. Exposure to new customers, including giftees, presents a significant acquisition opportunity. Moreover, participating businesses can optimize performance by securing customers during low seasons.

Dušan Šenkypl, Interim CEO of Groupon, commented: "As Groupon takes bold strides in enhancing offerings for both customers and merchant partners, these innovative features not only signify a significant leap in our commitment to personalized experiences but also underscore our unwavering dedication to fostering the success and satisfaction of our valued merchant partners and users. At the heart of our vision is a desire to provide customers with a seamless gifting experience.”

Looking forward to Q1 2024, Groupon is excited to usher in a new era of consumer web and app features. The upcoming enhancements, including a revamped Home, Browse, Deal, Checkout, Cart, and more, will ensure seamless responsiveness, eliminating the distinction between web and touch interfaces. These forthcoming enhancements, coupled with the ease of gifting, will further solidify Groupon's commitment to delivering optimal experiences in the dynamic landscape of local commerce.

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*Groupon internal data

Note on Forward-Looking Statements
The statements contained in this release that refer to plans and expectations for the next quarter, the full year or the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our future results of operations and financial position, business strategy and plans and our objectives for future operations and future liquidity. The words "may," "will," "should," "could," "expect," "anticipate," "believe," "estimate," "intend," "continue" and other similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties include, but are not limited to, our ability to execute, and achieve the expected benefits of, our go-forward strategy; execution of our business and marketing strategies; volatility in our operating results; challenges arising from our international operations, including fluctuations in currency exchange rates, legal and regulatory developments in the jurisdictions in which we operate and geopolitical instability resulting from the conflicts in Ukraine and the Middle East; global economic uncertainty, including as a result of inflationary pressures, ongoing impacts from the COVID-19 pandemic and labor and supply chain challenges; retaining and adding high quality merchants and thirdparty business partners; retaining existing customers and adding new customers; competing successfully in our industry; providing a strong mobile experience for our customers; managing refund risks; retaining and attracting members of our executive and management teams and other qualified employees and personnel; customer and merchant fraud; payment-related risks; our reliance on email, internet search engines and mobile application marketplaces to drive traffic to our marketplace; cybersecurity breaches; maintaining and improving our information technology infrastructure; reliance on cloud-based computing platforms; completing and realizing the anticipated benefits from acquisitions, dispositions, joint ventures and strategic investments; lack of control over minority investments; managing inventory and order fulfillment risks; claims related to product and service offerings; protecting our intellectual property; maintaining a strong brand; the impact of future and pending litigation; compliance with domestic and foreign laws and regulations, including the CARD Act, GDPR, CPRA, other privacy-related laws and regulations of the Internet and e-commerce; classification of our independent contractors, agency workers or employees; our ability to remediate our material weakness over internal control over financial reporting; risks relating to information or content published or made available on our websites or service offerings we make available; exposure to greater than anticipated tax liabilities; adoption of tax laws; our ability to use our tax attributes; impacts if we become subject to the Bank Secrecy Act or other anti-money laundering or money transmission laws or regulations; our ability to raise capital if necessary; our ability to continue as a going concern; risks related to our access to capital and outstanding indebtedness, including our convertible senior notes; our common stock, including volatility in our stock price; our ability to realize the anticipated benefits from the capped call transactions relating to our convertible senior notes; difficulties, delays or our inability to successfully complete all or part of the announced restructuring actions or to realize the operating efficiencies and other benefits of such restructuring actions; higher than anticipated restructuring charges or changes in the timing of such restructuring charges; and those risks and other factors discussed in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2022 and Part II, Item 1A. Risk Factors of our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023, and our other filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained by visiting the company's Investor Relations web site at investor.groupon.com or the SEC's web site at www.sec.gov. Groupon's actual results could differ materially from those predicted or implied and reported results should not be considered an indication of future performance. You should not rely upon forward-looking statements as predictions of future events. Although Groupon believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither Groupon nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. The forward-looking statements reflect our expectations as of December 7, 2023. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations.