Groupon Inc
For the period ended Jun 30, 2024. Filed Jul 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 30, 2024
GRPN$15.49-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-09.
0001490281-24-000087
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-30.
0001490281-24-000122
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 98 previous paragraphs and 116 current paragraphs.
62 unchanged; 34 reworded; 14 added; 2 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 18 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
North America contribution profit decreased for the six months ended June 30, 2024 compared with the prior year period, primarily due to an increase in marketing expense.
Current report
International gross billings and units decreased by $45.0 million and 1.9 million for six months ended June 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 pause of our Local business in Italy. In addition, there was a $1.8 million favorable impact on gross billings from year-over-year changes in foreign currency exchange rates.
Current report
Comparison of the Six Months Ended June 30, 2024 and 2023
Current report
International revenue, cost of revenue and gross profit decreased $10.4 million, $2.0 million and $8.4 million 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 pause 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.
Current report
International contribution profit decreased for the three months ended June 30, 2024 compared with the prior year period, primarily due to a decrease in gross profit.
Current report
International contribution profit decreased for the six months ended June 30, 2024 compared with the prior year period, primarily due to a decrease in gross profit.
Current report
Marketing expense and marketing expense as a percentage of gross profit increased for the three months ended June 30, 2024 compared with the prior year period, due to an increased investment in our rebuilt performance marketing campaigns.
Current report
Restructuring and related charges (credits) increased for the three months ended June 30, 2024 compared with the prior year period, primarily due to changes in estimates related to our 2022 Restructuring Plan, which resulted in credits recognized during the three months ended June 30, 2024. See Item 1, Note 9, Restructuring and Related Charges, for additional information.
Current report
Gain on sale of assets increased for the three months ended June 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.
Current report
Marketing expense and marketing expense as a percentage of gross profit increased for the six months ended June 30, 2024 compared with the prior year period, due to an increased investment in our rebuilt performance marketing campaigns.
Current report
Gain on sale of assets increased for the six months ended June 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.
Current report
Comparison of the Three and Six Months Ended June 30, 2024 and 2023:
Current report
(1) The Foreign VAT assessments adjustment excludes related interest expense of $0.8 million as the interest expense is included within Other (income) expense, net. See Item 1, Note 6, Commitments and Contingencies, for additional information.
Current report
In 2021, the Company issued the 2026 Notes in the principal amount of $230.0 million, which mature on March 15, 2026. In advance of that maturity date, the Company currently is exploring options and potential transactions to retire or refinance the notes, including retiring a portion of the notes and refinancing the balance. If it were decided to pursue a refinancing transaction, no assurances can be given that the Company will be able to consummate any such refinancing transaction.
Removed paragraphs (2)
Previous report
International contribution profit remained relatively flat for the three months ended March 31, 2024 compared with the prior year period.
Previous report
Marketing expense and marketing expense as a percentage of gross profit increased for the three months ended March 31, 2024 compared with the prior year perioddue to an increased investment in our rebuilt performance marketing campaigns.
Reworded paragraphs (34)
Previous wording
In August 2022, we initiated the 2022 Cost Savings Plan, including the first phase in August 2022, the second January 2023 and the third July 2023, which is designed to reduce our expense structure and align with our go-forward business and financial objectives. The 2022 Cost Savings Plan included the 2022 Restructuring Plan, as well as other planned savings to be achieved through other actions, such as future reductions in our facilities footprint at natural lease terminations (or by exercising existing options in leases), renegotiating contractual arrangements with certain service providers and continuing to make elective decisions to eliminate vacant positions rather than rehire. The 2022 Restructuring Plan is expected to include an overall reduction of approximately 1,150 positions globally, with the majority of these reductions completed as of March 31, 2023 and the remainder expected to occur by the end of 2024. In connection with these actions, we expect to record total pre-tax charges of $22.0 million to $24.1 million. 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. We have incurred total pretax charges of $21.2 million since the inception of the 2022 Restructuring Plan. See Item 1, Note 9, Restructuring and Related Charges, for additional information.
Current wording
In August 2022, we initiated the 2022 Cost Savings Plan, including the first phase in August 2022, the second January 2023 and the third July 2023, which is designed to reduce our expense structure and align with our go-forward business and financial objectives. The 2022 Cost Savings Plan included the 2022 Restructuring Plan, as well as other planned savings to be achieved through other actions, such as future reductions in our facilities footprint at natural lease terminations (or by exercising existing options in leases), renegotiating contractual arrangements with certain service providers and continuing to make elective decisions to eliminate vacant positions rather than rehire. The 2022 Restructuring Plan is expected to include an overall reduction of approximately 1,150 positions globally, with the majority of these reductions completed as of March 31, 2023 and the remainder expected to occur by the end of 2024. We have incurred total pretax 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. See Item 1, Note 9, Restructuring and Related Charges, for additional information.
Previous wording
Our gross billings and units for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
Our gross billings and units for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
The following table presents the above financial metrics for the three months ended March 31, 2024 and 2023 (in thousands):
Current wording
The following table presents the above financial metrics for the three and six months ended June 30, 2024 and 2023 (in thousands):
Previous wording
•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.
Current wording
•Restructuring and related charges (credits) 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.
Previous wording
North America segment gross billings and units for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
North America segment gross billings and units for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
North America gross billings increased by $6.8 million while units and TTM active customers decreased by 0.4 million and 0.7 million for the three months ended March 31, 2024 compared with the prior year period. The increase in gross billings is primarily due to an increase in demand for our Travel category and favorable refund rates for our Local category. This was partially offset by a decline in demand for our Goods and Local categories, which resulted in fewer unit sales and TTM active customers.
Current wording
North America gross billings increased by $3.1 million while units and TTM active customers decreased by 0.1 million and 0.4 million for the three months ended June 30, 2024 compared with the prior year period. The increase in gross billings is primarily due to favorable refund rates and an increase in demand for our Local category. This was partially offset by a decline in demand for our Goods category, which resulted in fewer unit sales and TTM active customers.
Previous wording
North America segment revenue, cost of revenue and gross profit for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
North America segment revenue, cost of revenue and gross profit for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
North America revenue and gross profit increased by $4.9 million and $8.2 million while cost of revenue decreased $3.3 million for the three months ended March 31, 2024 compared with the prior year period. The increase in revenue and gross profit is primarily due to an increase in demand for our Travel category and favorable refund rates for our Local category, partially offset by a decline in demand for our Goods and Local categories. The decrease in cost of revenue is primarily due to a decrease in payroll costs.
Current wording
North America revenue and gross profit increased by $2.5 million and $5.8 million while cost of revenue decreased $3.3 million for the three months ended June 30, 2024 compared with the prior year period. The increase in revenue and gross profit is primarily due to favorable refund rates and an increase in demand for our Local category, partially offset by a decline in demand for our Goods category. The decrease in cost of revenue is primarily due to a decrease in payroll costs.
Previous wording
We define contribution profit as gross profit less marketing expense. North America marketing and contribution profit for the three months ended March 31, 2024 and 2023 was as follows (in thousands):
Current wording
We define contribution profit as gross profit less marketing expense. North America marketing and contribution profit for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands):
Previous wording
North America contribution profit increased for the three months ended March 31, 2024 compared with the prior year period, primarily due to an increase in gross profit.
Current wording
North America contribution profit decreased for the three months ended June 30, 2024 compared with the prior year period, primarily due to an increase in marketing expense.
Previous wording
International segment gross billings and units for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
International segment gross billings and units for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
International gross billings, units and TTM active customers decreased by $22.1 million, 1.0 million and 1.4 million for the three months ended March 31, 2024 compared with the prior year period. These declines were primarily attributable to an overall decline in demand for our Local, Goods and Travel categories. In addition, there was a $2.1 million favorable impact on gross billings from year-over-year changes in foreign currency exchange rates.
Current wording
International gross billings, units and TTM active customers decreased by $23.0 million, 1.0 million and 1.3 million for the three months ended June 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 pause of our Local business in Italy. In addition, there was a $0.3 million unfavorable impact on gross billings from year-over-year changes in foreign currency exchange rates.
Previous wording
International segment revenue, cost of revenue and gross profit for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
International segment revenue, cost of revenue and gross profit for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
International revenue, cost of revenue and gross profit decreased by $3.4 million, $1.1 million and $2.3 million for the three months ended March 31, 2024 compared with the prior year period. These declines were primarily attributable to an overall decline in demand for our Local, Goods and Travel categories. Revenue and gross profit also had favorable impacts of $0.6 million and $0.6 million from year-over-year changes in foreign currency exchange rates.
Current wording
International revenue, cost of revenue and gross profit decreased by $7.0 million, $0.9 million and $6.1 million for the three months ended June 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 pause of our Local business in Italy. Revenue and gross profit also had unfavorable impacts of $0.1 million and $0.1 million from year-over-year changes in foreign currency exchange rates.
Previous wording
International marketing and contribution profit for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
International marketing and contribution profit for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
International marketing expense and marketing expense as a percentage of gross profit decreased for the three months ended March 31, 2024 compared with the prior year period, primarily due to traffic declines and a lower investment in our online marketing spend.
Current wording
International marketing expense and marketing expense as a percentage of gross profit decreased for the six months ended June 30, 2024 compared with the prior year period, primarily due to the traffic declines and a lower investment in our online marketing spend.
Previous wording
Operating expenses for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
Operating expenses for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
(1)The three months ended March 31, 2024 and 2023 each includes$2.3 million of stock-based compensation expense and$5.3 million and$7.3 million of depreciation and amortization expense.
Current wording
(1)The three and six months ended June 30, 2024 includes $6.4 million and $8.7 million of stock-based compensation expense and $4.0 million and $9.3 million of depreciation and amortization expense. The three and six months ended June 30, 2023 includes $7.5 million and $9.8 million of stock-based compensation expense and $6.6 million and $13.9 million of depreciation and amortization expense.
Previous wording
Restructuring and related charges decreased for the three months ended March 31, 2024 compared with the prior year period, primarily due to a decrease in severance and benefits costs related to our 2022 Restructuring Plan. See Item 1, Note 9, Restructuring and Related Charges, for additional information.
Current wording
Restructuring and related charges (credits) decreased for the six months ended June 30, 2024 compared with the prior year period, primarily due to a decrease in severance and benefit costs related to our 2022 Restructuring Plan, which resulted in credits recognized during the six months ended June 30, 2024. See Item 1, Note 9, Restructuring and Related Charges, for additional information.
Previous wording
Other income (expense), net for the three months ended March 31, 2024 and 2023 was as follows (in thousands):
Current wording
Other income (expense), net for the three and six months ended June 30, 2024 and 2023 was as follows (in thousands):
Previous wording
The change in Other income (expense), net for the three months ended March 31, 2024 as compared with the prior year period is primarily related to a $15.9 million change in foreign currency gains and losses.
Current wording
The change in Other income (expense), net for the six months ended June 30, 2024 as compared with the prior year period is primarily related to a $16.2 million change in foreign currency gains and losses.
Previous wording
Provision (benefit) for income taxes for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
Provision (benefit) for income taxes for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
The effective tax rates for the three months ended March 31, 2024 and 2023 were impacted by pretax losses incurred in jurisdictions that have valuation allowances against their net deferred tax assets. For the three months ended March 31, 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.
Current wording
The effective tax rates for the three and six months ended June 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 six months ended June 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.
Previous wording
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. Our definition of Adjusted EBITDA may differ from similar measures used by other companies, even when similar terms are used to identify such measures. 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).
Current wording
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).
Previous wording
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 months ended March 31, 2024 and 2023, special charges and credits included charges related to our 2022 and 2020 Restructuring Plans. 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.
Current wording
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 six months ended June 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.
Previous wording
The following is a reconciliation of Adjusted EBITDA to the most comparable GAAP financial measure, Net income (loss), for the three months ended March 31, 2024 and 2023 (in thousands):
Current wording
The following is a reconciliation of Adjusted EBITDA to the most comparable GAAP financial measure, Net income (loss), for the three and six months ended June 30, 2024 and 2023 (in thousands):
Previous wording
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 months ended March 31, 2024 (in thousands):
Current wording
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 six months ended June 30, 2024 (in thousands):
Previous wording
Our principal source of liquidity is our cash balance totaling $158.7 million as of March 31, 2024. The Company’s cash requirements are subject to change as business conditions warrant and opportunities arise. Most recently, in April 2024, the Company received an unfavorable ruling related to a tax assessment for one of its subsidiaries. The Company does not expect the tax assessment to result in financial exposure that exceeds the assets of Groupon S.r.l. 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. Additionally, with the recent Rights Offering and debt prepayment and termination of our Credit Agreement in the three months ended March 31, 2024, we believe that the Company has sufficient liquidity to support its overall ongoing operational needs within the next 12 months.
Current wording
Our principal source of liquidity is our cash balance totaling $178.1 million as of June 30, 2024. The Company’s cash requirements are subject to change as business conditions warrant and opportunities arise. Most recently, in April 2024, the Company received an unfavorable ruling related to a tax assessment for one of its subsidiaries that is currently being appealed. The Company does not expect the tax assessment to result in financial exposure that exceeds the assets of Groupon S.r.l. 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. Additionally, with the recent 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.
Previous wording
Our net cash flows from operating, investing and financing activities for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Current wording
Our net cash flows from operating, investing and financing activities for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):
Previous wording
Our free cash flow for the three months ended March 31, 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):
Current wording
Our free cash flow for the three and six months ended June 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):
Previous wording
For the three months ended March 31, 2024, our net cash used in operating activities was $10.1 million as compared with the prior year period of $76.3 million. The cash outflow in the three months ended March 31, 2024 has improved compared to the prior year period primarily due to our cost cutting measures as a result of the impacts of our 2022 Restructuring Plan.
Current wording
For the six months ended June 30, 2024, our net cash provided by operating activities was $5.2 million as compared with net cash used in operating activities of $118.6 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.
Previous wording
For the three months ended March 31, 2024, our net cash used in investing activities was $3.9 million as compared with the prior year period of $9.0 million. The year-over-year change was primarily driven by fewer purchases of property and equipment and capitalized software during the three months ended March 31, 2024.
Current wording
For the six months ended June 30, 2024, our net cash provided by investing activities was $0.4 million as compared with net cash used in investing activities of $11.5 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 six months ended June 30, 2024.
Previous wording
For the three months ended March 31, 2024, our net cash provided by financing activities was $35.3 million as compared with net cash used in financing activities of $29.2 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$15.5 million in payments of borrowings under our revolving credit facility.
Current wording
For the six months ended June 30, 2024, our net cash provided by financing activities was $33.6 million as compared with net cash used in financing activities of $32.1 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.
Previous wording
As of March 31, 2024, we had $49.5 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.
Current wording
As of June 30, 2024, we had $53.0 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.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
North America gross billings increased by $9.9 million while units decreased 0.5 million for the six months ended June 30, 2024 compared with the prior year period. The increase in gross billings is primarily due to favorable refund rates for our Local category and an increase in demand for our Travel category. This was partially offset by a decline in demand for our Goods category, which resulted in fewer unit sales.
Current report — wording carried from elsewhere
North America revenue and gross profit increased by $7.4 million and $14.0 million while cost of revenue decreased $6.6 million for the six months ended June 30, 2024 compared with the prior year period. The increase in revenue and gross profit is primarily due to favorable refund rates for our Local category and an increase in demand for our Travel category, partially offset by a decline in demand for our Goods category. The decrease in cost of revenue is primarily due to a decrease in payroll costs.
Current report — wording carried from elsewhere
North America marketing expense and marketing expense as a percentage of gross profit increased for the six months ended June 30, 2024 compared with the prior year period, primarily driven by an increased investment in our rebuilt performance marketing campaigns.
Current report — wording carried from elsewhere
International marketing expense decreased for the three months ended June 30, 2024 compared with the prior year period, primarily due to traffic declines and a lower investment in our online marketing spend. Marketing expense as a percentage of gross profit increased for the three months ended June 30, 2024 compared with the prior year period, primarily due to a decrease in gross profit.
Current report — wording carried from elsewhere
SG&A and SG&A as a percentage of gross profit decreased for the six months ended June 30, 2024 compared with the prior year period, primarily due to a decrease in payroll costs.
Current report — wording carried from elsewhere
The change in Other income (expense), net for the three months ended June 30, 2024 as compared with the prior year period is primarily related to a $0.6 million decrease in net interest expense.