Operator: Good day, everyone, and welcome to the Groupon's Second Quarter 2013 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the Company's formal remarks. Today's conference is being recorded.
For opening remarks, I'd now like to turn the call over to the Senior Director of Investor Relations, Genny Konz. Please go ahead.
Genny Konz - IR: Hello, and welcome to our second quarter 2013 financial results conference call. On the call today are Eric Lefkofsky, CEO; Kal Raman, COO; and Jason Child, CFO. Additionally, our new Chairman, Ted Leonsis, is on the call for any questions you might have on the Chief Executive Officer announcement.
The following discussion and responses to your questions reflect management's views as of today August 7, 2013, only and will include forward-looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and in our filings with the SEC including our Form 10-Q.
During this call, we'll discuss certain non-GAAP financial measures 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 non-GAAP measures including reconciliations of these measures with U.S. GAAP. Finally, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2012.
Now, I will turn the call over to Eric.
Eric Lefkofsky - CEO: Thanks Genny. We are pleased with our performance in the second quarter of 2013, exceeding the top end of our operating profit range by $19 million. Gross billings growth of 10% year-over-year was driven by 30% growth in North America. Revenue growth of 7% was driven by 45% growth in North America. And sequentially, operating income excluding stock-based compensation and acquisition related costs known as CSOI improved by about $8 million reaching $59 million and adjusted increased to $81 million in the quarter.
I want to start by reviewing the highlights. First, our North American business led the way with its best quarter ever, posting revenues of $377 million and segment operating income of $49 million. What's most impressive about our North American business, which now represents over 50% of our billings is that our year-over-year billings growth accelerated from 23% in Q1 to 30% in Q2 despite marketing expense actually been down from Q2 of last year. To generate organic billings growth of 30% and still reduce marketing expense is a sign of how true we committed our customers at Groupon.
Second, we changed our segment reporting this quarter, breaking out EMEA from rest of the world which provides a better sense of the financial profile of our regions. EMEA billings returned to year-over-year growth this quarter, improving from an 8% decline in Q1 to 4% growth in Q2 as we began to emerge from a difficult period of stagnation. Despite take rate investments which impacted our revenues, we still generated a 15.4% segment operating margin in the quarter which compares favorably to 12.9% in North America.