#1Unlocking Opportunity The Path Etsy to Owning “Special” INVESTOR DAY#2Forward-looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements relating to our outlook, business strategy, our market size, growth, and opportunity, financial guidance and key drivers thereof, anticipated performance over the next three to five years and key drivers thereof, ability to execute on our strategy to own special purchase occasions, investment approach, planned marketing activities and the impact thereof, timing of our Google Cloud migration, product development initiatives, and potential future GMS and revenue growth. Forward- looking statements include all statements that are not historical facts. In some cases, forward-looking statements can be identified by terms such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "will," or similar expressions and the negatives of those words. Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that we expect. These risks and uncertainties include: (1) the fluctuation of our quarterly operating results; (2) our ability to implement our business strategy; (3) our ability to attract and retain an active and engaged community of Etsy sellers and Etsy buyers; (4) our history of operating losses; (5) macroeconomic events that are outside of our control; (6) our ability to recruit and retain employees; (7) the importance to our success of the trustworthiness of our marketplace and the connections within our community; (8) our ability to enhance our current offerings and develop new offerings to respond to the changing needs of Etsy sellers and Etsy buyers; (9) the effectiveness of our marketing efforts; (10) the effectiveness of our mobile solutions for Etsy sellers and Etsy buyers; (11) our ability to expand our business in our core geographic markets; (12) regulation in the area of privacy and protection of user data; (13) our dependence on third-party payment providers; and (14) the potential misuse or disclosure of sensitive information about members of our community and the potential for cyber-attacks. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2018, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.#3Etsy Our Right to Win Josh Silverman, CEO#4Three Key Takeaways Large and growing market Early-stage opportunity Etsy Unique and defensible Right to Win#5Our marketplace has two-sided vibrancy... Buyers 39.4 Million* Active Buyers Etsy *Active buyers and active sellers were approximately 39.4 million and approximately 2.1 million, respectively, as of December 31, 2018 Sellers 2.1 Million* Active Sellers 60 million items Etsy#6Etsy#7What do you think of when you think of Etsy? Etsy#8M Morales IVI FACETS Etsy#9Here is what else you can find on Etsy Etsy#10You can buy more than 400 types of home accessories on Etsy 964 Modern Short Stories THE USES OF IMAGINATION Microsope Telescope Seattle Washington Revised Edition MIZENER BOOK OF OWLEDGE NNUAL @ ROLIER NORTON StudioKMO Charlotte, North Carolina Convivial Production Kansas City, MO TeddyandWool The Netherlands Etsy#11We sell over 1,000 items each day across our furniture categories LDU LaMaisonDeFurniture London, United kingdom CroftHouseLA Los Angeles, California 7MAGOK Totnes, United Kingdom Photonic Studio Arroyo Grande, California Etsy#12We sell 8 pieces of clothing and 1 pair of shoes every minute. Noemiah Montreal, Canada OmoriaBoutique Grapevine, Texas KatzAndBirds Tel Aviv, Israel notPERFECTLINEN Vilnius, Lithuania#13Tsunja Tegal, Indonesia DANIBARBEshop Washington D.C. Artemer Tel Aviv, Israel SevenCaratShop Tel Aviv, Israel MuddyHeart Cary, North Carolina Etsy#14We sell a wedding or engagement ring every 90 seconds. NyFine Jewelry New York, New York EdenGardenJewelry Valencia, Spain NishiJewelry New York, New York Etsy#15Over 1 million bridesmaid and groomsmen gifts were purchased on Etsy in 2018 BellePivoine Pringy, France SewHappyGirl's Asheville, North Carolina 10.26.13 Please R KINDLY 10 WILL BE ATTENDING HAVE RESEE SELECT THE MEAL CHO B & D 10.26.13 NAME RebeccaSchoneveld Brooklyn, NY Love The Letter LoftUK Hereford, United Kingdom welcome stephanie & malt SEPTEMBER 12, 2015 PaperandPineCo Naperville, Illinois Etsy#16Sales of baby and toddler toys grew by 80% in 2018 BigStuffed Paris, France LA VILLE UN LION AN MAUX MONTY Littlegoodall McKinney, Texas WREN B TAYA A 1.3 manzanitakids Seattle, Washington Etsy M#17happy birthday lightpaper Toronto, Canada StudioArmadillo Tel Aviv, Israel FIRST CHRISTMAS Caleb. 2019 Coudsand Currents Danbury, United Kingdom A bashpartygoods Chicago, Illinois Etsy#18mineral pank sal soal Launder Shopamongtheflowers Placerville, California MicaRicaShop Montalbán de Córdoba, Spain 2 RITUAL LOVE+LIGHT Body Room Spray Ritual Elements Austin, Texas Shopamongtheflowers Placerville, California W M RITUAL AVER T Car Te Me LOVE+LIGHT Body Room Spray tash + luc NOORA & HASSAN ViceandVelvet Melbourne, Australia C+M SageHillBotanicals Mountain View, Arkansas Etsy#19Funilaridan hark Misha PIZZA Tuningridas! burl Miska Workcice 82%3 oy AY Etsy#20Josh's Recent Purchases Make8Bake Karkhiv, Ukraine IndustrialArtifact Dekalb, Illinois AnnaBelaArtistry Fontana, California Etsy W#21So how big is our market opportunity? Etsy#22Select "Category" Company TAMS ◆wayfair $430B* online and off-line home furnishings asos $288B* on-line apparel in specific countries FARFETCH BLUE NILE. $307B* on-line personal luxury goods Etsy $443B** Global gems & jewelry *wayfair: As estimated by wayfair, February 2019; ASOS: Estimated £222B ($288B based on August 31, 2018 exchange rate) as reported by ASOS, October 2018; Farfetch: As estimated by third-party investment bank, February 2019 **Research & Markets markets 2017 projection for size of global gems & jewelry market by 2022#23Etsy Owning Special ان کا ایک انار#24More consumption occurs in fewer places today SELECTION Traditional Retail CONVENIENCE PRICE Etsy#25More consumption occurs in fewer places today SELECTION Massive E-tailers CONVENIENCE PRICE Etsy#26commoditization = everyday Etsy#27What they can't win everyday commodities H special Etsy#28In a sea of sameness, we offer something unique... everyday commodities # fun self-expression special human personal Etsy#29Focused on our Competitive Advantages Etsy#30Our right to win Best-in-Class Search and Discovery Human Connections Our Collection of Unique Items A Trusted Brand Etsy#31Our right to win Best-in-Class Search and Discovery Human Connections Our Collection of Unique Items A Trusted Brand Etsy#32Our right to win Best-in-Class Search and Discovery Human Connections Our Collection of Unique Items A Trusted Brand Etsy#33coasters x All categories > "coasters" (204,121 Results) 8 88 Wy YOUR DESIGN HERE J PHY Coaspent Magnet Bottle Etsy M MURPHY M MURPHY My Boston Terrier#34football y'all! Coasters wps digunch DADS ORANDAD TO Abstract Bamboo Laser-Cut Coasters (Set of 4) $31.00 light paper lightpaper Toronto, Canada Etsy#35Our Right to Win Best-in-Class Search & Discovery SUPER SALE TORAY C Ser Durkykit (113.83 (63.31 Fun and Inspiring *****0 €36.90 Shower (25.38 Prescient and curated Personalized Strong POV on quality Etsy#36Our right to win Best-in-Class Search and Discovery Human Connections Our Collection of Unique Items A Trusted Brand Etsy#37300 light paper light + paper Leveles teadullin me lightpaper Toronto, Canada Etsy#38> > > > e >> 33 Yay! Thanks so much for ordering Jackie! I hope your mom loves the card. " Amanda Etsy#39Our Right to Win Super-human’ shopping experience Telling the story of the items Meaningful interactions between buyers and sellers Personal touch Etsy#40Our right to win Best-in-Class Search and Discovery Human Connections Our Collection of Unique Items A Trusted Brand Etsy#41AN Renaissance Cushions ROLLING PINS MAKE-BAKE Frufill ******YEN HEP L ETSY SELLERS mm SAN JUNIPERO TEXTILE STUDIO NACHDO Yarn Kitchen INEN WORLD Etsy Sarah Safavi MASAYA &#42Will it look like it does in the picture? AN When will it arrive? Renaissance Cushions ROLLING PINS MAKE-BAKE Frufill ******YEN HEP L ETSY BUYERS Can I return it? ETSY SELLERS mm SAN JUNIPERO TEXTILE STUDIO NACHDO What happens if something goes wrong? Yarn Kitchen Etsy INEN WORLD Sarah Jafavi MASAYA &#43Renaissance Cushions ANCHOR URTAINS + A Y AN Frafith ************** ROLLING PINS MAKE BAKE LAM CAPTAING Som m MEVE E SAN JUNIPERO TEXTILE STUDIO Yarn Kitchen. ingrid wens ceramics Etsy LINEN WORLD HAVE HIGH QUAT Sarah Safavi JEWELRY MASAYA & C#44Our Right to Win Bridging the trust gap Strong brand promise TRUST AND SAFETY Enhanced trust signals Best-in-class member support C Etsy#45Our right to win Best-in-Class Search and Discovery Human Connections Our Collection of Unique Items A Trusted Brand Etsy#46Etsy People First Shopping Kruti Patel Goyal, SVP Product#47Owning Special 111 Etsy#48Etsy is powered by people, and people are empowered by Etsy. Etsy#490 ✪ Etsy 4 ✪#50wall can glue it baby! כיכר CAPPION Etsy#51Etsy#52There's a person behind every item Etsy#53Buyer MOLLY AUSTRALTANA COOMBS MARE . DESIGN FLOUPER Seller Etsy#5418 People First Shopping WILLY Etsy#55Our right to win Best-in-Class Search and Discovery Human Connections Our Collection of Unique Items A Trusted Brand Etsy#56Our right to win Best-in-Class Search and Discovery Human Connections Our Collection of Unique Items A Trusted Brand Etsy#57peppermint harl Wiskar PIZZA peppermint berk your colo OY IY Etsy#58Insight Searches yield very large result sets 57% of searches have 800+ results 1 in 3 searches have more than 10,000 results As of 2/22/19 Etsy#59coasters x All categories > "coasters" (204,121 Results) 8 88 Wy YOUR DESIGN HERE J PHY Coaspent Magnet Bottle Etsy M MURPHY M MURPHY My Boston Terrier#60Insight Items near the top of search results are most likely to convert 83% of search purchases come from first page clicks 54% of search purchases come from top 3 rows As of 12/31/18 Etsy#61Chrome The Edx Vie Hry s Pls WhooN HE Etsy 24 C& Jurek Ang WANN Dis er something unique +Norcowa Knit blanket ant0ds BO MAY MEN QE Matx 5 8379 I can easily find items on Etsy that perfectly match my taste. Etsy#62Relevance Context Specific Ranking Maxi linen skirt Summer skir... Women's gray V decollete dr... Engraved Wooden Coat & Dres... Vintage LINEN 90s Minimal... BlackFicus TondoGoods ✰✰✰✰✰ (288) Eating TheGoober ★★★★★ (47) $189.30 ***** (9) $58.00 $57.60 $64.00 (10% off) Free shipping More colors Washed cotton dress/ Kimo.... Linenfox ***** (5,063) $82.30 Vintage 90s striped dolman... ShopVony ★★★★★ (381) $88.00 Only 1 available and it's in 2 people's carts Double layered mesh dress.... KuppersCo ✰✰✰✰✰ (18) $89.24 muk More colors KILLING EVE La Villanelle TV... flatlaydesign ✰✰✰✰✰ (223) $8.90 vorfreudestationery ***** (115) $7.42 Midi wrap cotton dress. Kim.... KuppersCo ★★★★★ (18) $69.37 Midi wrap cotton dress. Kim.... KuppersCo ★★★★★ (18) $69.37 C 47 Digital download Lemon Drop // Stretch Knit Fab... OurLadyofLeisure ***** (46) $11.88 More colors Avant Garde clothing Kaftan... InModum ***** (18) $130.51 Free shipping Etsy#63Relevance Context Specific Ranking Maxi linen skirt Summer skir... $58.00 Washed cotton dress/ Kimo... $82.30 Vintage 90s striped dolman.. $88.00 Women's gray V decollete dr $189.30 Double layered mesh dress $89.24 More colors KILLING EVE La Villanelle TV... flatlaydesign ✰✰✰✰✰ (223) $8.90 Engraved Wooden Coat & Dres... vorfreudestationery ***** (115) $7.42 Midi wrap cotton dress. Kim.... $69.37 Midi wrap cotton dress. Kim... $69.37 Vintage LINEN 90s Minimal. $57.60 $6400 (10%) F Digital download Lemon Drop // Stretch Knit Fab... OurLadyofLeisure ✰✰✰✰✰(46) $11.88 Avant Garde clothing Kaftan $130.51 Free shipping Etsy#64Relevance Context Specific Ranking Maxi linen skirt Summer skir... Women's gray V decollete dr..... Asymetric minimal dress. Ku... Vintage LINEN 90s Minimal... BlackFicus KuppersCo TondoGoods ✰✰✰✰✰ (288) Eating TheGoober ★★★★★ (47) $189.30 ★★★★★ (9) ★★★★★ (18) $102.18 $58.00 $57.60 $64.00 (10% off) Free shipping More colors Washed cotton dress/ Kimo... Linenfox ***** (5,063) $82.30 Double layered mesh dress..... KuppersCo ✰✰✰✰✰ (18) $89.24 Vintage 90s striped dolman... LeMuse striped MINIMAL dress ShopVony LeMuse ✰✰✰✰✰ (381) $88.00 Only 1 available and it's in 2 people's carts ***** (1698) $138.00 Free shipping Midi wrap cotton dress. Kim... KuppersCo ★★★★★ (18) $69.37 Midi wrap cotton dress. Kim..... KuppersCo ★★★★★ (18) $69.37 C Double Layered Mesh Dress G... Silk Milk Design $70.00 More colors Avant Garde clothing Kaftan... InModum ***** (18) $130.51 Free shipping Etsy#65Narrowing candidate set Great photos Craftsmanship Customer reviews Pink Hibiscus Maxi Dress ★★★ They look beautiful, as pictured! Great communication with seller and fast shipping. Fabric is light and breathable Washed Linen Tunic ***** Gorgeous, loved it! Thank you for the quick responses to my questions! The linen is incredibly soft and the colors rich. Etsy#66Improving personalization Individual taste Item style Mid-century Organic Modern Boho Vintage Etsy#67Search and Discovery You Mode AT Etsy#68Search and Discovery 32 yo 9 purchases/yr cal Slavy $78 AOV 44 yo 12 purchases/yr $64 AOV Etsy#69Search and Discovery You Mode $41 $75 $135 $21 Etsy $17#70$290 $12 $70 $995 $45 INSURAND Etsy#71Search for anything X Go Search for anything X Go#72Dress X Go Dress X Go#73Dress X Go Dress X Go#74Dres Added to cart Added to cart Go#75How we'll get there 1 Improved relevance 2 3 Additional quality Ranking informed signals by buyer tastes Etsy#76Our right to win Best-in-Class Search and Discovery Human Connections Our Collection of Unique Items A Trusted Brand Etsy#77Motumo Linen Vilnius, Lithuania ASK#78Spectrum of Customization Is what it is No options Small set of pre-defined options Personalization Collaborative Creation Etsy Infinite options#79Spectrum of Customization Most e-commerce Is what it is No options Small set of pre-defined options Personalization Collaborative Creation Etsy Infinite options#80Spectrum of Customization Is what it is No options Small set of pre-defined options Etsy Personalization Collaborative Creation Etsy Infinite options#81Insight Customizable inventory 30% of Etsy inventory can be customized 30% higher AOV for customized items As of 2/27/19 Etsy#82Insight Buyer to Seller interactions 8% of orders have a buyer initiated pre-purchase conversation 12x conversion rate 200% higher AOV As of 2/13/19 Conversations < Back to conversations ī Archive More Commission Between you and Heather. from Heather Tests Megan Hi Heather, Heather Hi Megan, thanks for reachi..... Megan Great! My best friend loves... Heather Yes absolutely! When do vo.... Heather Sounds like a great gift :) Megan Contacts Settings 30 minutes ago 23 minutes ago 16 minutes ago 14 minutes ago 13 minutes ago Etsy#8366 I can easily work with sellers to make almost any item perfect for me. Etsy#84Human Connection KVV DEZAART High architecture at a small scale ***** WilburDavis Beautiful Lighting with a personal touch * Illuminate Vintage Modern Lighting and Contemporary Lig ★★ See how we got started Etsy#85Human Connection Recycle Our process ****** O I come from a long line of lighting designers. My grandfather was a lamp maker, who would build lamps in his spare time and sell them. Today, you can see my lamps in homes, hotels, and theaters. "Illuminate Vintage is the best, we were able to create the perfect light" -Sharon, Montclair, NJ Etsy Leu#86Human Connection In A Etsy#87Human Connection S These lights are great, here's some thoughts I had. Love the brushstroke feel of this pattern. X A Etsy#88Human Connection S These lights are great, here's some thoughts I had. Love the brushstroke feel of this pattern. X X Hey Andrea! Thanks for the references. What do you think of these finishing options? A Approve Bulb AM Etsy#89Human Connection S These lights are great, here's some thoughts I had. Love the brushstroke feel of this pattern. X X MO Hey Andrea! Thanks for the references. What do you think of these finishing options? A Approve Bulb Etsy#90Human Connection I Approved Looking great, We're excited! I got it-it's perfect! We're making it right now! Etsy Your light shipped! START TRACKING 12 Etsy#91DANIBARBEshop Washington D.C. MaplePropeller Lithuania 7MAGOK Totnes, United Kingdom Etsy#92How we'll get there 1 Make customization prominent 2 Build powerful collaboration tools Etsy 3 Connect buyers to the making process#93Our right to win Best-in-Class Search and Discovery Human Connections Our Collection of Unique Items A Trusted Brand Etsy#94AN 2,100,000 sellers. 60,000,000 items. Renaissance Cushions ROLLING PINS MAKE-BAKE Frufill ******YEN HEP L mm SAN JUNIPERO TEXTILE STUDIO NACHDO Yarn Kitchen INEN WORLD Etsy Sarah Safavi MASAYA &#95MOR Yow Millions of different shopping experiences. peppermint birl Shipping: $3.95 Paid shipping for returns No returns 14-day returns Paid shipping for returns Shipping: included Free shipping 14-day returns Shipping: $8.95 Etsy#9666 I am confident that I'll have a great experience every time I shop on Etsy. Etsy#97Setting the right expectations Delivering a consistent experience Etsy#98Shopping with confidence ***** ***** Shop Popularity Return Policy Intended as examples; not exhaustive. Special takes time A HOSTTE Handmade in Amsterd Made to Order Expected Ship Date Fulfillment is easy Etsy Low Cost Shipping Expected Delivery Date#99When it comes to shipping, buyers care about... Speed Price Etsy Transparency Returns#100When it comes to shipping, buyers care about... Speed Price Transparency Returns Etsy#101During the 2018 holiday season Data from the five key shopping days from Thanksgiving through Cyber Monday. 80% of items had competitively-priced domestic shipping 33% of items shipped free Etsy#102Meeting shipping price expectations Occasionally 1 Holidays & Promotions 100% of the time Future Etsy#103Our right to win Best-in-Class Search and Discovery Human Connections Our Collection of Unique Items A Trusted Brand Etsy#104The best place to buy. The best place to sell. Etsy#105Insight Seller productivity Active sellers as of December 31, 2018 Other data from 2018 Etsy seller survey 2.1M Active sellers on Etsy 90% of Etsy shops are run by one person Etsy 49% of their time is spent marketing and running their shops#106A Sassy ZnGirl Cuide "As a single person running the business, I have enough things to worry about... I don't need a masters in statistics." The Sassy Way to RANKING #1 IN GOOGLE WITH SEO When You Have NO CLUE! A Beginner's Guide to Search Engine Optimization Beginner Internet Marketing Series - Book VID FREE ESSENTIAL ADWORDS THE QUICK and DIRTY GUIDE INCLUDING TRICKS GOOGLE WON'T TELL YOU! 2018 EDITION KYLE SULERUD THE #1 WED MARKETING BESTSELLER UPDATED SUMMER 2018 500 SOCIAL MEDIA MARKETING TIPS ESSENTIAL STRATEGY FOR FACEBOOK TWITTER INSTAGRAM PINTEREST LINKEDIN YOUTUBE SNAPCHAT BY ANDREW MACARDAY LEARNING WASS EASY CRM dummies Con a complet cicture of are your tuere a corned a peas of your Mk.com Lars Helgeson Etsy#10766 Etsy understands creative entrepreneurs and makes it easy to run my business. Etsy#108Lingua W Nigra Lingua Nigra Chicago, Illinois sales Etsy visits conversion What is your sales goal? I want to increase sales by 10% this month ✓ NEXT Etsy#109sales +25% increase ADVERTISING Increase Etsy ad budget to $6/day LISTING OPTIMIZATION MAY 12 Etsy visits Free shipping sale for Mother's Day conversion SOCIAL MEDIA Schedule Instagram posts for top selling items GET STARTED Etsy YETTITY#110Bringing People First Shopping to the world Etsy#111Building products Fast. Focused. Customer-centric. Etsy#112Measuring success Experiment Velocity X Hit Rate X Win Size Incremental GMS mach Experiment Velocity III Team B Team A Win Rate Etsy Team C#113Keep. Commerce Human Etsy#114Etsy Tech-Fueled Growth Mike Fisher CTO#115Etsy SELLERS BUYERS 1.3 Billion events per day Machine Learning Big Data#116Buyers Etsy → MOLLY COOMBS MARR MOLLY COOMBS MARR AUSTRALIANA DESIGN ← Sellers K AUSTRALIANA 1770W COOMBS MBS MARK DESIGN Etsy#117World Class Technology Team Etsy#118Attracting world-class engineering talent Etsy#119Best-in-class Search Etsy#120Complex challenges Close Scan Barcode Nely muesl 3 contact Tite to us 18103 WRINA 19:09 14930 01044 new ww. 11.460z (326g) 8 = Etsy Search for items or shops Sell You may also like Ad Sign in Vintage wooden spindle magazine ra... oldstufflove ★★★★★ (463) Sold Sorry, this item is sold out. Here are some things you might like instead. Patina, Rusted Copper, C... Handcrafted Reclaimed... Reincarnated with Love Reclaimed WoodUSA ✰✰✰✰✰ (35) $925.00 Only 1 available and it's in ✰✰✰✰✰(2,607) $235.00 Etsy = Sell Search for items or shops Sign in Made and sold by MinnimAccessories ★★★★★ (129) IME Cute Backpack, Womens Backpack, Red Backpack, Canvas Backpack, Zipper Backpack, Leather Backpack, Girls backpacks, Travel Backpack, Backpack Cute Backpack, Womens Backpack, Red Backpack, Canvas Backpack, Zipper Backpack, Leather Backpack, Girls Backpacks, Travel Backpack, Backpack Etsy#121What makes Etsy Search so complex For illustrative purposes ... Etsy Search for items or shops Jewelry & Accessories Description Clothing & Shoes Home & Living Search Wedding & Party Toys & Entertainment Sell on Etsy Register Art & Collectibles Related to this item Home & Living Sign in Earth Tone Craft Supplies Colorful Earth Tone Pillow, 24x24, Valentines Day Gift, Rustic Pillow, Desert Trend Pillow Rare find there's only 1 of these in stock. Throw pillow cover Add to cart Discover Cart Vintage Home Decor Geometric pillow Colorful pillow Gifts Etsy Decorative pillows 24x24 pillow#122What makes Etsy Search so complex ... Etsy Search for items or shops Jewelry & Accessories Description Clothing & Shoes Home & Living Search Wedding & Party Toys & Entertainment Sell on Etsy Register Art & Collectibles $24.72 $30.00 You save $6.18 (20%) M Sign in Craft Supplies Colorful Earth Tone Pillow 24x24. W, Valentine's Day Discover Cart Add to cart Vintage Gifts Ask a question Rare find there's only 1 of these in stock. Etsy#123Best-in-class Search Determining what's relevant Etsy#124How Search on Etsy used to look and feel Etsy blue desk Jewelry & Accessories Clothing & Shoes Home & Living Search Wedding & Party Etsy#125How Search on Etsy used to look and feel Etsy blue desk Jewelry & Accessories Special offers On sale All categories Home & Living Art & Collectibles Toys & Games Electronics & Accessories Shipping Free shipping Ready to ship in 1 business day Ready to ship within 3 business days Color Beige Black Blue Bronze Brown Show more Recycled Yes No Recipient Kid Teen Adult Style Clothing & Shoes Art deco Art nouveau Home & Living Search Wedding & Party All categories> "blue desk (22,647 Results) Ad More colors Wooden Blue desk lamp, Wood gift... EunaDesigns ***** (120) $79.90 Toys & Entertainment ***** (80) $5.77 Sell on Etsy Register Art & Collectibles SALE! Distressed Wood Desk in teal Burnt Wood, Writing Desk, french c... Reception desk-made to order-Pr.... UmbutoRustic ***** (583) $254.15 620000 (15% off) Free shipping ReincarnatedwithLove *****04 $1,750.00 oursolecreations ★★★★★(32) $1,200.00 Craft Supplies MekieDesigns ****** $13.38 Sign in Vintage Discover Cart Gifts Sort by: Relevancy Weekly planner printable blue, Desk... Blue Butterfly Coffee Mug OR Butte Navy blue desk mat, bohemian des... Detusa FischerStyle Blue and White Lampshade Handm.... lampshadelady ***** (519) $75.00 $16.95 Free shipping Etsy#126Where we are today: First page relevance ... Etsy Jewelry & Accessories Special offers On sale All categories Home & Living Art & Collectibles Toys & Games Electronics & Accessories Show more Shipping Color Free shipping Ready to ship in 1 business day Ready to ship within 3 business days Beige Black Blue Bronze Brown Show more Recycled Yes No blue desk Recipient Kid Teer Adult Style Art deco Art nouveau Clothing & Shoes Home & Living Ad Search Wedding & Party All categories> "blue desk" (22.848 Results) SALE! Distressed Wood Desk in teal.... Burnt Wood, Writing Desk, french c... UmbuzoRustic ***** (583) $254.15 620900 (15% off) Free shipping ReincarnatedwithLove *****(34) $1,750.00 In-Stock Light Blue Desk Ready ... The AppelShop ***** (703) $199.00 Toys & Entertainment BLUE DESK 182245 Cottage TreasuresLV ***** (47) $165.00 Art & Collectibles Sell on Etsy Register Reception desk-made to order-Pr... oursolecreations ***** (32) $1,200.00 TheAppelShop ***** (700) $199.00 wwwwwwww Craft Supplies add Sign in Vintage Discover Cart Made-To-Order-Light Blue Desk IL SALE! Distressed Wood Desk in teal.... UmbuzoRustic ***** (581) $169.15.00 (15% off) Gifts Sort by: Relevancy Etsy Blue and White Lampshade Handm... lampshadelady *****(59) $75.00#127Driving growth with overall search improvements $260 million of annualized GMS unlocked in 2017 and 2018 Etsy#128... We're only getting started Etsy Jewelry & Accessories < Search for items or shops Description Clothing & Shoes Images Home & Living THISHA Basic search Search Wedding & Party Toys & Entertainment ♡ Sell on Etsy Register Art & Collectibles Sign in $24.72 630.00 You save $6.18 (20%) Craft Supplies Discover Cart Colorful Earth Tone Pillow, 24x24, Valentines Day Gift, Rustic Pillow, Desert Trend Pillow Add to cart Vintage Ask a question Rare find there's only 1 of these in stock. Gifts Descriptions Etsy#129We're only getting started Etsy Search for items or shops Jewelry & Accessories Description Clothing & Shoes Home & Living Basic search Search Wedding & Party Toys & Entertainment Sell on Etsy Register Art & Collectibles $24.72 630.00 You save $6.18 (20%) M Sign in Craft Supplies Colorful Earth Tone Pillow, 24x24, Valentines Day Gift, Rustic Pillow, Desert Trend Pillow Discover Add to cart Vintage Cart Rare find-there's only 1 of these in stock. Gifts Ask a question Etsy Ch Seller Ratings Re-ranking Wedding & Shipping Times & C Etsy Price LTV#130Best-in-class Search Getting personal Etsy#131In the past: Everyone saw the same search results = Etsy football birthday party 15,738 Items Sell $3.50 Only 1 available and it's in 3 people's carts Sign in хо (444444) Football party plastic cu... Football Balloons, Two Si... Mylittleshopsupplies ✰✰✰✰✰(3,771) TheBalloonSource ★★★★★ (640) $2.49 Filters ****** THANKS FOR MAKING MY PARTY A TOUCHDOWN BYLAN $6.50 Football Party Decor, Su... Football Birthday Favor T... FestiveFetti ★★★★★ (106) $9.90 sweetheartpartyshop ✰✰✰✰✰(6,428) Etsy#132Where we are today: Turning on location insights = Etsy football birthday party 15,738 Items U.S. $3.50 Only 1 available and it's in 3 people's carts Sell Sign in X Q (444444) Football party plastic cu... Football Balloons, Two Si... Mylittleshopsupplies ✰✰✰✰✰(3,771) TheBalloonSource ★★★★★ (640) $2.49 Filters ****** THANKS FOR MAKING MY PARTY A TOUCHDOWN BYLAN $6.50 Football Party Decor, Su... Football Birthday Favor T... FestiveFetti ★★★★★ (106) $9.90 sweetheartpartyshop ✰✰✰✰✰(6,428) Etsy = U.K. football birthday party Sell Sign in Personalised Football Pa... AdamappleLtd ✰✰✰✰✰ (184) £3.99 More like this > Search All categories> "football birthday party" (10,566 Results) DEXTER Football party paper plat... Football PERSONALISED.... InspiredbyAlma RERDecal ★★★★★ (2,617) £3.55 3.05 (10% off) More like this > ★★★★★ (27) £1.99 Free shipping More like this > SE FREDDIE More colours Football Birthday Card, P... Cetona ★★★★★ (86) £4.50 Etsy#133Etsy Search: Opportunities to Come hobbies local events geographic trends weather season holidays favorite material item quality gifting habits favorite color time of day social Etsy demographics#134Early stages of Machine Learning We can apply our tactics to many other areas Search ML Promoted Listings Etsy#135Early stages of Machine Learning We can apply our tactics to many other areas Categories Search ML Promoted Listings Etsy Marketplace Quality#136Powering our Innovation 1 billion EVENTS DAILY Ferv Etsy#13712:00 14:00 16:00 Powering our Innovation 18:00 20:00 22:00 критими 00:00 02:00 04:00 06:00 08:00 внимирит Иорник 10:00 Etsy#138Prior to 2018, we were data center focused Mallu T lan ifteli mai mumi ini land Budget 6 - 12 months out Order 3 - 6 months out Receive 1 month out Install 1 week out Etsy#139Our cloud migration is fueling our machine learning efforts compute power elasticity efficiency || more sales & happier customers Etsy#140...and we are more than half way through our journey O Etsy. Marketplace & Apps Machine Learning Fully Migrated For illustrative purposes only Big Data & Search Migrated by end 2019 Support Services Migrated by early 2020 Etsy#141More feature development, less infrastructure maintenance 31% 2017 237 engineers 50% Etsy internal data as of 12/31/2018 and publicly available company information 2018 318 engineers PRODUCT INFRASTRUCTURE 70% FUTURE ~500 engineers Etsy#142Rapid Product Development Etsy#143Rapidly iterating and deploying product innovations NON-AGILE COMPANIES push code every 3-12 months AGILE COMPANIES push code every 2 weeks WE PUSH CODE Etsy every 30 minutes#144You win some, you learn some Hundreds of experiments each quarter 30% success rate, compared to 15% for many peers* Remainder: iterate for success Improved experience Etsy *Etsy internal data from Sept-Dec 2018, Kohavi, R and Thomke, S., "The Surprising Power of Online Experiments." Harvard Business Review (September 2017). https://hbr.org/2017/09/the-surprising-power-of-online-experiments#145Unlocking value through experiments 00 14k Rose Gold Drop Earrings - Solid Rose Gold Dangle - J Bar Earrings - Delicate 14kt $198.00 Buy it now + More Add to cart Only 1 available Description 14k Rose Gold Wrap Around Bar Stud Earrings -- Nickel Free Faux Hoops Etsy#146Unlocking value through experiments 00 00 14k Rose Gold Drop Earrings - Solid Rose Gold Dangle - J Bar Earrings - Delicate 14kt $198.00 Buy it now + More Add to cart Only 1 available Other people want this. Over 20 people have this in their carts right now. Etsy#147Unlocking value through experiments Jo 14k Rose Gold Drop Earrings - Solid Rose Gold Dangle - J Bar Earrings - Delicate 14kt $198.00 Buy it now Add to cart Only 1 available Almost gone. There's only 1 left. Description 14k Rose Gold Wrap Around Bar Stud Earrings -- Nickel Free Faux Hoops 00 M Don't miss out. There's only 1 available and over 20 people have this in their cart right now. Etsy Other people want this. Over 20 people have this in their carts right now. → Almost gone. There's only 1 left.#148Empowering our engineers to keep delivering Scorecards for experiment velocity and impact Monthly metrics meetings Competency matrix Etsy#149Etsy SELLERS BUYERS 1 Billion events per day Machine Learning Big Data II#150Etsy Culture as a Competitive Advantage Raina Moskowitz SVP People, Strategy and Services#151We commit to our craft. Etsy's Guiding Principles We minimize waste. We embrace differences. We dig deeper. Etsy We lead with optimism.#152Human capital matters. Etsy#153Jeep Commerce Human Etsy#154Greater Impact Top Talent Etsy Business Performance Etsy#155The Atlantic Popular Latest Sections Magazine More Subscribe TECHNOLOGY Etsy CTO: Prioritizing Diversity in Our Hiring Fielded Better Women ... and Men REBECCA J. ROSEN FEB 7, 2013 = Entrepreneur STARTING A BUSINESS The 'Etsy Economy' and Changing the Way We Shop in & FRANCHISE 500 Add to Queue RANKING Q NEXT ARTICLE BUSINESS INSIDER = Fatherly PARENTING PLAY LOVE & MONEY GEAR > GET THE NEWSLETTER LOVE & MONEY The 50 Best Places to Work For New Dads 2018: Etsy By Fatherly Jun 17 2018, 10:00 AM Etsy, Squarespace, and the 23 other best mid-size companies to work for in America Etsy#156We've raised the bar. Etsy#157We've evolved our People processes to drive greater alignment and accountability Introduced Quarterly Goal Setting Expanded Performance- Based Compensation Developing Future Leadership Etsy#158We've evolved how we operate ... lala Metrics-Driven Mindset Product Development Teams & Tools Etsy#159Accelerating revenue per employee 1250 1000 750 500 250 0 $334K 2015 $350K 2016 Employee $593K 2017 $691K 2018 Revenue/Employee $800,000 $600,000 $400,000 $200,000 $0 Etsy#160Reversing our 2017 attrition challenges 2017 Q1 Q2 Voluntary Attrition Q3 Q4 2018 Q1 Q2 Q3 Q4 Rolling 12 Month 15.9% (Industry Benchmark*) 14.5% (Etsy Overall**) *Supplemental US Salary Increase and Turnover by Region and Industry, Radford Trends Report. Rolling 12 Month Average from Jan-Dec 2018. **Rolling 12 mo attrition % (Jan-Dec 2018) based on Etsy internal data. Etsy#161Employees are confident in the company's leadership and direction Confidence in the Executive Team up from 68% to 84% Etsy internal annual employee engagement survey comparing 2017 and 2018 results Belief in Etsy's success over next three years up from 73% to 85% Etsy#162Our business model and mission are 100% aligned Etsy#1632.1M Active sellers Active sellers as of December 31, 2018 Other data from 2018 Etsy seller survey 87% are women 49% started their shop to meet a financial challenge Etsy#164U.S. Etsy Seller Impact (2018) $1 GMS = $2.33 in economic activity $5.37 billion in total economic output 1.52 million jobs created $2.33 of US economic activity associated with each $1 of US seller GMS according to economic impact assessment conducted by ECONorthwest on U.S. Etsy seller transactions from Jan-Dec 2018 (https://dashboards.mysidewalk.com/etsy-economic-impact-1532038450/economic-output) Etsy#165We've built a diverse and inclusive workplace. Etsy#166% identifying as female or non-binary 56% of employees Employee and leadership data as of December 31, 2018 Etsy internal data on Executive Team and Board of Directors as of March 1, 2019 50% of Board of Directors 67% of Executive Team 52% of leadership Etsy#167We're leading the way in gender diversity in tech Tech roles: % Female 38.4% Etsy Facebook 20.4% Avg III Lyft Google Etsy internal data as of 12/31/2018 and publicly available company information Microsoft Uber Etsy Why this is a competitive advantage: Attract top talent Understand and serve our customers Better decision making Superior business performance#168And we continue to take care of the planet Etsy#169We've made major strides towards reducing our environmental footprint Power Purchase Agreement Google Cloud Migration 100% renewable electricity powering our operations by 2020 Etsy#170Etsy is the first global eCommerce company to offset 100% of carbon emissions from shipping -Easy Etsy Etsy Etsy Etsy#171For less than a penny per package WE TRUST IN GOD LIBERTY 2005 D Etsy#172Consumers care about social and environmental responsibility 88% of global consumers say they'll reward companies that address social and environmental issues with greater loyalty.* 90% of Etsy buyers said that environmental sustainability is important or very important to them.** *2017 Cone Communications Global Consumer Survey (Cone, 2017) - http://www.conecomm.com/2017-cone-communications-csr-study-pdf **2019 Etsy study of mid-to-upper income women aged 25-54 who purchased on Etsy in the past three months. Etsy#173Etsy's culture of being great, while doing good is our competitive advantage Etsy#17466 Etsy is the happiest, most diverse, most doing-things-that-matter company I've worked for. It makes coming to work a joy. -Etsy Engineer, July 2018 Etsy#175Etsy Our Levers of Growth Josh Silverman, CEO#176Etsy has a large and growing base of Active Buyers 24M 2015 *Active buyers were approximately 24.0 million, 28.6 million, 33.4 million, and 39.4 million, as of December 31 in 2015, 2016, 2017, and 2018, respectively Etsy#177Etsy has a large and growing base of Active Buyers 24.0M 2015 28.6M 2016 33.4M 2017 39.4M 2018 *Active buyers were approximately 24.0 million, 28.6 million, 33.4 million, and 39.4 million, as of December 31 in 2015, 2016, 2017, and 2018, respectively 18% CAGR Etsy#178They've had great experiences and are passionate about Etsy 70+ NPS score among recent purchasers Net Promoter Score for recent purchasers in Feb 2019 Etsy buyer survey; recent purchasers defined as having made purchase within past 30 days of answering survey. WILDFLOWER SK Etsy Ken Done#179Etsy is a trend setter, at the center of the conversation O Instagram Tags *As of 2/22/2019 26.5M #etsy 7.1M #amazon 3.2M #ebay 100K Etsy #wayfair#180And people want to hear from us Twitter Followers *As of 2/22/2019 2.95M Amazon 2.51M Etsy 700K eBay 70K Wayfair Etsy#181Resulting in millions of organic monthly unique visitors Monthly unique visits 100M+ each month Etsy internal data for the year ended 12/31/2018. Organic traffic consists of Dark/Direct/Internal, SEO, Social, Email/Push, OSA, and Other. PAID 15% Traffic by channel ORGANIC 85% Etsy#182But while millions love us, they don't know when to think of us Etsy Brand Funnel: U.S., Q4 2018 Prompted Awareness Unprompted Awareness Visit Intent (Consideration) Purchase Intent Loyalty Advocacy 22% 16% 18% 18% 39% 79% Etsy#183Our Levers of Growth 1 Active Buyers 2 Frequency Etsy 3 Average Order Value#184We know there's a large population who would love Etsy Data from a June 2018 Etsy study of US consumers ✔ CAPTAINS ✓ US Consumers Expressives ~40% Seekers R Etsy#185Prior to 2013, we effectively did no marketing at all Etsy#186We've added bottom- of-funnel marketing, but that still hasn't allowed us to tell our story G Etsy 76% of digital and media spend (2018)#187A buyer's experience with paid marketing today begins with a search... About Store wedding dress Google Google Search I'm Feeling Lucky Gmail Images Sign in Etsy#188Which leads to a Google Product Listing Ad... ... Google Wedding dress All Shopping About 2,190,000,000 results (0.59 seconda) Harrison Newark B images Maps Rating Hours - Bayonne 440 Veka Bridal 4.2**** (9) Bridal shop 412 Atlantic Ave (718) 222-1178 Closed Opens 12PM Fri Their website mentions wedding dresses Jersey City Lovely Bride New York 44***** (94) Bridal shop 162 Duane St (212) 924-2050 Closes soon BPM Their website mentions wedding dresses More places Kleinfeld Bridal 43***** (753) Bridal shop 110 W 20th St (646) 633-4300 Open Closes 9PM Sold here wedding dresses Videos MELCHAUDHW 605 More Kleinfeld Bridal ovely Bride New York Veka Bridal BROOKLYN Settings JACKSON & a Tools Map data ©201 QUEENS See bridal gowns Sponsored White by Vera Wang Short Sleeve Lace Wedding Dress-Ivory, 10 $1,038.40 David's Bridal Etsy A line wedding dress, A-line style, simple wedding dress, romantic... $780.00 Etsy#189Which takes them to a product - specific landing page TATIMAGIC ★★★★★ (57) A line wedding dress, A-line style, simple wedding dress, Simple style, romantic dress, Romantic bridal gown, elegant wedding $780.00 Ask a question M Add to cart Almost gone. There's only 1 left. Overview • Handmade item Materials: silk, Lace Made to order Shipping & returns Ready to ship in 4-6 weeks From Russia Get shipping cost Shipping upgrades available in the cart Returns accepted Exceptions may apply. See return policy TATIMAGIC in Los Angeles, California Etsy#190For many, that one product or category becomes their entire image of Etsy TATIMAGIC ***** (57) A line wedding dress, A-line style, simple wedding dress, Simple style, romantic dress, Romantic bridal gown, elegant wedding $780.00 Ask a question Almost gone. There's only 1 left. Overview Add to cart Handmade item Materials: silk, Lace Made to order Shipping & returns Ready to ship in 4-6 weeks From Russia Get shipping cost Shipping upgrades available in the cart Returns accepted Exceptions may apply. See return policy TATIMAGIC in Los Angeles, California "Etsy is for weddings" Etsy#191A desktop or mobile web visit from paid marketing is 6X more likely to start on a listing page than the home page For the year ended 12/31/18 Get Li Etsy#192We're just beginning the journey to integrated, "Through-the-Line” advertising hulu fop G Etsy Full-funnel marketing#193How we manage our marketing investments ROI Spending Etsy#194How we manage our marketing investments ROI Spending Etsy#195How we manage our marketing investments ROI Spending ROI Threshold Etsy#196How we manage our marketing investments ROI G Proven Spending ROI Threshold Etsy#197How we manage our marketing investments ROI G Proven Spending Testing ROI Threshold Etsy#198How we manage our marketing investments ROI G Proven Spending Testing ROI Threshold Etsy#199We're just starting to optimize the funnel Intended as examples; not exhaustive. Audience segmentation Landing page optimizations Etsy Enhancing our marketing capabilities#200Our Levers of Growth Active Buyers 2 Frequency Etsy 3 Average Order Value#201Our buyers love Etsy, but many only shop once a year 70+ NPS score among recent purchasers 39.4 Million Active buyers were approximately 39.4 million, as of December 31, 2018. % of buyers who have made purchases on only one day in the previous 12 months, as of December 31, 2018. Net Promoter Score for recent purchasers in Feb 2019 Etsy buyer survey; recent purchasers defined as having made purchase within past 30 days of answering survey. 60% 1x/year Etsy#202We've only just begun analyzing our best buyers 2 million Habitual Buyers* ↑ 21.7% in 2018* 40% multiple purchases** *Habitual Buyers are buyers who have spent $200 or more and made purchases on six or more days in the previous 12 months; as of December 31, 2018. ** % of buyers who have made purchases on two or more days in the previous 12 months, as of December 31, 2018. Etsy#203Who are our Habitual Buyers? Range of demographics (US) Rural Urban 32% >45 28.3% 14% 23.2% <35-44 <25 5.1% 54% Suburban 43.4 % 25-34 December 2018 Etsy survey of US Active Buyers Northeast South 22.1% 31.7% <$60K 30% $60K - $100k 29% 25% 20.2% West Midwest 41% $100k+ Psychographically alike Express themselves through their purchases Thoughtful gift giving is important to them Appreciate the ability to make something just to their liking Etsy#2041X/year Buyers and Habitual Buyers experience Etsy in different ways Search & Discovery Human Connections Trust 1x/year Buyers Overwhelming Transactional Trust Gap Habitual Buyers Relevant with hacks Convos & shop loyalty Etsy brand halo Etsy#205Our opportunity is to make Etsy relevant for more of our buyers' "special" purchase occasions Valentine's Day .….......... Easter Mother's Day 4th of July Wedding JANUARY | FEBRUARY | MARCH | APRIL | MAY | JUNE | JULY | AUGUST | SEPTEMBER | OCTOBER | NOVEMBER | DECEMBER Labor Day New Home Halloween Thanksgiving Holiday Back to school Baby U Special Dress Etsy#206We're just starting to make Etsy more relevant more often to our buyers ….. Buyer segmentation Improved CRM Personalized marketing journeys. Etsy#207Our Levers of Growth Frequency 2 Active Buyers Etsy 3 Average Order Value#208We're a long way from table stakes... ... Frequently bought together SPONSORED SPONSORED CELINE MULTI KEYRINGS YSL MONOGRAM LARGE FLAP WALLET IN GRAIN DE POUDRE... 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Active Buyers Frequency AOV Etsy#215Etsy Long Runway for Sustainable Growth Rachel Glaser, CFO#216Long Runway for Sustainable Growth Bending the Curve Strong Business Model Early Stage Opportunity Attractive Financial Outlook Etsy#217Bending the Curve#218We have demonstrated strong top-line growth at scale ... GROSS MERCHANDISE SALES ($ BILLIONS) $2.4 2015 $2.8 2016 $3.3 2017 >20% Y/Y $3.9 2018 Etsy#219...and successfully inflected the growth curve GROSS MERCHANDISE SALES ($ BILLIONS) ($,B) YoY% Change 18.4% 22.6% I 1Q16 2Q16 19.1% 3Q16 16.7% 4Q16 14.2% 1Q17 11.8% 13.2% 3Q17 17.8% 2017* *New leadership team 4Q17 19.8% 1Q18 20.4% 2Q18 20.4% 3Q18 22.3% 4Q18 Etsy#220... fueled by robust buyer growth and an engaged seller community 24.0 2015 ACTIVE BUYERS (MILLIONS) 28.6 2016 CAGR: +18% 33.4 2017 39.4 2018 2.5 2.0 1.5 1.0 0.5 1.6 ACTIVE SELLERS (MILLIONS) 2015 1.7 2016 CAGR: +11% 1.9 2017 2.1 2018 Etsy#221We have seen a positive inflection in spend per active buyer... $102 $100 $98 $96 $94 $92 $90 1.0% 1Q16 0.6% 2Q16 0.2% 3Q16 0.2% TTM GMS PER ACTIVE BUYER 4Q16 -0.6% -1.6% -2.3% -2.0% -0.9% 1Q17 2Q17 3Q17 4Q17 TTM GMS per Active Buyer (RHS) -YoY % Change (LHS) 1Q18 0.6% 2Q18 2.0% 3Q18 2.2% 4Q18 Etsy 3% 2% 2% 1% 1% 0% -1% -1% -2% -2% -3% -3%#222...and we are moving the frequency needle with our most important buyers Habitual Buyers ■ Multiple Purchase Day One Purchase Day 2015 >1 Purchase Days: 40.6% ACTIVE BUYER BREAKDOWN BY FREQUENCY 2016 41.0% 2017 39.6% +22% y/y 2018 40.1% Etsy#223And newer buyer cohorts show early green shoots Retention Rate (%) 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1 2 BUYER COHORT GMS RETENTION RATE 8 9 10 11 Quarters Since First Purchase 3 4 5 6 7 12 13 14 15 16 Etsy -2014 -2015 -2016 -2017#224Strong Business Model Etsy#225Traditional ecommerce Low margin, heavy infrastructure Etsy#226Traditional ecommerce 1. Source and/or manufacture the product Etsy#227Traditional ecommerce Warehouse/ pick & pack - logistics Etsy#228Traditional ecommerce FRST-CLASS PACKAGE Returns processing GMAT CLASS PACKAGE P FIRST CLASS PACKAGE Etsy 00 û 11#229Traditional ecommerce Inventory on balance sheet HOOL STYCZE IDEAS HOME SHOPPING CONTACT SIGN UP LOG IN SALE O CONTINUE Etsy#230Tools/SaaS Models MOD And low barriers to entry drive lower ARPU Etsy#231129 Tools/SaaS Models 1128 -127 128 126 SID 1270 STA (ZA 129 High churn directly impacts revenue 126 126 126 125 125 5224 125 2 124 124 Etsy#232Our Model We love OUR marketplace model... Where sellers create ... Etsy#233Our Model Chrome e Edt View Hry Sockel Brox 1 We build the best experience Coching&Ses Discover something unique ← FORMALARIT Knit blanket so buyers can find their way to th the product.... My gran Ontate Were 95 Etsy#234Our Model Australian Ma Furalian Birds ... And our 2 million sellers share in marketing and promotion Etsy#235Our Model Sellers handle order management and fulfillment MAL 27 837 Add HEY ΜΑΜΑΙ WOLF EY AMAI Etsy#236Our Model And we support the process with world class customer care Etsy Ye#237Operating Model Characteristics Customer Acquisition Cost Inventory Management Cost Logistics Cost Barriers to Entry Customer Churn First party e-Commerce Medium High High Low High e-Commerce Tools High Low Low Low High 2-Sided Marketplaces Medium Low Low High High#238We have a number of levers for growth. Take-rate has improved substantially... 11.5% 2015 Etsy Payments expansion REVENUE AS A % OF GMS 12.8% 2016 Etsy Payments integration with PayPal 13.6% 2017 Etsy Payments mandate and Promoted Listings growth 15.4% 2018 Etsy Transaction fee increase and Promoted Listing growth#239Performance marketing has become an important GMS growth driver GMS FROM PAID PERFORMANCE MARKETING ($, MILLION) % of GMS $230 2015 10% $340 2016 12% CAGR: +44% $447 2017 14% $682 2018 17% Etsy#240Our marketing spend is driven by a focus on incrementality and ROI LTV Targeting ساه Test mROI Etsy#241We are changing our mix to a more “full funnel" approach to drive top of mind MARKETING FUNNEL BREAKDOWN II 2016 2017 2018 Potential in 5 Years Mid/High Low Etsy#242Product investment also yields positive return PRODUCT DEVELOPMENT AS A % OF TOTAL EMPLOYEES 2017 32% Other 2018 39% Product Development 2019E 47% Product Engineers, Product Managers, Product Designers, Data Scientist, and Product Analytics GMS ($) PER ATTRIBUTED PRODUCT DEVELOPMENT DOLLAR $4.6 2017 $6.8 2018 $7+ 2019E Etsy#243Together these levers have scaled margins 11.3% 2015 ADJUSTED EBITDA MARGIN (%) 15.7% 2016 *Reconciliation of non-GAAP financial measures is contained in the appendix *Non-GAAP Adjusted EBITDA margin is defined as non-GAAP Adjusted EBITDA divided by revenue 18.1% 2017 23.1% 2018 Etsy#244And free cash flow generation has increased meaningfully ... FREE CASH FLOW ($, MILLION)* $0 2016 $56 2017 $178 2018 FCF defined as operating cash flow, less capital expenditures (purchases of PP&E and development of internal use software) *Reconciliation of non-GAAP financial measures is contained in the appendix Etsy $624M in Cash & Short Term Investments @12/31/18#245We use our cash to invest for growth and value creation $ Organic Growth Product and engineering resources Marketing Back office efficiencies to scale *DaWanda Referral Agreement June 2018 Opportunistic M&A Geographies (e.g. DaWanda*) Adjacent marketplaces Technology (e.g. Blackbird) Vertical extensions Return of Capital $135m worth of shares repurchased in 2018 Etsy Average repurchase price of $30.28#246Early Stage Opportunity#247Our original work in 2017 $1.3T 6 core geographies Core Geographies: United States United Kingdom Canada Australia Germany France estimated spend in top 6 categories and Top Categories: Clothing & Accessories Home & Living Jewelry Craft Supplies Art & Collectibles Paper & Party Supplies $155B estimated online spend in top categories and core geographies Source: Euromonitor (March 2017), Assoc. for Creative Ind. (Jan 2017), TEFAF (2017), Hiscox (2017), IBIS Etsy $3B Estimated Etsy Market Share 2% (based on GMS)#248We have updated our TAM analysis to include all relevant retail categories and 2018 data 2018 TOTAL RETAIL AND ONLINE TAM $1.7T Spend top 6 geographies Top Geographies: United States United Kingdom Canada Australia Germany France Across all relevant retail categories $249B Online spend, expanded to include ALL relevant retail categories and core geographies Sources: Euromonitor (2018), Assoc. for Creative Ind. (Jan 2018), Art Basel (2018), Hiscox (2018), IBIS 기 Etsy $3.9B 2018 Global GMS Estimated Etsy Market Share: ~1.5%#249We know there's a large population who would love Etsy Data from a June 2018 Etsy study of US consumers ✔ CAPTAINS ✓ US Consumers Expressives ~40% Seekers R Etsy#250Resulting in a TAM for "special" of ~$100B 2018 TOTAL RETAIL AND ONLINE TAM $1.7T Top Geographies: United States United Kingdom Canada Australia Germany France 6 core Geographies Across all relevant retail categories $249B Online spend, expanded to include spend in ALL relevant retail categories and core geographies ~$100B Market for "Special" Sources: Euromonitor (2018), Assoc. for Creative Ind. (Jan 2018), Art Basel (2018), Hiscox (2018), IBIS, Etsy Consumer Survey Etsy $3.9B 2018 Global GMS Etsy Estimated Market Share: ~4%#251And our market opportunity will continue to grow ... 2023 TOTAL RETAIL AND ONLINE TAM $2.0T Across all relevant retail categories Spend in top categories and 6 core geographies $437B Based on Euromonitor growth estimates for our relevant categories Online Spend in ALL relevant categories and 6 core geographies ~$170B Market for "Special" Etsy#252Attractive Financial Outlook Etsy#253Taking this forward... how do we think about our future growth opportunity? TAM GROWTH VS ETSY GMS GROWTH - 2018 16.9% Online growth for Etsy categories in 6 core geographies* * Source: Euromonitor (2018) 20.8% Etsy Etsy has already displayed the ability to grow faster than the overall market Etsy#254On average and over time, we believe we can grow GMS in the 16-20% range for the next 5 years... GROSS MERCHANDISE SALES GROWTH OPPORTUNITY 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 $3,932 2018 2019 2020 2021 2022 2023 Etsy $9B at midpoint CAGR: 16-20%#255On average and over time, we believe we can grow Revenue slightly faster than GMS... REVENUE GROWTH OPPORTUNITY GMS 10,000 9,000 8,000 7,000 6,000 $600 5,000 4,000 3,000 2018 2019 2020 2021 2022 Revenue 2023 1,700 1,500 1,300 1,100 900 700 500 300 Etsy#256...continuing to outpace growth in our TAM * Source: Euromonitor (2018) TAM 5 YEAR CAGR VS ETSY GMS 5 YEAR CAGR 12% Online growth for Etsy categories in 6 core geographies* 16-20% Etsy Etsy#257Etsy market share grows, but we are still a fraction of the opportunity Total Online Spend* ~1.5% $249B 2018 2.1%* ** $438B 2023E ETSY MARKET SHARE* * All relevant retail categories and top geographies; ** At the midpoint of our 2023 target range Market for "Special" ~4% $100B 2018 5.3% $170B 2023E Etsy#258... with margins that approach scaled marketplace levels 11.3% 2015 15.7% 2016 ADJ. EBITDA MARGIN (%) 18.1% 2017 Adjusted EBITDA margin is non-GAAP adjusted EBITDA divided by revenue Reconciliation of non-GAAP financial measures is contained in the appendix 23.1% 2018 30% or higher 5 Years Etsy#259Resulting in healthy targets for sustained growth GMS % GROWTH REVENUE % GROWTH ADJ EBITDA MARGIN % 2018 ACTUAL 20.8% 36.8% 23.1% 2019 GUIDANCE 17-20% 29-32% 23-25% 5 YEAR TARGET 16-20% on average, over time Slightly faster than GMS 30% or higher Etsy#260Unlocking Opportunity The Path | Etsy to Owning | INVESTOR DAY "Special" An early stage opportunity in a large and expanding market... unique and defensible Right to Win untapped opportunities in product development and marketing investment best-in-class technology to fuel our growth a disciplined leadership team and high performance culture ..Resulting in a significant runway for sustainable long-term growth Etsy#261Jeep Commerce Human Etsy#262Reconciliation of Annual Net (Loss) Income to Adjusted EBITDA Net (loss) income Excluding: Interest and other non-operating expense, net Provision (benefit) for income taxes Depreciation and amortization Stock-based compensation expense Stock-based compensation expense-acquisitions Foreign exchange loss (gain) Asset impairment charges Net unrealized loss on warrant and other liabilities Acquisition-related pens Restructuring and other exit costs Contribution to Good Work Institute (formerly Etsy.org) Adjusted EBITDA 2015 ($54,063) 1,202 26,069 18,550 8,981 1,860 21,775 3,133 T 3,500 $31,007 2016 ($29,901) 5,502 (in thousands) 27,025 22,525 13,168 2,733 14,951 551 570 2017 $57,124 $81,800 8,736 (49,535) 27,197 19,953 3,904 (29,105) 3,162 13,897 $80,009 2018 $77,491 13,221 (22,413) 26,742 34,477 3,754 6,487 || (249) $139,510 262#263Reconciliation of Quarterly Net (Loss) Income to Adjusted EBITDA Net (loss) income Excluding: Interest and other non-operating expense, net Provision (benefit) for income taxes Depreciation and amortization Stock-based compensation expense Stock-based compensation expense-acquisitions Asset impairment charges Foreign exchange loss (gain) Acquisition-related expenses Restructuring and other exit costs (income) Adjusted EBITDA 4016 3Q17 (in thousands) ($21,383) ($421) $11,669 $25,802 2,026 4,787 6,905 151 1Q17 551 2,152 2,153 (1,052) (9,437) 4,160 4,043 2Q17 6,938 6,660 842 4,881 1,613 18,022 (2,780) (16,103) 58 2,254 11,260 7,022 5,832 (12,562) (26,484) 6,577 724 4Q17 (8,069) $44,750 $12,967 2,177 5,197 725 3,162 1018 (2,153) 2,667 14 6,320 5,740 714 2018 │ 3,687 1,246 6,357 7,898 $3,379 $19,894 $41,251 719 (1,850) 4,450 3Q18 | 3,768 (5,298) 6,439 8,191 725 I 4Q18 373 3,099 (18,375) 7,626 12,648 1,596 3,514 1,766 871 (151) (41) (57) $15,277 $9,722 $12,696 $22,769 $34,822 $26,421 $27,695 $34,035 $51,359 263#264Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Net cash provided by operating activities Purchases of property and equipment Development of internal-use software Free Cash Flow 2016 $47,964 (35,981) (11,769) 214 2017 (in thousands) $69,101 (3,948) (9,208) 55,945 2018 $198,925 (1,019) (19,537) 178,369 264