#1010 JOI SOLD Oloverstock.com Q3 2015 Financial Results#2Safe Harbor The information presented herein may contain forward-looking statements. Such forward-looking statements include all statements other than statements of historical fact, including forecasts of trends. These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including the amount and timing of our capital expenditures, the mix of products we sell, the results of legal proceedings and claims and the amounts we spend relating to them, the extent to which we owe income taxes, competition, fluctuations in operating results, any inability to raise capital if needed on acceptable terms, our efforts to expand both domestically and internationally, risks of inventory management and seasonality. Other risks and uncertainties include, among others, risks related to new products and services we may offer, and difficulties with our infrastructure, our fulfillment partners or our payment processors, including cyber-attacks or data breaches affecting us or any of them. More information about factors that could potentially affect our financial results is included in our Form 10-Q for the quarter ended September 30, 2015 which was filed with the Securities and Exchange Commission on November 9, 2015. These and our other subsequent filings with the Securities and Exchange Commission identify important factors that could cause our actual results to differ materially from those contained in our projections, estimates and other forward-looking statements. loverstock.com® 2#3Q3 2015 Results Revenue $391.2 Million (11% increase vs. Q3 2014) Contribution Dollars* $42.4 Million (2% increase vs. Q3 2014) Pre-Tax Income (Loss) ($2.6) Million (vs. $2.0 million in Q3 2014) Gross Profit Dollars $72.5 Million (8% increase vs. Q3 2014) overstock.com Contribution Margin* 10.8% (vs. 11.8% in Q3 2014) Net Income (Loss)* ($2.1) Million (vs. $1.6 million in Q3 2014) * Non-GAAP ** Net Income (Loss) refers to Net Income (Loss) attributable to stockholders of Overstock.com, Inc. ** Gross Margin 18.5% (vs. 19.0% in Q3 2014) Tech and G&A Expense $45.8 Million (17% increase vs. Q3 2014) TTM Operating Cash Flow $44.9 Million (vs. $69.4 million in Q3 2014) 3#4Quarterly Revenue Growth ($,000) 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 301,426 18% Q3-13 loverstock.com® Q4-13 Q1-14 Q2-14 Revenue ($) 352,991 17% Q3-14 Q4-14 Q1-15 Revenue growth (yoy) Q2-15 391,211 11% Q3-15 40% 35% 30% 25% 20% 15% 10% 5% 0% 4#5Quarterly Gross Profit Growth ($,000) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 59,150 27% Q3-13 loverstock.com® Q4-13 Q1-14 Q2-14 Gross profit ($) 67,058 13% Q3-14 Q4-14 Q1-15 Gross profit growth (yoy) Q2-15 72,451 8% Q3-15 60% 50% 40% 30% 20% 10% 0% 81 5#6Quarterly Contribution and Growth* ($,000) 50,000 40,000 30,000 20,000 10,000 0 (10,000) 36,687 16% Q3-13 loverstock.com III Q4-13 Q1-14 Contribution ($) Q2-14 *Non-GAAP: Contribution dollars = Gross profit less Sales & Marketing expense. 41,630 13% Q3-14 Q1-15 Contribution growth (yoy) Q4-14 Q2-15 42,389 2% Q3-15 50% 40% 30% 20% 10% 0% -10% 6#7Quarterly Gross Margin and Contribution Margin 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 19.6% 12.2% Q3-13 18.0% loverstock.com 10.2% Q4-13 18.8% Q3-14 Marketing: 7.2% 11.9% 18.8% Q1-14 11.8% Q2-14 Gross margin * Non-GAAP: Contribution margin = Gross margin less Sales & Marketing percentage. 19.0% 11.8% Q3-14 18.2% 10.3% 18.9% Q3-15 Marketing: 7.7% 11.9% Q4-14 Contribution margin Q1-15 19.0% 11.7% Q2-15 * 18.5% 10.8% Q3-15 7#8Technology and G&A Expenses $s and % of Revenue ($,000) 60,000 50,000 40,000 30,000 20,000 10,000 11.0% 33,229 Q3-13 G&A overstock.com $6.3 M Q4-13 Q1-14 Legal Case Judgments Q2-14 11.1% 39,275 Q3-14 Acquisition Costs $4.6 M Q4-14 Technology Q1-15 Q2-15 11.7% 45,760 $1.1M Q3-15 G&A and Tech (% of revenue) 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 8#9Operating and Free Cash Flow (TTM) ($,000) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 (10,000) (20,000) 55,266 39,370 Q3-13 Q4-13 overstock.com 69,365 Q1-14 Q2-14 Cash flow from operations (TTM) * Non-GAAP: Free Cash Flow = Cash Flow from Operations less Expenditures for Fixed Assets. * Q3-14 32,724 Q1-15 Free cash flow* (TTM) Q4-14 Q2-15 44,930 (7,253) Q3-15 9#10GAAP TTM Inventory Turns and GMROI 60.0 50.0 40.0 30.0 20.0 10.0 0.0 42.4 994% Q3-13 Q4-13 overstock.com Q1-14 Q2-14 TTM Inventory turns TTM Inventory Turns TTM COGS / Average Inventory TTM GMROI = TTM Gross Margin % * TTM Revenue / Average Inventory 44.9 1027% Q3-14 Q4-14 Q1-15 TTM GMROI Q2-15 52.1 1192% Q3-15 2000% 1800% 1600% 1400% 1200% 1000% 800% 600% 400% 200% 0% 10#11Unique Customers and Cost Per Customer (#,000) 3,000 2,500 2,000 1,500 1,000 500 $14.53 1,546 Q3-13 loverstock.com® Q4-13 Unique customers Q1-14 Q2-14 $15.15 1,679 Q3-14 Q4-14 Q1-15 Marketing $ / unique customers (cost per customer) Q2-15 $17.02 1,766 Q3-15 $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 11#12New Customers (#,000) 1,400 1,200 1,000 800 600 400 200 0 ساسا 753 Q3-13 loverstock.com® Q4-13 Q1-14 Q2-14 817 Q3-14 Q4-14 Q1-15 Q2-15 813 Q3-15 12#13Oloverstock.com 13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 0 5,000 10,000 15,000 20,000 25,000 22,682 30,000 27,620 27,718 35,000 40,000 45,000 (#,000) Unique Visitors#14Customer Orders and Average Order Size (#,000) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 $170 1,997 Q3-13 loverstock.com® Q4-13 Q1-14 Customer orders Q2-14 $180 2,259 Q3-14 Q4-14 Q1-15 Average order size Q2-15 $183 2,466 Q3-15 $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 14#15Gross Profit per Transaction. $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 $29.62 Q3-13 loverstock.com® Q4-13 Q1-14 Q2-14 $29.68 Q3-14 Q4-14 Q1-15 Q2-15 $29.39 Q3-15 15#16Corporate Employees 1,200 1,000 800 600 400 200 0 833 Q3-13 loverstock.com® Q4-13 Q1-14 Q2-14 1,011 Q3-14 Q4-14 III Q1-15 1,087 Q2-15 Q3-15 16#17Key Initiatives loverstock.com® Loyalty Club O Silver expanded to 19M+ members Medici 1. Private cryptobond with First New York Bank 2. NASDAQ announcement on Aug 4 of tØ launch 3. Acquisition of SpeedRoute and related businesses. OSTK S-3 in Round 3 with the SEC 4. 5. 6. Five patent applications Short token Human Capital Attracting top level talent with improved recruiting 17#18loverstock.com Questions? f Follow Us On You Tube 8+ 18