#170 eft sy terap THE TV Ooverstock.com Q1 2016 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-K for the year ended December 31, 2015 which was filed with the Securities and Exchange Commission on March 8, 2016. 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#3Q1 2016 Results Revenue $413.7 Million (4% increase vs. Q1 2015) Contribution Dollars* $50.0 Million (4% increase vs. Q1 2015) Pre-Tax Income $22.1 Million (vs. $4.5 million in Q1 2015) Gross Profit Dollars $77.3 Million (2% increase vs. Q1 2015) overstock.com Contribution Margin* 12.1% (vs. 12.1% in Q1 2015) Net Income** $13.4 Million (vs. $2.7 million in Q1 2015) * Non-GAAP ** Net Income refers to Net income attributable to stockholders of Overstock.com, Inc. Q1 2016 results include a $19.5 million legal settlement received. Gross Margin 18.7% (vs. 18.9% in Q1 2015) Tech and G&A Expense $47.6 Million (9% increase vs. Q1 2015) TTM Operating Cash Flow $63.1 Million (vs. $67.4 million in Q1 2015) 3#4Quarterly Revenue and Growth ($,000) 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 341,207 9% Q1-14 loverstock.com® Q2-14 Q3-14 Q4-14 Revenue ($) 398,344 17% Q1-15 Q2-15 Q3-15 Revenue growth (yoy) Q4-15 413,677 4% Q1-16 40% 35% 30% 25% 20% 15% 10% 5% 0% 4#5Quarterly Gross Profit and Growth ($,000) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 (10,000) 63,996 9% Q1-14 loverstock.com® Q2-14 Q3-14 Q4-14 Gross profit ($) 75,437 18% Q1-15 Q2-15 Q3-15 Gross profit growth (yoy) Q4-15 77,307 2% Q1-16 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% 81 5#6Quarterly Contribution and Growth* ($,000) 60,000 50,000 40,000 30,000 20,000 10,000 0 (10,000) 41,067 1% Q1-14 Q2-14 loverstock.com HIU 17% Q3-14 Contribution ($) 48,169 Q4-14 Q1-15 Q3-15 Contribution growth (yoy) Q2-15 * Non-GAAP: Contribution dollars = Gross profit less Sales & Marketing expense plus Club O Rewards and Gift Card breakage. Q4-15 50,020 4% Q1-16 60% 50% 40% 30% 20% 10% 0% -10% 6#7Quarterly Gross Margin and Contribution Margin* 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 18.8% 12.0% Q1-14 Q2-14 loverstock.com Q3-14 Q4-14 Gross margin 18.9% 12.1% Q1-15 Q2-15 Contribution margin Q3-15 Q4-15 * Non-GAAP: Contribution margin = Gross profit less Sales & Marketing expense plus Club O Rewards and Gift Card breakage as a percentage of revenue. 18.7% 12.1% Q1-16 7#8Technology and G&A Expenses $s and % of Revenue ($,000) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 10.2% 34,897 Q1-14 loverstock.com G&A Q2-14 Q3-14 $4.6 M Q4-14 Legal Case Judgments 11.0% 43,621 Q1-15 Q2-15 Technology Q3-15 Q4-15 11.5% 47,558 Q1-16 G&A and Tech (% of revenue) 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 8#9Operating and Free Cash Flow (TTM) ($,000) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 (10,000) (20,000) 55,619 37,419 Q1-14 Q2-14 overstock.com 67,424 Q3-14 Q4-14 Cash flow from operations (TTM) * Non-GAAP: Free Cash Flow = Cash Flow from Operations less Expenditures for Fixed Assets. * Q1-15 25,661 Q2-15 Q3-15 Free cash flow* (TTM) Ill 63,102 Q4-15 (9,391) Q1-16 9#10GAAP TTM Inventory Turns and GMROI 60.0 50.0 40.0 30.0 20.0 10.0 0.0 45.1 1054% Q1-14 Q2-14 overstock.com Q3-14 Q4-14 TTM Inventory turns TTM Inventory Turns TTM COGS / Average Inventory TTM GMROI = TTM Gross Margin % * TTM Revenue / Average Inventory 47.6 1095% Q1-15 Q2-15 Q3-15 TTM GMROI Q4-15 55.5 1244% Q1-16 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 1,774 $13.19 Q1-14 loverstock.com® Q2-14 Unique customers Q3-14 Q4-14 1,901 $14.72 Q1-15 Q4-15 Q2-15 Q3-15 Marketing $ / unique customers (cost per customer) 1,894 $16.61 Q1-16 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 11#12New Customers (#,000) 1,400 السياس 1,200 1,000 800 600 400 200 0 868 Q1-14 loverstock.com® Q2-14 12#13Oloverstock.com 13 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 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 0 5,000 10,000 15,000 20,000 25,000 25,840 30,000 29,271 35,000 32,863 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 2,352 $165 Q1-14 loverstock.com® Q2-14 Q3-14 Customer orders Q4-14 2,630 $174 Q1-15 Q2-15 Q3-15 Average order size Q4-15 2,675 $177 Q1-16 $400 $350 $300 $250 $200 $150 $100 $50 $0 14#15Gross Profit per Transaction. $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 $27.21 Q1-14 loverstock.com® Q2-14 Q3-14 Q4-14 $28.69 Il Q1-15 Q2-15 Q3-15 Q4-15 $28.90 Q1-16 15#16Corporate Employees 1,400 1,200 1,000 800 600 400 200 889 Q1-14 loverstock.com® Q2-14 Q3-14 Q4-14 1,002 Q1-15 Q2-15 Q3-15 Q4-15 1,143 Q1-16 16#17loverstock.com Email all questions to: [email protected] f Follow Us On You Tube 8+ 17