#1CARL ESCHENBACH & JESS LEE JUNE 2022 SEQUOIA Leading in Uncertain Times#2Agenda SEQUOIA CONFIDENTIAL 1. Leadership Principles 2. Communication Principles 3. Q&A#3SEQUOIA Leadership Principles#4Fundamentals of Business Leadership VISION Clarity of thought Conviction Inspiration SEQUOIA CONFIDENTIAL EXECUTION Self-assessment Complimentary teams Singularity of purpose CULTURE Fabric of the company Live it every second How you act when no one is looking#5The 4 C's of Leadership During Times Of Uncertainty SEQUOIA CONFIDENTIAL Communication Conviction Confidence Calmness#6Push vs. Pull Leadership SEQUOIA CONFIDENTIAL PUSH Motivational Pushing = PULL Inspirational = Pulling#7Team of Leaders vs. Leadership Team SEQUOIA CONFIDENTIAL Team of Leaders O thay a O pha Leadership Team#8Strategies During Uncertain Times SEQUOIA CONFIDENTIAL Focus - Simplicity scales, complexity doesn't Speed - One of the greatest business strategies People - Double down on your top talent i.e. topgrading Decisions - Alignment over agreement Value Proposition - Tighten to drive sales - Drives revenue growth Saves money (strong ROI) Reduce risk EVERYTHING ELSE IS FLUFF#9The most important number in the company SEQUOIA CONFIDENTIAL#10"It takes many quarters to gain credibility and only 90 days to lose it." CARL ESCHENBACH#11SEQUOIA Communication Principles#12"The difference between management and leadership is communication." WINSTON CHURCHILL#13"Sometimes your only available transportation is a leap of faith." MARGARET SHEPHERD#14"Sometimes your only available transportation is a leap of faith." Trust MARGARET SHEPHERD#15Trust Competence. Ability to Deliver Results x Integrity x Honesty, Openness, and Fairness Benevolence Concern for the Well-Being of Others#16The Anatomy of Communication in Uncertain Times SEQUOIA CONFIDENTIAL 1. Acknowledge Uncertainty 2. Signal Change 3. A Simple, Focused Plan 4. Regular Check-ins 5. Motivate with Mission 6. Be Present, Be Human Integrity Competence Benevolence#17Acknowledge Uncertainty Address the elephant in the room. Contextualize how it affects your business. ● B Nasdaq 100 Index: Tech Stock x + C 0 bloomberg.com/news/articles/2022-04-29/fed-casts-long-shadow-over-1-8-tr... O Bloomberg the Company & Its Products | Bloomberg Terminal Demo Request Bloomberg Anywhere Remote Login | Bloomberg Customer Support Bloomberg ● Live Now Markets Technology Politics Wealth Pursuits Opinion Businessweek Equality Green CityLab Crypto More Markets Tech Stocks Lose $1.8 Trillion in a Month Thanks to Fed ■ Nasdaq 100 Index posts worst start to the year since 2002 ■ Earnings, rate-hike expectations have made for volatile month By Subrat Patnaik and Matt Turner April 29, 2022, 3:46 AM PDT Updated on April 29, 2022, 6:39 AM PDT Listen to this article ▶5:44 Share this article in Follow the authors @Subrat Patnaik + Get alerts for Subrat Patnaik @Matt Turnerr For tech investors, it's been the worst start to the year in two decades. And with another hike in the Federal Reserve's interest rate seen next week, they are bracing for more volatility. ✓ U.S. Edition Sign In Subscribe The Nasdaq 100 Index has been hammered this year -- wiping out more than $1.8 trillion in value in April alone -- amid a tumultuous earnings season as investors fear an economic slowdown and ever-more aggressive expectations around the Fed's rate-hike trajectory. SEQUOIA CONFIDENTIAL LIVE ON BLOOMBERG Watch Live TV > Listen to Live Radio > M You've reached your free article limit. Explore Offers → $$$ MARE ALERTST FIS FIS® FINANCIAL TECHNOLOGY US Consumer Confidence Drops to Three-Month Low on Inflation ■ Conference Board index fell slightly in May to 106.4 ■ Plans to buy appliances, homes and cars all declined Team growth outpacing revenue growth -8% WEB VISITORS +20% REVENUE +63% -$2.2M TEAM SIZE EBITDA LOSS Q3 We have over $X million in the bank and our monthly burn is <$X, meaning that we have ~X months of runway, X months conservatively. Going forward, I will share snapshot updates about our cash reserves and burn on a monthly basis. In spite of the macroeconomic context, I believe our financial position buys us some time to judiciously experiment.#18Signal Change Be specific about expected behavior change. Example: Focus. PEACE TIME WAR TIME SEQUOIA CONFIDENTIAL VS. In peacetime, companies must maximize and broaden the current opportunity. Peacetime companies encourage broad-based creativity and contribution across a diverse set of possible objectives. In wartime, the company typically has a single bullet in the chamber and must, at all costs, hit the target. The company's survival in wartime depends upon strict adherence and alignment to the goals.#19Signal Change Be specific about expected behavior change. Example: Velocity. SEQUOIA CONFIDENTIAL TIME IS THE ENEMY SPEED is our FRIEND Work Smarter and Faster - Deep understanding of user Get to MVP quickly, Learn & Fail fast - High standards for delighting users NOT - Burn out on 18 hour days - Rush into bad decisions#20Signal Change Be specific about expected behavior change. Example: Resourcefulness. ALVE A- B B Counter-intuitive The challenge When we have more resources: ● Overcomplicate ● Over-plan ● SEQUOIA CONFIDENTIAL Over-engineer Difficult to reverse decisions What often happens when trying to solve problems through resources The result It often leads us to worse outcomes: ● Slow to produce results ● Redundancy of roles ● Lack of accountability ● More resources to fix problems What it means to be lean and mean 1 Bite-sizable Narrow the scope of the problem 2 Speed to market Don't overcomplicate things 3 Show results Let our users be the final verdict, not us#21A Simple, Focused Plan Simplicity increases your odds of success. Principles Be decisive! Preserve cash Act with all stakeholders in mind Emerge as role models, not villains Play to win 2021 travel season Don't trade in the future SEQUOIA CONFIDENTIAL We need to do four things Raise money Manage our stakeholders Diversify our business Cut costs#22A Simple, Focused Plan Simplicity increases your odds of success. Strategy Create the future on mobile Fund the future on web Increase ARPU SEQUOIA CONFIDENTIAL Metric Mobile DAU Web Visitors Baseline X X Revenue/User X Goal +50% +20% +100% Tactics 3 Small Teams More At Bats Fast MVPs SEO Mobile Web Email Retention Launch More Advertisers International CPC Yield Optimization#23Regular Check-ins Repetition, repetition, repetition. Hold yourself and your team accountable. Goal Create the future on mobile Fund the future on web Increase ARPU SEQUOIA CONFIDENTIAL Metric Mobile DAU Web Visitors Goal X X Revenue/User X % to Goal 90% 30% 75% Tactics 3 Small Teams More At Bats Fast MVPs SEO Mobile Web Email Retention Launch More Advertisers International CPC Yield Optimization#24Motivate with Mission Remind people why they're there, using customer stories and cultural tenets. An American author, Carlos Castaneda, famously said, "we either make ourselves miserable or we make ourselves strong. The amount of work is the same." We will obsess over the following three things: who we serve, how we manage time, and where we focus. Who we serve: Front-line workers and customers need us more than ever. There are now more unemployed / underemployed workers who need us direly. Our customers need us to help them manage ups and downs of their mission-critical operations. Both sides need to know that we are open for business and here for them. SEQUOIA CONFIDENTIAL Leveraging our biggest strength Integrity/Compassion/Authenticity "|||| Adaptability Optimism/Positivity Resilient/Relentless/Perseverance Work ethic/Dedication Problem solving Simplifying complexity and prioritize Dealing with pressure Seeing through the forest Team player 0% 5% 10% 15% 20%#25Motivate with Mission Remind people why they're there, using customer stories and cultural tenets. I wanted to look back and forward with you. I launched Otter on Monday October 26, 2020. Around 10am, a caregiver called me, frantic about having run out of snacks for the kids she was watching. At first, I panicked too, but then I realized I could make her life easier by just ordering a delivery of fruit and Graham crackers to help things run smoothly for the day. For good measure, I added some dark chocolate because she'd mentioned to me during our first call that dark chocolate was the only snack her kids didn't eat so she got it to treat herself. Things like this don't scale, but they do help parents who are otherwise stretched thin feel seen, while making it easier for them to be present with the kids in their care. We have an incredible opportunity to make our earliest caregivers feel championed, celebrated, and cared for – and this is aligned with our mission to create a world of care and opportunity. By taking care of our caregivers, we'll help them access the economic opportunity that is at the core of our mission. SEQUOIA CONFIDENTIAL LOVE LETTERS 2 3 2 2#26Be Present, Be Human Show up, authentically. You don't have to be perfect. Create fun rituals. SEQUOIA CONFIDENTIAL W. Wonele 4/28/200 Kirstyn I just want to take this the to thank you for perseverly through these challengly times. Z truly appreciate all of your hard work and dedication at won... I hope you are enjoy by you preciar time with Rilyon. I can't wait to see you soon. again. Hope you're staying healthing. - Yorg ISE CA HONK with Yong Kim and 2 others#27"People will forget what you said, people will forget what you did, but people will never forget how you made them feel." MAYA ANGELOU#28SEQUOIA