Keep commerce human.

Investor Presentation
May 2020
 2

This presentation contains forward-looking statements within the meaning of the federal securities laws.

Forward-looking
Forward-looking statements include statements relating to our financial guidance for the second quarter of 2020 and
key drivers thereof; the impact of our investments on topline growth the uncertain impacts that the COVID-19 pandemic
may have on our business, strategy, operating results, key metrics, financial condition, profitability, and cash flows and
changes in overall level of consumer spending and volatility in the global economy and the impact of ongoing settlement

Statements of intercompany balances on future foreign exchange rate volatility.

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,” “may,”
“plans,” “will,” “intends,” 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) COVID-19 pandemic is unprecedented
and is impacting our GMS and results of operations in numerous ways that remain volatile and unpredictable; (2) the
fluctuation of our quarterly operating results; (3) our failure to meet our publicly announced guidance or other
expectations; (4) our ability to successfully execute on our business strategy or if our strategy proves to be ineffective;
(5) our ability to attract and retain an active and engaged community of sellers and buyers; (6) our history of operating
losses; (7) macroeconomic events that are outside of our control; (8) our ability to recruit and retain employees; (9) the
importance to our success of the trustworthiness of our marketplace and the connections within our community; (10)
our ability to enhance our current offerings and develop new offerings to respond to the changing needs of sellers and
buyers, including the success of our Etsy Ads platform; (11) the effectiveness of our marketing efforts; (12) the
effectiveness of our mobile solutions for sellers and buyers; (13) our ability to expand our business in our core
geographic markets; (14) regulation in the area of privacy and protection of user data; (15) our dependence on
third-party payment providers; (16) acquisitions that may prove unsuccessful or divert management attention,
including our acquisition of Reverb; and (17) 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, 2019, current report on Form 8-K filed on May 6, 2020 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 presentation. We disclaim any obligation to update forward-looking statements.

This presentation is a high-level summary of our Q1 2020 and financial results. For more information please refer to our press release dated May 6, 2020 and filings with the SEC.
 Etsy’s Value Proposition

1 2 3

One of a kind platform offering Significant early stage opportunity to Successfully executing a
unique handcrafted goods from own “special” and capture a greater long-term growth strategy
creative entrepreneurs around the share of a $250B+ TAM focused on our Right to Win
world

4 5 6
Leveraging our strong brand awareness Flexible business model, delivering Agile team, able to execute successfully
with marketing initiatives to drive strong top and bottom line operating & through an extraordinary time to support
frequency and growth financial performance our global community
 1
One of a kind platform offering unique
handcrafted goods from creative
entrepreneurs around the world
 Our marketplaces have two-sided vibrancy...

Buyers Sellers
47.7 Million* 2.8 Million*
Active Buyers Active Sellers
~66 million items

*Results are Consolidated as of March 31, 2020 and include Reverb buyers and sellers.
Etsy connects those who love
unique, handcrafted and Personalization
differentiated goods Made to customer specification

Product Range
Large assortment of unique, original and
vintage products from all over the world

Categories
Unique goods listed across dozens of retail
categories

Buyer Intent
People come to Etsy to browse and be inspired
 In a survey of Etsy buyers,
88% agreed that Etsy has items you
can’t find anywhere else

*2019 survey of Etsy buyers

In a sea of sameness,
we offer something unique...
fun

self-expression
everyday
≠ special
commodities
human

personal
 2
Significant early stage opportunity to own
“special” and capture a greater share of a
$250B+ TAM
 Significant opportunity to grow market share in a very large TAM
2018 TOTAL RETAIL AND ONLINE TAM

6 core geographies
$1.7T Across all relevant retail categories

Expanded to include online spend

$249B
in ALL relevant retail categories
Top Geographies:
United States
and core geographies $5B
United Kingdom
2019 Global GMS
Canada

100B
Germany Etsy Estimated
Australia
France
~$ Market Share:
~5%
Market for “Special”
→
Sources: Euromonitor (2018), Assoc. for Creative Ind. (Jan 2018), Art Basel (2018), Hiscox (2018), IBIS, Etsy Consumer Survey
 Based upon shopping styles...we know there’s a large population
who would love Etsy - 40% of consumers fit our profile

US Consumers

We use this information Expressives

to help size the
marketplace for “Special”

~40%
Seekers

Data from a June 2018 Etsy study of US consumers

 3
Successfully executing a long-term growth
strategy focused on our Right-to-Win
Disciplined and focused long-term growth strategy

1. 2.
Focus on the core Etsy marketplace Build a sustainable competitive advantage
in our 6 core geographies around four key elements

Best-in-Class
Human A Trusted
Search and × ×
Connections Brand
Discovery

United States Our Collection of Unique Items

United Kingdom
Canada
Germany
Australia
France
 4
Leveraging our strong brand awareness
with marketing investments to drive buyer
frequency and growth
 Our buyers love Etsy, but many only shop once a year...

46 Million*

60+ NPS score among

recent purchasers2
59%
1x/year1

*Active buyers for Etsy marketplace includes Reverb and were approximately 46.4 million, as of December 31, 2019.
1
Percent of buyers who have made purchases on only one day in the previous 12 months, as of December 31, 2019.
2
Net Promoter Score for recent purchasers in Jan 2020 Etsy buyer survey; recent purchasers defined as having made purchase within past 30 days of answering survey.
 And while millions love us, they don’t know when to think of us...

Prompted Awareness 84%

Unprompted Awareness 41%

Visit Intent (Consideration) 29%

Purchase Intent 23%

Loyalty 27%

Advocacy 25%

Etsy Brand Funnel: U.S., Q4 2019

 17

We are moving our marketing investments to “full funnel”

strategies; focused on delivering positive ROI

Positive impact from TV;

making other channels work
harder
Content Affiliates

Progress unlocking positive ROI

FULL-FUNNEL social channels - i.e. through
MARKETING re-targeting

Natural shock absorber that varies

dynamically with demand.

More efficient performance

marketing - more sophisticated
bidding, feed improvements
Our goal is to make Etsy relevant for more of our buyers’ “special”
purchase occasions

Valentine’s Day Easter Mother’s Day 4th of July Labor Day Halloween Thanksgiving Holiday

JANUARY | FEBRUARY | MARCH | APRIL | MAY | JUNE | JULY | AUGUST | SEPTEMBER | OCTOBER | NOVEMBER | DECEMBER

Wedding New Home Back to school Baby Special Dress

 19

5
Flexible business model, delivering strong
top and bottom line operational and
financial performance
 20

Solid financial results despite macro uncertainty stemming from a global

pandemic...
GMS Revenue
Q1 2020 Metrics

Net Income Adjusted EBITDA1

$1.4B $228M $12.5M $55.1M

+32.6% Y/Y +34.7% Y/Y $0.10EPS²
+24.1% Margin
Currency-Neutral

Includes Reverb financial results Includes Reverb financial results

Includes Reverb financial results
$55.1

32.6%

33.0% 29.4%
40.1% 21.9%
20.6% 24.1%
31.1% 36.8% 21.3% 20.2%
22.8% 31.6%
34.7%
35.0%

1Reconciliation of non-GAAP financial measures is contained in the appendix

² EPS reflects diluted earnings per share
 21

Helped by our diversified revenue model consisting of marketplace

fees and optional value-added services

1Q 2020 CONSOLIDATED REVENUE $228M, UP 34.7% YOY

Marketplace Services Revenue

Revenue (Optional value-added services)
$72.1M, up 71.1% YoY
Listing Fee Advertising

Transaction Fee Shipping Label /Protection

Payments Platform Other

$155.9M, up 22.6% YoY

Includes Reverb results

Etsy transaction fee 5% and Reverb transaction fee 3.5% both including shipping fees
Etsy Payments (3-4.5% +flat fee) plus Reverb Payments (2.5%-2.7% +flat fee)
 22

Improvement in key
GMS per Active Buyer3
operating metrics signal
continued progress
improving frequency

Active Buyers1 Habitual Buyers2

47.7M 2.6M Year-over-year

growth

2-year growth
2.0% 1.3% 1.8% 3.8% 4.1%

+16% Y/Y +22% Y/Y rate

1.0% 1.9% 3.7% 6.0% 6.1%

1
Active buyers reflected for the consolidated marketplace
2
Habitual Buyers are a segment of buyers from the Etsy standalone marketplace
3
GMS per Active Buyer reflects results from the Etsy standalone marketplace
 23

Strong cash flow generation reinforces our financial

position and capital allocation strategy

Strong Financial Position TTM Free Cash Flow Conversion2 (%)

Cash1

$898M

1
Cash, Cash Equivalents, and Investments (short and long term)
2
Reconciliation of non-GAAP financial measures is contained in the appendix
Non-GAAP Free Cash Flow Conversion is Free Cash Flow divided by adjusted EBITDA
 24

We use our cash to invest for growth and value creation

Organic Growth Opportunistic M&A Return of Capital

Product and Geographies (e.g. DaWanda*) $222.5m worth of shares

engineering resources repurchased from Q4 2017
Adjacent marketplaces (e.g. Reverb) through Q1 2020 ¹
Marketing
Technology (e.g. Blackbird) Cumulative average
Back office repurchase price of $33.78 ¹
efficiencies to scale Vertical extensions
*DaWanda Referral Agreement June 2018
¹ Pursuant to board approved plan; excludes concurrent purchase with Q3 2019 debt offering. Given the macroeconomic situation
related to COVID-19, our Board of Directors has decided to pause our share program.

Reverb: the Etsy of musical
instruments - acquired August
2019
25
Founded in 2013 and based in Chicago with core
markets in US, UK, Germany, France & Australia
Mission & business model aligned with Etsy
Focused on inspiring content, price transparency
and musician focused e-commerce tools to create a
significant competitive advantage
Marketplace operated separately from Etsy.com
Reverb’s 2020 focus areas include:
● Investing in infrastructure
● Establishing a product experimentation
process and
● Maturing marketing channels to drive
growth
 26

6
Agile team, able to execute successfully
through an ‘extraordinary’ time
to support our global community
 27
Our Leadership Team
Josh Silverman Rachel Glaser Mike Fisher
Chief Executive Officer Chief Financial Officer Chief Technology Officer

• Member of Etsy’s Board of Directors • Manages our technology strategy helping to further scale our global
• Brings more than 30 years of senior financial experience to Etsy platform
• Two decades of leadership experience include growing consumer
• Previously at Leaf Group, where she served as CFO since 2015
technology companies and scaling global marketplaces • Priorto joining Etsy, Mike was the co-founder and managing partner of
• Asthe CFO at Move, Inc. she helped lead a successful sale of the consulting firm AKF Partners
• Previously served as President of Consumer Products and Services
the company to News Corporation • Mike’s career in technology has also included the roles of Chief
at American Express, CEO of Skype, and CEO of shopping.com, and
held various executive roles at eBay Technology Officer of Quigo, Vice President of Engineering &
Architecture for PayPal, and various roles at General Electric

Ryan Scott Jill Simeone Kruti Patel Goyal Raina Moskowitz

Chief Marketing Officer General Counsel and Secretary Senior Vice President of People,
Chief Product Officer
Strategy, and Member Services

• Two decades of marketing and e-commerce experience.
• Leads Etsy’s digital marketing, advertising, communications,
brand, market research and international growth initiatives.
• Prior to joining Etsy, Ryan was Chief Consumer and Marketing
Officer at Slice, CMO of SoulCycle, Co-CEO at Pond5 and served
as the first CMO of Seamless.
• Manages our services platform globally overseeing development of • RainaMoskowitz is Etsy’s Senior Vice President of People,
• Bringsmore than 15 years of experience in international
the tools and services that enable our sellers to effectively start, Strategy, and member services. In this role, her mission is to
strategic advising, compliance, and public company reporting
scale and manage their creative businesses develop and enable Etsy’s strategy by delivering exceptional
• Before
joining Etsy, Jill served as Vice President, Senior service and experiences for both employees and customers.
• Heldmany integral roles at Etsy over the past six years from
Counsel and Assistant Secretary at American Express Global
Business & Corporate Development, International, Marketplace • Shecomes to Etsy after nearly 13 years at American Express,
Business Travel
Integrity and Trust & Safety where she held multiple leadership roles in product, strategy,
operations and marketing.
 28

Covid-19 focus areas: Team, Marketplace & Brand and

Financial Performance

Our Team Marketplace & Brand Financials

Employees Sellers Buyers Financial Model

Focus Areas

Seller
Health and Safety Mindshare Expenses
Performance

Productivity Shipping Brand Reputation Free Cash Flow

The crisis GMS Y/Y for Select Categories
disrupted
typical buying
behavior in our
key categories
in March
GMS

WHO declares
COVID-19 a pandemic

Jewelry Toys & games Bath & beauty

Home & living Craft supplies Weddings

& tools
 30

Etsy Marketplace:
April was Extraordinary

We experienced broad demand across the

marketplace for both mask & non-mask items...

Mask Sales Non-Mask Sales

$133M in GMS +79% Y/Y

 31

Demand shifted Mask-Related Search Volume

again in early
April...

...first weekend of
April generated
over 2M
mask-related
searches

March April
CDC recommends the New York mandates
use of cloth face cloth face coverings in
coverings public
 32

Rapid mobilization focused on six key areas to address surge in

demand for face masks primarily due to changing CDC guidelines
Within Hours Within Days

Scaled
Screened
Inventory
Sellers
and Sellers
Created
Banners and Retrained
Automated our Search
Filters Engine

Managed
Distributed
Delivery
Demand
Expectations
 33

We experienced broad demand across the marketplace

Growing Demand in Key Categories

and Occasions Fewer Alternatives Non-Mask GMS*

+79%
Home Decor Craft Supplies Gifting Retail store closures

eCommerce shipping delays

Growth in non-mask
Supply chain disruptions GMS during April

*Etsy standalone data reflected as of the month of April

 34

We’re seeing broad

based demand and
overall momentum
for the Etsy
marketplace
Key Insights*
• Face Masks represented 17% of
Etsy marketplace GMS
• 22% of mask related GMS was
from new buyers
• Acquired 4M new buyers and
re-engaged 2.5M buyers who
March April May
haven’t purchased in a year or
more
• 32% of buyers who purchased a
face mask returned within 14
days to make another purchase

*Etsy standalone data reflected as of the month of April

 35

Influx of new Engagement

buyers creates
opportunity to
6.5M
New buyers and those who Create a comfort-filled home with

build loyalty with have not purchased for a one-of-a-kind creations.

Cozy home decor

year or more* Shop now >

a new cohort

Repeat Purchase Rate

32%
Of mask buyers had a 14 TV Email
day repeat purchase rate;
higher than average* Paid Social Push

PLA & SEM Organic Social

*Etsy standalone data reflected as of the month of April

 36

We pivoted our brand strategy, messaging and spend to

support Etsy sellers and drive buyer engagement beyond our
traditional use cases

Category TV & Social Engagement

Brand Platform TV Creative
Alignment Investments Strategies

Open for Business Pivoted inventory to Delivering the Etsy Enhancing investments Building loyalty and
Everyday Essentials favor in demand story through the to expand exposure and retention among
#StandWithSmall products and lens of our sellers reach buyers (CRM, other
categories targeting tools)
 37

Our Reverb
marketplace
leveraged the
ability to serve as
Local music shops & gear
a primary online makers are still online and
shipping via Reverb marketplace
channel for its
sellers

Shipping
New Buyers Availability Manufacturers
Seeing a surge in first time Shipping availability is Manufacturers embrace
buyers driving traffic and GMS selling directly on the
platform
 38

Optimizing our cost structure while investing for long term growth

Leaning into Variable Investments for Long Term Growth One-time Investments to Support our Sellers

Brand Marketing Offsite Ads fees waived

Incremental Product Investments including Bill Payment Deferral

Search and Frequency ~$11M - $13M
Seller Resources and One-time
Support investments in our
seller community
Listing and Ad Credits
 39

Depth and duration of headwinds and tailwinds are unknown

GMS Trends by Category

Total GMS Growth Core Business Trends Tailwinds Headwinds

• Organic GMS • Mask sales • Economic environment

• Product Development • Mask adjacent sales • Job losses
• Marketing • New buyer cohorts • Consumer confidence
• Offline to Online
• Competitive dynamics
• Pent-up demand
• Gifting trends
• Stimulus checks
• Business closures
 40

Q2 Guidance
Q2 Consolidated Guidance
May 6, 2020

Etsy has temporarily GMS ($) ~$2.0B-$2.2B

GMS Growth (%) 80 - 100%
moved to providing
quarterly guidance in light
Revenue ($) ~$310M-$340M
of uncertain macro Revenue Growth (%) 70 - 90%
conditions

Adj. EBITDA* ($)

$75M-$90M
Adj. EBITDA Margin (%)
~23 - 27%

*Based on the mid-point of Q2 2020 revenue guidance. Reconciliation of non-GAAP financial measures is contained in the Appendix.
Key factors potentially impacting our 2020 guidance are contained in the Appendix.
Appendix
 42
Q1 2020 Financial Results

Key factors impacting our Q2 Guidance

Etsy withdrew its 2020 Annual Guidance on April 2, 2020 due to uncertainty caused by the COVID-19 crisis.
We anticipate that the key factors impacting Etsy consolidated Q2 GMS and revenue guidance will be:

● The depth and duration of headwinds and tailwinds related to the healthcare and economic crisis caused by COVID-19. Headwinds and tailwinds include but are
not limited to the following:
○ Headwinds: Economic environment, job losses, and consumer confidence
○ Tailwinds: Retail store closures, shift in spend from offline to online, competitive dynamics, government stimulus, demand for face masks and mask
adjacent items, and the frequency of new buyer cohorts
● Continued visit growth and conversion rate improvements driven by global product launches enhancing the buying experience.
● Incremental GMS from marketing investments.
● The launch of our new Off-site Ads product in Q2, which is expected to generate incremental revenue in the form of an advertising fee to sellers.
● Additional external factors that may offset some growth include: sales taxes, regulatory changes, currency fluctuations, changes to VAT, elections, and the
potential for geopolitical events that impact trade, including, among other things, the COVID-19 pandemic.
● GMS and Revenue performance related to our acquisition of Reverb.

We anticipate that the key factors impacting our Q2 Adjusted EBITDA guidance will be:

● Revenue growth driven by the core business

● Planned investments in marketing, including investments in newer channels for Etsy with more speculative returns, as well as incremental investments in
marketing spend related to our new Offsite Ads product.
● One-time investments to support our seller community impacted by COVID-19.
● Leverage in Product Development, G&A and Cost of Revenue.
● Continued investment in the usage of our cloud infrastructure, most of which will be expensed through cost of revenue.
● Adjusted EBITDA associated with the recent acquisition of Reverb, which we expect to be a drag on consolidated EBITDA margin for Q2.

*These and other risks and uncertainties are more fully described in in our Quarterly Filing on Form 10-Q for the quarter ended March 31, 2020, and subsequent reports that we
file with the Securities and Exchange Commission.
 43
Q1 2020 Financial Results

Condensed 1Q20 1Q19

(in thousands)

Consolidated Revenue $228,055 $169,339

Statement of Cost of revenue 82,416 52,658

Operations Gross profit 145,639 116,681

Marketing 48,505 35,444

Product development 37,782 24,947

General and administrative 33,987 24,647

Operating expenses 120,274 85,038

Income from operations 25,365 31,643

Other expense, net (15,672) (206)

Benefit for income taxes 2,829 142

Net income $12,522 $31,579

Net income per share — diluted $0.10 $0.24

 44
Q1 2020 Financial Results

Three months ended Three months ended

Condensed 3/31/20 3/31/19

Consolidated
(in thousands)

$12,522 $31,579

Statement of
Net Income

Net cash provided by operating activities 29,664 31,458

Cash Flows 6,093 (22,004)

Net cash provided by (used in) investing activities

Net cash used in financing activities (32,678) (29,307)

Effect of exchange rate changes on cash (4,018) (1,458)

Net decrease in cash, cash equivalents, and restricted cash (939) (21,311)

Cash, cash equivalents, and restricted cash at the beginning of 448,634 372,326
the period

Cash, cash equivalents, and restricted cash at the end of the $447,695 $351,015
period
 45
Q1 2020 Financial Results

Condensed (in thousands)

1Q20 4Q19

Consolidated Cash and cash equivalents $442,354 $443,293

Balance Sheets Short-term investments 361,640 373,959

Accounts receivable, net 11,712 15,386

Property and equipment, net 134,519 144,864

Other current and non-current assets 567,417 564,850

Total assets $1,517,642 $1,542,352

Accounts payable $10,557 $26,324

Funds payable and amounts due to sellers 55,172 49,786

Long-term debt, net 794,129 785,126

Other current and non-current liabilities 250,937 274,482

Total liabilities 1,110,795 1,135,718

Total stockholders’ equity 406,847 406,634

Total liabilities and stockholders’ equity $1,517,642 $1,542,352

 46
Q1 2020 Financial Results

Reconciliation of Quarterly Net Income to Adj. EBITDA

1Q20 1Q19

(in thousands)

Net income $12,522 $31,579

Excluding:

Interest and other non-operating expense, net 6,354 1,268

Benefit for income taxes (2,829) (142)

Depreciation and amortization 15,163 10,142

Stock-based compensation expense 13,811 8,082

Foreign exchange loss (gain) 9,318 (1,062)

Acquisition-related expenses 717 -

Adjusted EBITDA $55,056 $49,867

 47
Q1 2020 Financial Results

Reconciliation of Operating Cash Flow to Free Cash Flow

Free cash flow is considered to be a non-GAAP financial measure. We believe that free cash flow, which measures our ability to generate cash from our business operations, is
an important financial measure for use in evaluating the company's financial performance. Free cash flow should be considered in addition to, rather than as a substitute for,
consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. We believe it is important to view free
cash flow as a measure that provides supplemental information to our Consolidated Statements of Cash Flows.

1Q20 4Q19 3Q19 2Q19 1Q19 2019 2018

(in thousands)

Operating Cash Flow $29,664 $78,581 $47,045 $49,836 $31,458 $206,920 $198,925

Purchases of property and equipment (567) (1,639) (2,142) (3,064) (683) (7,528) (1,019)

Development of internal-use software (1,261) (1,508) (1,573) (1,279) (3,390) (7,750) (19,537)

Free Cash Flow $27,836 $75,434 $43,330 $45,493 $27,385 $191,642 $178,369