Slide 1: June 14, 2018 Update: Updated fees and new subscription plans
JUNE 14, 2018 UPDATE Driving further marketplace investments via updated fees and new subscription plans
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements related to our updated financial guidance, our expectations regarding the new subscription packages and updated transactio
Slide 3: Etsy is updating fees and introducing subscription packages
Etsy is updating fees and introducing subscription packages We’re updating our transaction fees, which will enable us to invest more in the Etsy marketplace and our sellers’ success. We are introducing optional subscription packages designed for the specific needs of sellers at different stages in t
Slide 4: It's been a remarkable journey these past years
It’s been a remarkable journey these past 13 years 2005 2018 4
Slide 5: We significantly expanded the marketplace over time
We significantly expanded the marketplace over time YEAR 11 TODAY2 $1M $3.3B GMS GMS 9,250 2M Sellers Active Sellers 22,100 35M Buyers Active Buyers Results from July 2005 to July 2006 5 GMS results as of 12/31/2017, Active Sellers and Active Buyers as of 3/31/2018
Slide 6: Updating the pricing model and introducing subscription plans
To invest more in our sellers’ success, for the first time ever, we are updating the pricing model and introducing subscription plans We’re making 2 changes to our We’re introducing monthly transaction fee: subscription plans: • The transaction fee is increasing from 3.5% to 5%* • ETSY STANDARD: Eve
Slide 7: Etsy Subscription Plans
Etsy Subscription Plans CURRENT No additional monthly charge Everything you need to start, manage, and grow a creative business All current Etsy seller tools NEW $10/Month* More ways to grow your business and your brand 15 Listing Credits/Month $5 Pro-List Credit/Month • Custom shop layout • Restock
Slide 8: Big steps toward a bigger future
Big steps toward a bigger future. Changes to our pricing enable us to make investments for the future. We are focused on: 1. Bringing more buyers 2. Building new tools for our sellers 3. Enhancing support and community Examples: • Increased marketing spend • NBC’s ‘Making It’ and related advertising
Slide 9: Delivering nearly 35M active buyers and more
1 We’ve delivered nearly 35M active buyers and are working to deliver even more Marketing Spend In 2017, Etsy spent $78M on direct marketing. We plan to increase that investment by at least 40% in 2018 This summer, Etsy trend expert Dayna Isom Johnson will be a judge on NBC’s crafting competition sh
Slide 10: Building the best tools for running a creative business online
2 We’re focused on building the best tools for running a creative business online Marketing Services We’ve created new ways to build a loyal following. Tools like Targeted Offers make it easier to create promotions that attract shoppers and keep them coming back Business Insights We’re committed to
Slide 11: We're enhancing support for our community
3 We’re enhancing support for our community Community Support We’re giving our community spaces an upgrade to provide support and guidance for our sellers Seller Resources In September, we plan to give the Etsy Teams and the Etsy Forums a new look that will make it easier and more fun to connect wit
Slide 12: Revising our 2018 financial guidance
With new pricing, we are revising our 2018 financial guidance 2018 Original May 8th Guidance 2018 Revised Guidance* Guidance* GMS Growth 14—16% 16—18% 16—19% ~$3.7B—$3.8B ~$3.8B—$3.84B ~$3.8B—$3.9B Revenue Growth 21—23% 22—24% 32—34% ~$534M—$543M ~$538M—$547M ~$582M—$591M Adjusted EBITDA Margin** 20
Slide 13: Appendix
Appendix
Slide 14: FAQs: Why is Etsy raising its fees?
FAQs Why is Etsy raising its fees? Raising fees enables Etsy to invest more in bringing buyers to our sellers, building tools that make it easier for sellers to run shops, and improve the seller experience by enhancing support and community spaces. What specifically did Etsy announce? We are changin
Slide 15: FAQs: Why is 16-19% GMS growth the correct range?
FAQs Why is 16-19% GMS growth the correct range after increasing pricing and making meaningful investments? Our 2018 guidance reflects our high confidence view on the performance of the business this year. Keep in mind pricing goes into effect July 16, 2018. We expect some impact from seller churn g
Slide 16: Key factors impacting our guidance
Key factors impacting our guidance reflected in our May 8, 2018 Press Release • We anticipate that the other key factors impacting our 2018 GMS and revenue guidance will be: Continued visit growth. Conversion rate growth driven by product launches enhancing the buying experience. Continued growth in