Disclaimer

This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements relating to our financial guidance for the fourth quarter of 2020 and key drivers thereof; the impact of our investments on topline growth; our ability to capitalize on our large market opportunity; and 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..

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) risks related to the ongoing COVID-19 pandemic, which continues to impact our GMS, other key metrics and results of operations in numerous ways that remain volatile and unpredictable; (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 ability to maintain our growth; (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; (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 Quarterly Report for the quarter ended June 30, 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.

Social Impact

Nurturing a culture of diversity and inclusivity has always been a part of Etsy’s DNA. We welcome people of all backgrounds and walks of life into our community as buyers, sellers, employees, and business partners. Embracing diverse perspectives makes us stronger, more resilient, and enables us to be the best we can be.

Learn more about our Guiding Principles

Social Impact Image

Our employees get to lead, drive change, and share their ideas—regardless of seniority, tenure, or title. Employees are invited to grow both their professional skills and creative interests through unique employee programs and opportunities. Our benefits include comprehensive health plans, generous parental leave, locally sourced food and more.

Talent Acquisition and Development

Recruitment

Talent Acquisition:

Our Talent Acquisition team is focused on bringing top diverse talent to Etsy. The team manages the applications that come through our Careers page, and also actively engage qualified candidates. The Talent team also attends various conferences focused on diversity and inclusion that serve underrepresented populations. We also at times host recruiting events within these conferences to ensure we are networking and meeting as many candidates as possible to continue to support our diversity hiring goals. All interviewers are trained on hiring with diversity in mind to ensure we are mitigating any potential bias in our interview processes.

We strive to create a consistent and positive experience for every candidate interviewed at Etsy.

Development

Development:

We are committed to ensuring fair and equitable opportunities at Etsy, which means that all employees should have a clear understanding of their functional responsibilities and performance expectations. Systematic performance tools help ensure that decision-making processes are objective and unbiased, while Etsy's Competency Matrix provides clear and concise expectations for each employee level and guides performance assessments and career development.

Retention

Retention:

We want to ensure that employees are fairly and consistently recognized for their hard work and valuable contributions. Great work is appreciated and rewarded in many different ways at Etsy, including but not limited to compensation. We continuously conduct assessments to ensure that compensation is staying competitive and fair relative to performance. We review factors like age, race, and gender in our review process to monitor for fairness.

Compensation Philosophy

Competitive, Market- Based Compensation

Etsy has developed total cash pay bands (base pay + bonus) by matching our jobs to competitor jobs in the market using local market data. This data is refreshed quarterly to stay current. We reassess our roles considering that markets, competition, and associated salary expectations can change rapidly.

Pay for Performance and Variable Pay

Etsy has a rigorous and intentional performance management program. We are well equipped to reward performance with compensation in a results-driven way. Our bonus program gives everyone in the company the opportunity to realize additional performance-based pay when an employee and the company have performed successfully. Our goal is to link employee contributions to our success, and associated rewards, in a tangible way.

Equity and Employee Engagement

Equity is critical to Etsy’s investment in our employees and our employees’ investment in the long-term success of Etsy. Equity is awarded to virtually all employees based on market data.

Equitable Compensation

Etsy commissions a third-party consulting firm to conduct a review of pay equity on a biennial basis. The most recent review in 2020, consistent with prior reviews, revealed no unexplained pay gaps adverse to women or employees from other marginalized genders, or non-white employees.

We are committed to ensuring that fair and consistent pay practices are applied across our organization. We take strides to ensure that pay is internally equitable, fair, and accurately differentiated. We align pay for each employee’s position with the responsibilities, knowledge, complexity, and impact of the role within the company. To that end, we have created guidance, specific to ratings and pay, that is part of our performance management program and conduct regular monitoring of compensation outcomes related to performance.

Learn more about working at Etsy