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Disclaimer

This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include but are not limited to: statements relating to our financial guidance for the first quarter 2024 and related assumptions and commentary; full year 2024 commentary; the anticipated impact of our 2024 portfolio growth initiatives; our ability to increase buyer frequency and earn more buyer consideration and market share by breaking down brand barriers and highlighting quality merchandise in a more organized and curated way, including by retaining focus on our “Vital Few,” highlighting value and improving reliability; our expectations regarding Reverb’s profitability and our subsidiaries’ ability to gain market share; our opportunity to “own” gifting and ability to achieve market share gains across our core categories; the impact of our cost-saving initiatives; our ability to generate long-term shareholder value; and our and analyst expectations regarding market conditions.

Forward-looking statements include all statements that are not historical facts. In some cases, forward-looking statements can be identified by terms such as “anticipate,” “believe,” “could,” “enable,” “estimate,” “expect,” “goal,” “intend,” “may,” “outlook,” “plan,” “potential,” “target,” “will,” or similar expressions and derivative forms and/or 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 but are not limited to: (1) the level of demand for our services or products sold in our marketplaces, and our ability to support our recent growth; (2) the importance to our success of the trustworthiness of our marketplaces and our ability to attract and retain active and engaged communities of buyers and sellers; (3) the fluctuation of our quarterly operating results; (4) our failure to meet our publicly announced guidance or other expectations; (5) if we or our third-party providers are unable to protect against technology vulnerabilities, service interruptions, security breaches, or other cyber incidents; (6) our dependence on continued and unimpeded access to third-party services, platforms, and infrastructure; (7) macroeconomic events that are outside of our control; (8) operational and compliance risks related to our payments systems; (9) our ability to recruit and retain employees; (10) our ability to compete effectively; (11) our ability to enhance our current offerings and develop new offerings to respond to the changing needs of sellers and buyers; (12) our ability to demonstrate progress against our environmental, social, and governance Impact strategy; (13) our efforts to expand internationally; (14) acquisitions that may prove unsuccessful or divert management attention; (15) regulation in the area of privacy and protection of user data; and (16) litigation and regulatory matters, including intellectual property claims. These and other 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 on Form 10-Q for the quarter ended September 30, 2023, 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 hereof. We disclaim any obligation to update forward-looking statements.

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Reverb Announces Plans to Increase Investment in Sellers

July 14, 2020

Music gear marketplace revises selling fee to fuel further investments in marketing, customer support, and product enhancements

Tuesday, July 14, 2020—Reverb, the largest online marketplace dedicated to buying and selling musical instruments, today announced that it is revising its selling fee to support increased investments in the growth and long-term health of the marketplace. This change to Reverb’s selling fee, which is the company’s first ever, will enable Reverb to make substantial additional investments in marketing, customer support, and seller tools aimed at attracting more buyers to the site and raising the visibility of Reverb’s sellers. 

“Over the past seven years, our team has been dedicated to growing Reverb into a global online destination that music makers visit to discover the world’s best music shops and sellers. As our community continues to expand and players of all levels increasingly shop for music gear online, we’ve heard our sellers loud and clear—they want even more opportunities to connect with more buyers on Reverb,” said Reverb CEO David Mandelbrot. “As a crucial partner to the businesses and individuals who sell instruments on Reverb, we recognize that now is the time to make further investments on behalf of our sellers. Our first-ever selling fee change will enable us to do that.”

Beginning on August 4, 2020, Reverb’s 3.5% selling fee will increase to 5%. This revised selling fee will enable Reverb to invest more to sustain sellers’ continued growth. This year alone, Reverb plans to increase investments compared to 2019 by: 

  • Investing over 30% more in marketing initiatives—including SEO, online video advertising, and other digital advertising—aimed at getting sellers’ inventory in front of more buyers from around the world.
  • Expanding the capacity of Reverb’s global customer support team by 25% to support Reverb’s growing community of buyers and sellers. 
  • Increasing by more than 40% the capacity of Reverb’s product team focused on creating and enhancing seller tools and services to increase the visibility of sellers’ inventory.

“Music shops, gear makers, artists, and more sell their gear on Reverb because our marketplace gives them access to millions of knowledgeable, quality buyers and the support of customer engagement, marketing, and tech teams that are dedicated to connecting buyers and sellers,” said Kevin Drost, Reverb’s Chief Strategy Officer. “Our revised selling fee will allow us to make crucial investments on behalf of our sellers while continuing to provide what we feel is the best value for our community.” 

About Reverb

Reverb is the largest online marketplace dedicated to buying and selling used, vintage, and new musical instruments. Since launching in 2013, Reverb has grown into a vibrant community of buyers and sellers all over the world. By focusing on inspiring content, price transparency, musician-focused, eCommerce tools, a music-savvy customer service team, and more, Reverb has created an online destination where the global music community can connect over the perfect piece of music gear. A portion of each sale on Reverb goes to Reverb Gives, which provides youth music programs all over the world with the instruments they need to make music. Reverb is a wholly-owned subsidiary of Etsy, Inc., (NASDAQ: ETSY) which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world.

Media Relations Contact:

Reverb, Heather Farr Edwards, Senior Manager, Brand and Communications: [email protected]

Etsy, Lily Cohen, Senior Specialist, Corporate Communications: [email protected] 

Etsy Investor Relations Contact:

Deb Wasser, Vice President, Investor Relations

Gabriel Ratcliff, Director, Investor Relations 

[email protected]

Cautionary Statement Regarding Forward Looking Statements 

This press release (including statements quoted in this press release) contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements related to our expectations regarding the updated transaction fees, including the timing of anticipated launch dates, the amount of anticipated investments, and the potential impact on our business and the businesses of our sellers and our future growth.

Forward-looking statements include all statements that are not historical fact. Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from expectations. These risks and uncertainties include the successful execution of our business strategy, the success of the updated transaction fee and the impact of the updated transaction fee on our sellers, our reputation and our business, GMS and results of operations, the success of our marketing efforts, our active and engaged community of sellers and buyers, the growth and performance of our platform, and other risks and uncertainties that are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and subsequent reports that we file with the Securities and Exchange Commission.

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