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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 second quarter 2024 and outlook for full year 2024 and underlying assumptions; our ability to invest in future growth while delivering on profitability; our ability to build buyer consideration; our ability to reignite Etsy marketplace growth; and our product development and marketing goals.

Forward-looking statements include all statements that are not historical facts. In some cases, forward-looking statements can be identified by terms such as “aim,” “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; (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) any real or perceived inaccuracies in our operational metrics; (6) if we or our third-party providers are unable to protect against technology vulnerabilities, service interruptions, security breaches, or other cyber-related events; (7) our dependence on continued and unimpeded access to third-party services, platforms, and infrastructure; (8) macroeconomic events that are outside of our control; (9) operational and compliance risks related to our payments systems; (10) our ability to recruit and retain employees; (11) our ability to compete effectively; (12) enforcement of our marketplace policies; (13) our ability to enhance our current offerings and develop new offerings to respond to the changing needs of sellers and buyers; (14) risks related to our environmental, social, and governanceactivities and disclosures; (15) our efforts to expand our operations outside of the United States; (16) acquisitions that may prove unsuccessful or divert management attention; (17) failure to deal effectively with fraud (18) compliance with evolving regulations, including in the area of privacy and data protection; and (19) 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 Annual Report on Form 10-K for the year ended December 31, 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.

Press Release Details

Etsy to acquire Elo7, Brazil-based marketplace for unique, handmade items

June 28, 2021
"Etsy of Brazil" provides ecommerce platform in Latin America

BROOKLYN, N.Y., June 28, 2021 /PRNewswire/ -- Etsy, Inc. (NASDAQ: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, has signed a definitive agreement to acquire Elo7, a privately held marketplace for unique, handmade items, ranked as a top 10 ecommerce site in Brazil. Etsy will acquire the business for US$217 million in cash, subject to certain adjustments for Elo7's working capital, transaction expenses, cash and indebtedness, and reduced by the value of certain equity awards of Etsy to be granted to Elo7 employees in connection with the transaction. Following the closing of the transaction, Elo7 will continue to be headquartered in Sāo Paulo, Brazil and operate as a standalone marketplace run by its existing leadership team.

Considered a leader in 'custom and made-to-order' merchandise in Brazil with strong local brand awareness, the Elo7 marketplace connects approximately 1.9 million active buyers with approximately 56,000 active sellers and currently has approximately 8 million items for sale, the majority of which are made to order. Elo7's marketplace includes items from over 40 retail categories, with more than 50% of gross merchandise sales (GMS) from "special event and life moment" categories such as wedding, baby, home decor, and children's parties.

Josh Silverman, Etsy, Inc. CEO, commented, "Elo7 is the 'Etsy of Brazil,' with a purpose and business model similar to our own. Following our recent agreement to purchase Depop, we're excited to bring another unique marketplace into the Etsy family. This transaction will establish a foothold for us in Latin America, an underpenetrated ecommerce region where Etsy currently does not have a meaningful customer base. We look forward to welcoming Elo7's talented leadership team and employees to the Etsy family."

Compelling Strategic Rationale

Etsy Marketplace M&A Criteria

Elo7 is an Ideal Fit

Aligns with Etsy's mission, strategy and values

Elo7 shares Etsy's mission to 'Keep Commerce
Human' with a two-sided marketplace strategy
focused on creative microentrepreneurs.

Expands Etsy's TAM in a large and fast-growing
market, category or geography

Elo7 is expected to provide Etsy with a local brand
in the fast growing Latin American market, where
ecommerce penetration is <10%; and Brazil is the
largest ecommerce market. The Latin American
ecommerce market is projected to reach
approximately $29 billion in 2021, with a 26%
CAGR forecasted through 2024.

Market leadership, with authentic, organic brand

Elo7 is the 'Etsy of Brazil' known for handmade,
non commoditized items. We believe Elo7 has
ample room to grow and differentiate itself versus
established ecommerce players.

Shares Etsy's two-sided marketplace business

Elo7 is a peer-to-peer marketplace with a capital-
light business model and anticipated gross margin
profile similar to Etsy's.

Well positioned to benefit from Etsy's expertise to
accelerate growth and value creation

Elo7 is an early stage business that we believe
can leverage Etsy's proven value creation
roadmap to drive further growth and profitability.


Carlos Curioni, Elo7's CEO said, "Etsy has always been an inspiration and a reference for us, and we're excited to continue our growth journey as part of Etsy - a company whose mission and culture so closely match our own. We're looking forward to leveraging Etsy's product and marketing expertise to help the Elo7 marketplace, community and team achieve our full potential in Brazil."

Rachel Glaser, Etsy, Inc. CFO, added, "We're excited to announce this purchase of Elo7 following our recent announcement of the Depop transaction - two exciting businesses that meet Etsy's very high bar for use of capital. In addition to job one, which is continuing to drive growth in our core marketplace, we will now focus on integrating Depop and Elo7 into the Etsy family. Reverb, Depop and Elo7 will each continue to be run by their talented and empowered management teams, and we'll connect key functions across the brands in a way designed to accelerate value creation and make the whole worth more than the sum of its parts."

Etsy, Inc's House of Brands Portfolio

Following the close of the acquisition of Elo7 and the recently announced transaction with Depop, Etsy, Inc. will operate four highly differentiated, non-commoditized and loved ecommerce brands: Etsy, Reverb, Depop and Elo7. These businesses all share similar levers of growth to unlock value, including improving search and discovery, building human connections, and making selling and buying easier. The marketplaces will operate independently, while benefiting from shared expertise in product, marketing, technology, and customer support.

Other Transaction Details

In the near term, Elo7's current run rate for GMS and revenue is expected to be neutral to Etsy's top-line results and modestly dilutive to adjusted EBITDA margin. The transaction is currently expected to close during the third quarter of 2021, subject to satisfaction of customary closing conditions.

J.P. Morgan Securities LLC served as exclusive financial advisor to Etsy and Deloitte served as due diligence advisors. Fenwick & West LLP and Bronstein, Zilberberg, Chueiri & Potenza Advogados served as legal advisors to Etsy. Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP and KLA Advogados served as legal advisors to Elo7.

*Sources and data:
Elo7 marketplace data is as of December 31, 2020 unless otherwise indicated.
Elo7 ranked #6 ecommerce site in Brazil: Conversion E-commerce Report in Brazil, April 2021. Study analyzes traffic of 217 largest sites in Brazil with a total of 15 categories, supported by third party data including SimilarWeb and SEMRush.
Brazil ecommerce size and forecast: Euromonitor, Wall Street research
LATAM ecommerce <10% of retail and forecasted to grow at 26% CAGR through 2025: Euromonitor, Wall Street research

About Etsy

Etsy, Inc. operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world. Our primary marketplace,, is the global destination for unique and creative goods. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs. For sellers, we offer a range of tools and services that address key business needs. In addition, Etsy, Inc. owns Reverb, a leading global online marketplace dedicated to buying and selling new, used, and vintage musical instruments.

Etsy's mission is to keep commerce human, and we're committed to using the power of business to strengthen communities and empower people. Our company was founded in 2005 and is headquartered in Brooklyn, New York.

About Elo7

Elo7, with approximately 150 full time employees, was founded in 2008 with the mission of transforming people's lives through a humanized buying and selling environment that connects and inspires, giving meaning to each transaction carried out. For sellers, Elo7 works to develop the best technologies and offer simple and practical solutions for managing their sales, and for buyers it is focused on delivering an outstanding shopping experience.

Investor Relations Contact:
Etsy, Deb Wasser, Vice President, Investor Relations and ESG Engagement: 
Etsy, Gabe Ratcliff, Director, Investor Relations:

Media Relations Contact:
Etsy, Kelly Clausen, Senior Director, Corporate Communications

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 potential addressable market, the potential benefits of the acquisition of Elo7, expected impact of the acquisition of Elo7 on Etsy's future financial performance and the potential impact on Etsy's consolidated financial results, the anticipated timing of the closing of the acquisition of Elo7, the anticipated impact of applying Etsy's expertise to Elo7's business and the potential of Elo7's business.

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 those we expect. These risks and uncertainties include, among others, the possibility that the conditions to the closing of the acquisition of Elo7 may not be satisfied or waived or that other events may cause the acquisition to not be completed, the potential impact to the business of Elo7 or Elo7's relationships with its marketplace community due to the announcement of the acquisition, Etsy's ability to successfully integrate the acquisition and execute on its business plan and "house of brands"' operating model, and general economic conditions and political, regulatory, economic and social conditions in Brazil and Latin America, many of which are beyond Etsy's control, and other risks and uncertainties that are more fully described in Etsy's filings with the Securities and Exchange Commission, including in the section entitled "Risk Factors" in Etsy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 and subsequent reports that Etsy files with the Securities and Exchange Commission. In light of such risks, readers are cautioned not to place undue reliance on such forward-looking statements.

Forward-looking statements represent Etsy's beliefs and assumptions only as of the date of this press release. Etsy disclaims any obligation to update forward-looking statements, except as required by law.

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SOURCE Etsy, Inc.