CONFIDENTIAL

2H 2019

Marketplaces in Europe Investment and M&A Activity CONFIDENTIAL An introduction to ComCap

§ ComCap is a premier boutique investment bank focused on the intersection of commerce and capital, with key focus on B2B SaaS, B2C eCommerce, payments, mobile commerce, marketplaces and B2B services for retail technologies (IT and marketing services, in-store, fulfillment, logistics, call center, analytics, personalization, location intelligence)

§ Headquartered in San Francisco with European coverage from London & Moscow, and LATAM coverage from Sao Paulo. Our firm works with mid-cap public companies on buyside initiatives and public and private growth companies on financing and strategic M&A

§ In addition to being the only boutique focused on disruptive commerce models, we differentiate by: ‒ Bringing bulge bracket techniques to emerging models; ‒ A strong and uncommon buyside/strategy practice; ‒ Deep understanding of industry drivers and synergy analyses; ‒ Deep relationships across the sector; and ‒ Worldwide coverage with closed transactions in the United States, Japan, China, the ASEAN region, Western and Eastern Europe and Latin America

§ Your global ComCap team:

Aron Bohlig Steve Terry Fermin Caro Carlos Gonzalez Managing Partner Managing Director Director Director M: +1 415-235-8270 M: +1 415-971-3794 M: +1 650-743-7825 M: +7 985-062-9894 E: [email protected] E: [email protected] E: [email protected] E: [email protected]

Peter Creech Daniel Radomysler Senior Associate Associate M: +1 508-685-1620 M: +55 11 99658-7977 E: [email protected] E: [email protected]

2 CONFIDENTIAL ComCap – Active in 14 countries, including 8 of the top 10 global ecommerce markets

$1,208.3

$431.8 Retail Ecommerce Sales Worldwide – 2017 ($US bn)1

$121.4 $111.3 $76.5 $49.7 $46.6 $35.1 $24.7 $22.3

China US UK Japan Germany France South Korea Canada Brazil Australia

1Source: Content26 report 3 CONFIDENTIAL

ComCap occupies a unique position in the advisory landscape

§ Only boutique focused on “digital retail”

§ Actively host forums at major industry events

§ Partner of choice for major SaaS investors

§ Actively publish research educating major strategics and private equity firms about trends in the space and leaders – including our recently published Marketplace Enablement theme piece

§ As such we have unparalleled access to key buyers

4 CONFIDENTIAL ComCap holds a unique position at the global intersection of retail and technology leaders ComCap and European tech PE firm True Global hold event at Shoptalk 2019 for retail VPs of strategy to meet selected tech leaders Event description Key participants Name Title Company

§ ComCap and True Global facilitated a VP, Mergers & networking event for major retailers, David Colletti retail tech leaders, and investors at Acquisitions Shoptalk 2019, widely regarded as the most important retail conference of the SVP & Chief year Greg Fancher Information Officer − The networking event allowed retailers to connect with trending technology companies in verticals SVP, Product & such as AI/Analytics, fashion Erik Morton technology, in-store IoT, visual Strategy merchandising, and digital native vertical brands Head of Corporate § Over 50 major retail strategy Neil Tenzer Strategy executives and CEOs of innovative digital retail companies were in attendance across the United States, SVP, Chief Financial Europe, and Asia Randy Greben Officer − Strategy officers from key retailers represented at the event include Macy’s, 7-11, Li & Fung, Express, VP Digital, Marketing, and Abercrombie & Fitch Jason Gowans and Enterprise Data

5 CONFIDENTIAL ComCap covers the leading marketplaces globally in Europe, Asia and the Americas

Overview of leading marketplaces across geographies

Product Marketplaces Service Platforms

Other Platforms

Multiple Platforms

Source: Publicly available information 6 CONFIDENTIAL Marketplaces investment and M&A activity: attractive opportunities for financial and strategic investors

Key considerations for financial investors § Marketplaces remain an attractive sector for investors due to barriers of entry, healthy margins, and proven business models across markets § Global venture capital investment have focused on mobility and food marketplaces, while private equity investors have made notable investments in luxury marketplaces § Newer ecommerce markets such as Italy are expected to see growth driven by high levels of cross border eCommerce investment § Large strategic players such as Amazon, Rakuten, and Zalando represent viable exits, as they will continue to look for M&A opportunities to gain market share

Key considerations for strategic investors § New marketplaces are emerging in mobile format, which could complement a company’s strategic shift from web to mobile and disrupt existing players § Innovative marketplaces are emerging across a wide range of industries, representing an opportunity to expand market share through addressing specialty / niche markets § M&A activity has been driven by deals targeting luxury fashion e-retailers, as both luxury brands and retailers look to rapidly expand their online sales presence § Large marketplaces can build on network effects through M&A expansion, and achieve attractive margins due to barriers to entry

7 CONFIDENTIAL

European eCommerce revenue expected to reach €621bn in 2019

European eCommerce revenue forecast from 2013-2019 (€b) European eCommerce market €547b (2018)

Belgium € 621.0 2% Other € 547.0 CAGR 14.3% Switzerland 15% € 489.0 2% UK € 429.0 Norway 33% € 386.0 2% € 328.6 Sweden € 279.3 2% Denmark 3% Italy 4% Netherlands France 4% Spain Germany 15% 2013 2014 2015 2016 2017 2018 2019(f) 5% 13%

Prediction of European eCommerce market share European online marketplaces - Statistics & Facts

§ The European online retail sector continues to grow at €621B in 2019 from €547B in 2018 19.2% § Western Europe is the largest eCommerce market in Europe with 33.8% 66% of total European online retail turnover followed by Southern 53.0% 14% and Northern Europe 9% § Average eCommerce spending in Europe was €1,346 for 2018 and is forecasted to grow to €1,464 by the end of 2019 80.8% 66.2% § The country with highest online shopping rate (88%) in 2018 was 47.0% Switzerland, followed by the UK (87%) and Denmark (86%) § The market's largest segment is fashion with a market volume of over €100m in 2019 2019 2024 2029 § Online sales are expected to overtake store based sales within the next decade with online accounting for 53% of total retail Total Retail Sales E-commerce Sales sales

Source: coommercenews.eu, statista, thepayers.com, chargedretail.co 8 CONFIDENTIAL

Factors affecting the European eCommerce market

Growth drivers per European region European eCommerce growth drivers Population growth: § Europe population is 798.4m in 2019 representing over 500m potential buyers Internet Penetration: § Average internet penetration in Europe is 82% 93% 93% 81% 77% 81% 77% in 2019 with varied penetration across regions 66% 71% 52% 47% Improved Delivery: § Home deliveries and drop off deliveries can drive eCommerce sales Western Northern Central Eastern Southern Easier Payment Methods: Internet Penetration %of e-shoppers § Secure payment gateway can drive online sales

Challenges related to European eCommerce Warehouse and Logistics: Fraudulent transaction § Managing stocks in warehouse for instant delivery § Fraud can be done in terms of payment gateway, is a challenge for all online sellers like someone can hack credit/debit cards Return of goods & warranty: Intellectual property § Product returns results in increase in supply chain § Website, pictures, videos, music, product cost and unable to resale at original price description can be copied by others Government Regulations Customer Disputes § European eCommerce are subject to government § There can be wide range of disputes such as regulation – some of the policies such as Brexit, customers might have not received correct GDPR will impact online transaction products, related to payments, delivery Website traffic: Online Security: § Website traffic is maintained externally through § There is a range of security threat like malware, google which are subject to change any time privacy distortion, cyber crime, hacking and others

Source: businesswire.com, prestashop.com 9 CONFIDENTIAL European marketplaces have received €7.3B in investment since 2017

€ 8,000 € 7,289.9 € 198.2 € 51.3 € 203.0 Millions € 7,000 € 229.3 € 297.8 € 393.6 € 722.3 € 6,000

€ 916.8 € 5,000 € 1,000.7

€ 4,000 € 1,080.0

€ 3,000 € 2,196.7 € 2,000

€ 1,000

€ - Total Deals Multiple Food Transport & Others Clothes and Real estate Fintech Jobs and Health Home Travel and product Logistics accessories Reschooling Tourism categories

Volume 109 9 6 21 7 8 18 10 10 13 5 2

§ While diversified marketplaces dominates European investment, food is placed in second in deals value. § Marketplaces remained an attractive sector for investors due to barriers of entry, healthy margins, and proven business models across markets

Note: Charts data reflects deals over $5M or ~€4.5M Source: Capital IQ 10 CONFIDENTIAL

European Online Marketplaces: Focus on Investments

Investments in European marketplaces by volume Investment facts and statistics § Global venture capital investments are focused on mobility and food 5,025 5,031 marketplaces § Marketplaces accounted for 41% of volume and 50% of value of scaleup investment in European internet services sector in 2017 3,142 3,185 2,652 2,882 § Luxury goods retailer with enhanced eCommerce offering, are 204 attractive to private equity investors 2,142 2,024 1,542 117 § Huge investments in European marketplaces have been made 70 1,315 65 1,183 21 41 731,175 55 between FY 2014-18E including in finance marketplaces and 32 23 26 29 584 980 822 platforms (€3.4B), cars & mobility (€3.8B), real estate (€1.3B), 576 537 328 363 228 62 103 55 55 healthcare (€0.8B) and jobs & recruitment (€1.0B)

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 § Newer ecommerce markets such as Italy are expected to see growth driven by high levels of cross border eCommerce investment Global deal size (€M) European deal size (€M) Europe average deal size (€M) § Average Europe deal size is €55M in Q4-19 vs €64M in Q1-17

Investments in European marketplaces by deal count Major deals

43 Invested €1,046M 35 34 33

24 24 25 Invested €460M 22 22 23 18 16 14 13 13 14 9 7 8 Invested €360M 5 3 4 1 1

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Invested €356M Global deals count European deals count

Note: Charts data reflects deals over $5M or ~€4.5M 11 Source: Dealroom, Capital IQ CONFIDENTIAL

European Online Marketplaces: Focus on M&A

M&A in European marketplaces by volume M&A facts and statistics

15,058 § Despite Brexit uncertainty, value of UK M&A deals involving e-retail businesses surged to €512m (£461m) in 2018

11,746 § M&A activity has been driven by deals targeting luxury fashion e- retailers, as both luxury brands and retailers look to rapidly expand their online sales presence 7,064 § The regional targets acquired by a European buyer in the last 30 5,978 6,133 months (2017-2019) stands at almost three in four, compared with 4,640 under 20% of European targets which were bought by North 3,031 3,013 American investors

639 § With the most developed consumer market, Europe is the center for 372 467 480 239 447 11 11 NA NA NA 20 11 20 cross-border investment, with interest from US and Asia Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 § Asian consumer companies seeking technological upgrades, target European companies in this sector Global M&A transaction value (€M) European M&A transaction value (€M)

M&A in European marketplaces by deal count Major deals

9

8 8 Acquired for €5.9B

6 5 5 5 Acquired for €3.8B 3 3 3 3 2 2 1 1 1 1 1 1 Acquired for €3.0B

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19

Global M&A deal count European M&A deal count Acquired for €0.8B

Note: Charts data reflects deals over $5M or ~€4.5M 12 Source: realwire, Dealroom, Capital IQ CONFIDENTIAL U.K. market leads the region in terms of growth and innovative marketplace models

§ UK is the 3rd largest eCommerce market in the world and the Category Companies largest within Europe with over a third of the revenue share Home § Not only in terms of revenue, but it is also home to numerous Apparels & homegrown marketplace startups Accessories

§ These new marketplaces have set some new trends in terms Arts of new innovative business models like: Food ü Transaction vs Subscription Fees – While the majority of Health & Nutrition UK marketplaces still follow the transaction fees or commission model, some new companies are innovating Diversified with subscription revenue model as well as a hybrid model i.e. commission + subscription Real Estate

ü Higher focus on B2B – Global B2B eCommerce sales are Agri estimated to be twice that of B2C. Same hold true for UK too as large B2C brands like Amazon and eBay focus more Travel & Tourism strongly on the B2B segment than ever before Entertainment

ü Marketplaces for services – UK marketplace startups have Gifting started coming out with service marketplaces in line with the global trend Pets B2B ü Niche focus – Companies focusing on niches, also known as verticals cater for specific audiences Recommerce

ü Mobile focus – Most new companies start off with a primary Electronics focus on the mobile channel

Source: European Commission, News articles 13 CONFIDENTIAL Regulatory policy support to act as a catalyst to growth

▪ Sales decline: An impact assessment carried out by the 42% of SMB European Commission, around €1.3bn-€2.4bn in sales are lost companies directly as a result of structural issues use online Problems faced: Nearly 50% of European businesses operating marketplaces ▪ on platforms experience problems ranging from technology to in the EU contracts to unfair competition

▪ Government Support: However, the industry does have strong government support in terms of a dedicated policy for the industry

Source: Eurobarometer survey

Digital Single Market Strategy Ban on certain unfair practices like sudden, unexplained ▪ In May 2015 the Digital Single Market Strategy was account suspensions, complex adopted to avoid fragmentation and to foster terms and conditions, and no interoperability of technology. It also aims to open prior notice for policy changes up digital opportunities for people and businesses Improved transparency in online ▪ In a recent update to the Digital Single Market platforms with steps like Strategy, EU negotiators have agreed to set up new transparent ranking and European rules to improve fairness of online platforms' mandatory disclosures for trading practices business practices ▪ These new rules will be implemented within the next Better dispute resolutions with 12-18 months better infrastructure for the same Although welcome changes, these are being criticized ▪ Strong enforcement laws allowing for having “very little teeth” against violators aggrieved sellers to take platforms to court in case of any non-compliance 14 Sources: European Commission, News articles CONFIDENTIAL Overview of European marketplaces Europe has diverse set of proven marketplaces across a wide range of industries

`

€1000+

€600

€400

€200 FCG €100

€90 ) €

€80

€70 Total Funding (IN €60

€50

€40

€30

Binary Subject Lda

€20

€10

Seed Clothes and Directory - Diversified Fintech Food Health Home Jobs and Marketing Others Real estate Transport & Travel and accessories Non-Food Reschooling Logistics Tourism

Listed Acquired 15 Source: Capital IQ, Crunchbase CONFIDENTIAL

Appendix: Trading multiples and selected investors

16 CONFIDENTIAL

Key marketplace metrics

§ Average Listing Conversion Rate – measuring how effective listings are across the site − Purchases from listings / Listing views − Compare the average against the best sellers – is there conversion concentration across a specific brand or category (ie shoes)? − Also useful to look at in certain time periods – what is the percentage of product listings that lead to transactions in a certain time period of being added to the site? § New buyer growth rate – measurement of rate of growth of buyers − (New buyers this period – New buyers last period) / New buyers last period § Seller/partner growth rate – how quickly is the marketplace adding sellers § Customer conversion rate − How many customers buy when visiting the site for the first time § Net Promoter Score (NPS) or other relevant reviews (Yelp, Google) § Repeat purchase rate § Partner churn § Customer churn § % of successful transactions – are any brands/partners failing to deliver orders § Monthly Active Users (MAU) - the number of unique users who have visited the site at least once during the last month (If this number is not growing, it means the platform is either not attracting new users or losing old ones faster than gaining new ones)

17 CONFIDENTIAL

Marketplaces – M&A in Europe

(€ in Millions) Transaction Size Enterprise Value EV / LTM Closed Date Target Acquirer LTM Revenue (Euro M) (Euro M) Revenue 9-10-19 Idle Projects Ltd Oasis and Warehouse Limited NA NA NA NA 7-29-19 Just Eat plc Takeaway.com N.V. € 5,881.9 € 5,123.4 € 972.6 5.0x 7-26-19 Arc E-commerce AB Bygghemma Group First AB (publ) € 5.2 € 10.2 € 9.5 1.1x 7-12-19 City Pantry Ltd Just Eat plc € 17.9 € 17.9 NA NA 7-4-19 Ellos Group Holding AB (publ) FNG NV € 228.0 € 223.7 € 247.0 0.9x 5-3-19 JUMA International BV TAKKT AG € 19.5 € 19.5 € 14.0 1.4x 1-7-19 Vansdirect Ltd Vertu Motors plc € 10.6 € 10.6 NA NA 12-20-18 Delivery Hero Germany GmbH / Foodora GmbH Takeaway.com N.V. € 768.6 € 896.2 NA NA 12-10-18 Travelport Worldwide Limited Elliott Management Corporation; Elliott Associates, € 3,826.74 € 3,726.54 € 2,230.92 1.6x L.P.; Siris Capital Group, LLC; Elliott International, L.P.; Evergreen Coast Capital Corp. 11-9-18 Mobile Phones Direct Limited AO Limited € 44.2 € 41.8 € 139.5 0.3x 8-29-18 Firtal Group ApS Matas A/S € 20.1 € 20.6 € 12.2 1.7x 2-19-18 Lendico Global Services GmbH ING-DiBa AG NA NA NA NA 1-22-18 YOOX Net-A-Porter Group S.p.A. Richemont Italia Holding S.p.A. € 3,012.8 € 5,232.6 € 2,091.0 2.5x 2-23-17 Reich Online Services GmbH Calida Holding AG € 11.3 € 10.0 NA NA Min € 5.2 € 10.0 € 9.5 0.3x Mean € 1,066.0 € 1,180.3 € 714.6 1.8x Median € 20.1 € 20.6 € 193.3 1.5x Max € 5,881.9 € 5,232.6 € 2,230.9 5.0x

Source: Capital IQ 18 CONFIDENTIAL

Marketplaces – Private placements in Europe (1 of 4) (€ in millions) Deal Size Date Target Buyers (Eur M) 07-10-2019 Tier Mobility GmbH Evli Pankki Oyj; Northzone Ventures; AXA AG; Speedinvest GmbH; Point Nine Capital; White Star Capital, L.P.; € 55.0 26-09-2019 Chrono24 GmbH InsightGoodwater Venture Capital, Management, LLC; Kibo LLC;Ventures; Sprints Mubadala Capital ManagementCapital; Market Limited One Capital; Indico Capital Partners - € 43.0 20-09-2019 Lookiero Style, S.L. MMC Ventures Ltd; All Iron Ventures, SGEIC, S.A; Mi Proyecto Santander Smart Plan De Prevision Social € 17.0 13-09-2019 Ozon Ltd. NAIndividual-Santander Prevision 1 Epsv Individua; Bonsai Partners € 45.0 01-09-2019 Cazoo Limited Octopus Ventures Ltd.; Entree Capital; Stride.VC LLP; DMGV Ltd € 27.7 21-08-2019 YOPA Property Limited Grosvenor Hill Ventures Ltd.; DMG Ventures Inc. € 17.5 08-08-2019 Springlane GmbH S-UBG Gruppe AG; Apeiron Investment Group Ltd € 10.0 05-08-2019 Jollychic EC Limited Group 42, Inc. € 58.0 15-07-2019 MPB Group Limited Mobeus Equity Partners LLP; Acton Capital Partners GmbH; Beringea Ltd € 10.0 12-06-2019 Chrono24 GmbH Sprints Capital Management Limited € 30.0 07-06-2019 Depop Limited General Atlantic Service Company, L.P.; HV Holtzbrinck Ventures Adviser GmbH; Creandum AB; Octopus € 54.7 06-05-2019 Binary Subject Lda OmnesVentures Capital Ltd.; BaldertonS.A.S.; PME Capital Investimentos; (UK) LLP; TempoCapEuropean RegionalLimited Development Fund; Pathena SGPS; LeadX € 18.0 30-04-2019 Glovoapp23, S.L. IdinvestCapital Partners; Partners 200MSA; Lakestar Advisors GmbH; Korelya Capital; Drake Enterprises A.G. € 150.0 01-04-2019 Colibri SAS General Atlantic Service Company, L.P.; Partech Partners; Idinvest Partners SA; Eurazeo SE; CM-CIC Capital € 110.0 04-03-2019 VOI Technology AB CreandumPrivé SA; Bpifrance AB; Balderton Investissement; Capital (UK) Piton LLP; Capital Vostok LLP; New Aglaé Ventures Ventures; Ltd; Raine Eurazeo Ventures Growth LLC; III Project A Ventures € 26.0 12-02-2019 Maxi Mobility Spain, S.L. NAGmbH & Co. KG; Senderwood LLP € 61.9 22-01-2019 Doktorse Nordic AB Bonnier Ventures € 9.8 11-01-2019 Meds Apotek AB Inbox Capital AB € 5.0 16-12-2018 Quiqup Ltd Cedar Mundi Ventures; JOBI Capital LLC € 11.4 02-12-2018 Cazoo Limited Daily Mail and General Trust plc; Octopus Ventures Ltd.; Entree Capital; Stride.VC LLP € 33.8 29-11-2018 TeleClinic GmbH Idinvest Partners SA € 7.0 21-11-2018 Cera Care Limited NA € 11.2 20-11-2018 Zenjob GmbH Redalpine Venture Partners AG; Acton Capital Partners GmbH; Atlantic Internet GmbH; AXA Venture Partners € 15.0 18-11-2018 VOI Technology AB Balderton Capital (UK) LLP; Vostok New Ventures Ltd; Raine Ventures LLC; Senderwood LLP € 43.8 14-11-2018 Mintos Marketplace AS Skillion Ventures € 5.0 13-11-2018 HeadBox Solutions Ltd Guinness Asset Management Limited € 4.6 12-11-2018 Comuto SA SNCF Mobilités € 101.0 11-11-2018 Nextday Property Ltd. Northzone Ventures; Balderton Capital (UK) LLP € 22.9 02-11-2018 Watchmaster ICP GmbH NA € 9.0 25-10-2018 Coople (Switzerland) Ltd Harbert Management Corporation; Goldman Sachs Private Capital Investing group; Harbert European Growth € 18.5 23-10-2018 Tier Mobility GmbH NorthzoneCapital Fund Ventures; I, LP; One Speedinvest Peak Partners GmbH; Point Nine Capital; Kibo Ventures € 25.0 15-10-2018 Homeday GmbH Axel Springer Digital Ventures GmbH; Project A Ventures GmbH & Co. KG; Purplebricks Group plc € 20.0 19-09-2018 DOCTENA S.A. NA € 8.0 17-09-2018 LendInvest Limited GP Bullhound LLP; Atomico Investment Holdings Limited; Tiger Foundation € 34.3 13-09-2018 MD International AB Apotek Hjärtat AB € 31.8 12-09-2018 Clippings Limited Advance Venture Partners, LLC; C4 Ventures € 13.2

Source: Capital IQ 19 CONFIDENTIAL

Marketplaces – Private placements in Europe (2 of 4) (€ in millions) Deal Size Date Target Buyers (Eur M) 06-09-2018 CrossLend GmbH Draper Esprit plc; Earlybird Venture Capital GmbH & Co. KG; European Investment Fund; Luxembourg Future € 14.0 27-08-2018 YOPA Property Limited GrosvenorFund; Lakestar Hill Ventures Advisors Ltd.; GmbH; DMG ABN Ventures AMRO Inc.Group N.V., Investment Arm; Digital Impact Fund; solarisBank AG € 22.1 23-08-2018 Homelike Internet GmbH Fr. Lürssen Werft GmbH & Co.KG; Cherry Ventures Management GmbH; Spark Capital Partners Ag; Coparion € 12.0 06-08-2018 Sosandar Plc NAGmbH & Co. KG € 5.9 23-07-2018 Care Sourcer Ltd Legal & General Group Plc; Accelerated Digital Ventures Limited € 9.5 19-07-2018 ABOUT YOU GmbH Otto (GmbH & Co KG); SevenVentures GmbH; GMPVC German Media Pool GmbH; Heartland A/S € 256.0 18-07-2018 Glovoapp23, S.L. Idinvest Partners SA; AmRest Holdings SE; Cathay Capital Private Equity; Rakuten, Inc., Investment Arm; Seaya € 115.0 17-07-2018 Sleepz AG HeliadCapital Management Gestión, SGEIC, GmbH; S.A.; Heliad Seaya Equity Ventures, Partners FCR; GmbH Cathay & Co. Innovation KGaA; Apeiron Fund; GR Investment Capital Group Ltd € 5.0 06-07-2018 Purplebricks Group plc Axel Springer SE € 10.4 26-06-2018 TourRadar GmbH Technology Crossover Ventures; Endeit Capital; Speedinvest GmbH; Hoxton Ventures LLP; Cherry Ventures € 42.8 14-06-2018 Farmdrop Limited AtomicoManagement Investment GmbH Holdings Limited; LGT Lightstone; Belltown Ventures € 11.5 12-06-2018 Webbhälsa AB Accel; Index Ventures; Creandum AB; Project A Ventures GmbH & Co. KG € 53.0 06-06-2018 Spotahome, S.L. Kleiner Perkins Caufield & Byers; Passion Capital; Samos Investments Advisory Ltd; Seaya Capital Gestión, € 34.0 04-06-2018 Lendix, SA PartechSGEIC, S.A.;Partners; TheVentureCity; Idinvest Partners All Iron SA; Ventures, Allianz SE; SGEIC, Compagnie S.A Industriali Riunite S.p.A.; CNP Assurances SA; € 32.0 30-05-2018 Bolt Technology OÜ DaimlerMatmut SA;AG; DecauxDidi Chuxing Frères Technology Investissements Co., Ltd.;SAS Korelya Capital € 150.4 Idinvest Partners SA; Atomico Investment Holdings Limited; Cathay Capital Private Equity; GP Bullhound LLP, 30-05-2018 Ninjatruck, S.L. Investment Arm; Total Energy Ventures International SAS; Point Nine Capital; Samaipata Ventures; Cathay € 25.0 Innovation Fund; All Iron Ventures, SGEIC, S.A 30-05-2018 OnTruck Cathay Innovation € 25.0 28-05-2018 Comet SAS Frst Capital; daphni SAS € 11.0 18-05-2018 Frontier Car Group, Inc. OLX Ventures € 75.9 18-05-2018 Adhunter Ltd Smedvig Capital Limited € 9.2 16-05-2018 OpenClassrooms General Atlantic Service Company, L.P.; Bpifrance Investissement; Alven Capital Partners; Citizen Capital € 50.9 09-05-2018 Trussle Lab Ltd GoldmanPartenaires Sachs SAS Group, Merchant Banking Division; Seedcamp; Propel Venture Partners LLC; Finch Capital € 15.6 08-05-2018 Housing Anywhere B.V. HenQ Capital Partners; Vostok New Ventures Ltd; Real Web Srl. € 6.0 Golden Era Club Ltd Guinness Asset Management Limited; yabeo Management GmbH; Kairos Society 02-05-2018 € 14.8 (nka:Cera Care Limited) 09-04-2018 City Pantry Ltd Octopus Investments Limited; Newable Private Investing € 4.6 05-04-2018 COMATCH GmbH b-to-v Partners AG; Acton Capital Partners GmbH; Atlantic Internet GmbH € 8.0 05-04-2018 Care Companion GmbH Creandum AB; Spark Capital Partners, LLC; Atlantic Internet GmbH; Axel Springer Plug and Play Accelerator € 6.0 26-03-2018 Purplebricks Group plc AxelGmbH; Springer Ananda SE Ventures GmbH € 115.0 18-03-2018 Lazada Group S.A. Alibaba Group Services Limited € 1,711.4 15-03-2018 Drover Limited Partech Partners; Version One Ventures; BP Ventures Limited; Forward Partners; Cherry Ventures Management € 6.2 07-03-2018 OZON Holdings Limited MobileGmbH TeleSystems Public Joint Stock Company € 16.3 07-03-2018 Meds Apotek AB NA € 4.3 LeasePlan France S.A.S.; Caisse des Dépôts et Consignations, Investment Arm; Inventure Partners; Régie CITYSCOOT, société par 06-02-2018 Autonome des Transports Parisiens, Investment Arm; RATP Capital Innovation € 40.0 actions simplifiée

Source: Capital IQ 20 CONFIDENTIAL

Marketplaces – Private placements in Europe (3 of 4) (€ in millions) Deal Size Date Target Buyers (Eur M) 31-01-2018 Gojob SAS Breega Capital SARL; Kois Invest € 17.0 24-01-2018 Blacklane GmbH b-to-v Partners AG; Al Fahim Group; REACH NOW € 32.3 23-01-2018 Depop Limited HV Holtzbrinck Ventures Adviser GmbH; Creandum AB; Octopus Ventures Ltd.; H-Farm S.p.A.; Balderton Capital € 16.3 22-01-2018 Maxi Mobility Spain, S.L. Westech(UK) LLP; Investment Lumar Limited; Advisors, TempoCap LLC; GAT Limited Investments (Pvt) Ltd; Endeavor Global, Inc., Investment Arm; Endeavor € 130.6 14-01-2018 Auto1 Group GmbH SoftBankCatalyst I VisionL.P.; Rakuten, Fund L.P.; Inc., SoftBank Investment Investment Arm; TheVentureCity; Advisers (UK) LimitedTheVentureCity Fund I; Liil Ventures € 460.0 08-01-2018 smava GmbH Verdane Capital; Earlybird Venture Capital GmbH & Co. KG; Neuhaus Partners GmbH; Vitruvian Partners LLP; € 54.3 04-01-2018 Frontier Car Group, Inc. TPGRuna Growth; Capital Management;Balderton Capital Phenomen (UK) LLP; Ventures; Balderton Mojo Capital Capital V, SAL.P.; Fraser McCombs Capital; AutoTech € 48.3 24-10-2017 TourRadar GmbH EndeitVentures Capital; Hoxton Ventures LLP; Cherry Ventures Management GmbH € 8.5 23-10-2017 Nextday Property Ltd. Global Founders Capital Management GmbH € 40.4 17-10-2017 Spotahome, S.L. Passion Capital; Seaya Capital Gestión, SGEIC, S.A.; Samaipata Ventures € 13.5 29-09-2017 Glovoapp23, S.L. Caixa Capital Risc, SGEIC, S.A.; Cathay Capital Private Equity; Bonsai Venture Capital SA SCR; Entree Capital; € 30.0 Delivery Hero AG NaspersSeaya Capital Limited Gestión, SGEIC, S.A.; Antai Venture Builder, S.L.; Cathay Innovation Fund; Rakuten Capital 28-09-2017 € 659.6 (nka:Delivery Hero SE) 11-09-2017 Colibri SAS NA € 60.0 01-09-2017 YOPA Property Limited LSL Property Services plc € 21.9 21-08-2017 Prodigy Finance Limited NA € 33.9 21-07-2017 WeSwap.com Limited IW Capital Ltd € 8.9 21-07-2017 Avanis SAS Partech Partners; 123 Investment Managers; Entrepreneur Venture Gestion SA; Financiere de la Gommerie; € 7.3 28-06-2017 Webbhälsa AB Accel;Entrepreneur Index Ventures; Venture; SociétéCreandum Normande AB; Project De FinancementsA Ventures GmbH SA & Co. KG € 20.0 22-06-2017 Farfetch UK Limited JD.com, Inc. € 356.0 06-06-2017 Videdressing SAS Earlybird Venture Capital GmbH & Co. KG; DN Capital (UK) LLP; Generis Capital Partners; Piton Capital LLP € 5.4 24-05-2017 Quiqup Ltd Transmed S.A.L.; JOBI Capital LLC € 23.2 17-05-2017 MD International AB EQT Ventures € 22.6 16-05-2017 Appear Here Limited MMC Ventures Ltd; Octopus Ventures Ltd.; Meyer Bergman Limited; Balderton Capital (UK) LLP; Playfair Capital € 10.8 16-05-2017 YOPA Property Limited DailyLimited; Mail Simon and General Ventures, Trust LLC plc; Grosvenor Hill Ventures Ltd. € 17.5 16-05-2017 Appear Here Limited MMC Ventures Ltd; Octopus Ventures Ltd.; Meyer Bergman Limited; Balderton Capital (UK) LLP; Playfair Capital € 10.8 12-05-2017 Jinn SamaipataLimited; Simon Ventures Ventures, LLC € 9.0 Delivery Hero AG Naspers Limited 12-05-2017 € 387.0 (nka:Delivery Hero SE) 11-05-2017 OnTruck Idinvest Partners, Atomico, Total Ventures, Samaipata, Point Nine Capital, € 9.1 11-05-2017 Ninjatruck, S.L. Idinvest Partners SA; Atomico Investment Holdings Limited; Total Energy Ventures International SAS; Point Nine € 9.2 23-04-2017 Farmdrop Limited AtomicoCapital; SamaipataInvestment Ventures;Holdings LimitedLa Famiglia GMBH € 8.4 21-04-2017 Maxi Mobility Spain, S.L. AngelList LLC; Rakuten, Inc., Investment Arm; Seaya Capital Gestión, SGEIC, S.A. € 91.4 31-03-2017 Auto1 Group GmbH Baillie Gifford & Co.; DST Global; Target Global; Princeville Global € 360.0 31-03-2017 Adhunter Ltd Passion Capital € 80.8 31-03-2017 Zenjob GmbH Redalpine Venture Partners AG; Acton Capital Partners GmbH; Atlantic Internet GmbH; 500 Startups € 8.0

Source: Capital IQ 21 CONFIDENTIAL

Marketplaces – Private placements in Europe (4 of 4) (€ in millions) Deal Size Date Target Buyers (Eur M) 20-03-2017 Nextday Property Ltd. Global Founders Capital Management GmbH; Passion Capital € 9.2 01-02-2017 Trussle Lab Ltd Zoopla Property Group Plc (nka:ZPG Limited); Seedcamp; Orange Growth Capital; Localglobe LLP € 5.3 23-01-2017 QAPA SA Partech(nka:Senderwood Partners; LLP)Index Ventures; 360° Capital Partners; Partech International Ventures VII € 11.0 11-01-2017 Funding Circle Limited Accel; Index Ventures; Temasek Holdings (Private) Limited; BlackRock, Inc.; Baillie Gifford & Co.; Sands Capital € 94.6 10-01-2017 Campanda GmbH Accel;Management, Idinvest LLC; Partners Union SA; Square b-to-v Ventures; Partners AG;Rocket Groupe Internet Arnault SE; DSTSAS; Global; ViaMichelin Ribbit SAS; Capital; Atlantic Ribbit Internet Capital, GmbH; L.P. € 10.0 09-01-2017 Housing Anywhere B.V. HenqLe Peigne Invest SA; (nka:HenQ Ecomobilité Capital Ventures; Partners); Ringier Real Digital Web VenturesSrl. AG € 5.0 Min € 4.3 Mean € 66.9 Median € 18.5 Max € 1,711.4

Source: Capital IQ 22 CONFIDENTIAL

Public comparables (1 of 3) (USD in Millions, except per share price) Trading Performance FD Capitalization Trading Multiples Ope rating Statis tics Stock Eq u it y EV / EV / Re v. Gr ow th LTM Price %52W Market En t e r p r is e Re ve nue EBIT DA CY19 / CY20 / Gros s Company (FYE) 10/3/2019 High Value Value CY19E CY20E CY19E CY20E CY18 CY19 Margin

eCommerce Europe Yandex N.V. (NL) $34.9 82% $11,419 $10,867 4.1x 3.1x 13.4x 9.8x 45.7% 28.8% 70.0% Zalando SE (DE) $45.1 85% $11,219 $10,678 1.5x 1.3x 24.0x 19.9x 14.2% 18.5% 42.6% Ets y , Inc . ( US) $54.8 75% $6,602 $6,345 7.9x 6.4x 33.7x 25.1x 32.9% 23.7% 69.3% boohoo group plc (GB) $3.2 91% $3,776 $3,571 2.9x 2.0x 28.5x 20.9x 23.5% 41.2% 54.3% ASOS Plc (GB) $29.7 39% $2,488 $2,535 0.8x 0.7x 18.0x 11.9x 4.8% 13.3% 50.8% Farfetch Limited (GB) $8.5 27% $2,546 $1,982 2.1x 1.4x NM NM 55.3% 47.7% 46.3% zooplus AG (DE) $120.0 72% $857 $885 0.5x 0.5x 41.5x 26.4x 10.9% 14.6% 25.5% AO World plc (GB) $0.8 46% $399 $409 0.3x 0.3x NM 24.5x 18.2% 11.6% 16.9% windeln.de SE (DE) $0.7 6% $7 ($8) (0.1x) (0.1x) 0.7x NM (17.6%) 10.0% 25.1% Min 6% $7 ($8) (0.1x) (0.1x) 0.7x 9.8x (17.6%) 10.0% 16.9% Mean 58% $4,368 $4,140 2.2x 1.7x 22.8x 19.8x 20.9% 23.3% 44.5% Median 72% $2,546 $2,535 1.5x 1.3x 24.0x 20.9x 18.2% 18.5% 46.3% Max 91% $11,419 $10,867 7.9x 6.4x 41.5x 26.4x 55.3% 47.7% 70.0%

eCommerce US Amazon.com, Inc. (US) $1,725.5 85% $853,504 $883,655 3.2x 2.7x 21.3x 16.8x 19.8% 18.8% 41.3% Walmart Inc. (US) $118.5 99% $336,905 $409,755 0.8x 0.8x 12.5x 12.3x 1.6% 3.3% 24.9% eBay Inc. (US) $38.4 91% $32,183 $37,704 3.5x 3.3x 10.1x 9.5x 0.8% 4.8% 77.4% Wayfair Inc. (US) $114.0 66% $10,530 $11,332 1.2x 0.9x NM NM 36.3% 29.7% 23.8% Ets y , Inc . ( US) $54.8 75% $6,602 $6,345 7.9x 6.4x 33.7x 25.1x 32.9% 23.7% 69.3% Groupon, Inc. (US) $2.7 67% $1,516 $1,302 0.5x 0.5x 5.0x 4.6x (9.8%) 1.0% 50.7% PC Connection, Inc. (US) $38.8 91% $1,020 $966 0.3x 0.3x 8.5x 8.2x 4.0% 4.0% 15.4% 1-800-FLOWERS.COM, Inc. (US) $14.6 67% $945 $869 0.7x 0.6x 9.9x 8.8x 7.6% 7.9% 42.1% Lands' End, Inc. (US) $11.4 51% $369 $706 0.5x 0.5x 9.6x 8.8x 0.3% 2.5% 42.4% Overstock.com, Inc. (US) $11.2 38% $396 $400 0.3x 0.3x NM NM (15.1%) 2.6% 19.3% Min 38% $369 $400 0.3x 0.3x 5.0x 4.6x (15.1%) 1.0% 15.4% Mean 73% $124,397 $135,303 1.9x 1.6x 13.8x 11.8x 7.8% 9.8% 40.7% Median 71% $4,059 $3,823 0.7x 0.7x 10.0x 9.2x 2.8% 4.4% 41.7% Max 99% $853,504 $883,655 7.9x 6.4x 33.7x 25.1x 36.3% 29.7% 77.4%

Source: Capital IQ 23 CONFIDENTIAL

Public comparables (2 of 3) (USD in Millions, except per share price) Trading Performance FD Capitalization Trading Multiples Ope rating Statis tics Stock Eq u it y EV / EV / Re v. Gr ow th LTM Price %52W Market En t e r p r is e Re ve nue EBIT DA CY19 / CY20 / Gros s Company (FYE) 10/3/2019 High Value Value CY19E CY20E CY19E CY20E CY18 CY19 Margin eCommerce China and Japan Alibaba Group Holding Limited (CN) $166.0 85% $432,141 $437,339 6.5x 5.0x 20.5x 16.0x 34.5% 28.9% 46.4% JD.com, Inc. (CN) $27.8 86% $40,586 $37,335 0.5x 0.4x 22.7x 15.2x 17.7% 16.8% 8.8% Rakuten, Inc . (JP) $9.8 81% $13,321 $15,670 1.4x 1.2x 8.4x 11.6x 13.7% 13.6% 3.2% Vipshop Holdings Limited (CN) $8.9 90% $5,969 $5,240 0.4x 0.4x 7.1x 6.0x 3.0% 5.2% 21.0% Baozun Inc. (CN) $42.5 75% $2,647 $2,651 2.6x 1.9x 29.5x 19.4x 31.5% 32.6% 39.2% Secoo Holding Limited (CN) $6.6 50% $330 $465 0.4x 0.3x NM NM NA 37.4% 18.8% Min 50% $330 $465 0.4x 0.3x 7.1x 6.0x 3.0% 5.2% 3.2% Mean 78% $82,499 $83,117 2.0x 1.5x 17.6x 13.6x 20.1% 22.4% 22.9% Median 83% $9,645 $10,455 0.9x 0.8x 20.5x 15.2x 17.7% 22.8% 19.9% Max 90% $432,141 $437,339 6.5x 5.0x 29.5x 19.4x 34.5% 37.4% 46.4%

eCommerce Latin America MercadoLibre, Inc. (AR) $541.5 77% $26,919 $25,393 11.1x 8.1x NM NM 59.1% 36.2% 56.8% S.A.C.I. Falabella (CL) $5.8 78% $14,627 $22,591 1.7x 1.6x 13.3x 11.4x (0.5%) 8.6% 37.0% Magazine Luiza S.A. (BR) $8.9 95% $13,516 $13,981 3.0x 2.4x 36.8x 29.5x 16.0% NA 27.7% B2W - Companhia Digital (BR) $11.8 96% $5,386 $6,080 3.7x 3.2x 43.0x 29.5x (1.3%) 13.4% 27.0% Min 77% $5,386 $6,080 1.7x 1.6x 13.3x 11.4x (1.3%) 8.6% 27.0% Mean 87% $15,112 $17,011 4.9x 3.8x 31.0x 23.5x 18.3% 19.4% 37.1% Median 86% $14,071 $18,286 3.3x 2.8x 36.8x 29.5x 7.7% 13.4% 32.4% Max 96% $26,919 $25,393 11.1x 8.1x 43.0x 29.5x 59.1% 36.2% 56.8%

Finance Black Knight, Inc. (US) $60.2 93% $8,872 $10,544 8.9x 8.3x 18.1x 16.4x 6.0% 7.3% 45.1% LendingTree, Inc. (US) $301.3 69% $3,914 $4,256 3.9x 3.3x 21.3x 16.5x 43.5% 19.0% 93.8% Qudian Inc. (CN) $7.0 76% $1,943 $2,126 1.7x 1.5x 3.4x 3.1x 10.3% 17.7% 62.1% Elevate Credit, Inc. (US) $4.0 52% $177 $657 0.9x 0.8x 5.0x 4.8x (2.9%) 8.2% 37.4% Yiren Digital Ltd. (CN) $6.4 34% $606 $262 0.2x 0.2x 1.4x 1.3x 38.1% 37.0% 86.7% Min 34% $177 $262 0.2x 0.2x 1.4x 1.3x (2.9%) 7.3% 37.4% Mean 65% $3,103 $3,569 3.1x 2.8x 9.8x 8.4x 19.0% 17.8% 65.0% Median 69% $1,943 $2,126 1.7x 1.5x 5.0x 4.8x 10.3% 17.7% 62.1% Max 93% $8,872 $10,544 8.9x 8.3x 21.3x 16.5x 43.5% 37.0% 93.8%

Source: Capital IQ 24 CONFIDENTIAL

Public comparables (3 of 3) (USD in Millions, except per share price) Trading Performance FD Capitalization Trading Multiples Ope rating Statis tics Stock Eq u it y EV / EV / Re v. Gr ow th LTM Price %52W Market En t e r p r is e Re ve nue EBIT DA CY19 / CY20 / Gros s Company (FYE) 10/3/2019 High Value Value CY19E CY20E CY19E CY20E CY18 CY19 Margin Online Retailers Walmart Inc. (US) $118.5 99% $336,905 $409,755 0.8x 0.8x 12.5x 12.3x 1.6% 3.3% 24.9% Target Corporation (US) $106.1 96% $54,220 $66,367 0.8x 0.8x 9.5x 9.3x 3.9% 3.2% 29.3% Pinduoduo Inc . ( CN) $31.3 85% $36,359 $31,777 7.6x 4.6x NM 33.0x 119.6% 64.3% 77.6% Mac y 's , Inc . ( US) $15.3 40% $4,723 $11,922 0.5x 0.5x 5.2x 5.5x (3.4%) (0.1%) 40.4% Qurate Retail, Inc. (US) $10.2 41% $4,277 $11,867 0.9x 0.9x 6.0x 5.8x (2.9%) 0.5% 34.2% American Eagle Outfitters, Inc. (US) $16.0 64% $2,700 $4,001 0.9x 0.9x 7.6x 7.5x 6.5% 4.1% 44.4% Stitch Fix, Inc. (US) $18.3 39% $1,850 $1,559 0.9x 0.8x 33.9x 31.2x 27.7% 15.6% 44.7% istyle Inc. (JP) $6.9 53% $460 $486 1.6x 1.2x NM 30.9x 10.9% 25.1% 47.1% Enigmo Inc . ( JP) $9.0 58% $382 $346 5.9x 5.2x NM NM NA 13.6% 82.1% Verkkokauppa.com Oyj (FI) $3.6 67% $164 $163 0.3x 0.3x 9.2x 8.1x 3.1% 7.7% 8.4% Deltic om A G (DE) $3.3 32% $41 $136 0.2x 0.2x 44.3x 8.4x (4.1%) 4.8% 21.9% Purple Innovation, Inc. (US) $7.8 71% $77 $84 0.2x 0.2x 3.2x 1.8x 46.1% 23.9% 39.2% SRP Groupe S.A. (FR) $1.2 19% $61 $83 0.1x 0.1x NM 12.7x (7.5%) 16.3% 33.7% U.S. A uto Parts Netw ork, Inc . (US) $1.5 84% $54 $68 0.2x 0.2x 30.0x 9.0x (2.6%) 3.5% 27.2% MOGU Inc . ( CN) $2.6 10% $279 $66 0.4x 0.4x NM NM 3.4% 17.3% 71.8% Koovs plc (GB) $0.1 46% $28 $29 2.0x 0.9x NM NM 106.9% 117.4% (8.3%) Westw ing Group AG (DE) $2.1 7% $43 ($11) (0.0x) (0.0x) 1.2x 2.1x 1.3% 13.0% 42.9% Min 7% $28 ($11) (0.0x) (0.0x) 1.2x 1.8x (7.5%) (0.1%) (8.3%) Mean 54% $26,037 $31,688 1.4x 1.0x 14.8x 12.7x 19.4% 19.6% 38.9% Median 53% $382 $346 0.8x 0.8x 9.2x 8.7x 3.3% 13.0% 39.2% Max 99% $336,905 $409,755 7.6x 5.2x 44.3x 33.0x 119.6% 117.4% 82.1% Food Ocado Group plc (GB) $16.1 91% $11,215 $11,194 5.1x 4.5x NM NM 6.8% 13.7% 34.6% Deliv ery Hero SE (DE) $46.1 93% $7,983 $7,748 5.9x 4.5x NM 36.4x NA 29.8% 59.4% Just Eat plc (GB) $7.8 76% $5,325 $5,417 4.2x 3.4x 23.9x 18.8x 29.9% 23.4% 66.2% Grubhub Inc. (US) $54.1 40% $4,940 $5,178 3.8x 3.0x 21.4x 15.0x 35.4% 27.3% 42.4% Takeaw ay.com N.V. (NL) $78.5 80% $4,806 $5,019 10.9x 8.1x NM 56.5x 72.5% 34.3% 76.8% Min 40% $4,806 $5,019 3.8x 3.0x 21.4x 15.0x 6.8% 13.7% 34.6% Mean 76% $6,854 $6,911 6.0x 4.7x 22.7x 31.7x 36.1% 25.7% 55.9% Median 80% $5,325 $5,417 5.1x 4.5x 22.7x 27.6x 32.6% 27.3% 59.4% Max 93% $11,215 $11,194 10.9x 8.1x 23.9x 56.5x 72.5% 34.3% 76.8%

Source: Capital IQ 25 Revenue recognition by marketplaces Case study: Etsy, Inc. Notes to Consolidated Financial Statements

The Company’s revenue is diversified; generated from a mix of marketplace activities and other optional services to help Etsy sellers to generate more sales and scale their businesses. The Company evaluates whether it is appropriate to recognize revenue on a gross or net basis based upon its evaluation of whether the Company obtains control of the specified goods or services by considering if it is primarily responsible for fulfillment of the promise, has inventory risk, and has the latitude in establishing pricing and selecting suppliers, among other factors. Based on its evaluation of these factors, revenue is recorded either gross or net of costs associated with the transaction. § Marketplace Revenue: − Etsy sellers receive the benefit of marketplace activities, including listing items for sale, completing sales transactions, and payments processing, which represents a single stand-ready performance obligation. On July 16, 2018, the Company increased the seller transaction fee from 3.5% to 5% of each completed transaction, and now applies it to the cost of shipping in addition to the cost of the item − Etsy Payments processing fees vary between 3 -4.5% of an item’s total sale price, including shipping, plus a flat fee per order § Services revenue: − Services revenue is derived from optional services offered to Etsy sellers, which include Promoted Listings, Etsy Shipping Labels, Pattern, and Etsy Plus − Revenue from Promoted Listings consists of cost-per-click fees an Etsy seller pays for prominent placement of her listings − Revenue from Etsy Shipping Labels consists of fees an Etsy seller pays the Company when she purchases shipping labels through its platform, net of the cost the Company incurs in purchasing those shipping labels − Revenue from Pattern consists of monthly subscription fees an Etsy seller pays to use the Company’s custom website services − Revenue from Etsy Plus consists of monthly subscription fees an Etsy seller pays for enhanced tools and credits for use on the Company’s platform § Other revenue: Other revenue typically includes revenue generated from commercial partnerships, which are recognized as the customer in each contract consumes the benefit of the service Etsy provides in each arrangement.

Etsy’s 10-K describes how even on its own platform, sales of physical products may be recognized as gross or net depending on its own evaluation of a number of factors. As such, it can be difficult to establish a GMV and/or revenue multiple that is like-for-like when valuing a comparable platform, especially when a cohort of platforms are considered. Thus, a Gross Profit multiple can be a strong reference point or “sanity check” for valuation

In addition, Etsy trades at a higher revenue multiple compared with its marketplace peers, but as the above demonstrates, they have a variety of revenue streams which include subscription fees for seller services. Its high multiple can be attributed, at least in part, to its sass-like stickiness for sellers

Source: Etsy 10k, edited for clarity and conciseness 26