Proceeds from issuance of convertible senior notes

[Table of Contents](#i5b8426ad342a427bafdce79a90546c91_7)Etsy, Inc.Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | Nine Months Ended  September 30, |
|   | 2022 |  | 2021 |
| Cash flows from operating activities |  |  |  |
| Net (loss) income | $ | (803,836) |  |  | $ | 331,950  |  |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |  |  |  |
| Stock-based compensation expense | 166,533  |  |  | 90,047  |  |
|  |  |  |  |
| Depreciation and amortization expense | 73,908  |  |  | 49,276  |  |
| Provision for expected credit losses | 7,621  |  |  | 12,993  |  |
| Foreign exchange gain | (17,585) |  |  | (7,159) |  |
|  |  |  |  |
|  |  |  |  |
| Deferred benefit for income taxes | (25,955) |  |  | (78,631) |  |
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
| Goodwill impairment | 1,045,022  |  |  | —  |  |
| Other non-cash expense, net | 6,519  |  |  | 5,610  |  |
|  |  |  |  |
|  |  |  |  |
| Changes in operating assets and liabilities (net of impact of business combinations): |  |  |  |
| Current assets | 11,418  |  |  | (49,098) |  |
|  |  |  |  |
|  |  |  |  |
| Non-current assets | 6,420  |  |  | (4,067) |  |
| Current liabilities | (88,831) |  |  | (5,419) |  |
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
| Non-current liabilities | 10,628  |  |  | 15,590  |  |
| Net cash provided by operating activities | 391,862  |  |  | 361,092  |  |
| Cash flows from investing activities |  |  |  |
| Acquisition of businesses, net of cash acquired | —  |  |  | (1,690,823) |  |
| Cash paid for intangible assets | (6,400) |  |  | (1,862) |  |
| Purchases of property and equipment | (8,351) |  |  | (5,740) |  |
| Development of internal-use software | (16,912) |  |  | (11,519) |  |
| Purchases of marketable securities | (205,841) |  |  | (343,902) |  |
| Sales and maturities of marketable securities | 207,568  |  |  | 518,985  |  |
|  |  |  |  |
| Net cash used in investing activities | (29,936) |  |  | (1,534,861) |  |
| Cash flows from financing activities |  |  |  |
| Payment of tax obligations on vested equity awards | (48,018) |  |  | (69,147) |  |
| Repurchase of stock | (275,308) |  |  | (234,427) |  |
|  |  |  |  |
| Proceeds from exercise of stock options | 8,212  |  |  | 10,867  |  |
|  |  |  |  |
| Proceeds from issuance of convertible senior notes  | —  |  |  | 1,000,000  |  |
| Payment of debt issuance costs  | (25) |  |  | (12,849) |  |
| Purchase of capped calls | —  |  |  | (85,000) |  |
| Settlement of convertible senior notes | (33) |  |  | (43,863) |  |
| Payments on finance lease obligations | (4,755) |  |  | (7,321) |  |
|  |  |  |  |
|  |  |  |  |
|  |  |  |  |
| Other financing, net | (2,483) |  |  | (93) |  |
| Net cash (used in) provided by financing activities | (322,410) |  |  | 558,167  |  |
| Effect of exchange rate changes on cash | (29,722) |  |  | (9,095) |  |
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 9,794  |  |  | (624,697) |  |
| Cash, cash equivalents, and restricted cash at beginning of period | 785,537  |  |  | 1,249,440  |  |
| Cash, cash equivalents, and restricted cash at end of period | $ | 795,331  |  |  | $ | 624,743  |  |

  
  
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