#1010 JOI SOLD Ooverstock.com Q4 and Fiscal Year 2015 Financial Results#2Safe Harbor The information presented herein may contain forward-looking statements. Such forward-looking statements include all statements other than statements of historical fact, including forecasts of trends. These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including the amount and timing of our capital expenditures, the mix of products we sell, the results of legal proceedings and claims and the amounts we spend relating to them, the extent to which we owe income taxes, competition, fluctuations in operating results, any inability to raise capital if needed on acceptable terms, our efforts to expand both domestically and internationally, risks of inventory management and seasonality. Other risks and uncertainties include, among others, risks related to new products and services we may offer, and difficulties with our infrastructure, our fulfillment partners or our payment processors, including cyber-attacks or data breaches affecting us or any of them. More information about factors that could potentially affect our financial results is included in our Form 10-Q for the quarter ended September 30, 2015 which was filed with the Securities and Exchange Commission on November 9, 2015. These and our other subsequent filings with the Securities and Exchange Commission identify important factors that could cause our actual results to differ materially from those contained in our projections, estimates and other forward-looking statements. loverstock.com® 2#3Q4 2015 Results Revenue $480.3 Million (2% increase vs. Q4 2014) Contribution Dollars* $47.2 Million (4% decrease vs. Q4 2014) Pre-Tax Income (Loss) ($2.0) Million (vs. $2.3 million in Q4 2014) Gross Profit Dollars $83.1 Million (3% decrease vs. Q4 2014) overstock.com Contribution Margin* 9.8% (vs. 10.5% in Q4 2014) Net Income** $110,000 (vs. $1.4 million in Q4 2014) * Non-GAAP ** Net Income refers to Net Income (Loss) attributable to stockholders of Overstock.com, Inc. Gross Margin 17.3% (vs. 18.2% in Q4 2014) Tech and G&A Expense $47.9 Million (3% increase vs. Q4 2014) TTM Operating Cash Flow $54.5 Million (vs. $80.8 million in Q4 2014) 3#42015 Annual Results Revenue $1,658 Million (11% increase vs. 2014) Contribution Dollars* $186.1 Million (8% increase vs. 2014) Pre-Tax Income $3.1 Million (vs. $13.2 million in 2014) Gross Profit Dollars $304.7 Million (9% increase vs. 2014) overstock.com Contribution Margin* 11.2% (vs. 11.5% in 2014) Net Income** $2.4 Million (vs. $8.9 million in 2014) * Non-GAAP ** Net Income refers to Net Income attributable to stockholders of Overstock.com, Inc. Gross Margin 18.4% (vs. 18.6% in 2014) Tech and G&A Expense $180.7 Million (14% increase vs. 2014) TTM Operating Cash Flow $54.5 Million (vs. $80.8 million in 2014) 4#5Annual Revenue and Growth ($,000) 1,800,000 1,400,000 1,000,000 600,000 200,000 (200,000) 1,054,277 loverstock.com® -3% 2011 1,099,289 e 2012 Revenue ($) 1,304,217 19% 2013 1,497,103 15% 2014 Revenue growth (yoy) 1,657,838 11% 2015 5#6Annual Gross Profit and Growth ($,000) 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 (50,000) 179,088 -6% 2011 loverstock.com® 198,430 11% 2012 Gross profit ($) 247,660 25% 2013 279,059 || 13% 304,654 2014 Gross profit growth (yoy) 9% 2015 6#7Annual Contribution and Growth* ($,000) 200,000 150,000 100,000 50,000 0 (50,000) 118,246 -8% overstock.com 2011 138,271 17% 2012 157,238 Contribution ($) || 14% 172,037 2013 9% 2014 Contribution growth (yoy) * Non-GAAP: Contribution dollars = Gross profit less Sales & Marketing expense plus Club O Rewards and Gift Card breakage. 186,097 8% 2015 7#8Annual Gross Margin and Contribution Margin* 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 17.0% 11.2% 2011 18.1% loverstock.com 12.6% 2012 Gross margin 19.0% 12.1% 2013 18.6% 11.5% 2014 Contribution margin * Non-GAAP: Contribution margin = Gross profit less Sales & Marketing expense plus Club O Rewards and Gift Card breakage as a percentage of revenue. 18.4% 11.2% 2015 8#9Technology and G&A Expenses $s and % of Revenue ($,000) 300,000 250,000 200,000 150,000 100,000 50,000 12.8% 134,809 2011 loverstock.com® G&A 11.2% 122,726 2012 10.7% 139,957 Technology 2013 10.6% 158,035 2014 10.9% 180,720 G&A and Tech (% of revenue) 2015 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 9#10Operating and Free Cash Flow (TTM) ($,000) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 (10,000) (20,000) 83,645 65,578 Q4-13 Q1-14 overstock.com 80,834 Q2-14 Q3-14 Cash flow from operations (TTM) * Non-GAAP: Free Cash Flow = Cash Flow from Operations less Expenditures for Fixed Assets. Q4-14 * 39,488 Q2-15 Free cash flow* (TTM) Q1-15 Q3-15 54,516 (4,997) Q4-15 10#11GAAP TTM Inventory Turns and GMROI 60.0 50.0 40.0 30.0 20.0 10.0 0.0 36.9 866% Q4-13 Q1-14 overstock.com Q2-14 Q3-14 TTM Inventory turns TTM Inventory Turns TTM COGS / Average Inventory TTM GMROI = TTM Gross Margin % * TTM Revenue / Average Inventory 41.8 958% Q4-14 Q1-15 Q2-15 TTM GMROI Q3-15 53.3 1200% Q4-15 2000% 1800% 1600% 1400% 1200% 1000% 800% 600% 400% 200% 0% 11#12Unique Customers and Cost Per Customer (#,000) 3,000 2,500 2,000 1,500 1,000 500 2,311 $13.52 Q4-13 loverstock.com® Q1-14 Unique customers Q2-14 Q3-14 2,480 $14.96 Q4-14 Q1-15 Q2-15 Marketing $ / unique customers (cost per customer) Q3-15 2,424 $15.82 Q4-15 $25.00 $20.00 $15.00 $10.00 $5.00 12#13New Customers (#,000) 1,400 1,200 1,000 800 600 400 200 0 1,181 Q4-13 Imbud loverstock.com® Q1-14 Q2-14 1,259 Q3-14 Q4-14 Q1-15 Q2-15 1,163 Q3-15 Q4-15 13#14Oloverstock.com 14 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 0 15,000 20,000 25,000 30,000 35,000 34,611 36,108 40,000 39,115 45,000 (#,000) Unique Visitors#15Customer Orders and Average Order Size (#,000) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 3,083 $149 Q4-13 loverstock.com® Q1-14 Q2-14 Customer orders Q3-14 3,454 $159 $162 timit Q4-14 Q1-15 Q2-15 Average order size 3,465 Q3-15 $250 Q4-15 $200 $150 $100 $50 $0 15#16Gross Profit per Transaction. $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 $23.27 Q4-13 loverstock.com® Q1-14 Q2-14 Q3-14 $24.72 Q4-14 $23.99 |||| Q1-15 Q2-15 Q3-15 Q4-15 16#17Corporate Employees 1,200 1,000 800 600 400 200 0 882 Q4-13 loverstock.com® Q1-14 Q2-14 Q3-14 1,044 Q4-14 Q1-15 Q2-15 Q3-15 1,137 Q4-15 17#18Prime Broker (My "Mitzvah") Case Economics Total Settlements Direct* Expenses (Legal, travel, etc.) Net $33M ($31M) $2M * There are some indirect expenses along with intangible benefits & costs that should be considered in the overall evaluation of the mitzvah. overstock.com 18#19loverstock.com Email all questions to: [email protected] f Follow Us On You Tube 8+ 19