Etsy 2015 Annual Report Download - page 27

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The reliability of our platform is important to our reputation and our ability to attract and retain Etsy sellers and Etsy buyers. As the number of Etsy sellers
and Etsy buyers, volume of traffic, number of transactions and the amount of information shared on our platform grow, our need for additional network
capacity and computing power will also grow. The operation of the technology underlying our platform is expensive and complex, and we could experience
operational failures. If we fail to accurately predict the rate or timing of the growth of our platform, we may be required to incur significant additional costs to
maintain reliability.
We also depend on the development and maintenance of the Internet and mobile infrastructure. This includes maintenance of reliable Internet and mobile
networks with the necessary speed, data capacity and security, as well as timely development of complementary products.
Third-party providers host much of our technology infrastructure. Any disruption in their services, or any failure of our providers to handle the demands of
our marketplace could significantly harm our business. We exercise little control over these providers, which increases our vulnerability to their financial
conditions and to problems with the services they provide. If we experience failures in our technology infrastructure or do not expand our technology
infrastructure successfully, then our ability to attract and retain Etsy sellers and Etsy buyers could be adversely affected, which could harm our growth
prospects and our business.
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We strive to attract, retain and motivate employees, from our office administrators to our management team, who share our dedication to our community and
our mission. As we continue to grow, we cannot guarantee we will continue to attract the employees we need to maintain our competitive position.
Some of the challenges we face in attracting and retaining employees include:
• preserving our company culture as we grow;
• continuing to attract and retain employees who share our values;
• promoting existing employees into leadership positions to help sustain and grow our culture;
• hiring employees in multiple locations globally;
• responding to competitive pressures and changing business conditions in ways that do not divert us from our values; and
• integrating new personnel and businesses from acquisitions.
Our ability to attract, retain and motivate employees, including our management team, is important to our success. In general, our employees, including our
management team, work for us on an at-will basis. The unexpected loss of or failure to retain one or more of our key employees, such as our CEO or CFO,
could adversely affect our business. Other companies, including our competitors, may be successful in recruiting and hiring our employees, and it may be
difficult for us to find suitable replacements on a timely basis or on competitive terms.
Filling engineering, product management and other technical positions in the New York City area is particularly challenging, especially in light of our
distinctive technology philosophy and engineering culture. Qualified individuals are limited and in high demand, and we may incur significant costs to
attract, develop and motivate them. Even if we were to offer higher compensation and other benefits, people with suitable technical skills may choose not to
join us or to continue to work for us. In addition, job candidates and existing employees often consider the value of the stock awards they receive in
connection with their employment. If the perceived value of our stock awards declines, it may adversely affect our ability to recruit and retain highly skilled
employees. If we are not able to maintain our engineering culture and broader company culture, then our ability to recruit and retain employees could suffer
and our business would be harmed.
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We have experienced rapid growth in our business, such as in headcount, the number of Etsy sellers and the number of countries in which we have Etsy
sellers and Etsy buyers and we plan to continue to grow in the future, both in the United States
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