Sezzle Inc. · NASDAQ:SEZL
Sezzle — Q3 2021 Earnings Presentation
16 slides from Sezzle's earnings presentation, Oct 28, 2021
Slide 1: The way forward. 3Q21 Presentation
The way forward. 3 Q 2 1 P r e s e n t a t i o n 2 9 O C T O B E R 2 0 2 1 This presentation is authorised for release by the Board 29 October 2021
Slide 2: Disclaimer
DISCLAIMER This Presentation contains summary information about the current activities of Sezzle as at the date of this Presentation. The information in this Presentation is of a general nature and does not purport to be complete and the information in the Presentation remains subject to change with
Slide 3: Building on Our Mission
Building on Our Mission SE ZZL E INC 3Q21 P RE SE NTAT ION | 3 Seamless Integration Partnership Approach Improved Merchant Results Consumer Financial Freedom Mission Driven Budgeting Flexibility 14 July 2021, Sezzle officially became 100% carbon neutral - certified by Climate Neutral
Slide 4: Scaled Platform
US$1.6 billion LTM UMS1,4 2.7 million+ Cumulative App Downloads4 44,400 Active Merchants3,4 4.9 / 5.0 App Store Rating6 3.2 million Active Consumers2,4 49x Average Annual Transactions for Top 10% of Consumers5 1 UMS defined as total value of sales made by merchants based on the purchase price of eac
Slide 5: Expanding UMS With New Merchant Partners
Expanding UMS With New Merchant Partners SE ZZL E INC 3Q21 P RE SE NTAT ION | 5” ““Last year, Sezzle didn’t have any IR200 merchants that were using our core payments product. Now we have five IR200 merchants live, with an encouraging pipeline”. - Veronica Katz, Chief Revenue Officer $28.3 $41.9 $68
Slide 6: Capturing Merchant Growth Through Best-in-Class Service
3,300 5,000 7,500 10,000 12,700 16,100 20,900 26,700 34,000 40,300 44,400 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Active Merchants SE ZZL E INC 3Q21 P RE SE NTAT ION | 6 Capturing Merchant Growth Through Best-in- Class Service Partnered with over 4,100 brands in 3Q21, expanding Sezzle
Slide 7: Recent Partnerships to Accelerate Growth
Recent Partnerships to Accelerate Growth SE ZZL E INC 3Q21 P RE SE NTAT ION | 7 • BigCommerce announced Sezzle as a new preferred buy now, pay later partner. • BigCommerce serves 60,000+ merchants across 150+ countries. • Natively integrated as a payment gateway in the BigCommerce Control Panel, mer
Slide 8: Growing and Deeply Engaged Consumer Base
0.3 0.4 0.6 0.9 1.1 1.5 1.8 2.2 2.6 2.9 3.2 73.8% 77.2% 81.5% 83.7% 85.6% 87.5% 89.0% 89.8% 90.7% 91.6% 92.3% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Active Consumers (in Millions) & Repeat Usage1 SE ZZL E INC 3Q21 P R
Slide 9: Leading recognition across the industry
4.7 7,600 Reviews 4.7 23,700 Reviews 4.7 2,100 Reviews Best Buy-Now-Pay-Later App for Students Top 10 Payment and Card Solution Providers Top Installment Platform 4.9 56,400 Reviews SE ZZL E INC 3Q21 P RE SE NTAT ION | 9 Leading recognition across the industry Key Digital Payments Platform Note: Rev
Slide 10: Tapping into a Global Market
Tapping into a Global Market SE ZZL E INC 3Q21 P RE SE NTAT ION | 10 Canada (launched Spring 2019) • UMS run-rate now in excess of US$100M annually. • Reached milestone of 3,000 Active Merchants in the region (220.3% YoY increase). • Active Consumers increased 232.2% YoY, reaching 190,000 as of quar
Slide 11: Commentary: 3Q21 UMS and Total Income
• 3Q21 UMS grew 101.9% YoY, driven by growth in Active Consumers, Active Merchants, and increasing consumer engagement. • Total Income grew 78.9% YoY to US$28.5M compared to US$15.9 million in 3Q20. • Total income as a percentage of UMS decreased 50 bps compared to the previous quarter due to enterp
Slide 12: Transaction Expense – Improving Profile
Transaction Expense – Improving Profile SE ZZL E INC 3Q21 P RE SE NTAT ION | 12 3.9% 2.8% 3.0% 3.2% 2.9% 2.8% 2.7% 2.4% 2.4% 2.3% 2.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Transaction Expense as % of UMS • In 3Q21, the YoY shift in consumer installment
Slide 13: Delivering on a Lower Provision
Delivering on a Lower Provision SE ZZL E INC 3Q21 P RE SE NTAT ION | 13 • Significantly lowered the provision for uncollectible accounts to 2.3%, a 110bps decrease from the prior quarter, reflecting the operational flexibility of the short-term product. • Improved recoveries of previously charged-of
Slide 14: Declining Cost of Capital
Declining Cost of Capital SE ZZL E INC 3Q21 P RE SE NTAT ION | 14 • Continuing to improve transaction economics with net interest expense as a percentage of UMS declining for the sixth consecutive quarter. • Key drivers of net interest expense as a percentage of UMS: o Lower borrowing costs, and o R
Slide 15: Well-Capitalized for the Future
Well-Capitalized for the Future SE ZZL E INC 3Q21 P RE SE NTAT ION | 15 • Decrease in total cash of $13.1 million was primarily driven by uses in operating and investing activities, offset by net inflows from financing activities. • On 14 July 2021, Sezzle received a US$30.0 million investment from
Slide 16: Thank You
Thank You