Slide 1: 3Q22 Earnings Presentation
3 Q 2 2 E AR N I N GS P R E S ENT AT I ON 3 1 O c t o b e r 2 0 2 2 This presentation has been authorized and approved by the Sezzle Board
Slide 2: Disclaimer
DISCLAIMER This presentation (the “Presentation”) contains summary information about the 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 t
Slide 3: Sezzle Overview
Sezzle Overview
Slide 4: 3Q22 Performance and Financial Scorecard
ACTIVE 2 MERCHANTSACTIVE 2 CONSU MERS +2.9% YoY +0.4% YoY 1 Transaction Related Costs is a non-GAAP financial measure equal to the sum of Transaction Expense, Provision for Uncollectible Accounts, and Net Interest Expense. See Appendix I for reconciliation of Transaction Related Costs and respective
Slide 5: 2022 Initiatives Making a Difference
2022 Initiatives Making a Difference SE ZZL E INC 3Q22 P RE SE NTATION | 5 ANNUAL REVENUE IMPROVEMENT AND COST SAVINGS (anticipated to be realized by 1Q23) US$60M OPERATIONAL IMPROVEMENTS Off-boarding/re-negotiating rates with merchants and network partners (on-going) Reduction in workforce In
Slide 6: Successful Launch of Sezzle Premium
Successful Launch of Sezzle Premium Note: performance data as of 26 October 2022. Sezzle Premium was launched on June 1, 2022 Access to Shop at 260+ Premium Brands Benefits, including: • priority consumer support, • extra points for Sezzle Rewards, • extra free payment reschedule per order, and • ex
Slide 7: TT TLAAAAAIA§
TT TLAAAAAIA§ Ci, ine ae Es |
Slide 8: Total Income Hits New High as % of UMS
Total Income Hits New High as % of UMS 3Q22 C OMMENTARY • Total Income increased 6.8% YoY to US$30.4 million, representing a new high of 7.2% of UMS and a 103bps improvement compared to 3Q21. • Consumer engagement remains healthy as repeat usage rose to 93.8%, representing 46 consecutive months of i
Slide 9: Significant Improvement in Provision for Uncollectible Accounts
Significant Improvement in Provision for Uncollectible Accounts 3Q22 C OMMENTARY • Sezzle’s improved and evolving underwriting strategies drove the provision for uncollectible accounts to 1.3% of UMS, lowest since 2Q20, a 92bps and 54bps improvement YoY and QoQ, respectively. • Consistent with the s
Slide 10: Transaction Expense Reaches New Low
Transaction Expense Reaches New Low 3Q22 C OMMENTARY • Transaction expense decreased to a record low 2.2% of UMS. • The shift by consumers to ACH continues to drive transaction expense to record lows as a percentage of UMS. K EY I NI T I ATI VES D RI V I NG C H ANGE $11.5 $13.9 $11.8 $10.1 $9.3 2.5%
Slide 11: Total Income less Transaction Related Costs Achieves New High
Total Income less Transaction Related Costs Achieves New High 3Q22 C OMMENTARY • Sezzle delivered a new high for Total Income less Transaction Related Costs of US$13.5 million (3.2% of UMS). • The continued outperformance was driven by improvements in Total Income, Transaction Expense, and the Provi
Slide 12: Closing the Gap
Closing the Gap 1 Adjusted EBTDA is a non-GAAP measure. For a reconciliation of GAAP Net Income (Loss), EBITDA, and Adjusted EBTDA see Appendix II for reconciliation. 2Adjusted Operating Expense and Other Income (Expense) is a non-GAAP financial measurement equal to the sum of GAAP Operating Expense
Slide 13: Capitalization & Funding – Positioned for the Future
Capitalization & Funding – Positioned for the Future K EY T ERMS OF TH E F ACI L I TY • Rate: Secured Overnight Financing Rate (SOFR) + 11.5%. • Term: 24 months. • Minimum Utilization: US$50.0 million at close, US$75.0 million at 31 December 2022, and US$80 million at 31 March 2023 and thereafter. •
Slide 14: Appendices
Appendices ss . _~ - % * « ; par ae
Slide 15: Appendix I: Reconciliation of GAAP to Non-GAAP Measures
Appendix I: Reconciliation of GAAP to Non-GAAP Measures SE ZZL E INC 3Q22 P RE SE NTATION | 15 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 September 30, 2020 Total income 30,408$ 29,252$ 27,634$ 32,929$ 28,472$ 15,920$ Less: Transaction-related costs Transact
Slide 16: Appendix II: Reconciliation of GAAP to Non-GAAP Measures
Appendix II: Reconciliation of GAAP to Non-GAAP Measures SE ZZL E INC 3Q22 P RE SE NTATION | 16 (all units in $US thousands) AD J U S TED EB T D A September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 September 30, 2020 Net income (loss) 4,344$ (15,084)$ (27,989)$ (25,
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our operating results prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), we present the following non-GAAP financial measures: Total income less transaction related costs; adjusted operating expense and other
Slide 18: Thank you
Thank you & sezzle