Sezzle Inc. · NASDAQ:SEZL
Sezzle — Shareholder Meeting (June 2022)
33 slides from Sezzle's shareholder meeting presentation, Jun 1, 2022
Slide 1: The way forward. Annual General Meeting 1 June 2022
The way forward. A N N U A L G E N E R A L M E E T I N G 1 J U N E 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: How to vote
How to vote • When the poll is open, select the vote icon at the top of the screen • To vote, select your preferred option • You will see a vote confirmation • To change or cancel your vote, select “click here to change your vote” at any time until the poll is closed Items of Business 2A Re-elect Mr
Slide 4: How to ask a question
How to ask a question • To ask a written question select the Q & A icon • Select the topic of your question from the drop-down list • Type your question in the text box and press the send button SE ZZLE INC AGM P RE SE NTATION 20 22 | 4
Slide 5: Agenda
Agenda 1 . COMPANY MISSION 4. VOTING AND RESOLUTIONS 2. VISION AND ECOSYSTEM SE ZZLE INC AGM P RE SE NTATION 20 22 | 5 3. FINANCIAL PERFORMANCE
Slide 6: Our Mission
OUR MISSION Financially empowering the next generation. OUR MANTRA The way forward. We see change as an opportunity to shape the future. SE ZZLE INC AGM P RE SE NTATION 20 22 | 6
Slide 7: Driving Change for our Stakeholders
Driving Change for our Stakeholders Charitable Giving Committed to matching all employee donations dollar-for-dollar Flexible Remote Work Policy Adopted a flexible remote work policy, making employee safety and wellbeing a priority Climate Neutral In 2021, earned Climate Neutral certification, reduc
Slide 8: Receiving Recognition for our Efforts
Top 10 Payment and Card Solution Providers Best BNPL App for Students Top Installment Platform Top 10 Financial Services Brands Receiving Recognition for our Efforts SE ZZLE INC AGM P RE SE NTATION 20 22 | 8 The Midwest’s Best Enterprise Software Companies Best BNPL App for Flexible Payment Plan
Slide 9: Vision and Ecosystem
Vision and Ecosystem VISION SE ZZLE INC AGM P RE SE NTATION 20 22 | 9
Slide 10: Our Vision: Delivering Value to Merchants and Consumers
CONSUMER-FOCUSEDMERCHANT-FOCUSED • Initially launched with a consumer-friendly focus for merchants - providing consumers a flexible alternative to traditional credit: increasing consumer basket sizes and purchase frequency • Merchant offerings have expanded beyond just Pay-in- Four to include items
Slide 11: Innovating for our Consumers
CREDIT BUILDING Sezzle Up allows consumers to build credit with timely repayments LONG-TERM INSTALLMENTS Provides qualified consumers a long- term financing option OMNICHANNEL OFFERING Frictionless in-store payment solution with a Sezzle virtual card Innovating for our Consumers • Only BNPL in marke
Slide 12: Future Expansion Opportunities
LOYALTY PROGRAM Sezzle Rewards allows users to earn and redeem points when shopping PREMIUM SUBSCRIPTION Enhanced Sezzle experience with exclusive benefits PHYSICAL CARD Pay now or over time anywhere and build credit on every purchase • Incentivize consumers to earn points by paying with Sezzle and
Slide 13: Market Opportunity
$1.8 $150.6 $472.8 Sezzle UMS Global BNPL U.S. Rest of World $623.4 Market Opportunity (Figures in $US Trillion) SIGNIFICANT MARKET OPPORTUNITY BEYOND BNPL Source: 2022 The Global Payments Report by FIS BNPL: LOW MARKET PENETRATION (Figures in $US Billion) $10.8$0.6 $11.4 $12.3 $16.1 $8.5 $2.9 $40.9
Slide 14: Growing and Engaged Consumer Base
“One Word for This App... AMAZING!!!!“ – Tracie, Sezzler “I’ve used all the payment apps available for Canada and Sezzle is by far the best and especially with the amount of new stores and features being added…” – Martha, Sezzler “Sezzle is the best PAY LATER service provider...” - Nick, Sezzler 4.7
Slide 15: SMB & Middle Market and Enterprise Merchants
SMB & MIDDLE MARKET 20,000+ New Active Merchant Partners added in 2021 ENTERPRISE Partnering with Top Tier Brands of All Sizes SE ZZLE INC AGM P RE SE NTATION 20 22 | 15
Slide 16: Highly Focused on Core Verticals while Pioneering Elsewhere
Highly Focused on Core Verticals while Pioneering Elsewhere In addition, we continue to test non-traditional BNPL verticals Top Performing Verticals in 2021 YoY Growth (%) Clothing & Accessories 63.1% Beauty & Wellness 64.6% General Merchandise 1,833.4% Sports & Hobbies 107.5% • In 2021, Sezzle cont
Slide 17: Growing our Merchant Network as a Top Tier BNPL Partner
Growing our Merchant Network as a Top Tier BNPL Partner 16.1 20.9 26.7 34.0 40.3 44.4 47.0 48.7 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 AC TIV E MERC HA N TS 1 Best-in-class service makes Sezzle a leading installment payment provider for merchants2 "Lamps Plus chose Sezzle as a buy now, pay later fi
Slide 18: Growing Alongside Strategic Partners
Growing Alongside Strategic Partners Merchant Support • In July 2021, the Company launched Sezzle Capital in partnership with Wayflyer • Sezzle Capital enables qualified merchants to receive same-day funding of working capital up to US$10 million, without credit risk or additional capital requiremen
Slide 19: Financials
Financials FINANCIALS SE ZZLE INC AGM P RE SE NTATION 20 22 | 19
Slide 20: Sharpening Focus in Pursuit of Profitability
Sharpening Focus in Pursuit of Profitability REVENUE OPTIMIZATION OPERATING EXPENSES INTERNATIONAL • Optimizing existing relationships for profitability • Identifying new sources of profit – expanding long-term, adding premium subscription, launching physical card, and providing pay- now optionality
Slide 21: Financial Scorecard
Financial Scorecard SE ZZLE INC AGM P RE SE NTATION 20 22 | 21 UNDERLYING MERCHANT SALES 1 (UMS) (US$ in MILLION’S) TOTAL INCOME ($ in MILLION’S) +111.1% YoY TOTAL INCOME AS PERCENTAGE OF UMS -50 Bps $15.8 $58.8 $114.8 2019 2020 2021 +95.3% YoY 6.5% 6.9% 6.4% 2019 2020 2021 +20.1% YoY -80.7 Bps +6.2
Slide 22: 2021 Performance Scorecard
SE ZZLE INC AGM P RE SE NTATION 20 22 | 22 REPEAT USAGE (% OF ACTIVE CONSUMERS) ACTIVE MERCHANTS 1 ACTIVE CONSUMERS 2 +43.1% YoY +251 Bps +32.9% YoY 1Active Merchants is defined as merchants who have had at least one transactions through the Sezzle Platform in FY 2021, not subject to a minimum requi
Slide 23: Underlying Merchant Sales & Total Income
$375.1 $411 . 1 $460.7 $561 .0 $450.5 1Q21 2Q21 3Q21 4Q21 1Q22 U N D E R L Y I N G M E R C H A N T S A L E S Underlying Merchant Sales & Total Income SE ZZLE INC AGM P RE SE NTATION 20 22 | 23 Commentary • UMS continued to set new highs, reaching US$1.8 billion for 2021, up 111.1% YoY • For the firs
Slide 24: Transaction Expense & Provision
Transaction Expense & Provision Commentary • Transaction expense as a percentage of UMS in 1Q 2022 increased 20 bps YoY to 2.6% as payment processing costs increased as a proportion of card payments relative to ACH payments increased during the first quarter of 2022 • The provision for uncollectible
Slide 25: Operating Expenses
Operating Expenses Commentary • Operating expenses as a percentage of Total Income rose to 114.0% of Total Income in 1Q 2022. The increase in Operating Expenses was primarily driven by: o Non-recurring legal and professional fees associated with the Zip merger (~US$4.3 million), o Headcount growth (
Slide 26: Capitalization & Funding
Capitalization & Funding Commentary • The Company had unused borrowing capacity on its line of credit of US$39.7 million as of 31 March 2022 compared to US$29.8 million as of 31 December 2021 • Effective January 2022, the Company amended its line of credit replacing LIBOR with the US Federal Reserve
Slide 27: Zip Update
Zip Update SE ZZLE INC AGM P RE SE NTATION 20 22 | 27 • The merger with ZIP remains on track to close and will deliver significant scale and synergies upon completion, directly supporting our objective to accelerate growth and build a profitable business at scale • The waiting period for review by t
Slide 28: Voting and Resolution
Voting and Resolution VOTING AND RESOLUTION SE ZZLE INC AGM P RE SE NTATION 20 22 | 28
Slide 29: Valid Proxies Received Prior to Meeting
SE ZZLE INC AGM P RE SE NTATION 20 22 | 29 Valid Proxies Received Prior to Meeting ITEM 2 RE-ELECTION OF CHARLIE YOUAKIM FOR WITHELD NON-VOTES UNCAST 99,859,239 4,377,024 2,500 0 ITEM 3 RE-ELECTION OF PAUL VICTOR PARADIS FOR WITHELD NON-VOTES UNCAST 104,011,882 224,381 2,500 0 ITEM 4 RE-ELECTION OF
Slide 30: Valid Proxies Received Prior to Meeting
Valid Proxies Received Prior to Meeting ITEM 5 RE-ELECTION OF PAUL PURCELL FOR WITHELD NON-VOTES UNCAST 103,945,729 288,534 4,500 0 ITEM 6 RE-ELECTION OF PAUL ALAN LAHIFF FOR WITHELD NON-VOTES UNCAST 103,971,514 253,648 13,601 0 ITEM 7 RE-ELECTION OF MICHAEL CUTTER FOR WITHELD NON-VOTES UNCAST 104,0
Slide 31: Valid Proxies Received Prior to Meeting
Valid Proxies Received Prior to Meeting ITEM 8 RATIFICATION OF INDEPENDENT ACCOUNTING FIRM SELECTION FOR AGAINST ABSTAIN NON-VOTES UNCAST 104,102,132 88,542 48,089 0 0 ITEM 9 ADVISORY VOTE ON EXECUTIVE COMPENSATION FOR AGAINST ABSTAIN NON-VOTES UNCAST 99,535,261 445,163 4,256,339 2,000 0 ITEM 10 ADV
Slide 32: Thank you
Thank you SE ZZLE INC AGM P RE SE NTATION 20 22 | 32
Slide 33: Disclaimer: Additional Information and Where to Find It
DISCLAIMER Additional Information and Where to Find It This Presentation is being made in respect of the proposed merger transaction involving the Sezzle and Zip Co Limited (“Parent”). In connection with the proposed acquisition by Parent of Sezzle (the “Proposed Transaction”), Parent will file with