Slide 1: Q4 2023 Earnings Presentation
®sezzle The Responsible Way to Pay Q23 Earnings Presentation February 26, 2024 This presentation has been approved by the Company’s Executive Chairman and CEO, Charlie Youakim, on behalf of the Sezzle Inc. Board Sezzle Inc. | 4Q23 Presentation |1
Slide 2: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements This presentation (the “Presentation’) contains summary information about the activities of Sezzle as of the date of this Presentation. The information in this Presentation is of a general nature and does not purport to be complete and
Slide 3: Prized & Profitable BNPL Platform
Prized & Profitable BNPL Platform $6+ Billion 63+ Million 18+ Million 307,000 Underlying Merchant Sales Total Orders Total Sign-Ups Total Subscribers Since Launch Since Launch Since Launch (as of December 31, 2023) fo} 4.5% 18.8% 26.9% 45.9% Last 12-Months Total Income Growth (vs. prior comparable p
Slide 4: Our Mission
OUR MISSION Certified Financially Empowering the Next Generation a o Justice * Financial accessibility Diversity and inclusion Employee security and wellness va Committed to Driving Change an Integrity Governance and controls Integrated decision- making \e_ Workplace culture yy Stewardship * Respons
Slide 5: Why Consumers & Merchants Choose Sezzle
Why Consumers & Merchants Choose Sezzle Increasing financial inclusion by providing Driving traffic and incremental revenue credit to those who often face challenges through a frictionless checkout experience in accessing traditional credit options and customized marketing capabilities of! 2 f BNPL
Slide 6: Building An All-Encompassing Services Platform
Building An All-Encompassing Services Platform More to Come 7D * Innovations to offer more financial products & services and merchandising to consumers Premium Subscription (2022 & 2023) * Premium: Access to 350+ Premium Merchants & Gift Card platform partners + Anywhere: Provides consumers the abil
Slide 7: Over 307,000 Subscribers Across Premium and Anywhere
Over 307,000 Subscribers! Across Premium and Anywhere oe) Premium => Key Performance Metrics Most Popular Anywhere Verticals fo) In-store Orders as % of General Merchandise 696 ~335 %o Total Anywhere Orders? Discount & Specialty St 22% . ores Increase in Purchase Grocery Stores & 2.2x Frequency‘ vs.
Slide 8: Expanding Consumer Marketing
Expanding Consumer Marketing Bringing On-Brand Relevance & Memorability Through Consumer Marketing p Financial Fitness Ways to Love March Money [ Veuuntza live | Challenge Your Money GET , a FINANCIALLY “~~ I: / 1 ~ “FIT IN 2024 Spotlight Q : ) i ae Foun UUMUL f 2,500 in Sezzle§} : ed ’ ‘bl 62.001 f
Slide 9: Initiatives Drive Profitability
Initiatives Drive Profitability Initiatives Exceeding Expectations a Million FY22 Initiatives Net Impact of the FY23 Initiatives Initiatives ($38.1) Million — hes 2022 GAAP Net Loss 2023 GAAP Net Income a FY2024 Initiatives In the Bank Sponsorship Works Sezzle Inc. | 4Q23 Presentation | 9 + Successf
Slide 10: Increasing Operational Efficiency & Productivity with Proprietary A.I. Models
Increasing Operational Efficiency & Productivity with Proprietary A.I. Models Enhanced Underwriting Payment Processing (near future) Improved payment processing flow (e.g., minimize payment processing costs) Baby Prophet (new consumers signups), Prophet(v4) (existing consumers) models evaluate credi
Slide 11: YoY Progression Overview
YoY Progression Overview 4Q22 Total Income $3 8.3M Net Income (Loss) $ 0.6M Adjusted r) EBITDA Margin! 18.4% Total Income Less Transaction-Related Costs? 52.8% as a % of Total Income Non-Transaction Related OpEx’ as % of 48.6% Total Income $Non-Tran 4Q23 $2.9M 15.9% 42.5% $48.9ME t 4 FY22 FY23 Lates
Slide 12: Active Consumers
Active! Consumers FY23 Sezzle Scorecard \ Total Subscribers? (Premium & Anywhere) Repeat Usage As A % Of Total Orders (Cumulative) -11.8% YoY mt 4022 | 19,000 4021 Not Launched Unique Merchants? Shopped at by Consumers ( Consumer Order Frequency (Weighted Average of Monthly Cohorts Annualized) +188k
Slide 13: Total Income & UMS
Total Income & UMS Total Income $159.4 $38.3 $34.7 $34.9 $40.8 4 4Q22 1023 2023 3023 4023 FY2022 FY2023 mmm Total Income ($ in millions) % of UMS mmm Total Income ($ in millions) % of UMS Underlying Merchant Sales (UMS) $1,743.4 $1,824.3 $601.9 $452.5 $369.8 $383.1 $469.5 C1 4Q22 1023 2023 3023 4023
Slide 14: Transaction Expense
Transaction Expense $40.8 $39.2 $13.1 $9.5 $8.2 $7.9 $9.9 CI 4Q22 1Q23 2Q23 3Q23 4Q23 FY2022 FY2023 mmm Transaction Expense ($ in millions) % of UMS mmm Transaction Expense ($ in millions) % of UMS Sezzle Inc. | 4Q23 Presentation |14
Slide 15: Provision for Credit Losses
Provision for Credit Losses $29.4 $10.5 $5.4 $43 $6.7 m= i a 4Q22 1Q23 2Q23 3Q23 4Q23 FY2022 FY2023 mmm Provision for Credit Losses ($ in millions) % of UMS mmm Provision for Credit Losses ($ in millions) % of UMS Sezzle Inc. | 4Q23 Presentation |15
Slide 16: Total Income Less Transaction Related Costs
Total Income Less Transaction Related Costs! $81.0 4Q22 1Q23 2Q23 3Q23 4Q23 FY2022 FY2023 mmm Total Income ex. Transaction Related Costs ($ in millions) mmm Total Income ex. Transaction Related Costs ($ in millions) % of UMS % of UMS $81.0 $20.2 $21.4 $18.8 (25%) 4Q22 1Q23 2Q23 3Q23 4Q23 FY2022 FY20
Slide 17: Non-Transaction Related Operating Expenses
Non-Transaction Related Operating Expenses! $18.6 $19.3 $18.9 $18.9 $76 4Q22 1Q23 2Q23 3Q23 4Q23 lm Non-Transaction Related Operating Expenses (¢ in millions) % of Total Income $94.8 FY2022 FY2023 mmm Non-Transaction Related Operating Expenses ($ in millions) % of Total Income ‘Non-Transaction Relat
Slide 18: Net Income (Loss) And Adjusted EBITDA
Net Income (Loss) And Adjusted EBITDA! GAAP Net Income (Loss) (0.6} {$17 }—~{ 11 #}# {813 } {229} $125.6 $38.3 $37.6 $34.7 $32.9 $34.9$33.8 $40.8$39.5 $48.9$46.0 meme mee me $163.7 4Q22 1Q23 2Q23 3Q23 4Q23 FY2022 FY2023 mmm Total Income ($ in millions) mmm Total Income ($ in millions) ll Operating E
Slide 19: Select Balance Sheet Metrics
$ in Thousands Cash and Cash Equivalents Restricted Cash Total Cash Total Notes Receivables, Net Merchant Accounts Payable Drawn on Line of Credit Availability on Line of Credit Total Stockholders’ Equity Select Balance Sheet Metrics Audited Dec 31, 2022 $68,280 $1,243 $69,523 $93,358 $83,021 $65,00
Slide 20: FY2024 Outlook
FY2024 Outlook Annual Net Income (Loss) ($ in millions) 2024 Guidance * Net Income: $20.0 million * Total Income YoY Growth: 20% * Total Income less Transaction Related Costs: 50% of Total Income ($38.1) ($75.2) FY21 FY22 FY23 FY24 Sezzle Inc. | 4Q23 Presentation | 20
Slide 21: Appendices
Appendices
Slide 22: Appendix I: Reconciliation of GAAP to Non-GAAP Measures
Appendix I: Reconciliation of GAAP to Non-GAAP Measures Total Income Less Transaction Related Costs For the three months ended For the twelve months ended (in $ thousands) December 31, 2023 September 30,2023 June 30, 2023 March 31, 2023 December 31, 2022 December 31,2023 December 31, 2022 Operating
Slide 23: Appendix II: Reconciliation of GAAP to Non-GAAP Measures
Appendix II: Reconciliation of GAAP to Non-GAAP Measures For the three months ended Adjusted Operating Expenses For the twelve months ended (in $ thousands) December 31, 2023 September 30, 2023 June 30, 2023, March 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Operating expenses $ 4
Slide 24: 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; non-transaction related operating exp
Slide 25: The Responsible Way to Pay
®sezzle The Responsible Way to Pay i