Sezzle Inc. · NASDAQ:SEZL
Sezzle — Q1 2024 Earnings Presentation
23 slides from Sezzle's earnings presentation, May 8, 2024
Slide 1: 1Q24 Earnings Presentation
® sezzle 1Q24 Earnings Presentation May 8, 2024
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: Trusted & Profitable BNPL Platform
Trusted & Profitable BNPL Platform 35.5% Total Income Growth (1Q24) $8.0 million GAAP Net Income (1Q24) 17.0% GAAP Net Income Margin (1Q24) 31.0% Return on Equity for the Quarter? (1Q24) Adjusted EBITDA Marg) a $30.0 million FY24 GAAP Net Income Guidance (Raised from $20.0 million) $5.00 FY24 GAAP D
Slide 4: Our Guiding Principles
Our Guiding Principles Positively Affecting Profitability ie AQ Acquiring New Users ©_® ® ©. Increasing Consumer Lifetime Value (LTV) 2. Enhancing Stakeholder Satisfaction Sezzle Inc. | 1Q24 Presentation | 4
Slide 5: Over 371,000 Subscribers Across Premium and Anywhere
¥& Trustpilot Over 371,000 Subscribers! Across Premium and Anywhere Available in the US and now in Canada (Premium) “I can purchase, anything...anywhere. | 5 love sezzle and would recommend to ~32% In-store Orders as % of Total everyone!! You can buy tickets to a Anywhere Orders? show, groceries, cl
Slide 6: Building for the Future
Building for the Future Key Initiatives New Product Launches + New Product Launches Payment Streaks Upgraded Product Marketplace o Payment Streaks, o Product Marketplace, and o Bank-enabled Products + Bank Partnership o Unification of standards across the US = Regulatory approach = Consistency of fe
Slide 7: Engaging Our Consumers
Engaging Our Consumers SEZZLE PRESENTS Payment REFRESH = Tevalane RESPONSIBLY Budget Streaks Sezzle Inc. | 1Q24 Presentation |7
Slide 8: 1Q24 Engagement Metrics
1Q24 Engagement Metrics Total Subscribers? (Premium & Anywhere) 1Q22 Not Launched U +229k YoY . 7 Repeat Usage As A % Of Total Orders (Cumulative) +117 Bps YoY r Active! Consumers -6.7% YoY Quarterly Purchase Frequency (Average) 1924 1023 1022 Unique Merchants? Shopped at by Consumers 1024 AAA 49.00
Slide 9: YoY Progression Overview
YoY Progression Overview 1Q23 1Q24 Total Income $34.7M $47.0M GAAP Net Income $1.7M $8.0M Adjusted EBITDA Margin! 23.8% 31.9% Related! Coots? sa om of voted Knvome 61.6% 55.5% Non-Transaction Related OpEx® 55.7% 34.5% as a % of Total Income Sezzle Inc. | 1Q24 Presentation |9 YoY Change 35.5% 364.5%
Slide 10: Total Income & UMS
Total Income & UMS Total Income Underlying Merchant Sales (UMS) +33,.2% YoY $369.8 $383.1 7 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 $492.7 mmm Total Income ($ in millions) % of UMS BUMS (¢ in millions) | 18.1% QoQ seasonal decrease is consistent with past performance Sezzle Inc. | 1Q24 Presentation
Slide 11: Transaction Expense & Provision for Credit Losses
Transaction Expense & Provision for Credit Losses Transaction Expense Provision for Credit Losses $13.1 $6.7 $43 $5.1 | 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 mmm Transaction Expense ($ in millions) % of UMS. mmm Provision for Credit Losses ($ in millions) % of UMS. Sezzle Inc. | 1Q24 Pre
Slide 12: Transaction Related Costs
Transaction Related Costs! As a % of Total Income As a % of UMS $28.1 $28.1 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 mmm Transaction Related Costs ($ in millions) % of Total Income mmm Transaction Related Costs ($ in millions) % of UMS. Transaction Related Costs is a non-GAAP financial meas
Slide 13: Total Income Less Transaction Related Costs
Total Income Less Transaction Related Costs! As a % of Total Income As a % of UMS $26.0 $26.0 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1924 lm Total Income Less Transaction Related Costs ($ in millions) % of Total Income mmm Total Income Less Transaction Related Costs ($ in millions) % of UMS 1T
Slide 14: Non-Transaction Related Operating Expenses
Non-Transaction Related Operating Expenses! $19.3 $18.9 $18.9 $17.6 1Q23 2Q23 3Q23 4Q23 1924 1Q23 2Q23 3Q23 4Q23 1Q24 mamas Non-Transaction Related Operating Expenses ($ in millions) Non-Transaction Related Operating Expenses ($ in millions) % of Total Income Total Income Less Transaction Related Co
Slide 15: Net Income and Adjusted EBITDA
Net Income and Adjusted EBITDA! GAAP Net Income Non-GAAP Adjusted EBITDA . : $8.3 5 $6.4 $7.6 $7.8 $2.9 as oe 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 lm Net Income ($ in millions) % of Total Income mmm Adjusted EBITDA ($ in millions) % of Total Income Adjusted EBITDA is a non-GAAP financia
Slide 16: New Facility Lowering Borrowing Costs and Providing Liquidity for Growth
Lender Size Term Spread Advance New Facility Lowering Borrowing Costs and Providing Liquidity for Growth | ra BASTION $150 million plus $75 million accordion 3 years 3-month Term Secured Overnight Financing Rate (SOFR) + 6.75% with a SOFR floor of 2.00% 85% - 90% of eligible originations, dependent
Slide 17: Select Balance Sheet Metrics
Select Balance Sheet Metrics Unaudited Audited Unaudited $ in Thousands Mar 31, 2023 Dec 31, 2023 Mar 31, 2024 Key Assets Cash and cash equivalents $59,039 $67,624 $77,785 Restricted cash $1,542 $3,075 $4,400 Total cash $60,581 $70,699 $82,185 Total notes receivables, net $84,781 $130,633 $103,332 K
Slide 18: FY2024 Outlook
FY2024 Outlook Updated Previous 2022 Actual 2025 Actual 2024 Guidance 2024 Guidance Total Income $125.6M $159.4M $200M; up 25% $I191M; up 20% Total Income less Transaction Related 37.5% 50.8% 50.0% 50.0% Costs as a % of Total Income GAAP Net Income (Loss) ($38.1M) $7.1M $30.0M $20.0M GAAP Diluted Ea
Slide 19: Appendices
Appendices
Slide 20: 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 (in $ thousands) March 31,2024 _ Docember 31, 2023 Soptembor 30,2023 June 30, 2023 March 31, 2023 Oporating income (loss) $ 3,835 $ 7,667 $ 5,350 $ 3763 $ 5,420 Personnel 11
Slide 21: Appendix II: Reconciliation of GAAP to Non-GAAP Measures
Appendix II: Reconciliation of GAAP to Non-GAAP Measures Transaction Related Costs For the three months ended (in $ thousands) March 31,2024 December 31, 2023 September 30,2023 June 30, 2023 March 31, 2023 Operating expenses $ 33,144 $ 41,234 $ 35,494 § 31174 $ 29,254 Personnel (11,025) (1,700) (11,
Slide 22: 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; transaction related costs: non transa
Slide 23: The Responsible Way to Pay
®sezzle The Responsible Way to Pay a