Slide 1: The Responsible Way to Pay: Third Quarter 2024 Earnings Presentation
®sezzle The Responsible Way to Pay Third Quarter 2024 Earnings Presentation
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: Quarterly Snapshot
Quarterly Snapshot . World’s Top 250 es Impact 150: Leading Fastest-growing Public New] Awards 2022 %% Fintech Companies Worth Sustainability Progress SS Companies in Minnesota 71.3% “ FY2024 Guidance, 529,000 ws e wy Total Revenue Growin $58.0 million \ Active Subscribers . (as of September 30, 202
Slide 4: Our Guiding Principles
Our Guiding Principles Positively Affecting Profitability © . oc as ® © Increasing Consumer Lifetime Value (LTV) ie a8 Acquiring New Users 2. Enhancing Stakeholder Satisfaction Sezzle Inc. | 3Q24 Presentation | 4
Slide 5: Propelling Growth through a Bank Partner
Propelling Growth through a Bank Partner WebBank Partnership ® sezzle Launch of unified fees W)} WebBank A STEEL PARTNERS COMPANY * WebBank is a Utah-chartered Streamlined industrial bank regulatory approach * Entered 5-year strategic partnership program on August 261, 2024; launched at the end of S
Slide 6: Expanding Reach & Consumer Impact through Innovation
Expanding Reach & Consumer Impact through Innovation Potential Future Products Subscription Gy (2022 & 2023) <V pre o, Credit Reporting yet Direct Integration (2021) —— (2017) Si OMER Financial Tools Shopping Tools cu On-Demand Product Marketplace i EASING incR Debit & Credit Card = Premium & Anywhe
Slide 7: First Product Launch with WebBank
First Product Launch with WebBank On-Demand’ Pay-in-4 Just Got More Flexible How it works Benefits for Sezzle a >) ——>, Shop any brand in the "Was Sezzle app or anywhere? a LD Enhances the ability to compete : for enterprise merchants Request single-use amount — needed eee tits Pay 25% + a service f
Slide 8: Sezzle Subscriptions
Sezzle Subscriptions ‘hop blogor brace Anywhere m ~8 More Orders from ~39% ~30x © Poyin 4 anywnoro Viea ie aocepted ® In-app deals & discounts Oana In-store Orders as % Top 10% Anywhere Subscribers vs. Non- © Riker of Total Anywhere Subscribers 90-days Suinearioars aluitn © Upto We beckon purchases
Slide 9: Saving with Sezzle
Saving with Sezzle Back-To-School Edition Gi 4 Building Consumer Connections through Strategic Marketing Expanding Engagement Strategies Increasing Awareness, Personalization, & Testing * Official Jersey Patch Partner of the Minnesota Timberwolves * Expanding direct-to-consumer campaigns via social
Slide 10: 3Q24 YoY Engagement Metrics
3Q24 YoY Engagement Metrics Active Subscribers? (Premium & Anywhere) Repeat Usage As A % Of Total Orders (Cumulative) ot TT s2c00 TSITK 50k TT v7 +71 Bps 5025. [i 210.000 YoY 32s UTTAR o5.0% YoY Active! Consumers Quarterly Purchase Frequency (Average) te} ont (TTT 2.507.000 15.0% scot TG so +1.5x 52
Slide 11: Last Twelve Months (LTM) QoQ Engagement Metrics
Last Twelve Months (LTM) QoQ Engagement Metrics Active Subscribers? (Premium & Anywhere) Active! Consumers Unique Merchants? Shopped at by Consumers 529,000 462,000 371,000 307,000 T 4Q23 1924 2Q24 3Q24 2,601.000 2,594,000 2,612,000 4Q23 1024 2Q24 2,667,000 3Q24 208,000 178,000 173,000 T 4023 1024 2
Slide 12: YoY Progression Overview
YoY Progression Overview 3Q23 3Q24 YoY Change Total Revenue $40.8M $70.0M 71.3% t Net Income $1.3M $15.4M 1,093.3% t Adjusted Net Income! $1.2M $17.3M 1,349.2% ff Adjusted EBITDA Margin2 18.5% 32.2% 13.7Pts tf Related Crete ee a 96 of Total Revenue 49.2% 55.0% 5.8 Pts t Non-Transaction Related OpEx*
Slide 13: Total Revenue & UMS
Total Revenue & UMS Total Revenue Underlying Merchant Sales (UMS) +40.6% YoY $601.9 $70.0 $532.2 $469.5 $492.7 ; 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 mmm Total Revenue ($ in millions) % of UMS = UMS ($ in millions) Sezzle Inc. | 3Q24 Presentation | 13
Slide 14: Transaction Related Costs
Transaction Related Costs Transaction Expense Provision for Credit Losses Net Interest Expense (21% }{22% }{ 2.4% } {2.0% H 19% J ; 9% Hoax }0.8% (osx ome) $31 gna gig = 8128 $105 $10.1 SEL OS% Been weaee ate cc O , & Bee $15.4 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q
Slide 15: Robust & Proprietary In-House Underwriting Strategy
Robust & Proprietary In-House Underwriting Strategy False Prophet & | | | [ a | | | 34 party ML Models Fraud Existing 3'¢ Party ML Models Fraud | Baby Prophet | | Underwriting | CamSULIENE [ ( actor) | | Underwriting ] wee econ ne ennneewononeusvooenesenennnen Toon cn cree non neeeenn nnn, Spending
Slide 16: Total Revenue Less Transaction Related Costs
Total Revenue Less Transaction Related Costs' As a % of Total Revenue As a % of UMS $38.5 $38.5 $20.1 $20.8 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 lm Total Revenue Less Transaction Related Costs ($ in millions) mmm Total Revenue Less Transaction Related Costs ($ in millions) % of UMS % of
Slide 17: Non-Transaction Related Operating Expenses
Non-Transaction Related Operating Expenses % of Total Revenue Total Revenue Less Transaction Related Costs vs. Non-Transaction Related OpEx' $21.0 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 mmm Non-Transaction Related Operating Expenses ($ in millions) Non-Transaction Related Operating Expens
Slide 18: Net Income and Adjusted Net Income
Net Income and Adjusted Net Income Net Income Adjustments Adjusted Net Income! Includes $16.8 million discrete income tax benefit from the release of the valuation allowance previously recorded on $17.3 $15.4 . : $13.1 $9.4 $8.0 gis $29 gio 826 | ($16.6) —_—_ 3Q23 4023. 1Q24.— -2Q24— 3Q24 3Q23 4023
Slide 19: Net Income and Adjusted EBITDA
Net Income and Adjusted EBITDA’ Net Income & Adjusted Net Income? Non-GAAP Adjusted EBITDA $29.7 $22.5 $17.3 $15.4 $13.1 $8.0 $9.4 $2.9 $0.6 $1.3 $1.2 : — 3Q23 4Q23 1024 2Q24 3Q24 3Q23 4Q23 1024 2Q24 3Q24 |= Net Income ($ in millions) Adjusted Net Income ($ in millions) mmm Adjusted EBITDA ($ in mil
Slide 20: Select Balance Sheet Metrics
Select Balance Sheet Metrics Unaudited Unaudited Unaudited $ in Thousands Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Key Assets Cash and cash equivalents! $77,785 $58,026 $80,063 Restricted cash $4,400 $5,966 $8,281 Total cash $82,185 $63,992 $88,343 Total notes receivables, net $103,332 $119,235 $132,7
Slide 21: Outlook
Outlook 2024 Guidance (Provided in 1Q24) Total Revenue Total Revenue Less Transaction Related Costs!as a % of Total Revenue Net Income Net Income Per Diluted Share Adjusted Net Income? Adjusted Net Income Per Diluted Share? zorsrcnet | 04 idee 2024 Gece $159.4M 55% Growth 35% - 40% Growth 50.8% 55.0
Slide 22: Appendices
Appendices
Slide 23: Appendix I: Reconciliation of GAAP to Non-GAAP Measures
Appendix |: Reconciliation of GAAP to Non-GAAP Measures Total Revenue Less Transaction Related Costs For the three months ended (in $ thousands) September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Operating income $ 20,841 $ 16,699 $ 13,835 $ 7,667 $ 5,350 Personne 1
Slide 24: 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) September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Operating expenses $ 49,117 $ 39,269 $ 33,144 $ 41,234 $ 35,494 Personnel (13,424) (12,7
Slide 25: Appendix III: Reconciliation of GAAP to Non-GAAP Measures
Appendix III: Reconciliation of GAAP to Non-GAAP Measures Adjusted Net Income (in $ thousands: except per share amounts) For the three months ended For the twelve months ended September 30, 2024 June 30, 2024 March 31, 2024 December 31,2023 September 30, 2023 December 31, 2023 Net income $ 5,446 $ 2
Slide 26: 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 revenue less transaction related costs; transaction related costs; non-trans
Slide 27: Non-GAAP Financial Measures (Cont.)
Non-GAAP Financial Measures (Cont.) Additionally, we have included these non-GAAP measures because they are key measures used by our management to evaluate our operating performance, guide future operating plans, and make strategic decisions, including those relating 10 operating expenses and the al
Slide 28: The Responsible Way to Pay
®sezzle The Responsible Way to Pay So (