Slide 1: 1Q23 Earnings Presentation
1Q235 EARNINGS PRESENTATION 16 May 2023
Slide 2: Disclaimer
DISCLAIMER Cautionary Note Regarding Forward-Looking Statements. This presentation (the “Presentation") contains summary information about the activities of Sezzle as atthe date of this Presentation. The information in this Presentation is of @ general nature and does not purport to be complete and
Slide 3: The Responsible Way to Pay
@sezzle THE RESPONSIBLE WAY TO PAY™ Y Greater flexibility with Pay in Full, Pay in 2, Pay in 4, and Long-Term Financing Y Ability to build credit through Sezzle Up’ PREMIUM Elevated experience through Premium 6 sezzle@: +20 points increase within 4 months of enrolling in Sezzle Up [ - Feistonrhaioen
Slide 4: Building a Trusted Payment Platform
Prada). aly BUILDING A TRUSTED PAYMENT PLATFORM to build credit and get products with easy,payMents 99 D. Gibson, Sezzle Customer ~ § Great opportunity 4.9 kxwxs ied 4 4./ r GB Google Play
Slide 5: Year-over-Year Progression to Profitability
YEAR-OVER-YEAR PROGRESSION TO PROFITABILITY 2022 ee: 1Q22 Total Income Net Income Unit Economics (Non-GAAP)! as a % of UMS Merchant Processing Fee as a % of Total Income Non-Transaction Related OpEx as % of Total Income "Unit Economies is measured b Expense, and write-off of ne $27.6M ($28.0M) 0.8%
Slide 6: 1Q23 Update
1Q23 UPDATE
Slide 7: 1Q23 Performance and Financial Scorecard
1Q23 PERFORMANCE AND FINANCIAL SCORECARD 6 TOTAL INCOME (US$ in MILLIONS) +25.5% 1022 $27.6 YoY 1021 $26.0 ADJUSTED EBITDA’ (US$ in MILLIONS) 1023 Dy $8.3 +$26.0M 1022 ($17.8) YoY 1921 ($3.4) TOTAL INCOME LESS TRANSACTION RELATED COSTS? (US$ in MILLIONS) I 6 ny 1Q22 $3.8 YoY 1921 $7.2 Aste EBITDA an
Slide 8: 1Q23 Engagement Scorecard
1Q23 ENGAGEMENT SCORECARD ACTIVE’ CONSUMERS 0s A 2.720.000 . 1922 3,291,000 15.5% 1Q21 2,260,000 YoY SEZZLE PREMIUM ACTIVE SUBSCRIBERS 1Q22 Not Launched N/A 1Q21 Not Launched ACTIVE MERCHANTS os TTT =0 1g. 89% 1922 48,000 1021 34,000 YoY Active is defined as having had at least one transaction throu
Slide 9: Total Income & UMS
TOTAL INCOME & UMS $29.3 Total Income $38.3 ya22 2022 3022 4022 1023 ‘=mmmm Total Income ($US in millions) ——=% of UMS Underlying Merchant Sales (UMS) $450.5 $452.3 $419.1 $421.5, ee ya22 2022 3022 4022 1023 "= UMS ($US in millions) COMMENTARY Although UMS declined YoY in 1Q23, Total Income rose 25.
Slide 10: Transaction Expense
TRANSACTION EXPENSE COMMENTARY * Transaction Expense continued to show YoY improvement . as it decreased 39 bps YoY to 2.2% of UMS. Transaction Expense * The drop in Transaction Expense as a percentage of UMS $11.8 was driven by Company initiatives including, but not limited to: = Payment strategies
Slide 11: Provision for Credit Losses
PROVISION FOR CREDIT LOSSES COMMENTARY * Sezzle posted a new quarterly low in the Provision for Credit Losses. Provision for Credit Losses * In addition to continuous improvement to the Company's proprietary underwriting such as the Prophet Machine Learning Model launched in 2022, receivables origin
Slide 12: Total Income Less Transaction Related Costs
TOTAL INCOME LESS TRANSACTION RELATED COSTS’ Total Income Less Transaction Related Costs COMMENTARY Bee parse MS $21.4 + Total Income less Transaction Related Costs continued to set new quarterly highs as it reached US$21.4 million in 1Q23, representing a 468.4% increase YoY. * Similarly, unit econo
Slide 13: Non-Transaction Related Operating Expenses
NON-TRANSACTION RELATED OPERATING EXPENSES COMMENTARY * 1Q23 Non-Transaction Related Expenses decreased by . . 38.7% YoY to US$19.3 million. Non-transaction Related Operating Expenses $31.5 * YoY improvements in costs were experienced across the board from third-party tech and data, marketing, and p
Slide 14: Net Income and Adjusted EBITDA
NET INCOME AND ADJUSTED EBITDA GAAP Net income (Loss) COMMENTARY * For the third consecutive quarter, Sezzle delivered positive GAAP Net Income, reaching US$1.7 million on account of key FY22 initiatives including the Company's enhanced underwriting capabilities and growth of Sezzle’s subscription p
Slide 15: Capitalization
CAPITALIZATION Audited Unaudited’ US$ in thousands 31-Dec-2022 31-Mar-2023 Cash and cash equivalents $68,280 $59,039 Restricted cash $1,243 $1,542 Total cash $69,523 $60,581 Drawn on line of credit $65,000 $59,800 Availability on line of credit $478 $491 o oeme aise COMMENTARY + As of 31 March 2023,
Slide 16: April '23 Update
APRIL °235 UPDATE
Slide 17: Key Statistics for April '23
KEY STATISTICS FOR APRIL ’23' TOTAL INCOME US$11.5M +19.1% YoY GAAP NET INCOME US$45.1K +US$4.6M YoY ADJUSTED EBTDA US$O.9M +US$4.6M YoY ADJUSTED EBITDA US$2.1M +US$5.3M YoY SEZZLE PREMIUM 155,000 @ v5 20 vavctes As of 15 May 2023 COMMENTARY Total Income for April rose 19.1% YoY to US$11.5 million.
Slide 18: Update on FY2023 Initiatives
UPDATE ON FY2023 INITIATIVES Key initiatives expected to launch in the 2H23 + Pay Anywhere card product + Affiliate payment models + Pay-per-click placement + Bank partnership
Slide 19: Update on U.S. Listing and FORUS Removal
UPDATE ON U.S. LISTING AND FORUS REMOVAL Recent Announcements © What to Expect in Coming Weeks . cc] Amendment to Form S-] Resale Registration * Effective May 8, 2023, the FORUS Statement to be filed with US Securities & Exchange designation was removed from the Commission company’s CDIs. + US. inve
Slide 20: Appendices
APPENDICES
Slide 21: 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 $US thousands) March 31,2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Total income $ 34673. $ 38,276 $ 30,408 $ 29,252 $ 27,634 Less: Transactio
Slide 22: Appendix II: Reconciliation of GAAP to Non-GAAP Measures
APPENDIX II: RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED OPERATING EXPENSES AND OTHER INCOME AND EXPENSES For the three months ended fin $US thousands) March 31, 2023_ December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Operating expenses $ 29,254 $ 33,534 $ 23,909 $ 42,805 $
Slide 23: 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 earnings before taxes, depre
Slide 24: Sezzle - The Responsible Way to Pay
%sezzle & = The Responsible Way ike) Pay™ . te ="