Slide 1: The way forward. 2Q21 Presentation
The way forward. 2Q21 Presentation 17 AUGUST 2021 This presentation is authorised for release by the Board 16 August 2021
Slide 2: Disclaimer
DISCLAIMER This Presentation contains summary information about the current 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 to change wit
Slide 3: Our Mission: Financially Empower the Next Generation
OUR MISSION Financially Empower the Next Generation SEZZLE INC 2Q21 PRESENTATION | 3
Slide 4: A Different Kind of Payments Company
A Different Kind of Payments Company Budgeting Flexibility Mission Driven Consumer Financial Freedom Improved Merchant Results Seamless Integration Partnership Approach SEZZLE INC 2Q21 PRESENTATION | 4
Slide 5: Two-sided Network for Merchants and Consumers
Two - sided Network for Merchants and Consumers For Merchants For Consumers Consumer insights and marketing Daily settlement and no credit or fraud risk Increased AOV and lower product returns Higher Purchase Frequency No interest 1 Payment flexibility Tap and build credit Access new brands Fully Di
Slide 6: Scaled Platform
Scaled Platform $1.4 billion LTM UMS 1,4 2.2 million+ Cumulative App Downloads 5 41,800 Active Merchants 3,4 4.8 / 5.0 Trustpilot Rating 7 3.0 million Active Consumers 2,4 49x Average Annual Transactions for Top 10% of Consumers 6 1 UMS defined as total value of sales made by merchants based on the
Slide 7: We're Just Getting Started With Our Growth Plans
We’re Just Getting Started With Our Growth Plans Market Penetration x Large upside potential given low BNPL p enetration of e - commerce (1.6% in North America 1 ) x New product verticals seeing increased user and merchant demand for BNPL offerings Product Innovation x Long - term installment offeri
Slide 8: Tapping into a Global Market
Tapping into a Global Market. SEZZLE INC 2Q21 PRESENTATION | 8 Canada • Launched in Spring 2019 • UMS run - rate > US$100M (based on May 2021 UMS) • 2Q21 Active Consumers rose 320% to > 150k • 2Q21 Active Merchants up 290% to > 2,600 Europe • Pilot/Market Development began at the end of 2020 • Step
Slide 9: Building Network of Omnichannel Solutions
` Building Network of Omnichannel Solutions The Sezzle Network Payment Related E - Commerce Platforms Other Institutions Card Networks Banks Credit Reporting Agencies Note: Graphic not indicative of partner size. SEZZLE INC 2Q21 PRESENTATION | 9
Slide 10: Partnership with Discover
Partnership with • 19 July 2021, Sezzle issued Discover Financial Services (“Discover”) 4,559,270 shares of the Company’s common stock for US$30.0 million. • Sezzle and Discover are finalizing a definitive commercial agreement, including: • Plans for a buy now, pay later network solution on the Disc
Slide 11: Preferred BNPL Partner for BigCommerce
• 03 August 2021, BigCommerce announced Sezzle , as a new preferred buy now, pay later partner. • As of 30 June 2021, BigCommerce served ~58,000 online stores across industries in ~147 countries. • Natively integrated as a payment gateway in the BigCommerce Control Panel, merchants can enable the Se
Slide 12: From Start-ups to Large Retail Enterprises
From Start - ups to Large Retail Enterprises SEZZLE INC 2Q21 PRESENTATION | 12
Slide 13: Key Digital Payments Platform
Key Digital Payments Platform Leading recognition across the industry 4. 8 6,252 Reviews 4. 8 14,000 Reviews 4. 7 14,392 Reviews Best Buy - Now - Pay - Later App for Students Top 10 Payment and Card Solution Providers Top Installment Platform 4.9 28,000 Reviews SEZZLE INC 2Q21 PRESENTATION | 13
Slide 14: Strong Underlying Merchant Sales and Healthy Income Levels
Note: Repeat Usage defined as cumulative orders made by returning end - customers to date relative to total cumulative orders to date. Top 10% of consumers measured by UMS over rolling 12 - month period ended 30 June 2021. Strong Underlying Merchant Sales and Healthy Income Levels Key drivers of gro
Slide 15: Transaction and Net Interest Expense
Transaction and Net Interest Expense Favorable trends in transaction and net interest expense from ACH, higher AOVs and new credit facility SEZZLE INC 2Q21 PRESENTATION | 15 US$M 31/03/20 30/06/20 31/03/21 30/06/21 Net interest expense 0.8$ 1.0$ 1.4$ 1.2$ As % of UMS Net interest expense 0.7% 0.6% 0
Slide 16: Provision for Uncollectible Accounts
Provision for Uncollectible Accounts Provision for uncollectible accounts as a % of UMS Pr ovision for uncollectible accounts affected by: • Expansion testing with large enterprise merchants • Non - integrated product offerings • COVID - 19 and resulting stimulus SEZZLE INC 2Q21 PRESENTATION | 16 US
Slide 17: Other Operating Expenses
Other Operating E xpenses • Other operating expenses growth is mostly driven by personnel and related compensation costs which represent over 65% of other operating expenses. About 47% of personnel and related compensation costs are non - cash in the form of equity and incentive - based compensation
Slide 18: Well-Capitalized for the Future
• Subsequent to quarter end, Sezzle received a US$30M investment from Discover. • In February 2021, refinanced receivables funding facility with a new 28 - month US$250M facility. x Lowered borrowing costs, x Extended maturity, and x Increased capacity. • Certain merchants elect not to receive trans
Slide 19: Thank You
Thank You