Slide 1: Fourth Quarter 2024 Earnings Presentation
®sezzle The Responsible Way to Pay Fourth Quarter 2024 Earnings Presentation February 25, 2025
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 & Annual Snapshot
Quarterly & Annual Snapshot 4Q24 FY2024 Total Revenue Growth 100.9% 70.1% 707,000 Monthly On-Demand & NetIncome $25.4 $78.5u Subsovibers (MODS3) Net Income Margin 25.8% 29.0% Adjusted Net Income! $26.5mM $66.2m 2024 & 2025 Recognitions Adjusted Net | Margin! IY 49 = z djusted Net Income Margin 26.9%
Slide 4: Enhanced App Features
Enhanced App Features 39% —_________@ Avg. MoM Growth Rate of Coupons Product Marketplace Orders (Initial Rollout in Feb 2025) Stanly Guero: H20Fowstate in 2024 Automatically apply the best coupon at checkout for select merchants, You saved $20.00 maximizing consumer's ™ Tl savings effortlessly (} Y
Slide 5: 707,000 Monthly On-Demand & Subscribers Engagement Fueling Growth
707,000 Monthly On-Demand & Subscribers’ (MODS’) Engagement Fueling Growth ~10 More Orders from Subscribers vs. Non- Subscribers during 4Q24 on Average = MODS ~34x Top 10% Anywhere Subscribers 90-days Frequency4 Sezzle On-Demand _Sezzle Subscription (Premium & Anywhere) Pay-in-4 anywhere Visa is Pre
Slide 6: YoY Engagement Metrics
YoY Engagement Metrics Monthly On-Demand & Subscribers (MODS!) 4024 4Q23 307,000 707,000 +400k YoY Consumer Order Frequency (Weighted Average of Monthly Cohorts Annualized) Dec-24 14.1x Dec-23 10.2x +3.9x YoY Active? Consumers Repeat Usage As A % Of Total Orders (Cumulative) +4.89 + sis I 27000888 i
Slide 7: Last Twelve Months (LTM) QoQ Engagement Metrics
Last Twelve Months (LTM) QoQ Engagement Metrics Monthly On-Demand & Subscribers (MODS!) Active? Consumers Unique Merchants? Shopped at by Consumers 707,000 529,000 462,000 - a [ 1924 2Q24 3Q24 4Q24 2,667,000 2,694,000 612,000 7 1024 2024 3024 2,725,000 4Q24 274,000 208,000 173,000 a 1024 2024" 3Q24
Slide 8: YoY Progression Overview
YoY Progression Overview 4Q23 4Q24 YoY Change FY2023 FY2024 YoY Change Total Revenue $48.9M $98.2M 100.9% f $159.4M $271.1M 70.1% Net Income $2.9M $25.4M 763.0% $7.1M $78.5M —_1006.3% Adjusted Net Income! $2.6M $26.5M 922.3% ff $5.6M $66.2M 1076.9% Adjusted EBITDA Margin? 15.9% 33.1% 17.2Pts ¥ 18.8%
Slide 9: Total Revenue & Gross Merchandise Volume (GMV)
Total Revenue & Gross Merchandise Volume (GMV) Total Revenue $271.1 Ca) 8.1% - $98.2 $48.9 $47.0 $56.0 $70.0 C] Uh lu 4Q23 1Q24 2Q24 3Q24 4Q24 FY2023 FY2024 % of GMV mamma Total Revenue ($ in millions) % of GMV mmm Total Revenue ($ in millions) Gross Merchandise Volume (GMV) +39.2% YoY +42.1% YoY $2
Slide 10: Transaction Related Costs
Transaction Related Costs’ Transaction Expense $13.1 gn gio7 $128 $16.1 4Q23 1Q24 2Q24 3Q24 4Q24 lm Transaction Expense ($ in millions) % of GMV $51.4 FY2023 FY2024 mmm Transaction Expense ($ in millions) % of GMV VTransaction Related Costs is a Provision for Credit Losses $24.4 nH 4 $10.5 $10.1 4Q2
Slide 11: Robust & Proprietary In-House Underwriting Strategy
Robust & Proprietary In-House Underwriting Strategy £ ———© 3% party ML Models Fraud % ¢ Sezzle Proprietary Fraud o Sezzle Proprietary Model O——— fey Underwriting ae Sezzle Model is more predictive than FICO for new Sezzle consumers’ delinquency Sezzle Proprietary & O——_ Oy 34 party ML Models Model (
Slide 12: Controlled Underwriting to Optimize Growth & Profitability
Controlled Underwriting to Optimize Growth & Profitability Approval rates increased in the 2H24 for both ..While the outstanding balance for repeat and new consumers... delinquent consumers remained in-line Approval Rates Average Consumer Balances Repeat Consumer New Consumer —— Average Non-Delinque
Slide 13: Transaction Related Costs
Transaction Related Costs Transaction Related Costs! $120.1 4Q23 1Q24 2Q24 3Q24 4Q24 FY2023 FY2024 % of Total Revenue lm Transaction Related Costs ($ in millions) % of Total Revenue ™mmm Transaction Related Costs ($ in millions) the combi action Rel Sezzle Inc. | 4Q24 Presentation |13 MTransaction R
Slide 14: Total Revenue Less Transaction Related Costs
1 Total Revenue Less Transaction Related Costs As a % of GMV $151.0 wea $38.5 $208 $26.0 $52.2 4Q23 1Q24 2Q24 3Q24 4Q24 FY2023 FY2024 mmm Total Revenue Less Transaction Related Costs ($ in millions) mammal Total Revenue Less Transaction Related Costs ($ in millions) % of GMV % of GMV As a % of Total
Slide 15: Non-Transaction Related Operating Expenses
Non-Transaction Related Operating Expenses % of Total Revenue Total Revenue Less Transaction Related Costs vs. Non-Transaction Related OpEx! 4Q23 1Q24 2Q24 3Q24 4Q24 lms Non-Transaction Related Operating Expenses ($ in millions) % of Total Revenue $82.5 FY2023 FY2024 4Q23 1Q24 2Q24 3Q24 4Q24 mmm Non
Slide 16: Net Income and Adjusted Net Income
Net Income and Adjusted Net Income Net Income $25.4 5 $15.4 ] 8.0 $2.9 | | 4Q23 1Q24 2Q24 3Q24 4Q24 mmm Net Income ($ in millions) % of Total Revenue $78.5 sn a — FY2023 FY2024 mmm Net Income ($ in millions) % of Total Revenue Net Income is a ni $168 million d Adjustments $1.4 $18 $1 soa | ($16.62 4
Slide 17: Net Income and Adjusted EBITDA
Net Income and Adjusted EBITDA’ Net Income & Adjusted Net Income? $78.5 $66.2 29.7 $25.4 $26.5 $13.1 $15.4 $17.3 9 $2. 1 $5.6 _ 4023 1924 2024 3024 4a24 Fy2003 Fv2004 = Net Income ($ in millions) = Adjusted Net Income ($ in millions) ™Net Income ($ in millions) & Adjusted Net Income ($ in millions)
Slide 18: Select Balance Sheet Metrics
Select Balance Sheet Metrics $ in Thousands Key Assets Cash and cash equivalents! Restricted cash Total cash Total notes receivables, net Key Liabilities Merchant accounts payable Drawn on line of credit? Total Stockholders’ Equity! Audited Dec 31, 2023 $67,624 $3.075 $70,699 $130,633 $74,135 $95,00
Slide 19: Outlook
Outlook 2024 Guidance 2024 Actual 2025 Guidance Total Revenue 55% Growth 70% Growth VW 25% — 30% Dae Revenue Less Transaction Related Costs! as a 55.0% 55.7% wa 55% — 60% % of Total Revenue Effective Income Tax Rate Mid-single digit (16.6%) v ~25% Net Income $71.5M $78.5M v $80.4M Net Income Per Dil
Slide 20: Appendices
Appendices
Slide 21: 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 For the twelve months ended (in $ thousands) December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 _ December 31, 2024 December 31,2023 Operating i
Slide 22: 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 For the twelve months ended {in $ thousands) December 31,2024 September 30, 2024 June 30, 2024 March 31,2024 _ December 31, 2023 December 31, 2024 December 31, 2023 Operating expenses $ 67,3
Slide 23: Appendix III: Reconciliation of GAAP to Non-GAAP Measures
Appendix III: Reconciliation of GAAP to Non-GAAP Measures Adjusted Net Income For the three months ended For the twelve months ended (in $ thousands: except per share amounts) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31. 2024 December 31. 2023 December 31. 2023, $ N
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 revenue less transaction related costs; transaction related costs; non-trans
Slide 25: 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 to operating expenses and the al
Slide 26: The Responsible Way to Pay
®sezzle The Responsible Way to Pay So (