Slide 1: The Responsible Way to Pay – Investor Presentation May 2024
@sezzle The Responsible Way to Pay Investor Presentation May 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: Table of Contents
O1 O02 03 Table of Contents Growing Profitably Sezzle at a Glance O4 Through Strong Execution The Markets Sezzle We Serve O05 Leadership Robust & Expanding Product Ecosystem 06 Appendices Sezzle Inc. | Investor
Slide 4: Sezzle at a Glance
Sezzle at a Glance Sezzle Inc, | Investor Presentation | 4
Slide 5: Prized BNPL Platform
Prized BNPL Platform AWARDED BY Ms Forbes OGRNAL rs] Money BUSINESS JOURNAL FORTUNE Buy Side isi CNBC Launch of Launch of Announcement of the Launch of First Quarter Dual Listing Sezzle Platform Sezzle Up Merger with Zip Co —Sezzle Premium of Profitability on Nasdaq — (Nov) — _ fr — 2020 2022 XK es
Slide 6: 1Q24 Snapshot
1Q24 Snapshot 35.5% o{\ 371,000 Total Income Growth o © Total Subscribers 1024) ome (as of March 31, 2024 — $30.0 million soto FY24 GAAP Net Income Guidance $8.0 million feted fom S200 mon $15.0 million GAAP Net Income Adjusted EBITDA! @ (1924) | $5.00 | (1024) ° FY24 GAAP Diluted EPS Guidance ° 17.
Slide 7: Our Mission
OUR MISSION Financially Empowering the Next Generation Justice Positively Financial accessibility, Diversity & inclusion, Affecting Profitability Employee security & wellness © Integrity Increasing Consumer Governance & controls, Integrated I H Committed decision-making, Workplace culture Lifetime V
Slide 8: Sezzle Investment Highlights
Sezzle Investment Highlights Profitable Pure-Play BNPL Delivering Shareholder Value Achieved GAAP Net Income for every quarter since 3Q22, driven Announced $5.0 million share buyback in December 2023, by the success of FY22 and FY23 Initiatives delivered $8.0 million in Net Income in 1@24, and provi
Slide 9: The Markets We Serve
The Markets We Serve
Slide 10: The Nascent and Growing BNPL Market
The Nascent and Growing BNPL Market Buy Now, Pay Later (BNPL) represents less than 2% Sezzle represents less than 1% of North America’s Total Commerce Transaction Value of North America’s Total BNPL Market Digital Other POS Financing Wallet Payment Products cine 4% BNPL & POS Financing $207.3B 2% Cr
Slide 11: Projected U.S. BNPL Growth vs. Retail Sales Growth
Projected U.S. BNPL Growth vs. Retail Sales Growth U.S. Retail Sales Growth U.S. BNPL Growth Sezzle Inc. |
Slide 12: Sezzle Footprint
Sezzle Footprint Core Markets rr > United Represented 91.3% of the Company's total Underlying Merchant Sales (UMS) in = States FY23 . Represented 8.7% of the Company's total UMS in FY23 (+) Canada . i ae & most reviewed BNPL app in Canada’s App Store and Google . The only BNPL that offers consumers
Slide 13: U.S. Consumer Credit Market Snapshot
U.S. Consumer Credit Market Snapshot Younger generations struggle with below average credit scores 2022 U.S. FICO Distribution® 2022 Average FICO by Generation® 760 U.S. Avg: 714 25% 21% 21% 742 16% TA 706 O UL : Poor Feir Good Very Good Exceptional Silent Baby Generation X Millennials Generation Z
Slide 14: Why Millions of Consumers Choose Sezzle
Why Millions of Consumers Choose Sezzle Increasing financial inclusion by providing credit to those who often face challenges in accessing traditional credit options 72% of Sezzle Consumers are 9% Trustpilot ages between 18 — 44 A Better Way to Buy “Sezzle is easy to use, easy to navigate, but reall
Slide 15: Robust & Expanding Product Ecosystem
Robust & Expanding Product Ecosystem
Slide 16: We're Building an All-Encompassing Services Platform
We’re Building an All-Encompassing Services Platform From credit building to paying later anywhere, we are constantly evolving to match the needs of our users ibe ea = ED Virtual Card Sezzle Inc. | Investor Presentation | 16
Slide 17: Comprehensive Suite of Payment Options
Comprehensive Suite of Payment Options Offering a full suite of payment options, allowing consumers to choose based on their schedule and needs Pay-in-Full Pay-in-2 Pay-in-4 Long-Term sezzie Example: $100 Purchase 100% 50% 50% 25% 25% 25% 25% Monthly With APR’ $100 $50 $50 $25 $25 $25 $25 $8.33 Time
Slide 18: Helping Consumers Build Credit
Helping Consumers Build Credit The only BNPL provider in North America to offer credit reporting optionality through Pay-in-4 in the U.S. and Canada TransUnion EQUIFAX Sexperian. Innovis ) serie ® . 2355 Files Sezzle Up consumer purchase activities eos to all major credit bureaus in the U.S. 4@ @ St
Slide 19: Over 371,000 Subscribers Across Premium & Anywhere
Over 371,000 Subscribers! Across Premium & Anywhere a ™~ ; Available in the US and now in Canada (Premium) ; ¥& Trustpilot ¥& Trustpilot “I can purchase, anything...anywhere. | “Ive been a sezzle premium member for love sezzle and would recommend to = 32% In-store Orders as % of Total almost 2 years
Slide 20: Unlocking Growth For Our Merchant Partners
Unlocking Growth For Our Merchant Partners Driving traffic and incremental revenue through a frictionless checkout experience and customized marketing capabilities <6 Months’ Up to 57%' T1O%' Payback period Average Order Value Lift Return on Investment (ROI) Sezzle Inc. | Investor Presentation | 20.
Slide 21: Expanding Our Merchant Ecosystem
Expanding Our Merchant Ecosystem Initial Business Model Launched in 2Q22 Launched in 2Q23 e e e A shopity | Anak Direct & Virtual Card praia Anywhere Integration (Anywhere VISA is accepted) Economics for Sezzle: Economics for Sezzle: Economics for Sezzle: Merchant discount rate (MDR) + Affiliate & G
Slide 22: Consumer Lifetime Value (LTV)
Consumer Lifetime Value (LTV) Building An All-Encompassing Services Platform Anywhere Premium Subscription (2022 & 2023) Building Out a Financial Services Platform ek Sezzle Up Premium: Access to 350+ Premium Merchants & Gift Card platform partners Anywhere: Provides consumers the ability to shop an
Slide 23: Growing Profitably Through Strong Execution
Growing Profitably Through Strong Execution
Slide 24: Increasing Operational Efficiency & Productivity with Proprietary A.I. Models
Increasing Operational Efficiency & Productivity with Proprietary A.|. Models Enhanced Underwriting Payment Processing (near future) Improved payment processing flow (e.g., minimize payment processing costs) Baby Prophet (new consumers signups), Prophet(v4) (existing consumers) models evaluate credi
Slide 25: Early Focus on Profitability
$10 million Announced reduction of workforce (RIF) Early Focus on Profitability Beginning in FY22 Revenue In Apri $17+ million 2022 announced initiatives to accelerate path to profitability * Introduced Sezzle Premium + Incentivized consumers to shift from card to ACH + Offboarded or renegotiated pr
Slide 26: Initiatives Drive Profitability
Initiatives Drive Profitability Initiatives Exceeding Expectations FY2024 Initiatives In the Works Sion New Product Launches FY22 ® Payment Streaks, Initiatives dul © Product Marketplace, and Net Impact ® Bank-enabled Products of the Initiatives Bank Sponsorship ® Unification of standards across the
Slide 27: 1Q24 Engagement Metrics
1Q24 Engagement Metrics Total Subscribers? (Premium & Anywhere) Repeat Usage As A % Of Total Orders (Cumulative) cot TT sco | *229k || ico TTT ss | +117 Bps 1023 NY 12.000 YoY | | 02s SE 4.0% YoY 1022 Not Launched 1022 I 3.3% Active! Consumers Quarterly Purchase Frequency (Average) 1O, oct I 2.502.0
Slide 28: YoY Progression Overview
YoY Progression Overview 1Q23 1Q24 YoY Change Total Income $34.7M $47.0M 35.5% ff GAAP Net Income $1.7M $8.0M 364.3% t Adjusted EBITDA Margin! 23.8% 31.9% 802Bps ff aacitncame tens Tareeton 6.6% BBS ESBS NonTrancfeneltedQPE® 55.79% 38.5% 212 Pe Sezzle Inc. | Investor Presentation | 28
Slide 29: Total Income & UMS
Total Income & UMS Total Income Underlying Merchant Sales (UMS) +33.2% YoY $601.9 $469.5 $492). $48.9 $47.0 $369.8 $383.1 - 7 LI L] LJ LJ LJ U 1Q23 2Q23 3Q23 4Q23 1924 1Q23 2Q23 3Q23 ] (=m Total Income ($ in millions) % of UMS | UMS ($ in millions) | 18.1% QoQ seasonal decrease is consistent with pa
Slide 30: Transaction Expense & Provision for Credit Losses
Transaction Expense & Provision for Credit Losses Transaction Expense Provision for Credit Losses $13.1 $6.7 $4.3 ai mz 1923 2Q23 3Q23 4Q23 1924 1Q23 2Q23 3Q23 4Q23 (@mmm Transaction Expense ($ in millions) | —— % of UMS (mmm Provision for Credit Losses ($ in millions) % of UMS Sezzle Inc. | Investo
Slide 31: Transaction Related Costs
Transaction Related Costs! As a % of Total Income As a % of UMS $28.1 $28.1 1023 2Q23 3Q23 4Q23 1924 1Q23 2Q23 3Q23 4Q23 1924 (jam Transaction Related Costs ($ in millions) % of Total Income (mmm Transaction Related Costs ($ in millions) % of UMS Transaction Related Costs is a non-GAAP financial mea
Slide 32: Total Income Less Transaction Related Costs
Total Income Less Transaction Related Costs! As a % of Total Income As a % of UMS $26.0 $26.0 1Q23 2Q23 3Q23 4Q23 1024 1Q23 2Q23 3Q23 4Q23 1924 jams Total Income Less Transaction Related Costs ($ in millions) % of Total Income lm Total Income Less Transaction Related Costs ($ in millions) % of UMS T
Slide 33: Non-Transaction Related Operating Expenses
Non-Transaction Related Operating Expenses! $19.3 $18.9 $18.9 $17.6 1Q23 2Q23 3Q23 4Q23 1924 1023 2Q23 3Q23 4Q23 1924 lm Non-Transaction Related Operating Expenses ($ in millions) ——— Non-Transaction Related Operating Expenses ($ in millions) —— % of Total Income Total Income Less Transaction Relate
Slide 34: Net Income and Adjusted EBITDA
Net Income and Adjusted EBITDA! GAAP Net Income Non-GAAP Adjusted EBITDA - 5. $8.3 7.8 $6.4 $7.6 $ _ = - a | || _ Ea ee | | 1Q23 2Q23 3Q23 4Q23 1Q24 1923 2Q23 3Q23 4Q23 1924 ‘mmm Net Income ($ in millions) —— % of Total Income ‘mmm Adjusted EBITDA ($ in millions) '% of Total Income Aysted EBITDA is
Slide 35: New Facility Lowering Borrowing Costs and Providing Liquidity for Growth
New Facility Lowering Borrowing Costs and Providing Liquidity for Growth Lender rs BASTION Size $150 million plus $75 million accordion Term 3 years Spread 3-month Term Secured Overnight Financing Rate (SOFR) + 6.75% with a SOFR floor of 2.00% Advance 85% - 90% of eligible originations, dependent up
Slide 36: 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 34,400 Total cash $60,581 $70,699 82,185 Total notes receivables, net $84,781 $130,633 $103,332
Slide 37: FY2024 Outlook
FY2024 Outlook Updated Previous 2022 Actual 2023 Actual 2024 Guidance 2024 Guidance Total Income $125.6M $159.4M $200M; up 25% $I91M; up 20% Total Income less Transaction Related Costs as a % of Total Income 57.8% BO.G% 20.07 50.0% GAAP Net Income (Loss) ($38.1M) $7.1M $30.0M $20.0M GAAP Diluted Ear
Slide 38: Our Long-Term Vision
Our Long-Term Vision AON = Bee 2020 2021 2022 2025: 2024 & Future ' Sezzle Inc. | Investor Presentation | 38
Slide 39: Sezzle Recap
M + Only profitable pure-play BNPL Financial * Prudent, simple, and sustainable capital structure Performance Sezzle 1) + Responsible and transparent lending practices Recap Product + Providing financial access to the Next Generation Innovation CO + Only B-Corp Certified BNPL Stakeholder-focused app
Slide 40: Sezzle Leadership
Sezzle Leadership
Slide 41: Executive Team
Executive Team » 2 ain Charlie Youakim Paul Paradis Karen Hartje Amin Sabzivand Co-founder, Co-founder, Chief Financial Officer Chief Operating Officer Executive Chairman & CEO Chief Revenue Officer Sezzle Inc. | Investor Presentation | 41
Slide 42: Appendices
Appendices
Slide 43: Appendix I: Reconciliation of GAAP to Non-GAAP Measures
Appendix |: Reconciliation of GAAP to Non-GAAP Measures Total Income Less 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 income (loss) $ 13,835 $ 7,667 $ 5,350 $ 3,763 $ 5,420 Personnel 7
Slide 44: 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 $ 374 $ 29,254 Personnel (11,025) (1,700) (1,079
Slide 45: 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 cosis; transaction related costs; non-transa
Slide 46: 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 47: Thank You
Thank You Lee Brading, CFA SVP, Corporate Development & Investor Relations InvestorRelations@sezzle.com Erin Foran Media & PR MediaRelations@sezzle.com Sezzle Inc. | Investor Presentation | 47