Slide 1: The Responsible Way to Pay: Investor Presentation February 2025
@sezzle The Responsible Way to Pay Investor Presentation February 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 ofthis Presentation. The information in this Presentation is of a general nature and does not purport fo be complete and t
Slide 3: Sezzle at a Glance
Sezzle at a Glance Sezzle Ine. | Investor Presentation 13
Slide 4: Prized BNPL Platform
Prized BNPL Platform Since Inception? Launch of WebBank Delisted Partnership i Completed $9 B ++ Gross Merchandise Volume rmination + Quacer ema gamete, Soma ofPlanned _ of Profitability re ane Repurchases! Merger 4 (Initiatives ‘Aug 23) with Zip Co. nounced in Launch of (Announced far 22) Atetnea S
Slide 5: Quarterly & Annual Snapshot
Quarterly & Annual Snapshot 4Q24 FY2024 Total Revenue Growth 70.1% Net Income $78.5m Net Income Margin 29.0% Adjusted Net Income! $66.2m Adjusted Net Income Margin! 24.4% Return on Equity? 142.9% Monthly On-Demand & Subscribers (MODS°) 707,000 ‘As of December 31, 2024
Slide 6: The Markets We Serve
The Markets We Serve Sezzle Ine. | Investor Presentation 16
Slide 7: 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 In-store Wallet Payment Financing : Products $129.98 3% BNPL & POS $230B Finanei
Slide 8: 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 78%! 49 47 4.2 of Sezzle consumers are ages between Sataalied tk tke tek 18 — 47 (Gen Z & Millennial) Giza ke Trustpilot 3 — *& Trustp
Slide 9: Robust & Expanding Product Ecosystem
Robust & Expanding Product Ecosystem
Slide 10: 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 esexzle @sezzle Compete your ordar Example: $100 Purchase 100% 50% 50% 25% 25% 25% 25% Monthly With APR’ $100 $50 $5
Slide 11: Helping Consumers Build Credit History through Sezzle Up
Helping Consumers Build Credit History through Sezzle Up The only BNPL platform in North America to offer credit reporting optionality through Pay-in-4 in the U.S. and Canada TransUnion EQUIFAX Sexperian Innovis ) Files Sezzle Up consumer purchase activities to all major credit bureaus in the U.S. S
Slide 12: 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 Shop any brand in the Sezzle app or anywhere? a Enhances the ability to compete . for enterprise merchants Request single-use amount needed Pay Service Fee? at the Early data supports great
Slide 13: 707,000 Monthly On-Demand & Subscribers
707,000 Monthly On-Demand & Subscribers! (MODS?) Engagement Fueling Growth ~10 More Orders from Subscribers vs. Non Subscribers during 4Q24 on Average NPS sezzle ‘esezzle = MODS ~34x Top 10% Anywhere Subscribers 90-days Frequency* Sezzle On-Demand _Sezzle Subscription (Premium & Anywhere) Pay-in-4 a
Slide 14: 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 Merchant Benefits Personalized Shopping Product Marketplace In-App Placement <6 Months’ Payback period Up to 57%' Average Order Value Li
Slide 15: Initial Business Model: Expanding Our Ecosystem
Initial Business Model Expanding Our Ecosystem Launched in 2Q22 Launched in 2Q23 Launched in 4Q24 e e e > \ shopify MMegent WiXcor (CoD commence Premium ee tnd Direct & Virtual Card Integration Economics for Sezzle: + Merchant discount rate (MDR) + Interchange revenue (VC integration) On-Demand (Any
Slide 16: Expanding Reach & Consumer Impact through Innovation
Expanding Reach & Consumer Impact through Innovation Credit Reporting (2021) Direct Integration (2017) i . Pay-in-4, Pay-in-Full, Pay-in-2 ay + Consumer generally + Free to opt-in credit builder acquired at point of + Reports consumer ° checkout payments to credit bureaus + Shops at select Sezzle to
Slide 17: Enhanced App Features
Enhanced App Features 39% en Avg. MoM Growth Rate of Coupons Product Marketplace Orders (Initial Rollout in Feb 2025) Stn Guach 12.0 Powtnte rambler 400% (1000 mi) in 2024 Automatically apply the best coupon at checkout for select merchants, boosted maximizing consumer’s ALY savings effortlessly oo
Slide 18: Saving with Sezzle
Saving with Sozzle Back-To-School Building Consumer Connections Edition és : through Strategic Marketing on @ Expanding Engagement Strategies Increasing Awareness, Personalization, & Testing C) * Official Jersey Patch Partner of the Minnesota Timberwolves + Expanding direct-to-consumer campaigns via
Slide 19: Growing Profitably Through Strong Execution
Growing Profitably Through Strong Execution
Slide 20: Early Focus on Profitability
Early Focus on Profitability Beginning in FY2022 Revenue Initiatives * Introduced Sezzle Premium + Offboarded or renegotiated pricing with merchants and network partners + Affiliate merchant enhancements Incentivized consumers to shift from card to ACH Introduced Pay-in-Full Cost Initiatives + Impro
Slide 21: Initiatives Drive Profitability
Initiatives Drive Profitability Initiatives Exceeding Expectations FY2024 Initiatives Launched $66.2M 2024 Adjusted Net Income New Product Launches j 9 Payment Streaks (completed), 9 Product Marketplace (completed), and 9 Bank-enabled Products (On-Demand $5.6M $78.5 Million launched!) 2023 Adjusted
Slide 22: Propelling Growth through a Bank Partner
Propelling Growth through a Bank Partner WebBank Partnership ®sezzle Launch of unified fees IW] WebBank : A STEEL PART S COMPANY + WebBank is a Utah-chartered Streamlined industrial bank regulatory approach + Entered 5-year strategic partnership program on August 26!", 2024; launched at the end of S
Slide 23: Robust & Proprietary In-House Underwriting Strategy
Robust & Proprietary In-House Underwriting Strategy Sezzle Proprietary & O——— £ Pd ———©_ 3 party ML Models 34 party ML Models Fraud Fraud Sezzle Proprietary Model O——— Pd ~ UF ¢ Sezzle Proprietary Underwriting Me Model (4** generation) Underwriting sezzle Model lamers predichve nen HICO for Spending
Slide 24: 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-Del
Slide 25: YoY Progression Overview
YoY Progression Overview 4Q23 Total Revenue $48.9M Net Income $2.9M Adjusted Net Income! $2.6M Adjusted EBITDA Margin? 15.9% To Reverie ae rmetoneted 4.594 Non-Transaction Related OpEx* 36.0% as a % of Total Revenue 4Q24 YoY Change $98.2M 100.9% ff $25.4M 763.0% ff $26.5M 922.3% ff 33.1% 17.2Pts f 5
Slide 26: YoY Engagement Metrics
YoY Engagement Metrics Monthly On-Demand & Subscribers (MODS!) Consumer Order Frequency (Weighted Average of Monthly Cohorts Annualized) +400k +3.9x YoY YoY Active? Consumers Repeat Usage As A % Of Total Orders (Cumulative) t) cot I ome won |*02B0s 4Q23 2,601,000 YoY 4Q23 95.3% YoY Unique Merchants*
Slide 27: Last Twelve Months 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 i 1924 2024 3Q24 4Q24 2,725,000 2,667,000 2,694,000 2:612.000 a 1024 2024 3024 424 274,000 208,000 173,000 a 1024 2Q24* 3024
Slide 28: Total Revenue & Gross Merchandise Volume (GMV)
Total Revenue & Gross Merchandise Volume (GMV) Total Revenue $27.1 0) 10.5% 10.6% $48.9 $47.0 $56.0 $70.0 CI mo ee 4Q23 1Q24 2Q24 3Q24 4Q24 FY2023 FY2024 % of GMV (mmm Total Revenue ($ in millions) .——% of GMV ‘gm Total Revenue ($ in millions) Gross Merchandise Volume (GMV) p tee 2% YoY p eee 540.2
Slide 29: Transaction Related Costs
Transaction Related Costs’ Transaction Expense Provision for Credit Losses Net Interest Expense 220% — (2a) $31 gne gio7 $28 $161 $10.5 $10.1 $5.1 a $4.5 $4.1 $29 $33 $34 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1924 2Q24 3Q24 4Q24 4Q23 1924 2Q24 3Q24 4Q24 ‘mmm Provision for Credit Losses ($ in millions) mmm N
Slide 30: Transaction Related Costs
Transaction Related Costs Transaction Related Costs! $120.1 $28.1 go10 $23.7 $31.5 i 4023 1924 2024 3024 4024 FY2023 FY2024 mmm Transaction Related Costs ($ in millions) % of Total Revenue (@mmm Transaction Related Costs ($ in millions) % of Total Revenue Transaction eloted Cesta noh-GAAP nancial me
Slide 31: Total Revenue Less Transaction Related Costs
Total Revenue Less Transaction Related Costs’ As a % of GMV $181.0 6.1% 5.8% 6.4% 5% F $54.3 38.5 4023 1024 2024 3024 4024 FY2023 FY2024 (gm Total Revenue Less Transaction Related Costs ($ in millions) mmm Total Revenue Less Transaction Related Costs ($ in millions) % of GMV —— % of GMV As a % of To
Slide 32: Non-Transaction Related Operating Expenses
Non-Transaction Related Operating Expenses % of Total Revenue Total Revenue Less Transaction Related Costs vs. Non-Transaction Related OpEx! | $54.3 $26.9 $17.6 $16.2 $18.4 $21.0 i fi i Fo 4Q23 1024 2Q24 3Q24 4Q24 [ $38.5 tam Non-Transaction Related Operating Expenses ($ in millions) SS % of Total R
Slide 33: Net Income and Adjusted Net Income
Net Income and Adjusted Net Income Net Income 53.1% 17.0% 22.1% }{ 25.8% | $297 $25.4 : - a 8.0 $2.9 — a 4Q23 1924 2Q24 3Q24 4Q24 ‘=m Net Income ($ in millions) % of Total Revenue 4. $7.1 —x FY2023 FY2024 mmm Net Income ($ in millions) % of Total Revenue Adjusted Net Income is @ non-GAAP 2Includes $
Slide 34: Net Income and Adjusted EBITDA
Net Income and Adjusted EBITDA’ Net Income & Adjusted Net Income? $78.5 $66.2 29.7 § 925.4 $265 $15.4 $17.3 $8.0 $9.4 28 8e am | a Si #58 —— 4Q23 1024 2024 3Q24 4Q24 evoo8 ysooH Net Income ($ in millions) = Adjusted Net Income ($ in millions) = Net Income ($ in millions) ™ Adjusted Net Income ($ in
Slide 35: Select Balance Sheet Metrics
Select Balance Sheet Metrics Audited Unaudited Unaudited $ in Thousands Dec 31, 2023 Sep 30, 2024 Dec 31, 2024 (key Assets >) Cash and cash equivalents! $67,624 $80,063 $73,185 Restricted cash $3.075 $8,281 $25,125 Total cash $70,699 $88,343 $98,310 Total notes receivables, net $130,633 $132,787 $16
Slide 36: Outlook
Outlook 2024 Guidance 2024 Actual 2025 Guidance Total Revenue 55% Growth 70% Growth v 25% — 30% ae Revenue Less Transaction Related Costs! as a 55.0% 55.7% Sv 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 Dilu
Slide 37: Appendices
Appendices Sezzle Inc. | Investor Presentation | 37
Slide 38: Appendix I: Reconciliation of GAAP to Non-GAAP Measures
Appendix I: 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 39: 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 $ 67,353
Slide 40: 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, 2023 December 31, 2024 December 31, 2023 Net inco
Slide 41: 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 42: 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 fo evaluate our operating performance, guide future operating plans, and make strategic decisions, including those relating to operating expenses and the al
Slide 43: 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 | 43