Slide 1: 2Q Earnings Presentation, 29 July 2022
2 Q E a r n i n g s P r e s e n t a t i o n 2 9 J U L Y 2 0 2 2 This presentation has been authorized and approved by the Sezzle Board
Slide 2: Disclaimer
DISCLAIMER This presentation (the “Presentation”) contains summary information about the 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 t
Slide 3: Sezzle Overview
Sezzle Overview OVERVIEW SEZZLE INC 2Q22 PRESENTATION | 3
Slide 4: Financial Scorecard
Financial Scorecard U NDERLY I NG MERCH ANT S ALES 1 (U MS ) (U S $ in MI LL I ONS ) TOTAL I NCOME ($ in MI LL I ONS ) +111.1% YoY TOTAL I NCOME LES S TRANS ACTION RELATED COS TS 2 AS A PERCENTAGE OF U MS +95.3% YoY +1.9% YoY +6.8% YoY 1 UMS is defined as the total value of sales made by merchants b
Slide 5: Performance Scorecard: Active Consumers, Merchants, Repeat Usage
REPEAT U S AGE (% OF ACTI V E CONS U MERS ) ACTI V E 1 MERCH ANTS ACTI V E 1 CONS U MERS +19.0% YoY +193 Bps +18.2% YoY 1Active is defined as having had at least one transaction through the Sezzle Platform in the last twelve months, not subject to a minimum required number of transactions criteria (
Slide 6: Vision – Always Evolving
Vision – Always Evolving SEZZLE INC 2Q22 PRESENTATION | 6 C O N S U M E R- F O C U S E DM E R C H A N T- F O C U S E D • Initially launched with a consumer-friendly focus for merchants - providing consumers a flexible alternative to traditional credit: increasing consumer basket sizes and purchase f
Slide 7: Significant Product Development
Significant Product Development LONG-TERM INSTALLMENTS Provides qualified consumers a long- term financing option OMNICHANNEL OFFERING Frictionless in-store payment solution with a Sezzle virtual card MARKETPLACE ENHANCEMENTS Greater sophistication and search functionality across web and mobile • In
Slide 8: Elevated Experience Through Sezzle Premium
SEZZLE INC CONFIDENTIAL AND PROPRIETARY | 8 Elevated Experience Through Sezzle Premium Note: performance data as of 27 July 2022. Sezzle Premium was launched on June 1, 2022 Priority Consumer Support Extra Free Payment Reschedule per Order Active Subscriptions % of UMS since launch 47, 000+ 10+% Exc
Slide 9: Upcoming Product Launches
Upcoming Product Launches SEZZLE INC 2Q22 PRESENTATION | 9 PAY-IN-TWO AND PAY NOW SEZZLE FLEX CARD • Greater flexibility for consumers with Pay-in-Two and Pay Now • Provide consumers additional options, allowing them to choose a plan that works best for them • Offer consumers the ability to earn cas
Slide 10: Initiatives to Reach Profitability
Initiatives to Reach Profitability INITIATIVES SEZZLE INC 2Q22 PRESENTATION | 10
Slide 11: Projected Annual Income & Cost Savings Initiatives
SEZZLE INC CONFIDENTIAL AND PROPRIETARY | 11 in Projected Annual Income & Cost Savings (full run rate by year end) ~US$40M Completed and On-going Initiatives ● Either offboarded or renegotiated pricing with ~50 merchants ● Successfully updated revenue share with card issuing partner to properly refl
Slide 12: Financials
Financials FINANCIALS SEZZLE INC 2Q22 PRESENTATION | 12
Slide 13: Underlying Merchant Sales & Total Income
Underlying Merchant Sales & Total Income SEZZLE INC 2Q22 PRESENTATION | 13 $27.4 $28.5 $32.9 $27.6 $29.3 6.7% 6.2% 5.9% 6.1% 7.0% 0 . 0 % 1 . 0 % 2 . 0 % 3 . 0 % 4 . 0 % 5 . 0 % 6 . 0 % 7 . 0 % 8 . 0 % $ 0 $ 1 0 $ 2 0 $ 3 0 $ 4 0 $ 5 0 $ 6 0 $ 7 0 $ 8 0 2Q21 3Q21 4Q21 1Q22 2Q22 TOTAL INCOME Total In
Slide 14: Transaction Expense & Provision
Transaction Expense & Provision SEZZLE INC 2Q22 PRESENTATION | 14 Commentary • Transaction expense for 2Q22 declined compared to 1Q22, approaching a level consistent with 1Q21 as a percentage of UMS • Transaction expense decreased as a percentage of UMS, driven by an increase in ACH as a percentage
Slide 15: Operating Expenses
Operating Expenses SEZZLE INC 2Q22 PRESENTATION | 15 Commentary • Operating Expense as a percentage of Total Income fell to 84.9% compared to 114.0% in 1Q22 • In 2Q22, the Company reduced its Adjusted Operating Expense1 by 10.6% to US$20.7 million, compared to the previous quarter • As a percentage
Slide 16: Closing the Gap
Closing the Gap SEZZLE INC 2Q22 PRESENTATION | 16 Commentary • In 2Q22, Sezzle delivered a record quarter for Total Income less Transaction Related Costs of US$9.6 million • The deviation between Total Income less Transaction Related Costs and Adjusted Operating Expense decreased by 54.6% and 42.7%,
Slide 17: Capitalization & Funding
Capitalization & Funding SEZZLE INC 2Q22 PRESENTATION | 17 Commentary • The Company had unused borrowing capacity on its line of credit of US$10.1 million as of 30 June 2022 compared to US$39.7 million as of 31 March 2022 • Subsequent to quarter end, the Company received US11.0 million from Zip as p
Slide 18: Termination of the Proposed Merger with Zip
Termination of the Proposed Merger with Zip SEZZLE INC 2Q22 PRESENTATION | 18 • On 28 February 2022, Zip Co. (ASX: ZIP) and Sezzle entered into a definitive agreement to merge in an all- stock deal • On 12 July 2022, both companies mutually agreed to terminate the proposed merger • As part of the mu
Slide 19: Thank you
Thank you ®sezzle