Slide 1: Q2 2023 Earnings Presentation
®sezzle The Responsible Way to Pay Q23 Earnings Presentation 9 August 2023 This presentation has been approved by the Company’s Executive Chairman and CEO, Charlie Youakim, on behalf of the Sezzle Inc. Board Sezzle Inc. | 2Q23 Presentation |1
Slide 2: Disclaimer
DISCLAIMER Cautionary Note Regarding Forward-Looking Statements 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
Slide 3: Prized & Profitable BNPL Platform
Prized & Profitable BNPL Platform one: one ene fe) $5+ Billion 50+ Million 15+ Million 16.9% Underlying Merchant Sales Total Orders Total Sign-Ups Since Last 12-Month Total Since Launch Since Launch Launch Income Growth (vs. prior comparable period) 14.8% 5.7% Last 12-Month Adjusted Last 12-Month EB
Slide 4: Our Mission
OUR MISSION Certified Financially Empowering the Next Generation Justice + Financial accessibility * Diversity and inclusion + Employee security and wellness a, Committed to Driving Change Integrity Governance and controls Integrated sustainability Workplace culture XN ~, Stewardship + Responsible l
Slide 5: 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 Premium ayn Pay-in-4 rest Bing Waring apt Loane Virtual Card Sezzle Inc. | 2Q23 Presentation | 5
Slide 6: Unlocking Responsible Payments Everywhere
Unlocking Responsible Payments Everywhere Over 195,000' Subscribers Across Premium and Anywhere Sezzle Premium Anywhere (Beta) Subscription Characteristics Provides access to 250+ Premium Provides consumers the extra ability to shop Merchants through Affiliate and Gift Card online, in-store, and any
Slide 7: YoY Progression Overview
YoY Progression Overview 2Q22 2Q23 Continuing diversification of revenue Total Income $29.3 M $34.9 M t stream through new product launches and product enhancements Net Income/(Loss) ($15.1 M) $1 -1M t Vastly improved Net Income due to the success of FY22 initiatives, enhanced Adjusted underwriting
Slide 8: 2Q23 Engagement Scorecard
2Q23 Engagement Scorecard r \ > Active! Consumers Repeat Usage As A % Of Total Orders (Cumulative) fo) 2023 (EE 2.57000 “18.7% 20; NT 947% +118 Ie (-) Bps 2021 2,837,000 2021) on6% Weekly Average Marketplace Volume As A Percentage Of UMS 2008 e000 415A k 0 TTT ss7% +20. 2022 |) 14,000 YoY 2002 | 5.6
Slide 9: Total Income & UMS
Total Income & UMS Total Income $29. 3 $30.4 $34.7 $34.9 2Q22 3Q22 4Q22 1Q23 2Q23 mmm Total Income (US$ in millions) % of UMS Underlying Merchant Sales (UMS) 52, $419.1 $421.5 $452.3 $369.8 $383.1 2022 322 4Q22 1023 2023 = UMS (US$ in millions) Commentary Total Income rose 19.4% YoY to US$34.9 milli
Slide 10: Transaction Expense
Transaction Expense Transaction Expense $10.1 $9.3 $9.5 $8.2 2Q22 3Q22 4Q22 1Q23 2Q23 mmm Transaction Expense (US$ in millions) % of UMS Commentary + Transaction Expense remained consistent with prior periods at 2.1% of UMS in 2Q23. + The Company plans to continue its efforts to lower processing cos
Slide 11: Provision for Credit Losses
Provision for Credit Losses Commentary * 2Q23 Provision for Credit Losses increased to 1.1% of UMS from an all-time Company low in 1Q23. Provision for Credit Losses = The historic low was a result of the launch of Sezzle's proprietary underwriting model, the Prophet Machine Learning model, and bette
Slide 12: Total Income Less Transaction Related Costs
Total Income Less Transaction Related Costs Total Income Less Transaction Related Costs! Commenta ry as a Percent of UMS $20.2 $21.4 $18.8 * Total Income Less Transaction Related Expenses increased 95.9% YoY to US$18.8 million. * Unit economic margin in 2Q23, as measured against UMS and 2Q22 3Q22 4Q
Slide 13: Non-Transaction Related Operating Expenses
Non-Transaction Related Operating Expenses Non-Transaction Related Operating Expenses! $24.8 2Q22 3Q22 4Q22 1Q23 2Q23 mmm Non-Transaction Related Operating Expenses (US$ in millions) % of Total Income 1Non-Trani of Non-Transaction Commentary + Non-Transaction Related Operating Expenses decreased 23.
Slide 14: Net Income And Adjusted EBITDA
Net Income And Adjusted EBITDA GAAP Net Income $44.3 38.5 $37. $29.3 $50.4 gg, eo $576 $54.7 $52.9 $34.9 $33.8 ($15.1) 2Q22 3Q22 4Q22 1Q23 2Q23 mmm Total Income (US$ in millions) lm Operating Expenses and Other Income and Expense (US$ in millions) Net Income (Loss) (US$ in millions) Non-GAAP Adjuste
Slide 15: Capitalization
Capitalization Commentary * As of 30 June 2023, Sezzle retained abundant capital and Unaudited Unaudited liquidity with US$63.4 million of cash on hand (US$1.3 million US$ in Thousands 31-Mar-2023 30-Jun-2023 restricted) and US$58.3 million drawn on its US$100 million Cash and Cash Equivalents $59,0
Slide 16: Appendices
Appendices
Slide 17: Appendix I: Reconciliation of GAAP to Non-GAAP Measures
Appendix I: Reconciliation of GAAP to Non-GAAP Measures Total Income Less Transaction Related Costs For the three months ended (in $US thousands) June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 ‘Operating income (loss) $ 3.763 $ 5,420 $ 4,742 $ 6,500 $ (13,553) Person
Slide 18: Appendix II: Reconciliation of GAAP to Non-GAAP Measures
Appendix II: Reconciliation of GAAP to Non-GAAP Measures Adjusted Operating Expenses For the three months ended (in $US thousands) June 30, 2023 March 31,2023 December 31, 2022 September 30, 2022 _ June 30, 2022 Operating expenses $ 31174 $ 29,254 $ 33,534 $ 23,909 $ 42,805 Depreciation and amortiza
Slide 19: 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 costs; non-transaction related operating exp
Slide 20: The Responsible Way to Pay
®sezzle The Responsible Way to Pay i