Slide 1: Q3 Earnings Presentation
®sezzle The Responsible Way to Pay Q23 Earnings Presentation 9 November 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. | 3Q23 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 US$5+ Billion 58+ Million 15+ Million 230,000 Underlying Merchant Sales Total Orders Total Sign-Ups Total Subscribers Since Launch Since Launch Since Launch (as of 7 Nov 2023) fo} 3.2% 19.7% 23.7% 35.7% Last 12-Month Last 12-Month Adjusted Last 12-Month Total Last 1
Slide 4: Our Mission
OUR MISSION Certified Financially Empowering the Next Generation a oO Justice * Financial accessibility * Diversity and inclusion * Employee security and wellness va Committed to Driving Change oO Integrity Governance and controls Integrated decision- making \e_ Workplace culture yy Stewardship * Re
Slide 5: Over 230,000 Subscribers Across Premium and Anywhere
Over 230,000 Subscribers! Across Premium and Anywhere Sezzle Premium Key Performance Metrics? Provides access to 300+ 9 i C oy In-store Orders as % of Increase in Purchase Frequency Premium Merchants . ~39 Yo Total Anywhere Orders 1.2x vs. Non-Subscribers through Affiliate and Gift Card platform par
Slide 6: Building Momentum and Re-focusing on Growth
Building Momentum and Re-focusing on Growth Merchant & Platform Partnerships Marketing * Hired a senior marketing leader with 20+ years of eCommerce Enterprise & SMB and digital marketing experience. * Expanding several consumer marketing campaigns to increase 200+ ws US$9B subscription activations.
Slide 7: FY2023 Initiatives Update
FY2023 Initiatives Update Expected to Deliver US$10M Annualized Bottom-Line Impact ¥ Successful launch of Anywhere with over 230,000 total active vw Product subscribers including Premium. ot Innovations Y Seeing strong adoption in Pay-in-2 and Pay-in-Full payment plans, representing approximately 12
Slide 8: YoY Progression Overview
YoY Progression Overview 3Q22 3Q23 Latest product offerings and product Total Income US$30.4M US$40.8M t enhancements continue to support revenue growth * * Net Income (excluding the US$11.0 million Net Income US $4 -3M U $] .3M t reimbursement of merger-related costs) increased by US$8.0 million i
Slide 9: 3Q23 Engagement Scorecard
3Q23 Engagement Scorecard Active! Consumers 3Q23 2,572,000 3Q21 3,118,000 -17.9% YoY . 7 Repeat Usage As A % Of Total Orders (Cumulative) | Toial Subscribers? (Premium & Anywhere) 3Q21 Not Launched \ +122k YoY Consumer Order Frequency (Weighted Average of Monthly Cohorts Annualized) +3.1x Active Mer
Slide 10: Total Income & UMS
Total Income & UMS Total Income (Gam}-_8%} bas 9.1% } —{a7%] Commentary $38.3 $547 $349 $40.8 * Total Income rose 34.3% YoY to US$40.8 million, with Total Income $30.4 i C1 C1 | as a percentage of UMS increased to 8.7% from 3Q22. all + UMS increased by 11.4% YoY to US$469.5 million, with a pickup in
Slide 11: Transaction Expense
Transaction Expense Commentary + Transaction Expense increased to US$9.9 million or 2.1% of UMS in Transaction Expense 3Q23, consistent with the growth in UMS during the quarter. $9.3 $9.5 $9.9 $8.2 $7.9 + The Company continues its efforts to lower processing costs through initiatives including: Inc
Slide 12: Provision for Credit Losses
Provision for Credit Losses Provision for Credit Losses Commenta ry * The quarterly increase in the provision to 1.4% of UMS was in line with the Company's strategy of pursuing top-line growth throughout 2023. * The Company expects the 4Q23 provision for credit losses to be moderately higher relativ
Slide 13: Total Income Less Transaction Related Costs
Total Income Less Transaction Related Costs Total Income Less Transaction Related Costs! as a Percent of UMS Commentary $20.2 $21.4 $18.8 $20.1 * Total Income Less Transaction Related Costs increased 48.4% YoY to US$20.1 million. * Unit economic margin in 3Q23, as measured against UMS and Total 3022
Slide 14: Non-Transaction Related Operating Expenses
Non-Transaction Related Operating Expenses Non-Transaction Related Operating Expenses! $19.9 $19.5 $18.9 $18.9 3Q22 4Q22 1Q23 2Q23 3Q23 mmm Non-Transaction Related Operating Expenses (US$ in millions) % of Total Income Non-Transaction Related Operating Expenses is a non-GAAP fin: Si Commentary + Non
Slide 15: Net Income And Adjusted EBITDA
Net Income And Adjusted EBITDA GAAP Net Income 40.8 $30.4 $961 $38.3 $37.6 $347 9399 $34.9 933. 940.8 $59.5 3Q22 4Q22 1Q23 2Q23 3Q23 EEE Total Income (US$ in millions) ‘mms Operating Expenses and Other Income and Expense (US$ in millions) Net Income (Loss) (US$ in millions) Non-GAAP Adjusted EBITDA'
Slide 16: Capitalization
US$ in Thousands Cash and Cash Equivalents Restricted Cash Total Cash Drawn on Line of Credit Available on Line of Credit Total Stockholders' Equity Unaudited 30-Sep-2022 $57,875 $890 $58,765 $54,008 $5,254 $5,729 Unaudited 30-Jun-2023 $62,085 $1,304 $63,389 $58,300 $1,748 $16,278 Capitalization Una
Slide 17: Appendices
Appendices Sezzle Inc. | 3Q23 Presentation | 17
Slide 18: 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) September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Operating income $ 5349 §$ 3,763 $ 5,420 $ 4,742 $ 6,500 Personnel 11
Slide 19: 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) September 30,2023 June 30. 2023 March 31,2023 December 31.2022 September 30, 2022 Operating expenses $ 35,495 $ Ba 29,254 $ 33,534 $ 23,909 Depreciation and amortization
Slide 20: 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 21: The Responsible Way to Pay
®sezzle The Responsible Way to Pay ee