Sezzle Inc. · NASDAQ:SEZL
Sezzle — Shareholder Meeting (June 2022)
33 slides from Sezzle's shareholder meeting presentation, Jun 1, 2022
Slide 1: The way forward. Annual General Meeting
The way forward. ANNUAL GENERAL MEETING 1 JUNE 2022 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 (xiv) impact of any data security breaches, cyberattacks, employee or other internal misconduct, malware, date of this Presentation. The information in this Presentation is of a ge
Slide 3: How to vote
How to vote • When the poll is open, select the vote icon at the top of the screen Items of Business • To vote, select your preferred option 2A Re-elect Mr Sam Sample as a Director • You will see a vote confirmation FOR AGAINST ABSTAIN • To change or cancel your vote, select “click here to change yo
Slide 4: How to ask a question
How to ask a question • To ask a written question select the Q & A icon • Select the topic of your question from the drop-down list • Type your question in the text box and press the send button SEZZLE INC AGM PRESENTATION 2022 | 4
Slide 5: Agenda
Agenda 1. COMPANY MISSION 2. VISION AND ECOSYSTE M 3 . FINANCIAL PERFORMA NCE 4. VOTING AND RESOL UTI O NS SEZZLE INC AGM PRESENTATION 2022 | 5
Slide 6: Our Mission
OUR MISSION Financially empowering the next generation. OUR MANTRA The way forward. We see change as an opportunity to shape the future. SEZZLE INC AGM PRESENTATION 2022 | 6
Slide 7: Driving Change for our Stakeholders
Driving Change for our Stakeholders Sezzle Scholarships B Corp Achievement Awarded $144,000 to support Achieved B Corp the next generation of certification, placing leaders in their pursuit of a purpose alongside profits post-secondary education in 2021 Charitable Giving Trees for the Future Committ
Slide 8: Receiving Recognition for our Efforts
Receiving Recognition for our Efforts Best BNPL App Top 10 Financial Services Best BNPL App for Flexible Brands for Students Payment Plan The Midwest’s Best Top 10 Payment and Enterprise Software Card Solution Companies Providers Top Installment Platform SEZZLE INC AGM PRESENTATION 2022 | 8
Slide 9: Vision and Ecosystem
VISION Vision and Ecosystem SEZZLE INC AGM PRESENTATION 2022 | 9
Slide 10: Our Vision: Delivering Value to Merchants and Consumers
Our Vision: Delivering Value to Merchants and Consumers MERCHANT-FOCUSED CONSUMER-FOCUSED • Initially launched with a • Sezzle is committed to consumer-friendly focus for continuing expansion of its merchants - providing product offering to millions of consumers a flexible alternative consumers to t
Slide 11: Innovating for our Consumers
Innovating for our Consumers CREDIT BUILDING LONG-TERM INSTALLMENTS MARKETPLACE ENHANCEMENTS OMNICHANNEL OFFERING Sezzle Up allows consumers to build Provides qualified consumers a long- Greater sophistication and search Frictionless in-store payment solution credit with timely repayments term finan
Slide 12: Future Expansion Opportunities
Future Expansion Opportunities LOYALTY PROGRAM PREMIUM SUBSCRIPTION PAY-IN-TWO AND PAY-NOW PHYSICAL CARD Sezzle Rewards allows users to earn Enhanced Sezzle experience with Greater flexibility for consumers with Pay now or over time anywhere and and redeem points when shopping exclusive benefits Pay
Slide 13: Market Opportunity
Market Opportunity BNPL: LOW MARKET PENETRATION SIGNIFICANT MARKET OPPORTUNITY BEYOND BNPL (Figures in $US Billion) (Figures in $US Trillion) $2.9 $8.5 $51.7 $623.4 $16.1 $40.9 $12.3 $472.8 $11.4 $1.8 $150.6 $0.6 $10.8 Sezzle UMS Global BNPL Buy Now, Debit Credit Mobile Cash Other Global Pay Later C
Slide 14: Growing and Engaged Consumer Base
Growing and Engaged Consumer Base “One Word for This App... AMAZING!!!!“ ACTIVE CONSUMERS1 & REPEAT USAGE – Tracie, Sezzler “Sezzle is the best 4,000,000 31.6% YoY PAY LATER service 3.4 3.5 99.0% provider...” 3,500,000 3.2 2.9 97.0% - Nick, Sezzler 2.6 3,000,000 95.0% 2,500,000 2.2 93.3% 92.3% 92.8%
Slide 15: Partnering with Top Tier Brands of All Sizes
Partnering with Top Tier Brands of All Sizes ENTERPRISE 20,000+ New Active Merchant Partners added in 2021 SMB & MIDDLE MARKET SEZZLE INC AGM PRESENTATION 2022 | 15
Slide 16: Highly Focused on Core Verticals while Pioneering Elsewhere
Highly Focused on Core Verticals In addition, we continue to test while Pioneering Elsewhere non-traditional BNPL verticals Top Performing Verticals in 2021 YoY Growth (%) Clothing & Accessories 63.1% Beauty & Wellness 64.6% TRAVEL General Merchandise 1,833.4% BUSINESS SERVICES Sports & Hobbies 107.
Slide 17: Growing our Merchant Network as a Top Tier BNPL Partner
Growing our Merchant Network as a Top Tier BNPL Partner Best-in-class service makes Sezzle a leading installment payment provider for merchants2 ACTIVE MERCHANTS1 43.1% YoY 47.0 48.7 44.4 40.3 34.0 26.7 20.9 16.1 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 • Ended 1Q 2022 with 48,700 Active Merchants (4
Slide 18: Growing Alongside Strategic Partners
Growing Alongside Strategic Partners Consumer Products Merchant Acquisition Merchant Support • Starting in May 2021 (with Ally), Sezzle • Sezzle works with a number of leading • In July 2021, the Company launched Sezzle launched a long-term financing solution to eCommerce platforms such as BigCommer
Slide 19: Financials
FINANCIALS Financials SEZZLE INC AGM PRESENTATION 2022 | 19
Slide 20: Sharpening Focus in Pursuit of Profitability
Sharpening Focus in Pursuit of Profitability ~US$17M IDENTIFIED IN POTENTIAL ANNUAL SAVINGS REVENUE OPTIMIZATION OPERATING EXPENSES INTERNATIONAL • Optimizing existing relationships • On 10 March 2022, the Company • Sezzle is scaling back international for profitability announced a workforce reducti
Slide 21: Financial Scorecard
Financial Scorecard 2021 1Q22 UNDERLYING MERCHANT SALES1 (UMS) (US$ in MILLION’S) UNDERLYING MERCHANT SALES1 (UMS) (US$ in MILLION’S) 2021 $1,807.8 1Q22 $450.5 2020 $856.4 +111.1% 1Q21 $375.1 +20.1% YoY 1Q20 $119.4 YoY 2019 $244.1 TOTAL INCOME ($ in MILLION’S) TOTAL INCOME ($ in MILLION’S) 2021 $114
Slide 22: Performance Scorecard
Performance Scorecard 2021 1Q22 ACTIVE MERCHANTS1 ACTIVE MERCHANTS1 2021 47,000 1Q22 49,000 2020 27,000 +76.0% 1Q21 34,000 +43.1% 2019 10,000 YoY 1Q20 13,000 YoY ACTIVE CONSUMERS2 ACTIVE CONSUMERS2 2021 3,400,000 1Q22 3,460,000 2020 2,244,000 +52.4% 1Q21 2,630,000 +32.9% 2019 915,000 YoY 1Q20 1,149,
Slide 23: Underlying Merchant Sales & Total Income
Underlying Merchant Sales & Total Income Commentary UNDERLYING MERCHANT SALES • UMS continued to set new highs, reaching US$1.8 20.1% YoY billion for 2021, up 111.1% YoY $561.0 • For the first quarter of 2022, UMS grew 20.1% YoY to $460.7 $450.5 $375.1 $411.1 US$450.5 million, a first-quarter record
Slide 24: Transaction Expense & Provision
Transaction Expense & Provision Commentary TRANSACTION EXPENSE $13.9 • Transaction expense as a percentage of UMS in 1Q $11.6 $11.8 2022 increased 20 bps YoY to 2.6% as payment $8.9 $9.1 processing costs increased as a proportion of card payments relative to ACH payments increased 2.4% 2.2% 2.5% 2.5
Slide 25: Operating Expenses
Operating Expenses OPERATING EXPENSES Commentary 114.0% 100.0% • Operating expenses as a percentage of Total 81.1% 84.8% 80.0% Income rose to 114.0% of Total Income in 1Q 2022. The 66.7% 71.8% increase in Operating Expenses was primarily driven $31.5 60.0% $22.2 $24.2 $23.6 $17.4 40.0% by: 20.0% 0.0
Slide 26: Capitalization & Funding
Capitalization & Funding Selected Balance Sheet Data Commentary Unaudited Audited US$ 000's 31-Mar-22 31-Dec-21 • The Company had unused borrowing capacity on its line of credit of US$39.7 million as of 31 March 2022 Cash and cash equivalents $58,371 $76,984 compared to US$29.8 million as of 31 Dece
Slide 27: Zip Update
Zip Update • The merger with ZIP remains on track to close and will deliver significant scale and synergies upon completion, directly supporting our objective to accelerate growth and build a profitable business at scale • The waiting period for review by the Federal Trade Commission under the Hart-
Slide 28: Voting and Resolution
VOTING AND RESOLUTION Voting and Resolution SEZZLE INC AGM PRESENTATION 2022 | 28
Slide 29: Valid Proxies Received Prior to Meeting
Valid Proxies Received Prior to Meeting ITEM 2 RE-ELECTION OF CHARLIE YOUAKIM FOR WITHELD NON-VOTES UNCAST 99,859,239 4,377,024 2,500 0 ITEM 3 RE-ELECTION OF PAUL VICTOR PARADIS FOR WITHELD NON-VOTES UNCAST 104,011,882 224,381 2,500 0 ITEM 4 RE-ELECTION OF KATHLEEN PIERCE-GILMORE FOR WITHELD NON-VOT
Slide 30: Valid Proxies Received Prior to Meeting
Valid Proxies Received Prior to Meeting ITEM 5 RE-ELECTION OF PAUL PURCELL FOR WITHELD NON-VOTES UNCAST 103,945,729 288,534 4,500 0 ITEM 6 RE-ELECTION OF PAUL ALAN LAHIFF FOR WITHELD NON-VOTES UNCAST 103,971,514 253,648 13,601 0 ITEM 7 RE-ELECTION OF MICHAEL CUTTER FOR WITHELD NON-VOTES UNCAST 104,0
Slide 31: Valid Proxies Received Prior to Meeting
Valid Proxies Received Prior to Meeting ITEM 8 RATIFICATION OF INDEPENDENT ACCOUNTING FIRM SELECTION FOR AGAINST ABSTAIN NON-VOTES UNCAST 104,102,132 88,542 48,089 0 0 ITEM 9 ADVISORY VOTE ON EXECUTIVE COMPENSATION FOR AGAINST ABSTAIN NON-VOTES UNCAST 99,535,261 445,163 4,256,339 2,000 0 ADVISORY VO
Slide 32: Thank you
Thank you SEZZLE INC AGM PRESENTATION 2022 | 32
Slide 33: Disclaimer
DISCLAIMER Additional Information and Where to Find It Participants in the Solicitation This Presentation is being made in respect of the proposed merger transaction involving the Sezzle Parent, the Company and their respective directors and executive officers and other members of and Zip Co Limited