Slide 1: The Responsible Way to Pay: Second Quarter 2024 Earnings Presentation
®sezzle The Responsible Way to Pay Second Quarter 2024 Earnings Presentation August 7, 2024
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 of this Presentation. The information in this Presentation is of a general nature and does not purport to be complete and
Slide 3: Trusted & Profitable BNPL Platform
Trusted & Profitable BNPL Platform World’s Top 250 New] A wands 2022 s Fintech Companies CNBC 60.2% Total Revenue Growth @ (2024 YoY) / $29.7 million Net Income @ (2024) | 53.1% Net Income Margin e (2024) 74.3% \ ‘Adjusted Net Incom Za Return on Equity for the Quarter? @ (2024) Impact 150: Leading S
Slide 4: Our Guiding Principles
Our Guiding Principles Positively Affecting Profitability ie AQ Acquiring New Users ©_® ® ©. Increasing Consumer Lifetime Value (LTV) 2. Enhancing Stakeholder Satisfaction Sezzle Inc. | 2Q24 Presentation | 4
Slide 5: Sezzle Subscriptions
Sezzle Subscriptions ‘Shop bigger brane wih ou Anywhere © Poyin 4 anywnore Viea ie acopted ® In-app deals & discounts © Jextra free reschedule per order © Priority customer support @ Up to 1% beck on purchases paid upfront Hin monthly Sezzle Spend eres = © Monthly thank-you git ($30 value) «Oe WEFhe
Slide 6: Fostering Financial Responsibility Through Gamification
Fostering Financial Responsibility Through Gamification Payment Streaks payments, unlock perks, and embark on a journey towards financial wellness Ascend through loyalty tiers for consistent & timely payments Benefits! include entries in monthly giveaways, bonuses, and failed payment fee forgiveness
Slide 7: Innovation Expands Reach and Lifetime Value
Innovation Expands Reach and Lifetime Value N > Premium & Anywhere Bank Sponsorship 5 Subscription (2022 & 2023) : o + Premium: Access to 350+ Premium e Immediate Benefits 2 Merchants & Gift Card platform partners H $s * Anywhere: Provides consumers the ability H * Launch of On-Demand Product o to s
Slide 8: 2Q24 YoY Engagement Metrics
2Q24 YoY Engagement Metrics Active Subscribers? (Premium & Anywhere) +294k Repeat Usage As A % Of Total Orders (Cumulative) 200 TT 42000 oot TT ess +82 Bps 202s (NN 6000 YoY 0; TT o7% YoY 2022 || 14,000 2022 I ss5% Active! Consumers Quarterly Purchase Frequency (Average) 9, co) TT 2.612.000 0.9% 202
Slide 9: Last Twelve Months (LTM) QoQ Engagement Metrics
Last Twelve Months (LTM) QoQ Engagement Metrics Active Subscribers? (Premium & Anywhere) 462,000 371,000 307,000 / al 7 L 3Q23 4Q23 1924 2Q24 +91k QoQ Active! Consumers 2,612,000 2,601,000 2,594,000 | al a 3Q23 4Q23 1924 2Q24 +0.7% QoQ Unique Merchants? Shopped at by Consumers 178,000 173,000 139,00
Slide 10: YoY Progression Overview
YoY Progression Overview 2Q23 2Q24 YoY Change Total Revenue $34.9M $56.0M 60.2% fF Net Income $1.1M $29.7M 2,505.9% Ff Adjusted Net Income (Loss)! ($0.2M) $13.1M 6,952.5% ff Adjusted EBITDA Margin2 18.3% 32.9% 14.6Pts Related Coats! ne a % of Total Revenue 53.7% 57.6% 5.9 Pts t Non-Transaction Relat
Slide 11: Total Revenue & UMS
Total Revenue & UMS Total Revenue Underlying Merchant Sales (UMS) +38.9% YoY $383.1 $56.0 48.9 $349 a 8 $48. $47.0 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 mmm Total Revenue ($ in millions) % of UMS BUMS ($ in millions) Sezzle Inc. | 2024 Presentation | 11
Slide 12: Transaction Related Costs
Transaction Related Costs Transaction Expense Net Interest Expense $13.1 $11.8 $10.7 $3.9 $4.5 ee - 2023 3Q23 4Q23 1024 2Q24 2Q23 3Q23 4Q23 1024 2Q24 mmm Transaction Expense ($ in millions) % of UMS EEE Net Interest Expense ($ in millions) % of UMS Provision for Credit Losses Transaction Related Cos
Slide 13: Total Revenue Less Transaction Related Costs
Total Revenue Less Transaction Related Costs! As a % of Total Revenue As a % of UMS $32.2 $32.2 $18.8 $20.1 $20.8 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 mmm Total Revenue Less Transaction Related Costs ($ in millions) mmm Total Revenue Less Transaction Related Costs ($ in millions) % of U
Slide 14: Non-Transaction Related Operating Expenses
Non-Transaction Related Operating Expenses Total Revenue Less Transaction Relates Costs vs. Non-Transaction Related OpEx' % of Total Revenue $18.9 $18.9 $17.6 $18.4 $20.1 $18.9 [ $18.4 | $18.8 $18.9 $17.6 $16.2 : 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 mam Non-Transaction Related Operating
Slide 15: Net Income and Adjusted Net Income (Loss)
Net Income and Adjusted Net Income (Loss)! Net Income Adjustments! Adjusted Net Income (Loss)? Includes $16.8 million discrete income tax benefit from the release of the valuation allowance previously recorded on ($1.3) ($0.1) ($0.4) $2.9 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4
Slide 16: Net Income and Adjusted EBITDA
Net Income and Adjusted EBITDA! Net Income & Adjusted Net Income (Loss)? $29.7 $13.1 $8.0 $9-4 $2.9 $9.6 $1 $1.3 $1.2 : oom (S0.2) cos 2023 3Q23 4Q23 1024 2Q24 ENet Income ($ in millions) Adjusted Net Income (Loss) ($ in millions) EBITDA is a non-GAAP. 2 Adjusted Net Income (Los Non-GAAP Adjusted EB
Slide 17: Select Balance Sheet Metrics
Select Balance Sheet Metrics Audited Unaudited Unaudited $ in Thousands Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Key Assets Cash and cash equivalents! $67,624 $77,785 $58,026 Restricted cash $3,075 $4,400 $5,966 Total cash $70,699 $82,185 $63,992 Total notes receivables, net $130,633 $103,332 $119,235
Slide 18: FY2024 Outlook
FY2024 Outlook 2022 Actual 2023 Actual 2024 Suicance 28 Guidance Total Revenue $125.6M $159.4M 35% - 40% Growth $200M; up 25% (aalRewnoe es TemacinReed 0 so 55.0% s00% Net Income (Loss) ($38.1M) $7.1M $55.0M $30.0M Net Income (Loss) Per Diluted Share ($7.00) $1.25 $9.25 $5.00 Adjusted Net Income (Lo
Slide 19: Appendices
Appendices
Slide 20: Appendix I: Reconciliation of GAAP to Non-GAAP Measures
Appendix |: 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) June 30, 2024 March 31,2024 December 31, 2023 September 30,2023 June 30, 2023 December 31, 2023 December 31, 2022 Operating inc
Slide 21: 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 (in $ thousands) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Operating expenses $ 39,269 $ 33,144 $ 1,234 $ 35,494 $ 31,174 Personnel (12,737) (11,025) (1
Slide 22: Appendix III: Reconciliation of GAAP to Non-GAAP Measures
Appendix III: Reconciliation of GAAP to Non-GAAP Measures Adjusted Net Income (Loss) For the three months ended For the twelve months ended (in $ thousands: except per share amounts) June 30, 2024 March 31,2024 December 31,2023 September 30,2023 June 30, 2023 December 31, 2023 December 31, 2022 Net
Slide 23: 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 24: 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 to evaluate our operating performance, guide future operating plans, and make strategic decisions, including those relating 10 operating expenses and the al
Slide 25: The Responsible Way to Pay
®sezzle The Responsible Way to Pay a