Sezzle Inc. · NASDAQ:SEZL
Sezzle — Shareholder Meeting (June 2023)
36 slides from Sezzle's shareholder meeting presentation, Jun 15, 2023
Slide 1: 2023 Annual General Meeting
2025 ANNUAL GENERAL MEETING 15 June 2023,
Slide 2: Disclaimer
DISCLAIMER Cautionary Note Regarding Forward-Looking Statements. This presentation (the “Presentation") contains summary information about the activities of Sezzle as atthe date of this Presentation. The information in this Presentation is of @ general nature and does not purport to be complete and
Slide 3: Items of Business
• • • • • Items of Business 2A Re-elect Mr Sam Sample as a Director FOR AGAINST ABSTAIN 2B Re-elect Ms Jane Citizen as a Director
Slide 4: Q & A
• • 2 Q & A Your question(s) 0 character(s) Questions are limited to 2000 characters. Send
Slide 5: Today's Agenda
TODAY’S AGENDA [1 | Mission & Values a [02 | Profitable Growth Through Strong Execution a Financials & Market Update oY [04 | Voting & Resolutions oo
Slide 6: Mission & Values
MISSION & VALUES
Slide 7: Our Mission
Our Mission Financially Empowering the Next Generation Our New Tagline The Responsible Way to Pay™ & sezzle
Slide 8: Our Commitment to Driving Change
OUR COMMITMENT TO DRIVING CHANGE + Financial accessibility + Diversity and inclusion + Employee security and wellness Certified * Governance, control, and reporting + Integrated sustainability + Workplace culture Responsible lending Environment and climate change Data security and management Steward
Slide 9: Fostering Financial Inclusion for All
FOSTERING FINANCIAL INCLUSION FOR ALL Challenges 49 Million Cash Flow facing U.S. Management i Ushio seni Most important contributor consumers or unscoré n to using BNPL. How Sezzle is Helping our Consumers v Increasing financial inclusion by providing credit to those who often face challenges in ac
Slide 10: Unlocking Growth for Our Merchant Partners
UNLOCKING GROWTH FOR OUR MERCHANT PARTNERS Driving Sales Average Order Valu Return on Investment (ROI) Payback Period Partners How Sezzle Helps Merchant Partners ¥ Driving traffic and incremental revenue at the point of sale through a frictionless checkout experience v Access to business loans throu
Slide 11: Building a Trusted Payments Platform
Pr Dantas BUILDING A TRUSTED PAYMENTS PEATEORM 4 9 > oo. &.&. @.| “> } §6 Great opportunity ° i ‘= to build credit and ; get products with easy,payMents 99 D. Gibson, Sezzle Customer 4./ r GB Google Play
Slide 12: Recognition for Our Noteworthy Accomplishments
RECOGNITION FOR OUR NOTEWORTHY ACCOMPLISHMENTS FORTUNE BuySidew; ~~ Forbes The 5 BNPL apps for 2023 Best BNPL app for Midwest Best Enterprise Building Credit 2022 Software Companies 2022 Consumer MINNEAPOLIS/ST: PAUL Reports BUSINESS JOURNAL Top BNPL Pick 2023 Top BNPL Apps in 2023 Largest Software
Slide 13: Profitable Growth Through Strong Execution
PROFITABLE GROWTH THROUGH STRONG : EXECUTION
Slide 14: Revenue Initiatives
\ 4 Revenue Initiatives Introduced Sezzle Premium Offboarded or renegotiated pricing with merchants and network partners Affiliate merchant enhancements Incented consumers to shift from card to ACH Introduced Pay in Full WE ANNOUNCED VARIOUS FY22 INITIATIVES... A Cost Initiatives Improved credit und
Slide 15: Continued to Raise the Bar Throughout the Year
..AND CONTINUED TO RAISE THE BAR THROUGHOUT THE YEAR... @ March 2022 @ July 2022 US$10 Million US$50+ Million Announced reduction in Expanded list of initiatives workforce (RIF) and raised benefit to over US$50M 7 one: 4 5 b 5 US$70 Million Annualized Impact at end of FY22 @ April 2022 @ September 2
Slide 16: Strong Unit Economics and a Lean Operating Structure
..RESULTING IN STRONG UNIT ECONOMICS AND A LEAN OPERATING STRUCTURE TOTAL INCOME & UNIT ECONOMICS! OPERATING EXPENSES $38.3 $34.7 146.3% : 114.0% 55.7% S58 $42.8 i $23.9 $33.5 $29.3 Som in 2022 $022 4022 1028 1022 2022 3022 4Q22 1023 GAAP Operating Expenses (US$ in millions) (=m Total Income (US$ in
Slide 17: Sezzle Premium: Core FY22 Initiative
SEZZLE PREMIUM: CORE FY22 INITIATIVE DRIVING PROFITABILITY June 2022 Date Launched US$T1 Million+ Total Income Contribution! 155,000 Subscribers? 250+ Premium Merchants? 6 "Contribution since launch as of April $0, 2023. 2s of June 14, 2023. Subscribers rounded to nearest thousand. Category 1.8x Mor
Slide 18: Prophet Model: Core FY22 Initiative
PROPHET MODEL: CORE FY22 INITIATIVE DRIVING PROFITABILITY A proprietary machine learning model designed specifically P R (@) P H E T for the holiday season The Prophet Model (probability of default predictor’) has been a significantly better barometer in identifying high-risk consumers compared to F
Slide 19: Next Round of Initiatives Underway
NEXT ROUND OF INITIATIVES UNDERWAY Key initiatives expected to launch in the 2H23 Initiative Examples Product + Pay-in-Two (launched 2Q23) | ti + Pay Anywhere card nnovation product US$10 Million ’ y Monetization + Affiliate payment models Annualized + Pay-per-click placement Bottom-line Impact \ EY
Slide 20: Pay-in-2 Launched (May 2023)
PAY-IN-2 LAUNCHED (MAY 2023) Continuing to Innovate Sezzle is the only BNPL provider to offer Pay-in-Full, Pay-in-2, Pay-in-4, and Long- term Installments! payment options in N America Long-Term Installments! (2020) (2017) Pay-in-4 (2022) Pay-in-Full tion with financial lending pariners. is assumed
Slide 21: Introducing Sezzle Pay Anywhere
INTRODUCING SEZZLE PAY ANYWHERE + Gives consumers a top-of-wallet payment option for 9) Q nNyw h Che everyday use + Partnered with Visa & Margeta to quickly deploy with . +~@ minimal friction for consumer adoption at inte im + Launched Beta testing with a select cohort of users and ! & mt already on
Slide 22: Financials & Market Update
FINANCIALS & MARKET UPDATE
Slide 23: Fiscal Year Scorecard
FISCAL YEAR SCORECARD TOTAL INCOME (US$ in MILLIONS) 9 FY21 148 +9.4% FY20 $58.8 YoY ADJUSTED EBITDA’ (US$ in MILLIONS) Fy22 ($21.4) | Fy21 ($49.0) “ US$27.6M YoY FY20 ($13.9) TOTAL INCOME LESS TRANSACTION RELATED COSTS? (US$ in MILLIONS) FY21 $13.4 +US$23.3M FY20 $12.4 YoY GAAP NET LOSS (US$ in MIL
Slide 24: Quarterly Scorecard
QUARTERLY SCORECARD TOTAL INCOME (US$ in MILLIONS) + 9 1022 $27.6 25.5% YoY 1921 $26.0 ADJUSTED EBITDA! (US$ in MILLIONS) 1923 LE $8.3 1922 (17.8) +US$26.0M 1021 63.4) YoY TOTAL INCOME LESS TRANSACTION RELATED COSTS? (US$ in MILLIONS) 1922 $3.8 +US$17.6M YoY 1a21 $7.2 GAAP NET INCOME (LOSS) (US$ in
Slide 25: Update on FORUS Removal and U.S. Listing
UPDATE ON FORUS REMOVAL AND U.S. LISTING FORUS Designation }@) + Effective May 8, 2023, the FORUS designation was removed from the company’s CDs + U.S. investors may acquire Sezzle CDIs on ASX Reverse Stock Split )®) NASDAQ Listing ) IN PROGRESS... + Reverse stock split required to list on the Nasda
Slide 26: Sezzle Versus Comparable Companies
SEZZLE VERSUS COMPARABLE COMPANIES Last 6 Months’ YTD Revenue” EBITDA Net Income or Net Debt / Share Price TEV/ TEV/ Sezzle Comparable Companies Change (%) Margin (%) Net Loss Market Cap (x) Change (%) LTM Revenue (x) ___Active Consumers (x) Comp A 9.0% (30.0%) Net Loss Ox 93.8% 6.x 877.5x Comp B 10
Slide 27: Voting & Resolutions
VOTING & RESOLUTIONS
Slide 28: Valid Proxies Received Prior to Meeting
VALID PROXIES RECEIVED PRIOR TO MEETING Proxy numbers are reported on a pre consolidation basis based on the capital structure at the Record Date of 28 April 2023 RE-ELECTION OF DIRECTORS ITEM 2: Charlie Youakim (Executive Director) ITEM 3: Paul Victor Paradis (Executive Director) ITEM 4: Paul Purce
Slide 29: Valid Proxies Received Prior to Meeting
VALID PROXIES RECEIVED PRIOR TO MEETING Proxy numbers are reported on a pre consolidation basis based on the capital structure at the Record Date of 28 April 2023 APPROVAL TO ISSUE RESTRICTED STOCK UNITS (ITEMS 7, 8, 10, 11) & RESTRICTED SHARES (ITEM 9) TO DIRECTORS ITEM 7: Charlie Youakim (Executiv
Slide 30: Valid Proxies Received Prior to Meeting
VALID PROXIES RECEIVED PRIOR TO MEETING Proxy numbers are reported on a pre consolidation basis based on the capital structure at the Record Date of 28 April 2023 RATIFICATION OF INDEPDENT ACCOUNTING FIRM SELECTION FOR AGAINST ABSTAIN NON-VOTES UNCAST ITEM 12: Ratification of Independent Accounting
Slide 31: Appendices
APPENDICES
Slide 32: 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) March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Total income $ 34,673 $ 38,276 $ 30,408 $ 29,252 $ 27,634 Less: Transacti
Slide 33: Appendix II: Reconciliation of GAAP to Non-GAAP Measures
APPENDIX II: RECONCILIATION OF GAAP TO NON-GAAP MEASURES NON-TRANSACTION RELATED OPERATING EXPENSES For the three months ended (in $US thousands) March 31,2023 December 31, 2022 September 30,2022 _ June 30, 2022 March 31, 2022 Operating expenses $ 29,254 $§ 33,534 $ 23,909 $ 42,805 $ 53,758 Transact
Slide 34: Appendix III: Reconciliation of GAAP to Non-GAAP Measures
APPENDIX III: RECONCILIATION OF GAAP TO NON-GAAP MEASURES TOTAL INCOME LESS TRANSACTION RELATED COSTS For the year ended For the three months ended (in $US thousands) FY2022 FY2021 FY2020 March 31, 2023 March 31, 2022 March 31, 2021 Total income $ 125,570 § 14.817 $ 58,788 § 34,673 $ 27,634 $ 26,031
Slide 35: 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 ex
Slide 36: Sezzle - The Responsible Way to Pay
%sezzle & = The Responsible Way ike) Pay™ . te ="