Sezzle Inc. · NASDAQ:SEZL
Sezzle — Q2 2022 Earnings Presentation
19 slides from Sezzle's earnings presentation, Jul 29, 2022
Slide 1: 2Q Earnings Presentation
2Q Earnings Presentation 29 JULY 2022 This presentation has been authorized and approved by the Sezzle Board al use only
Slide 2: Disclaimer
DISCLAIMER 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 the information in the Presentation remains subject t
Slide 3: Overview
OVERVIEW al use only Sezzle Overview SEZZLE INC 2Q22 PRESENTATION | 3
Slide 4: Financial Scorecard
Financial Scorecard 2021 2Q22 UNDERLYING MERCHANT SALES1 (UMS) (US$ in MILLIONS) UNDERLYING MERCHANT SALES1 (UMS) (US$ in MILLIONS) +111.1% +1.9% 2021 $1,807.8 2Q22 $419.1 2020 $856.4 2Q21 $411.1 YoY YoY al use only 2019 $244.1 2Q20 $188.0 TOTAL INCOME ($ in MILLIONS) TOTAL INCOME ($ in MILLIONS) +9
Slide 5: Performance Scorecard
Performance Scorecard 2021 2Q22 ACTIVE1 MERCHANTS ACTIVE1 MERCHANTS 2021 47,000 2Q22 48,000 2020 27,000 +76.0% 2Q21 40,000 +19.0% YoY YoY al use only 2019 13,000 2Q20 16,000 ACTIVE1 CONSUMERS ACTIVE1 CONSUMERS 2021 3,400,000 2Q22 3,407,000 2020 2,244,000 +51.5% 2Q21 2,884,000 +18.2% 2019 915,000 YoY
Slide 6: Vision – Always Evolving
Vision – Always Evolving MERCHANT-FOCUSED CONSUMER-FOCUSED • Initially launched with a • Sezzle is committed to consumer-friendly focus for continuing the expansion of its merchants - providing product offering to millions of al use only consumers a flexible alternative consumers to traditional cred
Slide 7: Significant Product Development
Significant Product Development LONG-TERM INSTALLMENTS OMNICHANNEL OFFERING MARKETPLACE ENHANCEMENTS LOYALTY PROGRAM Provides qualified consumers a long- Frictionless in-store payment solution Greater sophistication and search Sezzle Rewards allows users to earn term financing option with a Sezzle v
Slide 8: Elevated Experience Through Sezzle Premium
Elevated Experience Through Sezzle Premium Access to Shop at 200+ Premium Brands al use only 47, 000+ 10+% Active Subscriptions % of UMS since launch Priority Consumer Extra Free Payment Support Reschedule per Order 2x Points for Exclusive Sezzle Rewards Deals & Discounts Note: performance data as o
Slide 9: Upcoming Product Launches
Upcoming Product Launches PAY-IN-TWO AND PAY NOW SEZZLE FLEX CARD • Greater flexibility for • A traditional credit card consumers with Pay-in-Two and delivered via a co-brand Pay Now partner or issuer al use only • Provide consumers additional • Sezzle will act as the options, allowing them to marke
Slide 10: Initiatives to Reach Profitability
INITIATIVES al use only Initiatives to Reach Profitability SEZZLE INC 2Q22 PRESENTATION | 10
Slide 11: Completed and On-going Initiatives
Completed and On-going Initiatives ● Either offboarded or renegotiated pricing with ~50 merchants Revenue ● Successfully updated revenue share with card issuing partner to properly reflect the Optimization Company’s size and scale C Reduction in ● The Company underwent a 20% headcount reduction in M
Slide 12: Financials
FINANCIALS al use only Financials SEZZLE INC 2Q22 PRESENTATION | 12
Slide 13: Underlying Merchant Sales & Total Income
Underlying Merchant Sales & Total Income UNDERLYING MERCHANT SALES (UMS) Commentary $561.0 • UMS reached US$419.1 million during the quarter, up $411.1 $460.7 $450.5 $419.1 1.9% YoY, with instore up 262.8% YoY • For comparison, U.S. e-commerce retail sales al use only declined in the low-single digi
Slide 14: Transaction Expense & Provision
Transaction Expense & Provision Commentary TRANSACTION EXPENSE $13.9 • Transaction expense for 2Q22 declined compared to 1Q22, approaching a level consistent with 2Q21 as $16.0 5.0% $14.0 $11.5 $11.8 $9.1 $10.1 4.0% $12.0 $10.0 3.0% a percentage of UMS $8.0 2.2% 2.5% 2.5% 2.6% 2.4% al use only $6.0
Slide 15: Operating Expenses
Operating Expenses OPERATING EXPENSE1 Commentary $35.0 $31.5 140.0% $30.0 $22.2 $24.2 $23.6 $24.8 130.0% • Operating Expense as a percentage of Total Income fell to 84.9% compared to 114.0% in 1Q22 120.0% 114.0% $25.0 110.0% $20.0 100.0% $15.0 • In 2Q22, the Company reduced its Adjusted al use only
Slide 16: Closing the Gap
Closing the Gap Commentary Adjusted Operating Expense2 ($US in millions) • In 2Q22, Sezzle delivered a record quarter for Total Income less Transaction Related Costs of US$9.6 million $23.1 al use only $22.3 • The deviation between Total Income less $20.7 $18.3 Transaction Related Costs and Adjusted
Slide 17: Capitalization & Funding
Capitalization & Funding Select Balance Sheet Data Commentary Unaudited Unaudited • The Company had unused borrowing capacity on its US$000's 31-Mar-2022 30-Jun-2022 line of credit of US$10.1 million as of 30 June 2022 Cash and cash equivalents $58,371 $62,076 compared to US$39.7 million as of 31 Ma
Slide 18: Termination of the Proposed Merger with Zip
Termination of the Proposed Merger with Zip MERGER TERMINATION • On 28 February 2022, Zip Co. (ASX: ZIP) and Sezzle entered into a definitive agreement to merge in an all- al use only stock deal • On 12 July 2022, both companies mutually agreed to terminate the proposed merger • As part of the mutua
Slide 19: Thank you
al use only Thank you