8-K0001662991FALSE00016629912024-11-072024-11-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 7, 2024

Sezzle Inc.
(Exact name of registrant as specified in its charter)

Delaware001-4178181-0971660
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer
Identification No.)

700 Nicollet Mall
Suite 640
Minneapolis, MN 55402
(Address of principal executive offices, including zip code)

+1 (651) 240 6001
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, par value $0.00001 per shareSEZLThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02. Results of Operations and Financial Conditions

On November 7, 2024, Sezzle Inc. (the “Company”) issued a press release announcing its third quarter financial results for the period ending September 30, 2024. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

The information in this Form 8-K (including Exhibit 99.1 attached hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing by the Company, under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

Exhibit No.Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SEZZLE INC.
Dated: November 7, 2024By:/s/ Charles Youakim
Charles Youakim
Chief Executive Officer

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November 7, 2024
Sezzle Reports Third Quarter 2024 Results
Raising Guidance on Sustained Growth Momentum and Banking Program Launch.

Sezzle Inc. (NASDAQ:SEZL) (Sezzle or Company) // Purpose-driven digital payment platform, Sezzle, is pleased to update the market on key financial metrics for the quarter ended September 30, 2024.

“This quarter has been transformative for the Company. In addition to outperforming our expectations, we were able to successfully launch a banking program with WebBank,” stated Charlie Youakim, Sezzle Chairman and CEO. “The banking program marks an exciting new chapter for our Company, enabling us to expand access to innovative financial solutions to a broader audience. These developments fuel our optimism as we approach the seasonal year-end holiday period and close out FY2024.”

Third Quarter 2024 Highlights
•Underlying Merchant Sales (UMS) jumped 40.6% YoY to reach $659.9 million, exceeding the previous quarterly high recorded in 4Q23. The YoY growth was driven by greater consumer engagement, with overall consumer purchase frequency climbing to 5.4 times in 3Q24 compared to 4.1 times during the same period in 2023.
oThe top 10% of consumers, as measured by UMS, transacted 77 times per year on average during the rolling twelve-month period ended September 30, 2024.
•Fueled by subscriber growth and consumer engagement, Total Revenue increased 71.3% YoY to $70.0 million. Total Revenue as a percentage of UMS reached 10.6%, surpassing the previous all-time high of 10.5% set in 2Q24.
oAs of September 30, 2024, Sezzle had 529,000 Active Subscribers (rounded to the nearest thousand) enrolled across Anywhere and Premium (US and CA).
•In 3Q24, Total Operating Expenses rose 38.4% YoY to $49.1 million. The Company continues to scale efficiently, reflected in a YoY reduction in Total Operating Expenses as a percentage of UMS and Total Revenue by 0.2 and 16.7 percentage points, respectively, to 7.4% and 70.2%.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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•Transaction Related Costs1 as a percentage of UMS increased YoY from 4.4% to 4.8%, driven by a higher Provision for Credit Losses associated with the Company’s controlled expansion of underwriting. This increase was partially offset by decreases in both Transaction Expense and Net Interest Expense as a percentage of UMS.
•Non-transaction Related Operating Expenses1 rose 11.0% YoY to $21.0 million, however, as a percentage of Total Revenue, Non-transaction Related Operating Expenses reached a new Company low, declining 16.2 percentage points YoY to 30.0%. This improvement underscores the Company’s commitment to top-line growth while optimizing operating efficiency.
•The Company’s management of operating expenses and top-line growth led to a 289.6% YoY increase in Operating Income in 3Q24, reaching a new high of $20.8 million. This represents a 16.7 percentage point increase in Operating Margin to 29.8% in 3Q24 from 13.1% in 3Q23.
•Total Revenue Less Transaction Related Costs1 improved 91.5% YoY to $38.5 million. As a percentage, the metric reached 5.8% of UMS and 55.0% of Total Revenue, marking increases of 1.5 and 5.8 percentage points, respectively, over the prior year.
•Net Income reached $15.4 million, resulting in Net Income per Diluted Share of $2.62 for 3Q24, compared to $0.23 for 3Q23. Net Income as a percentage of Total Revenue was 22.1%, an 18.9 percentage point increase from the prior comparable period in 2023.
oAdjusted Net Income1 for the quarter totaled $17.3 million, representing 24.7% of Total Revenue and setting a new quarterly high. Per Diluted Share, Adjusted Net Income equated to $2.92, compared to $0.21 in 3Q231.
•For the quarter ended September 30, 2024, Adjusted EBITDA1 was at $22.5 million, amounting to 32.2% of Total Revenue, resulting in a 13.7 percentage point gain from the prior comparable period in 2023.

1 See appendix for a reconciliation of non-GAAP financial measures.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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Balance Sheet and Liquidity
•As of September 30, 2024, Sezzle had $88.3 million of cash and cash equivalents, $8.3 million of which was restricted.
•The Company had an outstanding principal balance of $95.0 million on its $150.0 million credit facility as of the quarter end.

Initiatives Update
•On August 26, 2024, Sezzle announced it entered a five-year banking program with WebBank, a Utah-chartered industrial bank. The banking program launched at the end of September 2024, with WebBank serving as the exclusive lender to originate certain finance products (i.e., Pay-in-4 and Pay-in-2). The Company expects several benefits from its partnership with WebBank, including unified fees, a more streamlined regulatory framework, and opportunities for future product innovations.
•At the end of September, Sezzle began to test On-Demand selectively, followed by a broader roll out in October. On-Demand, Sezzle’s first product by WebBank, provides consumers the flexibility to Pay-in-4 wherever Visa is accepted. Consumers simply request a single-use purchase amount and, upon approval, pay the 25% downpayment plus a service fee at the point of purchase. Sezzle On-Demand is currently available to select US consumers but is expected to gradually expand to a broader base of consumers in the coming months.
•On August 12, 2024, Sezzle was named the Official Jersey Patch Partner of the Minnesota Timberwolves as a part of a multi-year partnership. The partnership is inclusive of the Minnesota Lynx and entails prominent in-arena signage, in-game & on-court promotions, community events, concourse activations, and digital content.


Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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Updated FY2024 Guidance
•The Company is raising several components of its FY2024 guidance due to: 1) continued sustained growth, and 2) the inclusion of the newly launched banking program with WebBank, which was not accounted for in previous guidance.
oNet Income: $71.5 million versus $55.0 million provided with 2Q24 earnings.
oNet Income per Diluted Share: $12.05 versus $9.25 provided with 2Q24 earnings.
oTotal Revenue Growth: 55% versus 35%-40% provided with 2Q24 earnings.
oTotal Revenue Less Transaction Related Costs as a percentage of Total Revenue: No change to the 55% provided with 2Q24 earnings.
•Additionally, updating the FY2024 guidance for the following metrics that adjust for certain significant gains, losses, and charges that may not directly correlate to the underlying performance of the Company’s business:
oAdjusted Net Income2: $58.0 million versus $40.0 million provided with 2Q24 earnings.
oAdjusted Net Income per Diluted Share2: $9.80 versus $6.75 provided with 2Q24 earnings.
•The Company expects a mid-single digit annualized effective tax before consideration of discrete tax items for 4Q24.

FY2025 Guidance
•The Company is providing preliminary FY2025 guidance of $12.00 Adjusted Net Income per Diluted Share with the expectation of being a full corporate taxpayer throughout the year (20%-25% effective tax rate).


2 For the reconciliation of GAAP financial measures to non-GAAP financial measures, see Appendix.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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Equity Capital Management
•On July 9, 2024, Sezzle completed its $15.0 million stock repurchase plan announced on June 20, 2024. Management will continue to evaluate capital return options for shareholders including, but not limited to, dividends, incremental share repurchases, or a combination of both.

Awards and Accolades
•The Company continued to earn reputable accolades in 3Q24, making both CNBC’s World’s Top 250 Fintech Companies for 2024 and Worth’s Impact 150 list, which honors companies excelling in business while making significant contributions to sustainability and social impact.

Upcoming Events
•Sezzle Management will participate in the upcoming investor conferences:
oNovember 13-14, 2024: 2024 KBW Fintech Conference.
oDecember 3-4, 2024: Wells Fargo’s 8th Annual TMT Summit.
oDecember 12, 2024: Northland Growth Conference.

Quarterly Conference Call and Presentation
The Company will host its third quarter earnings conference call on November 7, 2024, at 5:00pm ET.

To register for the call, please navigate to: https://dpregister.com/sreg/10193861/fdcca5b749

Upon registration, participants will receive the dial-in number. Those without internet access or unable to pre-register may dial in by calling: 1-866-777-2509 (US/CA toll free) or 1-412-317-5413 (international toll). A replay will be available until November 14, 2024. To access the replay dial 1-877-344-7529 (US toll free) or 1-412-317-0088 (International toll). Replay access code: 6005027.

In conjunction with the earnings call, the Company will release its presentation on the Sezzle Investor Relations website before the call. Please navigate to the Sezzle Investor Relations website for the presentation that management will review on the call.

Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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3Q24 GAAP Operating Results
For the three months ended
($ in thousands)Sep. 30, 2024Sep. 30, 2023YoY Difference
Total Revenue$69,958 $40,844 71.3 %
Operating Expenses$49,117 $35,494 38.4 %
Operating Expenses as % of Total Revenue70.2 %86.9 %(16.7 ppt)
Operating Expenses as % of UMS7.4 %7.6 %(0.2 ppt)
Operating Income$20,841 $5,350 289.6 %
Operating Income as % of Total Revenue29.8 %13.1 %16.7 ppt
Operating Income as % of UMS3.2 %1.1 %2.1 ppt
Net Income$15,446 $1,294 1,093.3 %
Net Income as % of Total Revenue22.1 %3.2 %18.9 ppt
Net Income per Diluted Share$2.62 $0.23 1,057.7 %

3Q24 Non-GAAP Operating Results3
For the three months ended
($ in thousands)Sep. 30, 2024Sep. 30, 2023YoY Difference
Non-Transaction Related Operating Expenses$20,954 $18,880 11.0 %
Non-Transaction Related Operating Expenses as % of Total Revenue30.0 %46.2 %(16.2 ppt)
Transaction Related Costs$31,492 $20,756 51.7 %
Transaction Related Costs as % of Total Revenue45.0 %50.8 %(5.8 ppt)
Transaction Related Costs as % of UMS4.8 %4.4 %0.4 ppt
Total Revenue Less Transaction Related Costs$38,466 $20,088 91.5 %
Total Revenue Less Transaction Related Costs as % of Total Revenue55.0 %49.2 %5.8 ppt
Total Revenue Less Transaction Related Costs as % of UMS5.8 %4.3 %1.5 ppt
Adjusted EBITDA$22,530 $7,551 198.4 %
Adjusted EBITDA Margin32.2 %18.5 %13.7 ppt
Adjusted Net Income$17,254 $1,190 1,349.2 %
Adjusted Net Income Margin24.7 %2.9 %21.8 ppt
Adjusted Net Income per Diluted Share$2.92 $0.21 1,306.7 %

3 For the reconciliation of GAAP financial measures to non-GAAP financial measures, see Appendix.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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Appendix - Reconciliation of GAAP to Non-GAAP Financial Measures

Reconciliation of Operating Expenses to Non-transaction Related Operating Expenses
For the three months ended
($ in thousands)September 30, 2024September 30, 2023
Operating expenses$49,117 $35,494 
Transaction expense(12,761)(9,937)
Provision for credit losses(15,402)(6,677)
Non-transaction related operating expenses$20,954 $18,880 

Reconciliation of Operating Expenses to Transaction Related Costs
For the three months ended
($ in thousands)September 30, 2024September 30, 2023
Operating expenses$49,117 $35,494 
Personnel(13,424)(11,079)
Third-party technology and data(2,386)(2,003)
Marketing, advertising, and tradeshows(2,726)(3,615)
General and administrative(2,417)(2,184)
Net interest expense3,328 4,143 
Transaction related costs$31,492 $20,756 

Reconciliation of Operating Income to Total Revenue Less Transaction Related Costs
For the three months ended
($ in thousands)September 30, 2024September 30, 2023
Operating income$20,841 $5,350 
Personnel13,424 11,079 
Third-party technology and data2,386 2,003 
Marketing, advertising, and tradeshows2,726 3,615 
General and administrative2,417 2,184 
Net interest expense(3,328)(4,143)
Total revenue less transaction related costs$38,466 $20,088 

Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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Reconciliation of Net Income to Adjusted EBITDA
For the three months ended
($ in thousands)September 30, 2024September 30, 2023
Net income$15,446 $1,294 
Depreciation and amortization233 218 
Income tax expense2,163 16 
Equity and incentive-based compensation1,456 1,984 
Other (income) expense, net(96)(15)
Fair value adjustment on warrants— (89)
Net interest expense3,328 4,143 
Adjusted EBITDA$22,530 $7,551 

Reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income per Diluted Share
For the three months ended
($ in thousands, except for per share numbers)September 30, 2024September 30, 2023
Net income$15,446 $1,294 
Discrete tax expense for valuation allowance release1,904 — 
Fair value adjustment on warrants— (89)
Other (income) expense, net(96)(15)
Adjusted net income17,254 1,190 
Diluted weighted-average shares outstanding5,906 5,730 
Adjusted net income per diluted share$2.92 $0.21 

Investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when we establish reserves for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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Contact Information

Lee Brading, CFA
Investor Relations
+1 651 240 6001
InvestorRelations@sezzle.com
Erin Foran
Media Enquiries
+1 651 403 2184
erin.foran@sezzle.com

About Sezzle Inc.
Sezzle is a fintech company on a mission to financially empower the next generation. Sezzle’s payment platform increases the purchasing power for millions of consumers by offering interest-free installment plans at online stores and select in-store locations. Sezzle’s transparent, inclusive, and seamless payment option allows consumers to take control over their spending, be more responsible, and gain access to financial freedom.

For more information visit sezzle.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements include our expectations, whether stated or implied, regarding our financing plans and other future events.

Forward-looking statements generally can be identified by the use of words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "forecast," "goal," "project," other words or expressions of similar meaning (or the negative versions of such words or expressions). These forward-looking statements address various matters including statements regarding the timing or nature of future operating or financial performance or other events. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others: impact of the “buy-now, pay-later” (“BNPL”) industry becoming subject to increased regulatory scrutiny; impact of operating in a highly competitive industry; impact of macro-economic conditions on consumer spending; our ability to increase our merchant network, our base of consumers and underlying merchant sales (UMS); our ability to effectively manage growth, sustain our growth rate and maintain our market share; our ability to maintain adequate access to capital in order to meet the capital requirements of our business; impact of exposure to consumer bad debts and insolvency of merchants; impact of the integration, support and prominent presentation of our platform by our merchants; impact of any data security breaches, cyberattacks, employee or other internal misconduct, malware, phishing or ransomware, physical security breaches, natural disasters, or similar disruptions; impact of key vendors or merchants failing to comply with legal or regulatory requirements or to provide various services that are important to our operations; impact of the
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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loss of key partners and merchant relationships; impact of exchange rate fluctuations in the international markets in which we operate; impact of our delisting from the Australian Securities Exchange and trading on Nasdaq Capital Market as our sole trading exchange; our ability to protect our intellectual property rights and third party allegations of the misappropriation of intellectual property rights; our ability to retain employees and recruit additional employees; impact of the costs of complying with various laws and regulations applicable to the BNPL industry in the United States and Canada; and our ability to achieve our public benefit purpose and maintain our B Corporation certification. The Company cautions investors not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read the Company's filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements. The Company's business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

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-transaction related operating expenses; adjusted net income (loss); adjusted net income (loss) margin; adjusted net income (loss) per diluted share; adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”); and Adjusted EBITDA margin. Definitions of these non-GAAP financial measures and summaries of the reasons why management believes that the presentation of these non-GAAP financial measures provide useful information to the Company and investors are as follows:
•Total revenue less transaction related costs is defined as GAAP total revenue less transaction related costs. Transaction related costs is the sum of GAAP transaction expense, provision for credit losses, and net interest expense less certain non-recurring charges as detailed in the reconciliation table of GAAP operating income to non-GAAP total revenue less transaction related costs above. We believe that total revenue less transaction related costs is a useful financial measure to both management and investors for evaluating the economic value of orders processed on the Sezzle Platform;
•Non-transaction related operating expenses is defined as the sum of GAAP personnel; third-party technology and data; marketing, advertising, and tradeshows; and general and administrative operating expenses. We believe that non-transaction related operating expenses is a useful financial measure to both management and investors for evaluating our management of operating expenses not directly attributable to orders processed on the Sezzle Platform.



Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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•Adjusted EBITDA is defined as GAAP net income, adjusted for certain non-cash and non-recurring charges including depreciation, amortization, equity and incentive–based compensation, and merger-related costs, as well as net interest expense as detailed in the reconciliation table of GAAP net income to adjusted EBITDA. We believe that this financial measure is a useful measure for period-to-period comparison of our business by removing the effect of certain non-cash and non-recurring charges, as well as funding costs, that may not directly correlate to the underlying performance of our business.
•Adjusted EBITDA margin is defined as Adjusted EBITDA divided by GAAP total revenue. We believe that this financial measure is a useful measure for period-to-period comparison of our business’ unit economics by removing the effect of certain non-cash and non-recurring charges, as well as funding costs, that may not directly correlate to the underlying performance of our business.
•Adjusted net income (loss) is defined as GAAP net income, adjusted for certain charges including the release of our deferred tax asset valuation allowance, fair value adjustments on warrants, losses on the extinguishment of our lines of credit, and other income and expense, as detailed in the reconciliation table of GAAP net income to adjusted net income (loss). We believe that this financial measure is useful for period-to-period comparison of our business by removing the effect of certain charges that, in management's view, does not correlate to the underlying performance of our business during a given period.
•Adjusted net income (loss) margin is defined as Adjusted net income (loss) divided by GAAP total revenue. We believe that this financial measure is a useful measure for period-to-period comparison of our business by removing the effect of certain charges that, in management's view, does not correlate to the underlying performance of our business during a given period.
•Adjusted net income (loss) per diluted share is defined as non-GAAP adjusted net income (loss) divided by GAAP weighted-average diluted shares outstanding. We believe that this financial measure is a useful measure for period-to-period comparison of shareholder return by removing the effect of certain charges that, in management's view, does not correlate to the underlying performance of our business during a given period.

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 to operating expenses and the allocation of resources. Therefore, we believe these measures provide useful information to investors and other users of this press release to understand and evaluate our operating results in the same manner as our management and board of directors. However, non-GAAP financial measures have limitations, should be considered supplemental in nature, and are not meant as a substitute for the related financial information prepared in accordance with U.S. GAAP. These limitations include the following:

Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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•Total revenue less transaction-related costs is not intended to be measures of operating profit or cash flow profitability as they exclude key operating expenses such as personnel, general and administrative, and third-party technology and data, which have been, and will continue to be for the foreseeable future, significant recurring GAAP expenses.
•Transaction related costs exclude significant expenses such as personnel, general and administrative, and third-party technology and data, which have been, and will continue to be for the foreseeable future, significant recurring GAAP expenses.
•Non-transaction related operating expenses exclude significant expenses, including transaction expense and provision for credit losses, which have been, and will continue to be for the foreseeable future, significant recurring GAAP expenses.
•Adjusted EBITDA and adjusted EBITDA margin exclude certain recurring, non-cash charges such as depreciation, amortization, and equity and incentive–based compensation, which have been, and will continue to be for the foreseeable future, recurring GAAP expenses. Further, these non-GAAP financial measures exclude certain significant cash inflows and outflows, which have a significant impact on our working capital and cash.
•Adjusted EBITDA and adjusted EBITDA margin excludes net interest expense, which has a significant impact on our GAAP net income, working capital, and cash.
•Adjusted net income (loss), adjusted net income (loss) margin, and adjusted net income (loss) per diluted share excludes certain charges such as losses on the extinguishment of our lines of credit, fair value adjustments on our warrants, other income and expense, and the release of our deferred tax asset valuation allowance which have been, and may be in the future, recurring GAAP expenses.
•Long-lived assets being depreciated or amortized may need to be replaced in the future, and these non-GAAP financial measures do not reflect the capital expenditures needed for such replacements, or for any new capital expenditures or commitments.
•These non-GAAP financial measures do not reflect income taxes that may represent a reduction in cash available to us.
•Non-GAAP measures do not reflect changes in, or cash requirements for, our working capital needs.
•Other companies, including companies in our industry, may calculate the non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.


Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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Because of these limitations, you should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of our financial results as reported under GAAP, and these non-GAAP financial measures should be considered alongside other financial performance measures, including net income and other financial results presented in accordance with GAAP. We encourage you to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

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Consolidated Balance Sheets
As of
September 30, 2024December 31, 2023
(unaudited)(audited)
Assets
Current Assets
Cash and cash equivalents$80,062,505 $67,624,212 
Restricted cash, current7,173,326 2,993,011 
Notes receivable151,413,490 142,885,682 
Allowance for credit losses(18,626,222)(12,253,041)
Notes receivable, net132,787,268 130,632,641 
Other receivables, net3,823,280 1,571,728 
Prepaid expenses and other current assets8,580,986 6,223,274 
Total current assets232,427,365 209,044,866 
Non-Current Assets
Internally developed intangible assets, net2,289,227 1,898,470 
Operating right-of-use assets834,117 994,476 
Restricted cash, non-current1,107,298 82,000 
Deferred tax asset, net of $8,349,879 and $32,478,033 valuation allowance, respectively
15,863,790 — 
Other assets347,475 625,471 
Total Assets$252,869,272 $212,645,283 
Liabilities and Stockholders' Equity
Current Liabilities
Merchant accounts payable$70,449,314 $74,135,491 
Operating lease liabilities83,222 57,316 
Accrued liabilities11,475,162 10,790,308 
Other payables10,498,376 5,261,436 
Deferred revenue4,373,270 2,643,230 
Line of credit, net of unamortized debt issuance costs of $619,094
— 94,380,906 
Total current liabilities96,879,344 187,268,687 
Long Term Liabilities
Long term debt— 250,000 
Operating lease liabilities854,509 981,692 
Line of credit, net of unamortized debt issuance costs of $1,062,276
93,937,724 — 
Warrant liabilities— 967,257 
Other non-current liabilities59,681 1,083,323 
Total Liabilities191,731,258 190,550,959 
Stockholders' Equity
Common stock, $0.00001 par value; 750,000,000 shares authorized; 5,747,907 and 5,826,206 shares issued, respectively; 5,580,093 and 5,697,517 shares outstanding, respectively
2,084 2,085 
Additional paid-in capital184,865,379 186,015,079 
Treasury stock, at cost: 167,814 and 128,689 shares, respectively
(7,938,255)(5,755,961)
Accumulated other comprehensive loss(649,352)(646,999)
Accumulated deficit(115,141,842)(157,519,880)
Total Stockholders' Equity61,138,014 22,094,324 
Total Liabilities and Stockholders' Equity$252,869,272 $212,645,283 
Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

14
group1534a.jpg
Consolidated Statements of Operations and Comprehensive Income (unaudited)
For the three months ended September 30,
20242023
Total revenue$69,957,691 $40,844,201 
Operating Expenses
Personnel13,423,723 11,079,174 
Transaction expense12,761,438 9,936,804 
Third-party technology and data2,386,490 2,002,515 
Marketing, advertising, and tradeshows2,725,615 3,615,339 
General and administrative2,416,951 2,184,076 
Provision for credit losses15,402,303 6,676,548 
Total operating expenses49,116,520 35,494,456 
Operating Income20,841,171 5,349,745 
Other Income (Expense)
Net interest expense(3,327,998)(4,143,258)
Other income (expense), net96,057 14,560 
Fair value adjustment on warrants— 89,227 
Loss on extinguishment of line of credit— — 
Income before taxes17,609,230 1,310,274 
Income tax (benefit) expense2,162,989 15,874 
Net Income15,446,241 1,294,400 
Other Comprehensive Income (Loss)
Foreign currency translation adjustment71,598 (358,465)
Total Comprehensive Income$15,517,839 $935,935 
Net income per share:
Basic$2.79 $0.23 
Diluted2.62 0.23 
Weighted-average shares outstanding:
Basic5,545,353 5,667,430 
Diluted5,905,833 5,729,665 




Sezzle Inc. (NASDAQ:SEZL) | sezzle.com | 700 Nicollet Mall, Suite 640, Minneapolis, MN 55402

15
v3.24.3
Cover Page
Nov. 07, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 07, 2024
Entity Registrant Name Sezzle Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-41781
Entity Tax Identification Number 81-0971660
Entity Address, Address Line One 700 Nicollet Mall
Entity Address, Address Line Two Suite 640
Entity Address, City or Town Minneapolis
Entity Address, State or Province MN
Entity Address, Postal Zip Code 55402
Country Region +1
City Area Code 651
Local Phone Number 240 6001
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company true
Entity Ex Transition Period false
Entity Central Index Key 0001662991
Amendment Flag false
Title of 12(b) Security Common Stock, par value $0.00001 per share
Trading Symbol SEZL
Security Exchange Name NASDAQ
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