New product offerings are driving continued revenue expansion
Reconciliation of GAAP with non-GAAP measures
GAAP Net Income and Non-GAAP Adjusted EBITDA
MINNEAPOLIS, MN, September 19, 2023 (GLOBE NEWSWIRE) — Sezzle Inc. (NASDAQ:SEZL, ASX:SZL,sizzle Or company) // Sezzle, the purpose-driven digital payments platform, is pleased to provide the market with an update on key financial metrics for the month ending August 31, 2023.
“August has proven to be another testament to the efficacy and success of our latest product offerings. “Continued growth in our active client base has had a major impact, strengthening our UMS, total revenue and net income,” said Charlie Youakim, President and CEO of Sezzle. “We are excited about the upcoming holiday period in the fourth quarter, as we have the right economic model for us and our customers.”
Total revenue increased to US$14.0 million (A$21.6 million)) in August 2023, representing 44.3% YoY and 11.7% MoM growth. Net income as a percentage of underlying business sales (ums) increased by 188 bps year-on-year to 8.7%.
In August 2023, Sezzle reported GAAP net income and adjusted EBITDA (a non-GAAP measure) of $0.6 million and $2.4 million, respectively.
As of August 31, 2023, Sezzle had US$60.7 million in cash (of which US$2.8 million is restricted) and US$71.7 million drawn from its US$100.0 million credit facility.
As of August 31, 2023, notes receivable (net) and merchant accounts payable stood at US$100.6 million and US$66.7 million, respectively. The merchant interest program represents US$51.7 million of merchant accounts payable balances.
As of 19 September 2023, the number of active customers enrolled in Sezzle Premium and Anywhere exceeded 210,000.
The average daily UMS has increased by about 2.6% in September 2023 (up to September 18) compared to the previous comparable period in August 2023.
See the attachments below for reconciliations of GAAP net income, non-GAAP adjusted EBITDA and non-GAAP measures to GAAP.
Investors should be aware that generally accepted accounting principles determine when a company can reserve for particular risks, including litigation risk. Accordingly, our results for a given reporting period may be significantly affected if we establish reserves for one or more contingencies. In addition, our regular reserve reviews may result in adjustments of varying magnitude as additional information about claims activity becomes known. Therefore, reported results may be volatile in certain accounting periods.
This August Business Update by Sezzle Inc. has been approved by Charlie Youakim, the Company’s Executive Chairman and CEO, on behalf of the Board.
About Sezzle Inc
Sezzle is a fintech company on a mission to financially empower the next generation. Sezzle’s payments platform extends purchasing power to millions of consumers by offering interest-free installment plans at online stores and select in-store locations. Sezzle’s transparent, inclusive and seamless payment options allow consumers to take control of their spending, be more responsible and gain access to financial freedom.
For more information visit sezzzle.com,
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements primarily on our current expectations and projections regarding 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 are generally described by the use of words such as “anticipate,” “expect,” “plan,” “could,” “could,” “will,” “believe,” “estimate,” “forecast.” Can be identified. ” “Goal,” “Project,” and other words of similar meaning. These forward-looking statements address a variety of matters, including statements about future operating or financial performance or the timing or nature of other events. Included in this press release each Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the results expressed or implied by such statements. Applicable risks and uncertainties include, among others: the “buy now, pay later” (“BNPL”) industry. the impact of being subject to increased regulatory scrutiny; the impact of operating in a highly competitive industry; our ability to remain listed on the Nasdaq Capital Market; the impact of macroeconomic conditions on consumer spending; our merchant network, our consumer base and the underlying Our ability to grow merchant sales (UMS); our ability to effectively manage growth, maintain our growth rate and maintain our market share; our ability to meet additional capital requirements; our ability to reduce consumer bad loans and the impact of the risk of bankruptcy of traders; the impact of the integration, support and major introduction of our platform by our traders; the impact of any data security breach, cyber-attack, employee or other internal misconduct, malware, phishing or ransomware, physical security breach, natural disasters, or similar disruption; the impact of key vendors or merchants failing to comply with legal or regulatory requirements or provide various services critical to our operations; the impact of the loss of key partners and business relationships; the impact of exchange rate fluctuations in the international markets in which we operate; our ability to protect our intellectual property rights; our ability to retain employees and recruit additional employees; the impact of the costs of compliance with various laws and regulations applicable to the BNPL industry in the United States and Canada; and our ability to achieve our public benefit objective and maintain our B Corporation certification. The Company cautions investors not to place undue 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 and the Company’s market announcements available on the ASX 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 the risks mentioned above. Investors, potential investors and others should consider these risks and uncertainties carefully.
Non-GAAP Financial Measures
To supplement our operating results, prepared in accordance with United States generally accepted accounting principles (“GAAP”), we present the following non-GAAP financial measures: Adjusted earnings before taxes, depreciation and amortization ( “Adjusted EBTDA”); and adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). Definitions of these non-GAAP financial measures and a summary of the reasons why management believes the presentation of these non-GAAP financial measures provides useful information to the Company and investors:
Adjusted EBTDA is defined as GAAP net income (loss) adjusted for certain non-cash and non-recurring charges, including depreciation, amortization, equity and incentive-based compensation and merger-related costs, As detailed in the reconciliation table of GAAP net income. (Loss) up to Adjusted EBTDA. We believe this financial measure is a useful measure for comparing our business from period to period by removing the impact of certain non-cash and non-recurring charges that may not be directly related to the underlying performance of our business.
Adjusted EBITDA is defined as GAAP net income (loss) 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. Reconciliation table of GAAP net income (loss) to adjusted EBITDA. We believe this financial measure is a useful measure for period-to-period comparison of our business by removing the impact of certain non-cash and non-recurring charges, as well as funding costs, which are not directly related to underlying performance. It is possible Of our business.
Adjusted operating expenses are defined as GAAP operating expenses plus net interest expense; and less depreciation and amortization, equity and incentive-based compensation, and other non-recurring or non-cash charges, as described in the Reconciliation of Adjusted Operating Expenses to GAAP Operating Expenses table above. We believe that adjusted operating expenses are a useful financial measure for both management and investors to evaluate our operating performance without the impact of certain non-cash and non-recurring charges that do not necessarily reflect the underlying performance of our business. Be related to performance.
Additionally, we have included these non-GAAP measures because they are used by our management to evaluate our operating performance, guide future operating plans, and make strategic decisions related to operating expenses and allocation of resources. The main measures are. Therefore, we believe that these measures provide useful information to investors and other users of this press release in understanding and evaluating our operating results, just as our management and board of directors do. Although non-GAAP financial measures have limitations, they should be considered supplemental in nature, and are not a substitute for relevant financial information prepared in accordance with US GAAP. These limitations include the following:
Adjusted EBTDA and Adjusted EBITDA do not include certain recurring, non-cash charges such as depreciation, amortization, and equity and incentive-based compensation, which are recurring GAAP expenses and will continue to be so for the foreseeable future. Additionally, these non-GAAP financial measures do not include certain significant cash inflows and outflows, such as merger-related costs (which include legal fees in connection with our consummated proposed merger with Zip Company Limited) and such merger-related costs. Reimbursement for, which has a significant impact on our working capital and cash.
Adjusted EBITDA does not include net interest expense, which has a significant impact on our GAAP net income, working capital and cash.
Assets that have long periods of depreciation or amortization may need to be replaced in the future, and these non-GAAP financial measures do not reflect the capital expenditures required for such replacements, or any new capital expenditures or commitments. Are.
Non-GAAP measures do not reflect changes in our working capital needs or cash requirements. ,
Other companies, including companies in our industry, may calculate non-GAAP financial measures differently or not at all, reducing their usefulness as comparative measures.
Because of these limitations, you should not consider these non-GAAP financial measures separately or as a substitute for analyzing our financial results reported under GAAP, and these non-GAAP financial measures should not be considered in comparison to other financial results, including net income. Must be considered with financial performance measures. (Loss) and other financial results presented in accordance with GAAP. We encourage you to review the relevant GAAP financial measures and the reconciliation 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.
 The results are unaudited preliminary financial results.
 The A$ to US$ exchange rate as of August 31, 2023 is $0.6470.
Contact: Erin Foran Sezzzle 6514032184 [email protected]