SEZL - Earnings call transcript Q3 2024

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Operator

Good day, and welcome to the Sezzle Inc. third quarter financial results call. [Operator Instructions] Please note that this event is being recorded.

Now I'd now like to turn the conference over to Mr. Charlie Youakim, CEO and Executive Chairman. sir. ahead, go Please

Charles Youakim

afternoon, Call. welcome Good Third Sezzle's Quarter Earnings everyone, you. to and XXXX Thank

is Youakim. our name and Lee Sezzle. Karen My Brading. Charlie our our I'm Chairman and Hartje; Dev joined of Head Executive of today and Paul by President, Chief Corp Officer, I'm Financial Paradis; the IR, CEO

In with earnings posted and with our the presentation, at this our it, call, website filed we conference with SEC conjunction our announcement investor on earnings along sezzle.com.

so done section section. not Quarterly have please There, go will Relations you If the press under Investor the already, earnings of you Financials to Earnings within presentation website. our release find the and

that With started. let's done, get

quarterly our I'm very share excited performance. to latest

new highs several combination want momentum in plus launch XXXX ahead. stronger-than-anticipated our summary us The growth the items you in results, on to of flip of X, our raise captured strong led a guidance. WebBank, our has continues Many if with to set these Slide banking financial to program of in areas. Our we show results provided as are

frequency the slide in to QX, strong that rose by out was on XX.X% our the and our of that number subscribers. The first driven X item year-over-year. quarter purchase pop Like consumer growing is performance revenue rise

end Our quarter. represents the count XX,XXX subscriber reached quarter, compared XXX,XXX to last of which subscribers third the at an when increase of

research companies Adobe the outpacing are as buy now, by pay such we third-party as Clearly, industry later Analytics. reported

to which representing why net Like we discrete adjusted QX, Net an to tax onetime income came XX.X%. that of income. is for income have margin $XX.X number, quarter provide at adjust a the we net in some million, items

net and of adjusted net reached of high quarterly income second a marking income row adjusted million the our $XX.X an income a has margin XX%. which in quarter Our exceeded margin in new XX.X%, net adjusted

XX% XX XXX, strive gross where XX% revenue Rule own we talked on calls, and the margin. growth for a net exceed of past XX% On to want we've income our margins about and Rule of

gross margin we a This quarter, own had net adjusted XX% score XX% margin. hard-to-reach tallied on Rule a income and XXX our of a XX% growth, of XXX. revenue We

to However, performance it, of proudly majority the companies. listed financial exceeding of vast the want you are slice we

also into Karen provide of couple here. greater peek our end provides I a a the X make on the Slide at sneak which presentation. will guidance, detail of will Nonetheless, comments

now impact our Our guidance partnership WebBank. includes new with the estimated of

As has strong not I'm new combination discussed Therefore, in guidance. caused calls, partnership QX say, the our reflect with raise guidance to outperformance did in us update of the our and prior program our WebBank. to and, previous our banking happy

to XXXX over The expecting XXXX adjusted post-tax. EPS in still over guidance headwind out to our looking in we're tax XX%. XXXX XX% call is and into a want EPS that XX% roughly growth I by because grow

Lastly, moves of consumers the accolades please amongst our the our making of note saying right frequency are of indicators take from that and our our third-parties, strong users. we are for ratings XX% the All stakeholders. all from top

the in a with direction. our every our we guiding on when movie make, the these that is we shown Speaking are Slide us proof to say provide are path scrutinize and right and in decisions. headed principles of I stakeholders, question principles of me key results. ensure X we those The at Believe core

happened or comes to values lifetime had profitability, We been not increasing are that we visibly new users. outperforming our if have and not peers would when it acquiring consumer

increase the It our helping same consumers. of all also shares of guiding Our consumers' goal of values the us the subscription products, many principles. while with latest attributes offering, the of our product lifetime enhancing our boxes of On-Demand, particularly checks the experience of

growth significant Sezzle's will it greater discuss We presentation, the the in be detail but believe in next I journey. in On-Demand vectors one later will of

And least, all-encompassing guiding stakeholder satisfaction last, but not the principle.

corporation. disagree, profitable. are believe can't We with to as all, make think public benefit aligning satisfaction, happiness sure public a variety doesn't status ourselves profitable. name being we and stakeholders, stockholder mean We that we track employee metrics conflicts you benefit being such and be a Many merchant a of are, a sentiment, to We after few. good steward returns, with consumer

of reflected X. of path principles down guiding operational the Sezzle, the with history conducted launching us activities as that significant Our our led in on one of Slide our have we partnership most WebBank,

much that We a they earlier, we very WebBank with and are mentioned the share by the believe feel partners, are gold to for have we with that them. excited you. right I'm partnership path with partner such told standard news us. on the were our As of to found that aligned is We lucky bank many

the of basis, to today, was not banking go-forward today, a will be. guidance our Prior it a program part but on

a you give benefit little more the me Let how program us. color on will

a which more comes our bank's level, lot a standardize United makes unifies state-by-state thus aiding a Before approach, across program running rather particularly product compliance. profitability. national to banking this under state-by-state on everything when complicated, had construct States our allows national regulatory than which business The to the level procedures us charter, we the our partnership, it to on in a our manage

a new lifetime Slide key X. on and expansion, to banking program that introduce future value will consumer enables to suggested as user acquisition More the be importantly, products us

the our As values. their successful Without users' increasing of you we successfully continue the the while the At have evolve, to having enhanced we have journey, each mind, consumer we lifetime a experience of consumer. product. stage focus in needs can't on

many beginning users: areas our believe are relationship we consumer I two on the so that focusing they tools things the stages tools. financial as there more with at are just presently of for shopping and our need. are We

are of variety future our that for of have several for all wanted In you addition Not On-Demand future exist give products an in idea the path. of but we future we are and to and considering opportunities product we listed other launches. these areas certain, marketplace, to our

that On-Demand, to one We about X. X allow Anywhere certain, Sezzle deliverable have Its it will Premium product Pay product for everywhere, as in But a use without is they partnership. subscription. Slide or on WebBank have shown if don't consumers let's is the couldn't even this Pay-in-X launched biggest that talk

get for sign potentially believe down subscribers We a subscription. to Many immediately a want become to first-time up road. On-Demand We for it. users users creates that don't bridge those the

us We offering, areas. very detail to it are to two expect much a in On-Demand but as give this is unable at new help time we

it us First, competitive be for more it another of merchants means as even monetization. allow enterprise us will give to should

activation choose the available subscription. now. a into onetime only signing point greater Early expect service suggests subscription is our purchase data a incur purchase monetized than our On-Demand the for i.e., is programs, consumer happening at higher programs, of funnel at nonsubscribers option to user the rather we fee within in previously activation a Second, rate can anywhere of up XX% Visa as shop new to accepted

and will very believe of to to some with as will subscription. curve There important when bridge the it a be between Anywhere future serving be subscription. learning Premium balance success We comes the both and On-Demand to Sezzle, On-Demand

efforts first-time see users to in advertising of by attract had the quarter The solid X, that we're can finished as the on XXX,XXX growth we of users our you with expanding current subscribers. through join. and to another we able quarter was the As Slide quarter growth driven pool

expect as we consumers as everywhere with look On-Demand, of launch have Sezzle more to to new to with see they will the a shop us. subscription trade-off choices With

consumer long here. the and the to feedback phenomenal, Nonetheless, seeing are term. The be in for the On-Demand in and presentation activations has funnel, think products already activity and Premium out purchase sign, on core as pointed subscription offers flexibility and products that greatly early Anywhere our the increase I been we will expect earlier we we

download why. path expect once On-Demand metric users On-Demand that a strong the shown LTV And of company subscriber you company our important into as believe we might to monthly in And going our for be also customers. forward a active that the We creating is, use customer we places, customer reason LTV customer be count. and believe we've to we've the ability as to strong will app a follow converted and us the that same successfully that more wondering

between in subscriber customer going net-net will down counts, we create intermediate be believe financial as the waviness interplay and potentially even Bottom as the our pickup for our as On-Demand the our them of likely experience. will in and with subscription On-Demand performance near some to products It's term, line, well the that subscription On-Demand accelerates. positive

know XXXX guidance. volatility we that want XXXX our say such as into part and take this, did I I investors our As of to also consideration

is consumers of segues a to that strong And over got we've more more noise. to into do way by because making that goal increasing funnel. X LTV now is One that Slide handful products, awareness and the the new us getting

as we X, brand shown we trying awareness product with are to as ways As increase Slide well of awareness name general Sezzle. on the several have consumers

As that ads. clogged we airwaves aggressively will the with much to political not our morning half see marketing the market filed as increase you in we anticipated year, but from opens, the quarter the did compared be the during will admittedly spend first up before the of were XX-Q our as of as

heard worth As instances. the the having airwaves also it, cost up, during many increased, the political in the one's voice not ad clogged of spend season making

passed. political opportunities We to have now season expect greater to be able the has that

might we the a there has NBA this successfully gotten the bit strategy a be season, believe have Timberwolves, we Minnesota patch biased, playoff engagement approaching a are Timberwolves televised And team, little strategies. of us. great jersey awareness for with not games we likely Nonetheless, including The run. nationally sponsorship XX but our hometown out selective been

of championship lead through Wolves to increase my don't have we're fingers believe our this to Wolves like have Whether title dramatically brand also that set reincarnation up me. Edwards, the or crossed make with looks it, NBA he logo who our Jordan on Michael chest. his we can I they it Anthony to partnership. to make an awareness The the a

Now XX, the that Slide I'm please turn on is say to happy green. where screen everything to

positive in was lives. the become consumers' We suggest the part is want right consumers, one numbers to we periods, the are of prior direction. laggard trending consumers, As more in of important that and active top wallet too discussed and now a becoming for and that

also XX momentum. the strong progression, While Slide reflects which shows Slide sequential the year-over-year our performance quarter-over-quarter, supports XX

call the Karen turn happy With will to detail. Karen? to our who over results financial in that, quarterly greater our over Hartje, go I'm CFO,

Karen Hartje

hello you, to Thank Charlie, and all.

It's happy due Slide results. XX. I'm UMS results to strong. Total go revenue year-over-year a XXX% the detail on our in revenue. a XX.X% in greater to On into XX% increase quarterly always rise fun and subscription increased when to this are

run reflective the provided nonrecurring. company's to more mostly tax We nature numbers of rate which We this results. the allowance, related discrete our of is have adjusted the deferred provides to believe noise remove valuation a

total and our year; our fell compared XX.X% Adjusted year XX.X% revenue compared all to to $X.X net which XX.X% prior of in for prior expenses, These revenue as million million in rose total driven operating gains The less rose to facets, XX.X% compared ago. $XX.X to to the are revenue a the year-over-year; which growth, XX% which year. revenue was line from ago. up to the in a income bottom to leveraging year XX% captured costs QX of by was EBITDA unit XX.X% margin, to to total results non-transaction transaction-related to further economic gains significant were compared

a additional of XX% XX.X%. third growth end At Anywhere you attributable UMS of UMS launch didn't On our compared is of and to particularly growth subscribers XXX,XXX see Most quarter subscriber lot XX, revenue Anywhere. until occurred the June of XXX,XXX outpacing subscription, revenue quarter to the Sezzle had year. growth previous Slide third year-over-year can subsequently. of we in thus, XXXX, the UMS the of XXXX, We of is growth beyond only

lower-cost XX. primarily hover as our the level maintain of UMS are facility Transaction expense around We around X.X% of on payment to processing to a going reaping declined of continues is believe have bundled transaction-related costs, year. We in Slide X%. we X.X% to this can of benefits to a of which April UMS. costs we interest expense, Net

rose expectations. provision our in with our losses line credit for Meanwhile,

mid-Xs As would for consumers call, to in we increase the seasonality more confidence the the noted of previous in earnings decision a on the We being in toward and have the our we guided percentage our provision second mid-Xs open UMS QX half of the due that our of models. the believe provision year as given the half terms funnel of of reasonable. the remains year guidance underwriting our in to second to the

thought it controlled insight XX. a on as optimize shown our consumer funnel, growth a with be helpful Given the more our decision provide would Slide to top little expansion line our we of underwriting, into to

system what we around a centers believe profitability. ecosystem our a Yes, soothsayer bottom prophet driver models. both underwriting our and line we call of proprietary Our is

fiscal models prophet machine are first models learning proprietary XXXX. Our launched in

We fourth have the prophet existing sign-ups, customers. The consumer generation model and we prophet part our model are is of fraud. Prophet on last Prophet series new Baby the for False our of for model for the

gives Comparing as Prophet found we on least What right, on model have to riskiest shown charge-off is the to where better underwriting the overlaid our FICO, have chart our performance the further the the Prophet the left, us Baby from of Baby for is predictor than FICO delinquencies. performance confidence consumer chart in we that consumer the a based on the risky. deciles on

decile appropriately decile in X there lumpiness decile our was to This group also in by charge-offs see spending power can in sloped the allows that consumers If from XX. decile, would the the is that You for something the off riskiest appropriately charge-offs set us inputs in in models. from we to use to we consumers. the least see are system

proxy your any in to of group made we shows point to orders with bottom which performance. sales most our loyal over most a credit time I degradation consumers, those This for us. the delinquencies attention have XX and our seen for their would Lastly, that like than activity, have not represents more chart,

prior flat these better. In year results fact, of with the for one are each slightly or cohorts, the either

The XX% consistent can Slide with We on QX. XX. our be economic underwriting unit over and top grow to margin from credit prior seen of in XX.X% the The the were year. by able we risk guidance increase XX% effectiveness XX% year-over-year proof to our line provided is in the in

to Now charts XX. Charlie's favorite Slide on let's turn

our economics Here, outcome growing structure. leveraging top of our unit and you can improving see line, cost the

we Yes, while leveraging the the on sounds costs. in have to place on is right to team right simple, opportunities the believe much possible. grow goal it find separate lines but as chart Our to the as continue to our we

deferred Either XX% We expect adjustments in to performance had strong at XX. on our quarter, you row. net into We X related income or Slide income look results our has will tax mostly for adjusted this translate line it, shown continue quarters asset a some allowance. bottom way to exceeded minor net as margin valuation

quarters XX. in also of achieved We have excess margin row, a an as EBITDA Slide shown X XX% on for in

liquidity and various helps consider shareholders, allows the $XX we us plan options for completed Profitability as during to such million stock buyback QX.

million executed. of quarter, the $X.X fully During remaining the plan the was

Slide As unrestricted an additional million with $XX shown on of our cash credit. we on line available $XX.X have over XX, million in

future. to SEC I be strengthen mentioning will We The near are jump after and have shelf to to registration manage will balance We good housekeeping declared SEC. evaluating believe a the in not life we filing ways conclusions. the universal is the any a in being want always capital, so anyone we to by with one effective X-year to the immediate sheet, because here have I any shelf raise it but am do it have don't plans place.

I Lastly, our on Slide the for do want before touch over guidance to XX, turning Q&A. call on

in our updated now banking not guidance coupled with with in QX, launch of of guidance us our to the Our from XXXX outperformance areas. Further, leading includes impact was guidance. program provided our this, WebBank, the boost which previously part several our is

for also are guidance for We first the providing XXXX time.

greater to the at for we XXXX. direction would detail some anticipate EPS the in and We we becoming forecast for XXXX to adjusted XXXX, investors XXXX, program albeit full thought it are in of launch our line. providing only be the Given that beneficial a banking taxpayer get

positive insight are and of guidance our provides how believe about We the some direction into we future Sezzle.

we With the take for like call as please the happy Operator, your to to I would turn will over that, operator Q&A? to you the are questions. open lines

Operator

of Securities. [Operator Northland Mike Instructions] Grondahl from be question First will

Mike Grondahl

so the little bit partner product the going? and how a Could learned you what far is On-Demand talk you've new about bank with

Charles Youakim

Sure.

to the we think launch has partnership, thing think I the lot happened. what expected first a with I happen of the of

Mike Grondahl

The second competitive part is environment. on

Charles Youakim

states Okay. on simplifies our there, us to impact state-by-state approach, kind that the is to think now you we've the some know, the of business. pickup our expected. business the is I But really approach, in that we in some are really we It's profitability focus revenue helping in profitability guidance. like helping quite the product And in with limited. unified just I also is profitability. of It's the It's back what's And helped happening Mike, But because seeing and construct, a are what U.S. simplified WebBank, provided national and across in and guess. in number a it so states,

And then mentioned as as we in activations. On-Demand, XX% increase far

as along which subscription increased we we On-Demand app, And presenting enter et we're pickup, to So our they with consumers expected. is cetera. are what seeing

a the too be customers, think comes I far. some it app, for understood when that bridge customer we kind a might of into

You and checkout, use love $XX.XX a for come that created restrictions I once with out Sezzle," a you some like some to commitment asking this and month people's you "I'd merchant more And think then And a kind. check of we're some app, thoughts. per places. to the then model freemium or us $XX.XX use in and in

reduces basically the friction the With On-Demand, it to entry.

Mike, part so helping that's with activations. two? it was two, And again, what the And part then

Mike Grondahl

mid-XXXX? thinking was update on to On-Demand just bank stuff. one Is it Any want offer? the you Charlie. What's current that there? Maybe the Well, products follow-up, the

Charles Youakim

of kind view in we company pillars what keep that we want on focusing to two basically way. us these have on I of consumers Well, we think think the because this

benefit have a benefit shopping benefit consumers, but consumers. also financial to a have tooling financial to we We a or

as athlete with as of an On-Demand and And we're analogies, like think And to our services, just getting into I we partnership. company always of trying possible. the the launched, of getting kind foot like leaned agile as think I of financial left be kind WebBank

we're to in those consumers, really push just overall creation think and try over to incredible probably Because going product new value side, some know shopping to features stickier, features make to the enhance can attract right to the the shopping foot, I back shopping can we that consumer. the the the create app. can

we'll in So think features. on be those near the term, really I shopping focusing

to financial totally we're the time say financial line. I'm We're potentially additions to products think commitment going would to on side But I launch products. shopping have that not or probably side. other X no we'll side. I being that we'd sure ignore the XXXX. not services But financial ignore said, near or the more going focus X the term is in services the on on really

Mike Grondahl

you And Fair. ago, days that too. guys XX said

So on the sense. that ton congrats And a again robust and makes quarter of guidance.

Charles Youakim

lot, Mike. a Thanks

Operator

Next from RBC. question will from be Sacchetti Nico

Nico Sacchetti

Congrats on quarter. Can a me? hear good you

Charles Youakim

it. appreciate We Thanks. Yes.

Nico Sacchetti

just you is the number the so the this banking number, program? year adjusted clarify, adjustment cost from and $XX.XX, full is launching Can around guide, your that $X.XX? a XXXX GAAP Is

Charles Youakim

adjustment on around details provide to know, I that? you any No, more items. Karen, discrete want is the do tax don't the

Karen Hartje

that on had a and We valuation that going item with second quarter huge we in deferred we're discrete which released tax allowance books. profitability, we against still asset, a have where our our tax created given

we meaningful to some adjusted more and back is that number up that out other an onetime smaller items to investors. And come with so

Nico Sacchetti

adjusted earnings guidance fiscal upcoming $XX year? it's And the then in for Okay.

Charles Youakim

number to that apples-to-apples, in $X-plus XXXX. that's the would in And comparison Exactly. more be more

Nico Sacchetti

it. Got

now you in? Okay. inning from but the like you're do at from what, What's you what I'm ahead XX% outlook here? I do analogy, revenue goal EBITDA what where an XX% I margins basketball know incredible look we're income you from think such maybe And growth from net we're growth. go growing think we just I and XX% clip. do standpoint? What mean a are the you the here? like? what's mean margin, seeing, at, is guys the opportunity curious, looking

Charles Youakim

it sector great about got in terms more think we've this really we of we're think in. I

view pay buy growth We is year-on-year now, to I whole. going outperforming itself we're is had XX% third our the that sector. in quarter. think year-on-year estimates the that XX% revenue out entire And as grow there later a the is

I able grow. it and But lot is competitors so going and doing And of our always to believe do we're the we really as also sector market the that, going way is view team kind A that's shoulders are of approach, growing. our that share out kind of push well. sector viewing to in and it going strategies to we're our our gain be is the our to

approach what So has that's been. basically our

coal had as seen the they launched We've to always there Australia and the years a kind in beyond couple U.S. far what of you've so growth the of above because it earlier. and sector, in for mine they've looked canary the

our increase we So goal to And share in the just definitely the is within growth there's believe that, strong that our we're as had just be sector. spread sector market strategies. through to then doing really and

Nico Sacchetti

anything discussed this Is or can secret chasing we've of attribute more of what approach? you there growth here to, more at there like sauce any but some cost is growth quality around just in not

Charles Youakim

Well, we not growth growth quality We long think X-year the cost. seeking I at think definitely have in We term. views. and like any approach think

So is I doubt think incredibly like awesome. make that. we're competitive but of advantage, And our people of know out that a I team this there willing fit kind that decisions lot to

I high think hiring. that we in have standards very

talent very great And high standards talent. attracts great in have We more management. performance

us, I that types team. And but excellent by history, at product lot we've that a have differentiations an come those or are helped up our if differentiations of think look with strategic you product of created

doing the hit BS and to because but stakeholders really out that way how it go game view and along while incredible is for on we're keep become And an to all going the it I retention. It's an win we outperforms. real amazing the so this in cut of had to athlete, I after our my we're got incredible team and We've us have view, doing think that understands analogy the view And think that that it. incredible allowed also just team. we've really big the results,

Nico Sacchetti

the where frequently customers Is using rate consumer are tie helping is that for often these? substantial idea year you maybe like people existing use people a who a yours you to above, a there saw any using reference you quite a are ago? looks kind what maybe what can for each And it do of by industry are weaker what's above business it sweet like in Any attribute frequency And are common have that consumer? the below? for you how to? of for a spot of point more What's

Charles Youakim

much, to We needing you I XX we Sezzle's delinquencies less of wanted it's line And product, provide saw seeing think about proxy customers. have that top deterioration. not too controlled optimized we're with deterioration. like deterioration a kind on you'd weakness why expansion, growth a see sign. That's no any bottom, core the the customers Slide at for spending if because in like

I than the reason providing existing we're from our products our we're increased customers competitors. think seeing our utilization in is or because better customers business

They that products it. stickier. customers product. like They using providing we're it. The our think I like like are

competitive out a using preferring they're back of instead so ours. product there, to And to come

I think is, point. really see guess, Because I because Nico, I they were think, deterioration and just weakened you'd they to think needed the it if I key. that's the coming us financially

Nico Sacchetti

Sure.

cadence like? QX, expect from of season, next off couple your question, into seasonality where of there then holiday things you tail and Just Last kind any of any what idea QX? in business the past looks Okay. the like is quarters good of a years, going with a

Charles Youakim

don't make little is the try unusual. seasonality. the of a this customers bit, to But a we're mean we past a time Yes, defense. the tend season, it's lot bit We've retail-linked. We play talked in holiday to the a sure lot during but I of definitely there overspend. about

new credit this that very than to and And I different worth holiday as is because restrict cards many we credit new season, think, for ways, try the than spending. in for investors, cards something is is investors maybe better in it's this well, we're where think think I hearing I consumers

they of balance, they with can't sometimes we customer outstanding cases, common an then too see And where lower fail limits another with the of some walk purchase. they too make in some Because It's much, we they the fit away. if And if it they base. customer So overspends fail. sense. big if fail,

tell the a people a card holidays, they revolver overspend becomes credit side, because I X years, overspend and interest think the the for create in but never holidays love revolver think, I With companies, cetera. revolver in you the the flip this, they it rates, on they next they'll when paying when et

bring And kind product, that our consumers, the don't structure in X. we're into really get them to a value X because why and way of better we basically goes We with forever skis the greater that young to products I because credit to overspend. dynamic, way products consumer same shows first chance incentive their someone we of want overspend not as their think, lifetime there's for Pay is chance they them they especially over hand-in-hand, credit a as because if lose less a overspend, there's that a

bit in So while increased quarter We an a happening. there's X. be spending to going defend quite it's

income, in season. we're is goes the a so to mid- as tend returns, principal customers to lower see tax So holidays. higher we in the in a that. well overspending But principal fourth get And spending to low lot our lot have a of of quarter because in they tends tax of And rate loss be rate loss where, X, general you'll in down. quarter, the a there

happen. you restrict does As it, it try as to much

are QX, dynamics. the seasonalities sort then and of QX QX big are more are It's So really those and normalized. QX the

Nico Sacchetti

my a the for limit, able proactively and limit $XXX what, my to just understanding, I So my, a you're drop real-life holidays? like example would this be track spending habits going of into have

Charles Youakim

see at one. looking slide, be decile But is customers new coming limits behind you Slide level, the scenes, if or to and And say, look It'd restrict we're in restrict we'll we by Prophet, might scenes we'll have do behind existing Baby in people one and the XX, back for lower we with a this. their less -- growth. we or this holidays score limits. We'll levels might what by about not certain that customers, growth score start at the

limit, of instances. limit. there's by model if it might are gist the maybe Or bring Instead payment might occurs, what is bring of a let's some in negative it down drop way, the a in a exact. And failure in might XX% do. the kind in limits XX% the a of not sort for faster that event say, we have, of But we we be something that drop it they're down. if These happens. Like, holidays,

Operator

[Operator Instructions] Hal question Riley Next of from Goetsch B. will be Securities.

Harold Goetsch

you a and not user subscribers is occasional occasionally and use much your under user is it but how us the from from only subscription? monthly how a active Can an of much give on or perspective you UMS

Charles Youakim

Karen, do fingertips? data any your at of have that you

Karen Hartje

We disclose externally. the really UMS Yes. of sources don't

revenue We have streams our the in the of breakdown XX-Q.

Charles Youakim

I And Hal, think numbers it, customers. think Slide versus X, I frequency on you about is think find can one I core talked we area our

So average. during like there's third from on quarter the X versus subscribers more orders nonsubscribers

So kind a volumes. as that use of like I you for can think proxy probably

Harold Goetsch

on election And the you crowded environment marketing Okay. the guys said side, you out.

advertising XQ. to I want to the of than to to Or a grow the have kind different So cause or number did subscribers in to there's to goal the tried it kind new business? what want That on know of what didn't spent? might be have of was if subscription slowdown. what's take marketing do spending you you to pullback

Charles Youakim

more thing ROI. in a on a not one use goal is of goal we The it's spend, Yes. like

accumulated our this look of back X-month mindset. expenditure. have to versus at So get in sort We if we X lifetime like months, the value money you the want

and lifetime our the can with so that is out tells what all advertising value expenditure place, using our expenditure there. same channels then same of be, across us costs the number ballooning that And kind

you I the mean I TV during don't nonstop. I watching know but if political political watching were season, basically ads was

of base. So it we're reasonable and on into have on two of that time period, basically dependent have during some us we come basically because totally not basically funnels crowded spending. kind out two monetized channels, the spend subscriber that we that or right now, user And our that out pushed

us. is for newer acquisition, direct-to-consumer advertising, is One still our And is which directly merchant other integrated then from happening. of is more the those which traditional

with a our products. acquire free. And a shared we partners, merchant or That's we advertise can so when consumer consumer our subscription

do still of direct-to-consumer have that we we're was which inclined that have the to more newer So on impact that more the values now It advertising, an support lifetime it. we is that. channel,

Operator

session. question-and-answer turn the our ends for That call I'd over like remarks. closing to to back Charlie

Charles Youakim

Thank you, operator.

like Sezzle the thank team to I'd closing, again. In

As we know in continue it's in I earlier, strides and an make incredibly direction. tremendous going our because team I mentioned right talented the to have business, we

add a to my investing And themselves. go, I money for who one from I brokers." make make quote Benjamin Graham, their favorite for before who of "People heroes, invest money wanted speculate People

there you people that our banking speculate should suggestion for apology great you day. and the have A to firms and big an investors less. out your Thank investment thank and to a quote this partners rest all, of

Operator

has Thank today's for now presentation. you The attending conference concluded.

You may now disconnect.

Sezzle (SEZL) 7 Nov 242024 Q3 Earnings call transcript