Ann: Second Quarter Results Presentation, page-9

The market has sold Sezzle down by about 15% today because they couldn’t truly understand the 10-Q accounts!

Sezzle management have broken down (bad debts) for the dummies as noted below:

Bad debts as a % of UMS averages about 2.5% from 2019 and then spikes to 3.4% in the recent QTR due to expansion testing with large enterprise merchants, Non-integrated product offerings and COVID-19 resulting stimulus.

2Q20, bad debts dropped to 1.2%.

Bad debts would ultimately increase with more aggressive expansion. This is a no brainer.

What an absolute overreaction.