Sezzle Inc. (ASX: SZL) reported its third-quarter results this morning showing increased growth in its first quarter as a listed company. Here are the key points…
About Sezzle
Sezzle is a US-based and incorporated business that provides an interest-free instalment payment solution, similar to Afterpay Touch Group Ltd (ASX: APT)
. It has been operating since 2017 and is now in 12 countries. Sezzle listed on the ASX with an initial public offering price of $1.22 per share/CDI. The business does not charge interest or initiation fees, however, it does charge failed payment fees of US$10.
Sezzle Q3 Key Points
In the three months ended 30th September 2019, Sezzle increased the number of active merchants by 48.7% from 5,048 to 7,507. Growth in active customers was similar, increasing from 429,898 to 644,509, or an increase of 49.9%.
Both of these increases are the largest quarterly increases in the company’s history.
Underlying merchant sales totalled US$68.8 million during the quarter, up 64.2% from US$41.9 million in the June quarter.
This led to a 68.9% increase in underlying merchant fees, up to US$3.6 million from US$2.1 million in the June quarter.
Sezzle’s cashflow was positive for the quarter (US$7 million) leaving the company with a cash balance of US$27.2 million at the end of the quarter.
Sezzle CEO and Executive Chairman Charlie Youakim said:
“The September Quarter represents our first quarter as a listed company and we are very pleased to report ongoing strong results. The Company’s operational metrics grew circa 50% quarter-on-quarter, while the key financial metrics continued to show marked improvement.”
Time To Buy Sezzle Shares?
Sezzle is at an interesting point where there is huge growth and positive cash flow which look very attractive. However, the buy-now, pay-later space is extremely competitive and Sezzle faces tough competition like Afterpay and Splitit Payments Ltd (ASX: SPT).
I don’t know the space well enough to say which company will come out on top, so for now, I’ll be sticking to the growth companies in the free report below.
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Disclosure: At the time of writing, Max does not have a financial interest in any of the companies mentioned.
