Sezzle Inc (ASX: SZL) shares opened 8% lower on Friday despite reporting a 489% increase in customer numbers in its most recent full-year results.
Although it is listed on the ASX, Sezzle is a software and payments company based out of the United States. Like Afterpay Ltd (ASX: APT), Splitit Ltd (ASX: SPT), Europe’s Klarna, US-based Affirm and FlexiGroup’s (ASX: FXL) Humm product, Sezzle aims to provide alternate payment facilities for its merchant customers and users.
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Sezzle’s FY report
In an ASX media release and update filed on Thursday, Sezzle reported its total income rose from US$1.63 million to US$16.1 million during the period ending 31 December 2019. The company reported an EBITDA loss of $10 million, down from a $4 million loss last year.
Merchant sales, which includes retailers offering the Sezzle payment terms to their customers, rose to $US244 million, up from $US31 million a year earlier.
“We are excited to report that we experienced tremendous growth across all our key operating metrics in 2019,” Sezzle CEO Charlie Youakim said.
“Our team is committed to our mission of financially empowering the next generation of consumers and building a brand that makes our stakeholders proud.”
Sezzle said its total active customers rose from 155,257 to 914,886 in February. This echoes the results released by Afterpay and FlexiGroup which also showed a significant increase in customer numbers.
“We forge into 2020 with the momentum of 2019’s tremendous success and plans to make a significant impact in the years ahead,” Youakim added.
Sezzle Inc shares were last seen trading around $1.70, given it a market capitalisation of less than $200 million.
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