Minneapolis, MN, Nov. 11, 2024 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ:SEZL) (Sezzle or Company) // - Sezzle, a leader in the Buy Now, Pay Later (BNPL) industry, today announced a new partnership with Backcountry, the premier online outdoor retailer. Customers will soon be able to take advantage of Sezzle flexible financing, across all of Backcountry's online and in-store brands, including Steep & Cheap, Competitive Cyclist, and MotoSport. Backcountry’s decision to switch from a competing BNPL provider to S ...

Financial Data and Key Metrics Changes - Q3 2024 revenue increased by 71.3% year-over-year, driven by higher consumer purchase frequency and subscriber growth [6][32] - Net income for the quarter was $15.4 million, with an adjusted net income of $17.3 million, marking a new quarterly high and a net income margin of 22.1% and an adjusted net income margin of 24.7% [7][32] - The company achieved a score of 151 on its own rule of 100, with 71% revenue growth, 55% gross margin, and 25% adjusted net income margin [8][44] Business Line Data and Key Metrics Changes - Subscription revenue rose by 167%, contributing significantly to overall revenue growth, with the subscriber count reaching 529,000, an increase of 67,000 from the previous quarter [6][34] - The company reported a 41% increase in UMS (Underlying Merchant Sales) [32] Market Data and Key Metrics Changes - The company is outpacing the buy now pay later industry, which is expected to grow at 20% year-on-year, with Sezzle achieving 71% revenue growth [64] Company Strategy and Development Direction - The launch of a banking program with WebBank is expected to simplify operations and enhance profitability by standardizing regulatory procedures across the U.S. [16][17] - The introduction of the On-Demand product aims to increase consumer activation and lifetime value, serving as a bridge to subscription services [19][25] - The company is focusing on enhancing shopping features in the app while not neglecting financial services [55][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance and market share gains despite a competitive environment [64][66] - The company is optimistic about future growth opportunities, particularly in the buy now pay later sector, and plans to continue focusing on quality growth rather than growth at any cost [68][69] Other Important Information - The company completed a $15 million stock buyback plan during Q3, with over $80 million in unrestricted cash available [45][46] - A universal shelf registration will be filed with the SEC for future capital management, although there are no immediate plans to raise capital [46] Q&A Session Summary Question: Insights on the bank partnership and On-Demand product - Management noted that the partnership with WebBank has simplified operations and improved profitability, with On-Demand showing a 30% increase in activations [50][52] Question: Clarification on 2024 guidance - The adjusted earnings guidance for 2024 excludes discrete tax items, with a focus on providing a more meaningful number for investors [60][61] Question: Future growth outlook - Management believes the buy now pay later sector will grow, and Sezzle aims to gain market share through strong strategies [64][66] Question: Consumer usage frequency and seasonality - Increased utilization from existing customers is attributed to better product offerings, with management noting a seasonal pattern where Q4 sees increased spending followed by a dip in Q1 [70][73]

Market Performance - U.S. stocks traded higher, with the S&P 500 gaining approximately 0.6% on Friday, while the Dow rose 0.83% to 44,092.10 and the NASDAQ increased 0.20% to 19,308.79 [1] - Consumer staples shares surged by 1.8% on Friday, while materials shares fell by 1% [1] Notable Stock Movements - Sezzle Inc. shares increased by 71% to $429.31 after reporting a year-over-year increase in third-quarter financial results and raising its FY24 guidance [2] - Applied Optoelectronics, Inc. shares surged 54% to $27.55 following better-than-expected third-quarter revenue results [2] - indie Semiconductor, Inc. shares rose 49% to $5.11 after reporting better-than-expected third-quarter financial results [2] Declining Stocks - ProPhase Labs, Inc. shares dropped 45% to $0.78 after announcing the pricing of a public offering of common stock [3] - Evolent Health, Inc. shares fell 45% to $13.59 after reporting worse-than-expected third-quarter financial results [3] - Nature's Miracle Holding Inc. shares decreased by 30% to $0.1038 following a $3 million public offering announcement [3] Commodity Prices - Oil traded down 2.9% to $70.28, gold down 0.5% at $2,692.30, silver down 1.5% to $31.385, and copper fell 2.9% to $4.3040 [4] European Market Performance - European shares closed lower, with the eurozone's STOXX 600 falling 0.65%, Germany's DAX down 0.76%, and France's CAC 40 down 1.17% [4] Economic Indicators - The trade gap in France increased to €8.3 billion in September from a revised €7.7 billion in the previous month [5] - The total number of active U.S. oil rigs remained unchanged at 479 rigs this week [8]

Core Viewpoint - Sezzle Inc. reported strong quarterly earnings of $2.92 per share, significantly exceeding the Zacks Consensus Estimate of $0.89 per share, marking an earnings surprise of 228.09% [1][2] Financial Performance - The company achieved revenues of $69.96 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 32.91%, compared to $40.84 million in the same quarter last year [2] - Over the last four quarters, Sezzle has exceeded consensus EPS estimates two times and topped revenue estimates twice [2] Stock Performance - Sezzle Inc. shares have increased approximately 1079.5% since the beginning of the year, outperforming the S&P 500's gain of 24.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $2.21 for the coming quarter and $6.71 for the current fiscal year, alongside revenues of $65.18 million and $220.79 million respectively [7] - The estimate revisions trend for Sezzle Inc. is favorable, currently holding a Zacks Rank 1 (Strong Buy), indicating expected outperformance in the near future [6] Industry Context - The Financial Transaction Services industry, to which Sezzle belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

[Forward-Looking Statements](index=4&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section provides cautionary statements regarding future events and financial performance, emphasizing inherent risks and uncertainties [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This part presents Sezzle Inc.'s unaudited consolidated financial statements, management's discussion, market risk disclosures, and controls and procedures [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents Sezzle Inc.'s unaudited consolidated financial statements, including balance sheets, statements of operations, equity, and cash flows, with detailed notes on accounting policies and financial instruments [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) This statement provides a snapshot of Sezzle's financial position, detailing assets, liabilities, and stockholders' equity as of September 30, 2024, and December 31, 2023 Consolidated Balance Sheet Highlights | Metric | Sep 30, 2024 (unaudited) | Dec 31, 2023 (audited) | | :----- | :----------------------- | :--------------------- | | Total Assets | $252,869,272 | $212,645,283 | | Total Liabilities | $191,731,258 | $190,550,959 | | Total Stockholders' Equity | $61,138,014 | $22,094,324 | | Cash and cash equivalents | $80,062,505 | $67,624,212 | | Notes receivable, net | $132,787,268 | $130,632,641 | | Line of credit, net (current) | $0 | $94,380,906 | | Line of credit, net (long term) | $93,937,724 | $0 | [Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) This statement reports Sezzle's financial performance, including revenue, expenses, operating income, and net income for the three and nine months ended September 30, 2024 and 2023 Consolidated Statements of Operations and Comprehensive Income Highlights | Metric | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total revenue | $69,957,691 | $40,844,201 | $172,904,830 | $110,455,297 | | Total operating expenses | $49,116,520 | $35,494,456 | $121,529,622 | $95,922,330 | | Operating Income | $20,841,171 | $5,349,745 | $51,375,208 | $14,532,967 | | Net Income | $15,446,241 | $1,294,400 | $53,155,127 | $4,158,724 | | Basic EPS | $2.79 | $0.23 | $9.46 | $0.75 | | Diluted EPS | $2.62 | $0.23 | $8.94 | $0.74 | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This statement details changes in Sezzle's stockholders' equity, including net income, equity-based compensation, and stock repurchases, from January 1 to September 30, 2024 Stockholders' Equity Changes (January 1, 2024 to September 30, 2024) | Metric | Balance at Jan 1, 2024 | Balance at Sep 30, 2024 | | :----- | :--------------------- | :---------------------- | | Total Stockholders' Equity | $22,094,324 | $61,138,014 | | Accumulated Deficit | $(157,519,880) | $(115,141,842) | | Equity based compensation | — | $2,532,644 | | Net income | — | $53,155,127 | | Repurchase and retirement of common stock | — | $(19,984,947) | | Repurchase of common stock | — | $(2,182,294) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes Sezzle's cash inflows and outflows from operating, investing, and financing activities for the nine months ended September 30, 2024 and 2023 Consolidated Statements of Cash Flows (Nine Months Ended September 30) | Cash Flow Activity | 2024 | 2023 | | :--------------------------------------- | :----------- | :----------- | | Net Cash Provided from (Used for) Operating Activities | $39,928,625 | $(10,675,166) | | Net Cash Used for Investing Activities | $(1,058,150) | $(1,037,709) | | Net Cash (Used for) Provided from Financing Activities | $(21,213,116) | $9,205,604 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $17,657,359 | $(2,507,271) | | Cash, cash equivalents, and restricted cash, end of period | $88,343,129 | $66,812,698 | [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of Sezzle's accounting policies, financial statement line items, and other disclosures essential for understanding the financial report [Note 1. Significant Accounting Policies](index=10&type=section&id=Note%201.%20Significant%20Accounting%20Policies) This note outlines the basis of presentation, principles of consolidation, fair value measurement hierarchy, and recent accounting pronouncements, noting Sezzle operates as a single segment - Sezzle operates as a single operating segment with no significant geographical concentrations[23](index=23&type=chunk) - Warrant liabilities were reclassified from a liability to stockholders' equity during the nine months ended September 30, 2024, due to delisting from ASX and amending warrant agreements to reference Nasdaq common stock price[20](index=20&type=chunk) Recently Issued Accounting Guidance, Not Yet Adopted | Standard | Date of Planned Adoption | Effect on Consolidated Financial Statements | | :------- | :----------------------- | :------------------------------------------ | | ASU 2023-07, Segment Reporting Improvements to Reportable Segment Disclosures | January 1, 2024 (annual), January 1, 2025 (interim) | No material impact expected; will disclose information about significant segment expenses and performance assessment in 2024 annual consolidated financial statements on a retrospective basis | | ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures | January 1, 2025 | No material impact expected; will include enhanced disclosure requirements in 2025 annual consolidated financial statements on a prospective basis | [Note 2. Total Revenue](index=13&type=section&id=Note%202.%20Total%20Revenue) This note disaggregates Sezzle's total revenue into transaction income, subscription revenue, and income from other services, detailing significant growth drivers and recognition criteria Total Revenue by Category | Revenue Category | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | YoY Change (%) | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | YoY Change (%) | | :--------------- | :-------------------------- | :-------------------------- | :------------- | :-------------------------- | :-------------------------- | :------------- | | Total Revenue | $69,957,691 | $40,844,201 | 71.3% | $172,904,830 | $110,455,297 | 56.5% | | Transaction Income | $36,397,294 | $27,046,209 | 34.6% | $92,096,322 | $78,870,463 | 16.8% | | Subscription Revenue | $22,857,165 | $8,554,947 | 167.2% | $57,377,021 | $17,768,953 | 222.9% | | Income from Other Services | $10,703,232 | $5,243,045 | 104.1% | $23,431,487 | $13,815,881 | 69.6% | - Merchant processing fees decreased due to a higher concentration of UMS volume transacted with subscription products, but overall transaction income grew due to increases in partner income and consumer fees[111](index=111&type=chunk) - Subscription revenue growth was primarily driven by the overall growth in **Active Subscribers**[112](index=112&type=chunk) [Note 3. Notes Receivable and Allowance for Credit Losses](index=15&type=section&id=Note%203.%20Notes%20Receivable%20and%20Allowance%20for%20Credit%20Losses

Core Insights - Sezzle Inc. has announced a partnership with Shoplazza to provide flexible payment options for e-commerce merchants in the US, enhancing customer shopping experiences and driving business growth [1][3]. Group 1: Partnership Overview - The collaboration will enable thousands of Shoplazza merchants to offer Sezzle's Buy Now, Pay Later (BNPL) service, which includes Pay in 4 and Pay in 2 loans issued by WebBank [1]. - This partnership aims to make e-commerce more inclusive and accessible, allowing consumers to make purchases without immediate financial strain [3]. Group 2: Benefits of Sezzle - **Driving Incremental Sales**: Sezzle's BNPL option allows consumers to make responsible purchasing decisions by paying in manageable installments, potentially leading to higher sales volume [2]. - **Increasing Average Order Value (AOV)**: The financial flexibility provided by Sezzle can lead to increased spending per transaction, enhancing the shopping experience for customers [2]. - **Boosting Cart Conversion Rates**: By offering BNPL options, merchants can reduce cart abandonment rates, encouraging customers who may hesitate due to budget constraints to complete their purchases [2]. - **Building Customer Loyalty**: Flexible payment solutions foster trust and loyalty among customers, leading to repeat business and long-term relationships [2]. - **Enabling Credit Building**: Sezzle's opt-in credit reporting feature, Sezzle Up, allows consumers to manage their finances while potentially improving their credit performance [2]. Group 3: Company Profiles - **Sezzle Inc.**: A fintech company focused on empowering consumers through interest-free installment plans, promoting responsible spending and financial freedom [5]. - **Shoplazza**: An e-commerce platform that enhances operational efficiency and customer engagement through AI-powered tools and integrated solutions, helping businesses thrive in the digital economy [5].

Minneapolis, MN, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ:SEZL) (Sezzle or Company) // Purpose-driven digital payment platform, Sezzle, will release its third quarter 2024 results after the market close on November 07, 2024. The Company will host a conference call at 5:00pm ET that same day. Participants can register for the conference call by navigating to: https://dpregister.com/sreg/10193861/fdcca5b749 Please note that registered participants will receive their dial-in number upon registrati ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. - ...

Sezzle Inc. (NASDAQ: SEZL ) has quietly emerged as one of the market's biggest winners with a spectacular 1,200% rally over the past year. The "buy-now-pay-later" fintech disruptor is posting very impressive growth and earnings momentum in what has been a breakout year Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opin ...

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting the need for sound fundamentals and positive earnings estimates to maintain momentum. Group 1: Stock Performance - Sezzle Inc. (SEZL) has shown a solid price increase of 92.3% over the past 12 weeks, indicating strong investor interest [4] - The stock has also increased by 26.9% over the last four weeks, suggesting that the upward trend is still intact [5] - SEZL is currently trading at 93.1% of its 52-week high-low range, indicating a potential breakout [5] Group 2: Fundamental Strength - SEZL holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6] - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7] Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like SEZL that are on an uptrend supported by strong fundamentals [3] - There are additional stocks that meet the criteria of the "Recent Price Strength" screen, providing further investment opportunities [8]