Core Viewpoint - Sezzle Inc. has demonstrated remarkable growth, with shares increasing by 4,252% over the past year [1] Company Summary - Sezzle Inc. is listed on NASDAQ under the ticker SEZL and also trades on OTC as SEZNL [1] - The company has emerged as a significant growth story in the stock market, indicating strong investor interest and market performance [1]

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the st ...

Minneapolis, MN, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ:SEZL) (Sezzle or Company) // - Sezzle, a leader in the flexible payments industry, is excited to announce its partnership with Rural King, also known as RK Holdings, LLP, America's Farm and Home Store. Beginning today, Sezzle will be available online and across all 130 Rural King locations nationwide, providing customers with a flexible, interest-free financing option just in time for the holiday season. Rural King is a General Merchandi ...

Sezzle Inc. (SEZL) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and ...

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Sezzle Inc. (SEZL) currently holding a Momentum Style Score of A [2][3] - Style Scores complement the Zacks Rank system, which has a strong track record of outperforming the market [3] Group 2: Sezzle Inc. Performance Metrics - SEZL shares have increased by 102.57% over the past week, significantly outperforming the Zacks Financial Transaction Services industry, which rose by 5.09% [5] - Over the past quarter, SEZL shares have surged by 228.65%, and over the last year, they have skyrocketed by 3968.67%, while the S&P 500 only increased by 12.69% and 37.58% respectively [6] - The average 20-day trading volume for SEZL is 129,607 shares, indicating a bullish trend when combined with rising stock prices [7] Group 3: Earnings Outlook - Recent earnings estimate revisions for SEZL show one upward revision and no downward revisions for the current fiscal year, raising the consensus estimate from $6.71 to $9.78 [9] - For the next fiscal year, two estimates have moved upwards with no downward revisions, indicating positive sentiment [9] - These factors contribute to SEZL being rated as a 1 (Strong Buy) stock with a Momentum Score of A, suggesting it is a promising near-term investment [9]

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