Sezzle Set to Report Q4 Earnings: Should You Buy or Sell the Stock?

Core Viewpoint - Sezzle Inc. is expected to report strong fourth-quarter results, with significant year-over-year growth in earnings and revenues, driven by an expanding consumer base and effective marketing strategies [2][6][16]. Financial Performance - The consensus estimate for earnings is $0.0985 per share, indicating over 100$249.2 million, reflecting a 56.4% increase compared to the previous year [2]. - In the third quarter of 2024, Sezzle's revenues increased by 71% year-over-year, supported by a 41% rise in underlying merchant sales and a 167% surge in subscription revenues [15]. Market Position and Strategy - Sezzle's customer acquisition strategy, including a banking program and sponsorship initiatives, has contributed to its revenue growth and brand awareness [6][7][14]. - The company's stock has appreciated by 153.1% over the past six months, outperforming its industry and the broader market [8][12]. Valuation Metrics - Sezzle's current trailing 12-month price-to-earnings ratio stands at 23.2, which is below the industry average of 25.7 [12]. Growth Drivers - The increase in consumer purchase frequency and subscriber count is expected to drive top-line growth [6][14]. - The successful launch of new products and a raised financial outlook are seen as positive indicators for future performance [15][16].