Sezzle (US:SEZL) ZACKSยท2025-06-04 16:36Core Insights - Sezzle (SEZL) reported a remarkable 123.3% year-over-year increase in revenue for Q1 2025, reaching $104.9 million, marking a new quarterly high [1][8] - The growth in revenue was driven by a 64.1% year-over-year increase in gross merchandise volume (GMV), attributed to higher user engagement and the introduction of new products [1][8] Revenue Drivers - The annual consumer purchase frequency rose to 6.1 times in Q1 2025 from 4.5 times in the same quarter last year, indicating that existing users are utilizing SEZL's platform more frequently [2] - Expansion of the merchant network, including partnerships with Scheels and WHOP, contributed to the increase in GMV and overall revenue [3] - The partnership with WebBank, established in August 2024, has enhanced Sezzle's funding mechanisms and operational capabilities, allowing for a larger customer base and increased transaction volume [4] Competitive Positioning - SEZL's revenue growth outpaced that of Affirm (AFRM) and PayPal (PYPL) in the March-end quarter, with Affirm showing a 36% year-over-year revenue increase and PayPal only a 1% increase [5] - SEZL's stock has surged 661.6% over the past year, significantly outperforming the industry average of 28.2% and the Zacks S&P 500 composite's 12.8% rise [6] Valuation and Estimates - The Zacks Consensus Estimate for Sezzle's earnings for 2025 has increased by 46.6% over the past 30 days [10] - SEZL trades at a forward price-to-earnings ratio of 31.23, which is above the industry average of 23.39 [12] - SEZL currently holds a Zacks Rank 1 (Strong Buy) [13]