Core Insights - Sezzle Inc. has been recognized on CNBC's World's Top Fintech Companies 2025 list, highlighting its innovative and high-performing status in the fintech sector [1][4] - The company's stock has surged over 900% in the past year, making it one of the best-performing public companies of 2025, with Q1 results exceeding revenue and profit expectations [2][3] - Sezzle's CEO emphasized the company's ability to scale profitably while delivering value to consumers and shareholders, reflecting its commitment to a purpose-driven business model [3] Financial Performance - Sezzle's stock increased by over 900%, reaching record highs [2] - The company surpassed revenue and profit expectations in Q1, driven by high-retention subscription offerings and strong consumer engagement [2] - Full-year guidance was raised, indicating confidence in continued growth [2] Recognition and Awards - Sezzle's inclusion in CNBC's global fintech list is a recognition of its mission and momentum [3] - The company has received accolades for its workplace culture and customer experience in 2025 [3] Strategic Partnerships and Growth - Recent milestones include a partnership with the Minnesota Timberwolves as the Official Jersey Patch Sponsor and the expansion of Sezzle's in-app Marketplace [5] - A bank partnership with WebBank has broadened Sezzle's reach and inclusivity [5] Company Mission and Values - Sezzle is committed to financially empowering consumers through its payment platform, enhancing purchasing power with point-of-sale financing options [7] - The company focuses on transparency, inclusivity, and ease of use, aiming to help consumers manage spending responsibly and achieve financial independence [7]

Financial Data and Key Metrics Changes - Total Process Volume (TPV) reached $80 billion in Q4, a 29% increase compared to the same quarter of 2023 [7][22] - Q4 net revenue was $136 million, growing 14% year over year [7][25] - Gross profit for Q4 was $98 million, an 18% increase year over year, resulting in a gross margin of 72% [8][27] - Adjusted EBITDA was $13 million in Q4, translating into a 9% margin, marking new all-time highs for the company [29][30] Business Line Data and Key Metrics Changes - Financial services, lending (including buy now pay later), and expense management all grew at roughly the same rate in Q4, slightly faster than the overall company [24] - Non-block neo banking customers' TPV grew approximately 100% year over year [25] - Growth in expense management accelerated due to strong end-user acquisition as AP automation and modern corporate card platforms gained share [25] Market Data and Key Metrics Changes - The European business saw TPV growth well over 100% in Q4 [12] - The company secured a deal to provide commercial card processing and program management to a fast-growing technology company in Europe [12] - The pipeline for embedded finance customers has increased significantly, with roughly two-thirds of the current pipeline being embedded finance customers [55] Company Strategy and Development Direction - The company aims to establish itself as a preferred partner for embedded finance and fintech innovations through three strategic pillars: deepening platform breadth, expanding solutions, and strengthening leadership in payments innovation [15][44] - The acquisition of TransactPay is expected to enhance program management offerings in Europe and streamline operations [18][36] - The company plans to leverage the American Express network for credit and debit card programs starting later in 2025 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing compelling opportunities in the payment ecosystem while focusing on profitable growth and value creation [6][15] - The company anticipates net revenue growth of 16-18% for 2025, driven by TPV growth in the mid to high 20s [32] - Management highlighted the importance of maintaining a strong focus on compliance while driving profitable growth [21][43] Other Important Information - The company ended Q4 with $1.1 billion in cash and short-term investments [29] - A share buyback authorization of $300 million was approved, bringing the total authorization to $380 million [31] Q&A Session Summary Question: What exactly is being acquired with TransactPay? - TransactPay is a BIN sponsorship provider licensed with an eMoney institution, allowing the company to have more control over offerings in Europe [48][50] Question: How does the pipeline look now, especially after recent wins? - The pipeline is strong, with a significant increase in embedded finance customers, indicating growing momentum in the market [55][56] Question: Does Marketa have everything needed to win larger embedded finance deals? - Yes, the company has a full solution that includes money movement, issuer processing, and program management, which positions it well for larger deals [62][64] Question: Is the guidance for 2025 based on the acquisition of TransactPay? - Yes, the guidance assumes the acquisition will close around Q3 2025 [68] Question: What is the path to GAAP profitability by 2026? - The company expects to drive gross profit growth at a faster rate than expense growth, leading to GAAP profitability on a quarterly basis by 2026 [70][73]