Sezzle records 44% YoY revenue growth, as new product offerings fuel expansion

Digital payment platform Sezzle (ASX: SZL) has recorded a strong four weeks to end August, citing the efficacy and success of its latest product offerings and continued growth in subscriber numbers.

The company’s total income for the period jumped to $21.6 million, representing a 44.3% year-on-year and 11.7% month-on-month increase.

Total income as a percentage of underlying merchant sales (UMS) increased by 188 basis points year-on-year to 8.7%.

In August, Sezzle recorded GAAP (generally accepted accounting principles) net income and adjusted EBITDA (earnings before interest, taxation, depreciation and amortisation) of $600,000 and $2.4 million, respectively.

Cash on hand

At month end, it had $94 million in cash on hand (of which $4.34 million is restricted) and had drawn approximately $111 million from its $154 million credit facility.

Notes receivable (net) totalled $155 million while merchant accounts payable stood at $103 million.

The company’s merchant interest program represented approximately $80 million of the merchant accounts payable balance.

For the year to date, Sezzle has recorded more than 210,000 subscribers to its Premium and Anywhere buy-now-pay-later member packages.

Average daily UMS was up 2.6% in September compared to August.

Strong performance

Chairman Charlie Youakim said the company had produced a strong performance for the month.

“August has proven to be another testament to the efficacy and success of our latest product offerings [and] the continued growth in our active subscriber base has had a ripple effect, fortifying our UMS and incomes,” he said.

“We are excited about the upcoming holiday period in the fourth quarter, as we believe we have the right economic model for our customers and for ourselves.”

Nasdaq trading

In August, Sezzle commenced trading on the US Nasdaq stock market to complement its ASX listing.

Trading was halted two hours after its debut, however, due to an “inadequate” number of publicly available shares of common stock to facilitate “proper trading” on the exchange.

Sezzle worked with Nasdaq to resolve the matter and resumed trading last week.