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Sezzle Inc. (SEZL)
NASDAQ:SEZL
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Sezzle Inc.
(NASDAQ:SEZL)75Outperform
Sezzle Inc. (SEZL) vs. S&P 500 (SPY)
Market Cap
$1.32B
Dividend YieldN/A
Average Volume (3M)172.13K
Price to Earnings (P/E)17.8
Beta (1Y)5.37
Revenue Growth70.14%
EPS Growth1359.69%
CountryUS
Employees278
SectorFinancial
Sector Strength93
IndustryCredit Finance
Share Statistics
EPS (TTM)13.10
Shares Outstanding5,642,281
10 Day Avg. Volume242,381
30 Day Avg. Volume172,125
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$368.50Price Target Upside57.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Sezzle Inc. Business Overview & Revenue Model
Company DescriptionSezzle Inc. (SEZL) is a financial technology company that operates in the Buy Now, Pay Later (BNPL) sector. The company provides a payment platform that allows consumers to split their purchases into interest-free installments over a six-week period. Sezzle aims to offer consumers more financial flexibility at the point of sale while helping merchants increase their sales by providing alternative payment options.
How the Company Makes MoneySezzle Inc. makes money primarily through transaction fees charged to merchants each time a consumer uses the Sezzle platform for a purchase. These fees are typically a percentage of the transaction amount. Additionally, Sezzle may earn revenue from consumer-related fees, such as late payment fees, although these are a smaller part of their revenue model. Sezzle's partnerships with a wide range of merchants increase its transaction volume, thereby contributing significantly to its earnings. The company also benefits from strategic partnerships with retail and e-commerce platforms that integrate Sezzle as a payment option, helping to expand its user base and transaction frequency.
Sezzle Inc. Financial Statement Overview
Summary
Sezzle Inc. has shown remarkable financial improvement, transitioning from losses to profitability with strong revenue growth and improved margins. While the balance sheet reveals growing equity and assets, leverage remains a concern. Cash flow improvements are notable, although consistency in free cash flow generation is needed to underpin future growth and stability.Income Statement
Sezzle Inc. has demonstrated substantial revenue growth, with the latest annual revenue figures showing a significant increase compared to previous years. The gross profit margin and net profit margin have improved markedly, showcasing enhanced profitability. The company has transitioned from net losses to substantial net income, indicating effective cost management and revenue enhancement strategies.85
Very Positive
Balance Sheet
The balance sheet shows a healthy increase in stockholders' equity and total assets, indicating growth and stability. However, the debt-to-equity ratio remains relatively high, pointing to potential leverage risks. The company has also improved its equity ratio, which suggests a stronger capital structure over time.70
Positive
Cash Flow
Operating cash flow has turned positive, reflecting improved cash generation from core operations. However, the free cash flow growth rate is volatile, suggesting potential concerns regarding sustainable cash flow generation. The company needs to focus on maintaining positive free cash flow to ensure long-term financial health.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 271.13B | 159.36M | 125.57M | 114.82M | 58.79M | Gross Profit |
| 219.76B | 73.78M | 74.35M | 70.59M | 35.87M | EBIT |
| 82.25B | 22.20M | -30.31M | -68.68M | -27.92M | EBITDA |
| 82.25B | 24.53M | -28.58M | -69.09M | -27.63M | Net Income Common Stockholders |
| 78.52M | 7.10M | -38.09M | -75.17M | -32.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 73.19B | 67.62M | 68.28M | 55.80M | 84.29M | Total Assets |
| 298.37B | 212.65M | 172.58M | 161.93M | 174.11M | Total Debt |
| 104.81B | 95.67M | 64.11M | 56.70M | 41.30M | Net Debt |
| 31.63B | 28.05M | -4.17M | 899.02K | -42.99M | Total Liabilities |
| 210.54B | 190.55M | 163.73M | 134.54M | 114.15M | Stockholders Equity |
| 87.84B | 22.09M | 8.84M | 27.39M | 59.96M |
| Cash Flow | Free Cash Flow | |||
| 40.83B | -27.06M | 7.50M | ― | ― | Operating Cash Flow |
| 40.90B | -25.69M | 8.51M | -52.28M | -19.00M | Investing Cash Flow |
| -1.46B | -1.37M | -1.01M | ― | ― | Financing Cash Flow |
| -10.37B | 28.22M | -15.69M | 45.84M | 59.46M |
Sezzle Inc. Technical Analysis
Negative
233.65
Price Trends
261.38
Negative
285.23
Negative
198.48
Positive
Market Momentum
-12.40
Positive
38.91
Neutral
14.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEZL, the sentiment is Negative. The current price of 233.65 is below the 20-day moving average (MA) of 283.28, below the 50-day MA of 261.38, and above the 200-day MA of 198.48, indicating a neutral trend. The MACD of -12.40 indicates Positive momentum. The RSI at 38.91 is Neutral, neither overbought nor oversold. The STOCH value of 14.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SEZL.
Sezzle Inc. Risk Analysis
Sezzle Inc. disclosed 54 risk factors in its most recent earnings report. Sezzle Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sezzle Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.32B | 17.84 | 142.86% | ― | 70.14% | 1359.69% | |
74 Outperform | $67.43B | 17.05 | 20.00% | ― | 7.10% | 4.45% | |
74 Outperform | $33.91B | 12.03 | 14.50% | ― | 10.06% | 38060.98% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
64 Neutral | $4.44B | ― | -20.27% | ― | 24.50% | 49.38% | |
64 Neutral | $14.85B | ― | -7.34% | ― | 46.27% | 74.39% | |
47 Neutral | $49.48M | ― | 86.76% | ― | 12.41% | -0.11% |
* Financial Sector Average
Performance Comparison
SEZL
Sezzle Inc.
220.50
161.61
274.43%
PYPL
PayPal Holdings
67.98
7.95
13.24%
XYZ
Block
54.74
-26.97
-33.01%
KPLT
Katapult Holdings
11.27
-4.37
-27.94%
UPST
Upstart Holdings
47.40
22.10
87.35%
AFRM
Affirm Holdings
46.40
8.88
23.67%
Sezzle Inc. Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -19.83% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance by Sezzle in 2024, with significant revenue growth, improved profitability, and successful product launches. The company is expanding its customer base and signing enterprise merchants. However, there are concerns about increased credit losses and the potential impact of On-Demand on subscription numbers.Highlights
Record Revenue Growth
Sezzle reported a 100% year-over-year increase in revenue for Q4 2024 and a 70% increase for the full year, reaching $271 million.
Significant Profitability Improvement
Adjusted net income for the year was $66.2 million, more than tenfold compared to the previous year. The company maintained an adjusted net income margin above 20% for three consecutive quarters.
Strong Customer Engagement
The number of Monthly On-Demand & Subscriber users (MODS) increased by 130% year-over-year, reaching 707,000 by the end of Q4 2024.
Successful Product Launches
The launch of On-Demand and the banking partnership with WebBank were successful, contributing to increased revenue and customer activation rates.
Enterprise Merchant Signings
Sezzle signed three enterprise-level merchants, including Backcountry, Bealls, and Rural King, with GMVs ranging from $700 million to over $1.5 billion.
Lowlights
Increased Provision for Credit Losses
Provision for credit losses is expected to be between 2.5% to 3% of GMV in 2025, reflecting a conscious decision to open up to more consumers despite higher loss rates.
Potential Decline in Subscription Numbers
The interplay between On-Demand and subscription products might cause a decline in subscriber count, as consumers may opt for the more flexible On-Demand service.
Company Guidance
During the Sezzle Inc. Fourth Quarter Financial Results Conference Call, CEO Charlie Youakim provided an optimistic outlook for 2025, emphasizing anticipated double-digit revenue growth and an increase in pre-tax net income of at least 55% compared to 2024. The call highlighted significant achievements in 2024, including a more than tenfold increase in net income compared to the previous year and a 100% year-over-year revenue growth in Q4. The company's innovative On-Demand product, launched through a partnership with WebBank, contributed to a 130% year-over-year increase in Monthly On-Demand & Subscriber (MODS) users, totaling 707,000 by year-end. The guidance also projected a principal loss rate between 2.5% and 3% for 2025, as Sezzle continues to focus on maintaining robust growth and enhancing the shopper experience.Sezzle Inc. Corporate Events
Business Operations and StrategyFinancial Disclosures
Sezzle Inc. Reports Strong Q4 and 2024 Financials
Positive
Feb 25, 2025
Sezzle Inc. reported exceptional financial performance for the fourth quarter and fiscal year 2024, with significant growth in Gross Merchandise Volume and Total Revenue, driven by strong holiday shopping and strategic partnerships. The company achieved a tenfold increase in its 2024 bottom line, reflecting disciplined execution and strategic focus, and anticipates continued growth in 2025 with new product launches and expanded market presence. Sezzle’s operational efficiency and profitability have improved, with notable increases in Net Income and Adjusted EBITDA, positioning the company strongly within the industry.
Business Operations and StrategyFinancial Disclosures
Sezzle Inc. Raises 2024 Revenue and Income Outlook
Positive
Jan 15, 2025
Sezzle Inc. has announced updated guidance for the fiscal year 2024, indicating an expected surpassing of its previous revenue and income projections. This optimistic outlook is attributed to strong holiday demand and strategic execution, as highlighted by CEO Charlie Youakim. The company plans to share its 2024 results at the end of February 2025, showcasing its positive financial trajectory and market positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.