Business
Sezzle Reports Second Quarter 2024 Results
Sezzle Continues to Increase Profitability and Raises FY24 Guidance Minneapolis, MN, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ:SEZL) (Sezzle or
About this update from Sezzle Inc.
[{"type":"text","content":"Sezzle Continues to Increase Profitability and Raises FY24 Guidance\nMinneapolis, MN, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ:SEZL) (Sezzle or Company) // Purpose-driven digital payment platform, Sezzle, is pleased to update the market on key financial metrics for the quarter ended June 30, 2024. “Our strategic efforts continued to pay off in the second quarter, as Net Income reached new highs driven by a combination of strong revenue growth and leveraging our operating infrastructure,” stated Charlie Youakim, Sezzle Chairman and CEO. “We are excited to raise our 2024 guidance, as we now expect Total Revenue to increase 35%-40% YoY (previous guidance of 25%), Net Income of $55.0 million (previous guidance of $30.0 million), and Adjusted Net Income of $40.0 million (new guidance). These results leave me confident that we are just at the start of our growth journey, and with the initiatives we have in the pipeline, we are poised to embark on an exciting new phase.” Second Quarter 2024 Highlights Underlying Merchant Sales (UMS) increased by 38.9% YoY to $532.2 million, surpassing the previous non-holiday UMS quarterly high set in 1Q24. Consumer engagement contributed to the YoY growth, with the overall consumer purchase frequency climbing to 4.8 times in 2Q24 from 3.3 times in the same period in 2023. The top 10% of consumers, as measured by UMS, transacted 70 times per year on average during the rolling twelve-month period ending June 30, 2024. Total Revenue (f/k/a “Total Income”) grew 60.2% YoY to $56.0 million, driven by the growth and engagement of the subscriber base. As a percentage of UMS, Total Revenue reached 10.5%, surpassing the previous all-time high of 9.5% set in 1Q24. As of June 30, 2024, Sezzle had 462,000 Active Subscribers (rounded to the nearest thousand) enrolled across Anywhere and Premium (US and CA). In 2Q24, Total Operating Expenses rose by 26.0% YoY to $39.3 million. The Company continued to achieve scale, with Total Operating Expenses as a percentage of UMS and Total Revenue decreasing by 0.7 and 19.0 percentage points, respectively, to 7.4% and 70.2%. Transaction Related Costs1 as a percentage of UMS increased YoY from 4.2% to 4.5%. The increase was attributable to a rise in the percentage of Provision for Credit Losses, offset by decreases in the relative percentages for both Transaction Ex...