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SEZL Nasdaq· Sezzle Inc
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SEZL Nasdaq· Sezzle Inc
Earnings report Q3 2023

Sezzle Inc. Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

Sezzle Inc. reported total income of $40.84 million for the three months ended September 30, 2023, compared to $30.41 million in the same period last year. For the nine months ended September 30, 2023, total income was $110.46 million, up from $87.29 million in the prior year. The company's total income is classified into two categories: transaction income and income from other services.

Strengths

Sezzle Inc. demonstrated strong revenue growth in the latest quarter, with total income increasing by 34% compared to the same period last year. This growth can be attributed to the company's ability to capitalize on consumer spending habits during the holiday shopping season, as total income in the fourth quarter has historically been the strongest. Sezzle's transaction income, which includes merchant processing fees, virtual card interchange income, and convenience fees, contributed significantly to the overall revenue growth.

Challenges

While Sezzle Inc. experienced strong revenue growth, it is important to note that the company's operating results for the three and nine months ended September 30, 2023, may not be indicative of the results for subsequent periods or the entire year ending December 31, 2023. This highlights the potential challenges the company may face in maintaining consistent revenue growth throughout the year.

Noteworthy

Sezzle Inc. reported underlying merchant sales (UMS) of $469.5 million for the three months ended September 30, 2023, representing a growth of 11.4% compared to the same period last year. UMS is a useful operating metric for assessing the volume of transactions on the Sezzle Platform, indicating the success of the company's merchants and the adoption of its payment options.

Summary

Sezzle Inc. delivered a strong performance in the latest quarter, with significant revenue growth driven by transaction income. The company's ability to leverage consumer spending habits during the holiday shopping season contributed to its success. However, it is important to consider that the operating results for the quarter may not be indicative of future performance. Sezzle Inc. should continue to focus on maintaining consistent revenue growth and addressing any potential challenges in the market.

Source documents

Form 10-Q  filed on Nov 14, 2023
8 pages scanned

Reference data

Company financials Q3 revenue 34.9M
Analyst estimates Q3 EPS missed by NaN%
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