Sezzle share price: full-year results preview
As Sezzle's full-year earnings loom, we look at some of the company's achievements from 2019.
A big bet paying off
Sezzle (ASX: SZL) kicked off 2020 with a bang: announcing that the company had surpassed one million active customers in early February.
Though this was described as a huge operational achievement by the company’s Chief Revenue Officer; Sezzle’s visionary CEO – Charlie Youakim – stressed that 'although we are taking a moment to recognise this important milestone, we have lots of work ahead of us in making Sezzle the world's most dynamic, far-reaching, and trusted payments platform.'
What that work may culminate in was teased in a playful LinkedIn post from Mr Youakim, where he said ‘Next stop: 5 million. Any bets on when we get there?’
To put that ‘bet’ in perspective: Sezzle hit 500,000 customers in August 2019. A milestone than took roughly three years to achieve. Sezzle then doubled that figure in just six months.
How long this next milestone will take to achieve, is anyone’s guess.
2019: a year of rapid growth
Sezzle (ASX: SZL) capped off 2019 with an impressive set of operational figures, showcased during the company’s most recent quarterly update.
'Sezzle broke new ground in the December Quarter with a series of historic achievements across several key indicators, namely Underlying Merchant Sales and Active Merchants,’ said Charlie Youakim.
Historic indeed!
In Q4 Sezzle notched up US$105.1 million in underlying merchant sales – representing a US$36.2 million increase on the September quarter. In step with that, merchant numbers climbed strongly, with active merchants hitting 10,010 by the end of CY19. Merchant fees also rose, touching US$5.8 million in Q4.
Given all of this, investors already have a relatively good idea of how Sezzle has performed from an operational perspective during 2019.
In saying that, investors will likely be keen to gain more granular insight into the company's FY19 financial performance, including Sezzle's total income, end customer other income and net transaction losses/ net transaction margins.
The company is set to release its FY19 results after the market close on 27 February.
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Sezzle share price action
Finally, though the stock crashed some 6% today – amidst a broader market sell-off; since listing, the Sezzle (ASX: SZL) share price has delivered solidly for those who bought in at the IPO.
The IPO Offer Price for Sezzle’s shares was just $1.22 per share, considerably below today’s $1.72 price tag.
The only analyst covering Sezzle has a $3.40 price target on the stock and a Buy rating.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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