Sezzle (ASX:SZL) share price on watch following third-quarter update

Here’s how the buy now, pay later provider performed in the September quarter…
The post Sezzle (ASX:SZL) share price on watch following third-quarter update appeared first on The Motley Fool Australia. –

The Sezzle Inc (ASX: SZL) share price could be a mover on Friday after the company released its third-quarter market update.

We take a look at how the buy now, pay later (BNPL) provider performed during the quarter ending 30 September 2021.

Third-quarter highlights

Market watchers will be keeping a keen eye on the Sezzle share price after the company recapped its September quarter. It announced triple-digit year-on-year growth across most key performing metrics. Highlights include:

Underlying merchant sales rose 101.9% to US$460.7 million;
Total income grew 78.8% to US$28.5 million;
Active merchants jumped 112.5% to 44,400;
Active customers rose 77.9% to 3.2 million; and
Launched Sezzle Capital for merchants.

On 20 July, Sezzle launched its Capital program via a partnership with Wayflyer. The program enables the funding of working capital for up to US$10 million for qualified merchants. The partnership enables qualified Sezzle merchants to apply and receive funding, without adding any credit risk or capital requirements to Sezzle.

Looking ahead, Sezzle said it was excited for the upcoming holiday season and the increase in consumer and merchant engagement it brings.

The company plans to promote several campaigns in the fourth quarter to help consumers shop for the best deals, drive traffic and consumer engagement for merchant partners.

However, it wasn’t a great quarter for the Sezzle share price — it fell almost 35% between July 1 and September 30.

International markets

International markets have been the name of the game for many ASX-listed BNPL players, most notable Zip Co Ltd (ASX: Z1P).

Sezzle continued to see “promising activity” in its international markets, pointing to early-stage growth across Canada, Europe, and India.

Sezzle Canada reached a “key milestone” of 3,000 active merchants in its second year of operations. The company said Canada’s underlying merchant sales run rate currently sits in excess of US$100 million annually. Additionally, consumer adoption remains strong, reaching nearly 190,000 active customers, a 232% year-on-year increase.

Elsewhere, Sezzle Europe and India are in very early stages following recent launches. The performance of both regions remains immaterial to the overall company but shows positive growth rates across key operating metrics.

Sezzle share price snapshot

The Sezzle share price is down 14.5% year-to-date, broadly consistent with the sluggish performance of the broader ASX-listed BNPL sector. It is also down 22.4% over the past 12 months.

The post Sezzle (ASX:SZL) share price on watch following third-quarter update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Sezzle right now?

Before you consider Sezzle, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sezzle wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Which ASX 300 shares are leading the way on Monday?

Which ASX shares are the top movers in the ASX 300 today?

Why Fletcher Building, Magellan, Sezzle, & Starpharma are racing higher

The Sezzle (ASX:SZL) share price has leapt 19% in 2 days. Here’s why

How did ASX fintech shares perform in the FY22 first quarter?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!