FinTech: BNPL Player Sezzle Is In The Black For The Third Quarter In A Row
Higher BNPL volumes were a key driver of profitability for Sezzle in the quarter.
BNPL fintech Sezzle (ASX: SZL) experienced a rise in its business volumes during its most recent quarterly financial period, along with sustained profitability. The company, which specializes in the buy now, pay later (BNPL) model, reported its earnings on Monday (May 15), revealing a 25% year-over-year increase in quarterly revenue.
According to Sezzle, its income improved compared to the previous year due to the ongoing adoption of its Sezzle Premium service and revenue-generating strategies implemented in the prior fiscal year. There was also a significant reduction in the provision for credit losses.
The company was profitable for the third quarter in a row in 1Q23. Net income surged to US$1.7 million from a US$28 million net loss in the prior comparable period. (PYMNTS)
In a news release, Sezzle CEO Charlie Youakim stated the company was enjoying consistent revenue growth while enhancing unit economics and cost efficiencies. Additionally, it plans to implement various initiatives aimed at driving revenue before the conclusion of the third quarter, building upon the progress made in 2022.
Throughout the reported quarter, Sezzle’s marketplace consistently accounted for an average of 30% of the total volume per week, a significant increase from 13% during the corresponding quarter in 2022.
The company is expected to list on the Nasdaq exchange in the US by the end of 2Q23.
Related Story: Sezzle’s Consumer Financing Solution For “Buy Now, Pay Later” Integrates Into Celerant’s Ecommerce Platform
Image Credit: Photo by Christiann Koepke on Unsplash
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