Sezzle (ASX:SZL) hands out November trading update, shares up

3 min read | December 19, 2022 12:39 PM AEDT | By Tamnna

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Image source: © Rafaelhenriquepress | Megapixl.com

Highlights of Sezzle’s November trading update

Sezzle’s total income for November month was US$13.3 million, with an increase of 16.5% year-over-year (YoY) and 16.3% month-over-month (MoM). The company reports that this income represents a new high of 8.1% of Underlying Merchant Sales (UMS), an increase of 250 basis points year over year.
November turned out to be a profitable month for Sezzle when measured by net income (a GAAP measure) and adjusted EBTDA (a non-GAAP measure).
In comparison to an average monthly net loss of US$8.6 million for the last quarter of FY21, the company's net income for November was US$0.2 million. Sezzle has incurred a net loss of US$1.3 million for the current quarter.
Sezzle's EBTDA for November came in at US$1.5 million, down from an adjusted EBTDA of US$8.2 million per month on average in Q4 FY21. Adjusted EBTDA of US$1.3 million was positive for the quarter, driven by a solid November performance.
Sezzle has seen improvement in UMS and the provision for uncollectible accounts in line with the company's seasonality. It is anticipated that the provision for uncollectible accounts as a percentage of UMS will increase YoY in Q4 FY22.
The number of active subscribers for Sezzle Premium is now over 120,000 as of 18 December 2022.

Commenting on the November trading update, Charlie Youakim, chairman and CEO of Sezzle, said:

Data Source: Company announcement dated 19 December 2022

Share performance of Sezzle in a year

Including today’s increase, the share price of Sezzle has improved by 6.06% in the last five trading sessions while decreasing by 11.02% in a month. On a year-to-date (YTD) basis, shares of Sezzle have seen a significant drop of 82.79% and 81.96% in a year. Lastly, Sezzle’s shares have surged 87.50% in the previous six months.

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