CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Did Sezzle just beat Afterpay at its own game?

The Sezzle share price rose firmly after the company released its Q1 Trading Update on Friday, 30 April.

Q1 Highlights

Sezzle (ticker: SZL) on Friday reported its first quarter results, revealing heady growth across all of its key metrics. The stock rallied hard in response and management said they were now eyeing a US listing.

Here are the key figures from the quarterly, all on a year-on-year basis:

  • Underlying Merchant Sales came in at US$375.1 million, up 214%
  • Sezzle income hit US$22.3 million, up 216%
  • 400,000 new active consumers were onboarded in the quarter, taking total active consumers to 2.6 million, up 126%
  • Active merchants now total 34 thousand

At the time of writing the Sezzle share price was up 9.29% to $9.70 per share.

Strong UMS figures and ecosystem growth aside, it was the company’s repeat usage statistics that likely captivated the attention of investors.

Overall, Sezzle said its user profile 'continue to improve', with customer repeat usage coming in at 90.7%. RBC analysts said this performance ‘should be a key driver on improving loss rates.’

Elsewhere, management added that the top ten percent of its customers, on average, now transact with Sezzle 49 times per annum. That statistic comes in well ahead of Afterpay’s own top customer transaction averages, with Afterpay (ticker: APT) recently saying that the top ten percent of its US customers transacted with the company on average 23 times per annum.

Sezzle seems to have taken a cue from Afterpay’s emphasis on putting the customer first, a practice which appears to be now paying off for the fast growing company.

Finally, the company also announced its intention to file a registration statement with the SEC to launch a US IPO. The announcement was relatively light, with no specific plans around number of shares to be offered, use of funds raised or the IPO price.

Other Viewpoints

Commenting on these results, Sezzle CEO, Charlie Youakim said:

'The strong momentum we ended 2020 with has continued in to 2021. Our 1Q results set new company highs in UMS, Active Consumers, Active Merchants, and Repeat Usage.’

Brokers also responded positively to Sezzle’s Q1 release, with analysts from RBC saying:

‘Today’s result was strong with UMS and value per customer coming in as strong beats with customer adds a slight beat as well. SZL’s income margin appears to be tracking ahead of our estimates, while processing costs are also now likely to be benefitting from ACH processing.’

RBC has an Outperform rating and $11.00 price target on Sezzle.

Analysts from Ord Minnett were equally impressed, describing the business update as ‘strong’ while adding that ‘We would expect consensus revenue upgrades on the back of this update.’

Ord has a Buy recommendation and $11.50 price target on the stock.

Trade ASX-listed stocks long and short with IG today

Create an IG account or log in to your existing account to get started now.


This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.