Will Sezzle's share price rise more on Nasdaq listing?
ASX-listed fintech Sezzle could see its share price post further gains on the resumption of Nasdaq trading alongside robust revenue growth.
ASX-listed buy-now-pay-later (BNPL) platform Sezzle (ASX: SZL) could see its share price rise following recent improvements to its business performance and the resumption of trading in its shares on the Nasdaq exchange.
While SZL's August listing on the Nasdaq rapidly ground to a halt, trading in its stateside stocks has since resumed, potentially helping to drive a near 30% rise in its share price since the start of the year.
Sezzle posts solid performance in August
According to SZL's latest business update, the BNPL platform delivered a strong performance in August compared to the same period in 2022.
SZL's total income was US$14 million in August, for a year-on-year (YoY) rise of 44.3%, and an on-month rise of 11.7%.
Net income for August was US$0.6 Million while adjusted EBITDA was US$2.4 million, for a stark contrast compared to the cash burn logged in recent years.
Total income as a percentage of underlying merchant sales (UMS) rose 188 basis points compared to August 2022 to 8.7%.
SZL Chairman and CEO Charlie Youakim imputed the company's strong performance in August to ongoing growth in its user base, as more consumers take to the platform's interest-free instalment plans available at an increasing number of online stores.
'August has proven to be yet another testament to the efficacy and success of our latest product offerings,' Youakim said.
'The continuous growth in our active subscriber base has a ripple effect, fortifying our UMS, Total Income, and Net Income. We are excited about the upcoming holiday period in the fourth quarter, as we have the right economic model for us and our customers.'
SZL continues to further expand its reach, announcing on 19 September that it had entered a partnership with open-source eCommerce giant WooCommerce for the provision of flexible payment options via the platform.
'The new partnership will make it easier for WooCommerce merchants to integrate Sezzle's flexible "buy now pay later solution" into their checkout process,' the company said in a statement.
Sezzle resumes Nasdaq trading
Recent efforts by SZL to list on the Nasdaq Stock Exchange perhaps attest to the confidence of its management team in the platform's future prospects.
While listed in Australia, SZL was first founded in the US city of Minneapolis and the focus of its operations remains the North American market.
The company launched its IPO on the ASX in August 2019, just several years following its founding in 2016 by Charlie Youakim, Paul Pardis and Killian Brackey. Its Australian listing raised US$30 million, adding to US$17 million in equity capital obtained prior to the IPO.
The company has since sought to diversify its presence on equity markets, announcing that shares of its common stock would commence trading on the Nasdaq in August under the ticker symbol SEZL.
According to Youakim the move would not raise new capital, with the goal being to bring SZL to a greater range of stateside investors.
'A listing on the Nasdaq is a natural evolution for Sezzle given the company is already filing the necessary reports with the SEC,' Youakim said in a March press release.
'Although we are not seeking to raise capital as part of the Nasdaq listing, we are excited to expand the universe of potential investors to the United States.'
SZL's stateside listing has not been without its challenges, however. Trading in the company's share halted just hours following their launch on the Nasdaq in August, due to lack of sufficient volume to make a market.
The company's US shares had resumed trading by mid-September, however, in a move that may have driven a more than 30% rise in its share price subsequently.
SZL's share price currently sits at just north of $20.25, for a near 30% rise year-to-date.
Take your position on over 13,000 local and international shares via CFDs or share trading – all at your fingertips on our award-winning platform.* Learn more about share CFDs or shares trading with us, or open an account to get started today.
* Winner of 'Best Multi-Platform Provider' at ADVFN International Finance Awards 2022.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get commission from just 0.08% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets