Sezzle VS Openpay share price: 2020 earnings compared

We compare the first-half and full-year earnings results from two of Australia’s most prominent buy now pay later companies: Sezzle and Openpay.

BNPL stocks continue to trend higher

With all of Australia’s most important buy now pay later (BNPL) companies having now reported their full or half-year results, we compare the first-half (H1) and full-year (FY20) earnings figures from Sezzle (SZL) and Openpay (OPY)

Overall, investors and traders have remained bullish on ASX-listed BNPL stocks over the last month, bidding their shares up significantly in that period, despite a variety of headwinds facing economies across the globe. Indeed, since 28 July, Zip has seen its share price surge 44%, OpenPay has seen its stock rise 27%, Afterpay has gained 29% and Sezzle has skyrocketed 53%.

Openpay share price dips on FY20 release

As has come to be the norm from the sector, Openpay delivered strong growth across all its operational metrics in FY20, with active customers, merchants and total transaction volumes all increasing significantly.

Despite that, its share price fell at the open, last trading down 4.46%.

Looking at these results, in FY20 Openpay reported:

  • Total transaction values (TTV) of $192.8 million, up 98%
  • Revenue of $18.0 million, up 64%
  • A full-year earnings (EBITDA) loss of $30.1 million
  • Net transaction margin of 2.5%
  • Active customers of 109 thousand and active merchants of 2,162

'Looking forward, we expect continued momentum and rapid evolution of out BNPL business, enable by our “Buy now. Pay smarter.” Approach,’ Openpay’s CEO Michael Eidel, said.

Growth across the board, but Sezzle share price falls ~5% on H1 report

Like Openpay, over the last eight months, the North American and Canadian focused BNPL company Sezzle has seen its share price surge, with the stock up a staggering 585% in that period. Also like Openpay, Sezzle was bid lower in response to its latest earnings release, last trading down ~8%.

Despite that share price weakness, Sezzle also delivered a phenomenal operational performance over the first six months of fiscal 2020 – recording triple digit merchant sales growth.

Looking at these results, for the six months ending 30 June, Sezzle reported:

  • Underlying merchant sales (UMS) of $445.2 million, up 338%
  • Total income of $30.1 million, up 384%
  • A net transaction margin of 1.7%
  • Active consumers of 1,475,235 and active merchants of 16,112

Elsewhere, the company continues to witness increased levels of engagement from its customer base – noting that repeat usage hit 87.5% for the half ending 30 June, up from 77.2% in June 2019.

'The gains in repeat usage and frequency of purchases by cohort are key drivers to lower loss rates and greater net transaction margin,' said Sezzle's CEO Charlie Youakim. 'We are excited about the brand loyalty that is building, with subsequent cohorts outpacing previous cohorts at similar points in time.'

Looking forward, management reiterated their previously provided guidance of achieving FY20 annualized run rate underlying merchant sales of $1.0 billion.

What are your thoughts on Openpay and Sezzle...

Are you bullish or bearish on the BNPL sector? Whatever your view, you can use CFDs to trade both rising and falling markets, through IG’s world-class trading platform now.

For example, to buy (long) or sell (short) Sezzle using CFDs, follow these easy steps:

  1. Create an IG Trading Account or log in to your existing account
  2. Enter ‘Sezzle’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices 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.