Sezzle Inc. (SEZL) is a technology-enabled payments company operating primarily in Canada and the US. The company provides payment solutions in-store, at online retail stores, and through proprietary payments solutions that connect consumers with merchants, notes Louis Navellier, founder and chairman of Navellier & Associates.
More specifically, the company offers the Sezzle Platform, which provides a payments solution for consumers that extends credit at the point-of-sale. This allows consumers to purchase and receive the ordered merchandise at the time of sale while paying in installments over time. Other options include:
1) Pay-in-Four, which allows consumers to pay a fourth of the purchase price up front and then another fourth of the purchase price every two weeks thereafter over a total of six weeks.
2) Pay-in-Full, which allows consumers to pay for the full value of their order up-front through the Sezzle Platform without the extension of credit.
3) Pay-in-Two and other alternative installment options, which allow consumers to pay half of the value of their order up-front and the second half in two weeks.
Additionally, the company provides the Sezzle Virtual Card, which allows consumers to access the Sezzle Platform in the form of closed-end installment loans and shop with merchants that are not integrated with Sezzle...Sezzle Anywhere, a paid subscription service that allows consumers to use their Sezzle Virtual Card at any merchant online or in-store...Sezzle Premium, a paid subscription service that allows its consumers to access large, non-integrated premium merchants...and Sezzle Up, an opt-in feature of the Sezzle Platform.
In the third quarter of 2024, the company’s revenue rose 71.3% to $70 million from $40.8 million in the same quarter a year ago. During the same period, Sezzle’s earnings rose 1,039.1% to $15.4 million, or $2.62 per share, from $1.3 million, or 23 cents per share.
Excluding extraordinary items, the company’s operating earnings were $2.92 per share. The analyst community was expecting revenue of $52.6 million and operating earnings of 89 cents per share, so the company posted a 33.1% revenue surprise and a 228.1% earnings surprise. The stock is an outstanding buy!
