Shares in Value Logo
Product Review Img Vertical

Date : 18/08/2021

Sezzle Share Price Dropped On ASX Following The Release Of Its Quarter Report

Sezzle is headquartered in Minneapolis, USA. Being a relatively young company among the BNPL players in Australia, they have been growing at a rapid rate. Sezzle reported its second quarter results yesterday, and since then the SZL share price has once again come under pressure. The SZL share price is down 17.7% in the past week as the entire BNPL sector has really failed to kick on.

Why is Sezzle Share Price trading low today on the ASX?

Sezzle announced that for the quarter ended 30 June, they had a net loss of US$19.1 million. This was up from a net loss of US$3.8 million in the prior corresponding period. While no BNPL player is profitable as of yet, this result brought its half year net loss to US$30.4 million, which was more than triple FY 2020’s first half loss. While operationally, there has not been any stress on the financials, Sezzle did increase their provision for uncollectible accounts to US$22.4 million. It comes as a massive increase from just US$5.1 million in the previous corresponding period and hints at the management not expecting a relatively smooth operation. These provisions are an allowance for uncollectible accounts that management feels necessary to absorb estimated probable customer losses. As a percentage of Sezzle’s income, the provision for uncollectible accounts has been increased from 28.7% in FY20 to 48.3% during the recent half year period.

Sezzle’s Executive Chairman and CEO Charlie Youakim said “Our strong momentum continued after quarter end, as July represented a new monthly high in Underlying Merchant Sales (US$150.6 million); we crossed over the 3.0 million Active Consumers mark; and we are now engaged with 41,800 Active Merchants on the Sezzle Platform. Our scale and positive market positioning, as a Public Benefit Corporation and B Corp, are resonating with consumers and merchants alike. We are also excited about the partnerships we are creating, such as the recent agreement with and investment from Discover Financial Services and ecommerce platform, BigCommerce, naming Sezzle as its preferred buy now, pay later partner.”

The market looks to have digested the increase in provisions as ‘uncertainty’ and SZL shares have once again come under pressure. After a second successive day of losses, SZL shares closed at $6.65 a share – down 5% just today!

Looking for best Growth stocks to invest on the ASX?

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 5 ASX Stocks to buy in 2021 by clicking here.

 

Are You Looking To Buy The Best Stocks In 2022?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2022!

 

Top 5 ASX Stocks
to Buy for Capital Growth in 2022

asx landing page
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.

Download Your Free Report

By downloading this report you agree to the TERMS AND CONDITIONS and our PRIVACY POLICY

Scroll to Top

Login

By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Please fill in your details to download the free report.

We will send your report instantly please put your correct email address and phone number.