At time of writing, the share price of Sezzle Inc [ASX:SZL] is up .38%, trading at $2.68.
As you can see below, the Sezzle share price is testing resistance around $2.70:
Source: tradingview.com
The resistance level dates back to the surge after the Sezzle IPO. If the Sezzle share price can smash though this, it could be a good sign for the stock. We look at the highlights of the company’s most recent quarterly for clues.
Three ASX fintech stocks taking on the banks (and winning).
Sezzle share price barely budges on quarterly
This is what the intraday trading of Sezzle shares looks like as of 1:30 pm:
Source: tradingview.com
You can see a quick surge followed by a fall and then a brief encounter with the $2.70 resistance line.
This indicates that the quarterly was largely positive.
But given that the Sezzle share price surged before the announcement with no price-sensitive news, it is possible some in the market may already have had an inkling as to what kind of numbers would come out of it.
Here are the highlights from the quarterly:
- Active Merchants up to 7,507 from 5,048 last quarter
- Active Customers up to 644,509 from 429,898 last quarter
- Underlying Merchant Sales up 64.2% to US$68.8 million
- Underlying Merchant Fees up 68.9% to US$3.1 million
- Cash balance of US$27.2 million
So strong news on merchant acquisition combined with ‘ample flexibility’ in the cash balance to fund growth.
This should stand the company in good stead going forward, with fierce rivalry for customers in the BNPL sector.
Takeaway points
It will be interesting to see in the coming days and weeks if the Sezzle share price can push past $2.70.
It has come close or moved just beyond it on a number of occasions.
This would be the point at which many who got in on the initial surge would consider exiting the investment.
The fact that the Sezzle share price has not spent sustained time below $2 could also be indicating that this fintech’s IPO was not a wild overvaluation.
We look at three more exciting fintechs in this free report. One is changing the way you do financial planning and the other is overhauling the retirement industry. You can download it here.
Regards,
Lachlann Tierney,
For Money Morning