Sezzle Inc Share Price Jumps on Record Quarter (ASX:SZL)

At the time of writing the Sezzle Inc [ASX:SZL] share price is trading at $6.67, up 6.72%.

The ‘buy now, pay later’ (BNPL) provider recently announced record results for 4Q20.

ASX Sezzle Share Price Chart

Source: Optuma

The boom of the BNPL sector

2020 saw the entire BNPL sector move up into a higher gear.

As the COVID-19 pandemic had people forced to stay at home and work from home, people turned to BNPL providers to shop online with.

A rising tide lifts all ships, as the rising user rates across the sector lifted the fortunes of Afterpay Ltd [ASX:APT] and Zip Co Ltd [ASX:Z1P], it took Sezzle along with it.

In a recent announcement Sezzle announced its results for Q42020.

Each month in 4Q20 represented new records for Underlying Merchant Sales (UMS), Active Consumers, Active Merchants, and Repeat Usage.

  • UMS for 4Q20 increased 205.4% YoY to US$320.8 million (AU$419.8 million)
  • Average monthly UMS reached US$106.9 million in 4Q20 compared to US$76.1 million in 3Q20 and US$35.0 million in 4Q19
  • Merchant Fees as a percentage of UMS were 5.4% in 4Q20 compared to 5.5% in 4Q19, reflecting the expansion into large enterprise
  • Active Consumers for 4Q20 rose 143.9% YoY to 2.2 million
  • Active Merchants increased 166.6% YoY

Sezzle and the future

The rapid growth of the company throughout 2020 saw the company gain a market cap of $635.31 million at the time of writing.

On the back of the record quarter, Chairman and CEO Charlie Youakim said:

Our large enterprise and international expansion efforts are paying dividends as evidenced by our recent addition of GameStop and the growth rates we are experiencing in Canada and India that are exceeding the U.S.’

Taking a look at the chart:

ASX SZL Share Price Chart

Source: Optuma

At the time of writing, the price is trading at $6.67.

If the move up continues, then the levels of $7.41 and $8.92 may become the future focus.

Should it fall back, then the level of $5.37 may be enough to halt the fall.

The BNPL sector expanded rapidly over the course of 2020. Sezzle, along with the likes of Afterpay and Zip Co, all saw their share prices rise.

Over the recent weeks a lot of companies in the sector have experienced their share price starting to drop back.

If Sezzle is a share you are holding, now might be time to plan an exit.

We believe these rapid fire market opportunities are a fantastic way to grow your wealth. Which is why you’ll find us talking about the big trends that can uncover them. If that is something up your investment alley, click here to learn more.


Carl Wittkopp,
For Money Morning

Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

Money Morning Australia