NASDAQ$SEZL

Sezzle Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Sezzle reported strong financial results for the fourth quarter and fiscal year ended December 31, 2024, with significant increases in revenue, net income, and GMV, driven by disciplined execution and strategic focus.

Sezzle achieved exceptional performance in Q4 2024, with total revenue doubling year-over-year to $98.2 million and net income reaching an all-time high of $25.4 million. Gross Merchandise Volume (GMV) also saw a substantial increase of 42.1% YoY, reaching $855.4 million, reflecting strong holiday season activity and an expanded subscriber base.

  • Gross Merchandise Volume (GMV) reached a new high of $855.4 million in 4Q24, up 42.1% YoY, driven by strong holiday season performance.
  • Total Revenue doubled YoY, rising 100.9% to $98.2 million, with Total Revenue as a percentage of GMV reaching 11.5%.
  • Net Income reached an all-time high of $25.4 million, equating to 25.8% of Total Revenue, and Net Income per Diluted Share jumped to $4.21.
  • Operating Income reached a new quarterly high of $30.9 million in 4Q24, up 302.6% YoY, with Operating Margin strengthening to 31.4%.

Headline financials

Total Revenue

$98.2M

Previous: $48.9M+100.9%
EPS (adj)

$4.39

Previous: $0.52+744.2%
Total Operating Expenses

$67.4M

Previous: $41.2M+63.3%
Rev Less Transaction Costs

$54.3M

Previous: $20.8M+161.4%
Transaction Related Costs

$43.9M

No prior period
Non-Transaction OpEx

$26.9M

No prior period
Adjusted EBITDA

$32.6M

Previous: $7.76M+319.4%
Adjusted Net Income

$26.1M

Previous: $2.59M+907.3%
Gross Merchandise Volume

$887M

No prior period
Capital Expenditures

-$406K

Previous: -$328K-23.8%
Net Income

$25.4M

Previous: $5.1M+397.4%
Operating Income

$30.9M

Previous: $7.4M+317.2%
Gross Profit

$67.3M

Previous: $23.2M+190.1%

Revenue & EPS history

Sezzle · Revenue · Quarterly

$98.2M

Q4 2024+100.9%vs Q4 2023
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Forward guidance

Sezzle is updating its FY2025 guidance, raising its Net Income per Diluted Share outlook and expecting significant growth in total revenue.

Tailwinds

  • Net Income is projected to be $80.4 million.
  • Net Income per Diluted Share is expected to be $13.25, an increase from previous guidance.
  • Total Revenue Growth is anticipated to be between 25% and 30%.
  • Total Revenue Less Transaction Related Costs as a percentage of Total Revenue is expected to be between 55% and 60%.
  • The company expects to transition to full corporate taxpayer status in 2025, with an anticipated effective tax rate of 25%.

Headwinds

  • The transition to full corporate taxpayer status in 2025 will result in an effective tax rate of 25%.
  • The guidance is subject to various risks and uncertainties, including regulatory scrutiny in the BNPL industry.
  • Macro-economic conditions could impact consumer spending.
  • Maintaining adequate access to capital to meet business requirements remains a factor.
  • Potential data security breaches, cyberattacks, and other disruptions could affect performance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 10 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+3.5%

Avg return

Earnings day

+15.0%

Avg return

5 days after

+24.3%

Avg return

30 days after

43%

10 / 23 earnings

Positive

+42.0%

Q1 2025

Best reaction

-14.1%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+18.7%+36.1%
Q4 2025+35.2%+17.3%-1.7%
Q3 2025+2.2%-1.2%+17.9%
Q1 2025+42.0%+71.6%+150.4%
Q4 2024+5.1%+14.0%-23.8%
Q3 2024+0.8%+11.5%-19.1%
Q2 2024-1.9%+2.8%+18.9%
Q1 2024-2.6%+5.1%+15.1%
Q4 2023-14.1%+4.1%+18.8%
Q3 2023+8.6%+6.7%+30.0%
Q2 2023+0.0%
Q1 2023+1.9%
Q4 2022+0.0%
Q3 2022+0.0%
Q2 2022+0.0%
Q1 2021+0.0%
Q1 2022+0.0%
Q4 2021-4.9%
Q3 2020+3.3%
Q3 2021+3.3%
Q4 2020+0.0%
Q2 2021+0.0%
Q2 2020+0.0%
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018

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