Sezzle says it saw solid growth during the June quarter despite the COVID-19 pandemic. Image by . (AAP Image/Supplied by Media and Capital Partners)

Financial Services

Sezzle soars after record sales

2020-07-08 12:58:40

Sezzle shares have soared to an all-time high after the buy now, pay later payment platform said its underlying merchant sales grew 58 per cent to $US188 million ($A272.3 million) in the June quarter.

This puts it on pace to reach $US1 billion ($A 1.4 billion) in underlying merchant sales by the end of the year, the company said.

At 1241 AEST, Sezzle shares were up 12.5 per cent to $4.58, after having hit an all-time high of $4.98 – roughly four times the $1.22 price from its IPO a year ago.

The Minneapolis-based company said its active customer base grew 28 per cent in the June quarter to 1.48 million, while its active merchants grew 27 per cent in the same time to 16,112.

“Our strong performance in Q2 is reflective of an improving customer profile combined with an accelerated adoption of e-commerce due to the pandemic,” said chairman and chief executive Charlie Youakim.

Seven out of every eight customers used the instalment payment service repeatedly – an average of 15 times a year, Sezzle said.

The company took in $US15.3 million ($A15.3 million) in merchant fees during three months to June 30, up 53.8 per cent from the March quarter.