Minneapolis, MN, Sept. 19, 2023 (GLOBE NEWSWIRE) — Sezzle Inc. (NASDAQ: SEZL, ASX:SZL) (Sezzle or Company) // Purpose-driven digital payment platform, Sezzle, is pleased to provide the market with an update on key financial metrics for the month ended 31 August 2023.
“August has proven to be yet another testament to the efficacy and success of our latest product offerings. The continuous growth in our active subscriber base has a ripple effect, fortifying our UMS, Total Income, and Net Income,” stated Sezzle’s Chairman and CEO, Charlie Youakim. “We are excited about the upcoming holiday period in the fourth quarter, as we have the right economic model for us and our customers.”
- Total Income increased to US$14.0 million (A$21.6 million) in August 2023, representing a 44.3% YoY and 11.7% MoM increase. Total Income as a percentage of Underlying Merchant Sales (UMS) increased 188 bps YoY to 8.7%.
- In August 2023, Sezzle recorded GAAP Net Income and Adjusted EBITDA (a non-GAAP measure) of $0.6 million and $2.4 million, respectively.
- As of 31 August 2023, Sezzle had US$60.7 million in cash on hand (US$2.8 million of which is restricted) and US$71.7 million drawn from its US$100.0 million credit facility.
- As of 31 August 2023, notes receivable (net) and merchant accounts payable amounted to US$100.6 million and US$66.7 million, respectively. The merchant interest program represented US$51.7 million of the merchant accounts payable balance.
- As of 19 September 2023, active subscribers enrolled in Sezzle Premium and Anywhere exceeded 210,000 subscribers.
- Average daily UMS is up approximately 2.6% in September 2023 (through 18 September) versus the prior comparable period in August 2023.
Refer to the attachments below for GAAP Net Income, Non-GAAP Adjusted EBITDA, and the Reconciliation of GAAP to Non-GAAP Measures.
Investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when we establish reserves for one or more contingencies. Also, our regular reserve reviews may result in adjustments of varying magnitude as additional information regarding claims activity becomes known. Reported results, therefore, may be volatile in certain accounting periods.
This August business update has been approved by the Company’s Executive Chairman and CEO,…