Take a more detailed look at the unit economics prosperity. Interest expense as % of company revenue is not bad as Sezzles reliance on financing is not excessive, unlike other bnpl. Take a look at the March Qtr, approx $3m interest expense against revenue of $35m. Or <1% the $370m UMS.
Bad debt % down to 0.5% of UMS, or 5% of company revenue.
Transaction expense now the biggest variable cost which they are working to reduce with the shift to ACH incentive/ processing fee. Approx 2% of UMS
Revenue margin approaching 10% UMS
Other costs are fixed and so an increase in quarterly UMS of say $50m may result in an extra ~$4.5 - $5m of company revenue, then take off the variable costs (tran, bad debt, int). I think you'll find there's some fat leftover.
The business model is right-sized and just needs more top line growth.
lastly the NASDAQ tech index is absolutely flying at the mo, great time to be preparing for listing.
- Forums
- ASX - By Stock
- SZL
- Ann: US SEC Form 10-Q
Ann: US SEC Form 10-Q, page-32
-
-
- There are more pages in this discussion • 32 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)