Nothing bad from what I can see. Improvement all around. Most...

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Midcapman1

391 Posts.

187

29/07/22

09:13

Post #: 62798246
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Originally posted by Prestonian: ↑

I had some expectations for these results but I am absolutely blown away that the cash balance has increased to USD $63m.
I know that includes $5m inflow from financing, but I was expecting significant erosion to a dangerous level and I suspect this is what the market was expecting too, hence the share price spiralling down - particularly after the ZIP merger fell apart. Add on $11m received in July from ZIP for a cash balance of USD $74m.

Admirable to see they have laid everything out bare, not cherry picking any results or metrics, and admitted to focussing on profitability and free cash flow vs consumer acquisition costs. Given Sezzle's user experience appears to be the highest rated of any BNPL, it's well positioned to grow naturally anyway. Surprising but great to see that Sezzle revenue as a % of overall revenue is significantly increasing!

My 3 key areas to look at were:

- cash balance (big tick)
- evidence of initiatives in place actually working, lower bad debts, lower expenses (tick - 1.9% bad debts)
- evidence of actual Sezzle revenue being in line with total revenue (it actually increased! tick)

I'm curious how much revenue they anticipate from Sezzle Premium subscriptions - 47k subscribers so far and only launched in June. What if they all had an annual subscription at $90? What if all 3.4m Sezzle users signed up?

Very slick reports and impressive results. Can anyone find anything bad??

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Nothing bad from what I can see.

Improvement all around. Most importantly 1.9% net bad debts as pointed earlier- which is better than ZIP.

Premium is a nice add on that will generate additional revenue.

Good luck getting this under $5 in the next few months.

Larry Diamond will be fly kicking himself today about letting this little gem go. Live and learn.

SZL Price at posting: $1.02 Sentiment: Buy Disclosure: Held
4 Upvote

2 Great analysis

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