Onbalance, I think this is a mildly positive set of results. The...

Onbalance, I think this is a mildly positive set of results. The key positives for me are:

· Subscriber numbers have picked up again in the last 8 days. It suggests there is still a lot more growth to come here.

· October UMS up 20% from September, larger than I anticipated. I anticipate a similar increase in November.

· Only a small fall in customer numbers (to 2.572m). That should be the bottom.

· Ramping up of growth initiatives. It is growth (whilst remaining profitable) that is going to lead to the stock rerating.

Someof the disappointments for me are:

· The delay in delivering the banking partnership. However, I’m glad “substantial progress” has been made.

· Limited earnings leverage from the growth delivered. The pick-up in credit losses in Q4 should offset the revenue growth, leading to another small profit. They really need to address the interest expense, which is consuming ~80% of their EBIT. I appreciate they won’t raise capital at this SP. Hopefully the banking partner can help out here.

Ithink it my take another quarter for the market to wake up to Sezzle. Q4 growth will be strong and the progress of the 18 months will be clear. Fingers crossed the banking partnership would be announced by then.