This is true but increased retail activity generally comes with greater potential for bad debts. We have a hint that Sezzle may be ok based on Affirm and ZIPs US reported delinquency rates staying pretty static. Although Sezzle target a slightly different demographic.
Also a seasonally high December quarter means the outlook for the following quarter for these companies is naturally gonna be lower. Affirm is a good example of this, reporting revenue of $591m for the Dec qtr but an outlook of $530-$550m for the March qtr. I think if you look back at Sezzles previous quarters you'll see a similar pattern too.
Below is Sezzles prev year annual report income statement showing bad debts of $29m and an overall loss of $39m. 2023 results could show a good turnaround but whether it's enough to excite analysts and the market is anyone's guess. I can see that some other fin-techs out there have reported ongoing losses again and suffered a bit of punishment by the market but overall kept their valuations.
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