I reckon when Affirm shows a profit (might even be by the end of 2024), they'll be valued higher which will mean they also have a jump in the price/sales ratio.
But I also reckon Sezzle has a better chance of higher % growth in revenue given it's current position and small base, i.e. Sezzle could double revenue to ~$400m in time but Affirm prob find it harder to achieve the same doubling. The Sezzle/Webbank partnership seems to have unlocked the ability for Sezzle to grow a lot, more easily, and Nationally.
Might be best to look at earnings multiples. Sezzle keeps upgrading earnings - from $20m to $30m and now to $40m. I actually think it will be upgraded again in Nov and then what will the FY2025 outlook be? The traditionally two biggest quarters are ahead now. The spanner in the mix could be the cost of the Timberwolves sponsorship but maybe this cost is spread over the life of the sponsorship, so not all recognised in 1 qtr, not sure.
anyway we could speculate on valuations based on earnings multiples/PE ratios. B Riley initially placed a 16x multiple on what they thought Sezzle would make in 2025 ($42m) to come up with a valuation of about $700m. I think the growth rates announced by Sezzle support a higher multiple than 16 tbh. What does everyone else think?
This is worth a look, Russell 2000 stocks which can be sorted by PE ratio:
