With the full acknowledgement that COVID-19 impacts would have started in early to mid March here are some of Sezzles business updates:
1. COVID-19 impact not significant in Q1.
2. Key indicators set new records (includes sales, merchant fees, and customer count).
3. Positive trajectory of net transaction margin (obviously no default rate impact felt yet).
4. Credit quality remains stable with steady to improving trends in leading loss indicators.
They then summarized the government support impacting BNPL operations in the US:
Smart investors separate the impact of COVID-19 on the overall economy and that of the underlying companies they are invested in. There is a reason why Virgin has gone into administration at the same time Netflix/Amazon are seeing new all time highs.
