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Sezzle (ASX:SZL)- Founders, Charlie Youakim (right) and Paul Paradis (left) - The Market Herald
Founders, Charlie Youakim (right) and Paul Paradis (left)
Source: Small Caps
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  • Instalment payment platform Sezzle (SZL) shares are down today following its fiscal 2020 results
  • The company saw its underlying merchant sales (UMS) total $1 billion, a 250 per cent improvement on last years result
  • Total income also increased 272 per cent to $74.3 million, with 80.9 per cent represented by merchant fees
  • Notably, 2021 is also off to a strong start with UMS of US$117.8 million (around A$150 million) in January, 65.1 per cent above the average monthly performance in 2020
  • At the end of December, the company had US$89.1 million (A$113 million) in cash
  • On the market today, Sezzle is down 12.4 per cent and is trading at $8.75 per share

Sezzle (SZL) shares are down today following its fiscal 2020 results.

The company's product is portrayed in the record 2020 performance, which saw its underlying merchant sales (UMS) total $1 billion, a 250 per cent improvement on last years result.

Its total income also increased 272 per cent to $74.3 million, with 80.9 per cent represented by merchant fees.

UMS increased every quarter in 2020, representing a new record in performance. 2021 is also off to a strong start with UMS of US$117.8 million (around A$150 million) in January, 65.1 per cent above the average monthly performance in 2020 and the best monthly performance on record.

Over the year, Sezzle added 16,680 active merchants to its platform. Over 60 per cent of these additions occurred in the second half of 2020.

At the end of December, the company had US$89.1 million (A$113 million) in cash, a US$52.5 million (A$66 million) increase from 2019's result. Sezzle says the increase was from the recent US$58 million (A$73 million) capital raise.

"Our successful equity capital raise of US$58.0 million of net proceeds in 3Q20 and our recent US$250 million receivables funding facility refinancing completed in February 2021, greatly strengthened the company’s balance sheet," CFO Karen Hartje said.

"We are in a very strong position to achieve our growth plans," she added.

The company is expecting its UMS to achieve an annualised run rate of US$2.5 billion (A$3.1 billion) by the end of 2021.

On the market today, Sezzle is down 12.4 per cent and is trading at $8.75 per share at 12:28 pm AEDT.

SZL by the numbers
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