Sezzle Inc. (NASDAQ: SEZL) witnessed a surge in its stock value on the US market following the release of its quarterly financial report. During the pre-market session Wednesday, SEZL stock experienced a notable uptick of 34.62%, reaching $60.23.
Record-Breaking Quarter Performance
In the first quarter of 2024, Sezzle (SEZL) revealed a remarkable 33.2% year-over-year increase in Underlying Merchant Sales (UMS), soaring to $492.7 million, thus establishing a new non-holiday UMS pinnacle. The exponential growth was primarily fueled by heightened consumer engagement, as indicated by a substantial surge in overall consumer purchase frequency from 3.1 times in 1Q23 to 4.5 times in 1Q24.
The results for this quarter underscore Sezzle’s dedication and strategic emphasis on achieving profitable growth. Its GAAP Net Income for 1Q24 has surpassed that of the entire year 2023. Moreover, the successful refinancing of its credit facility, which has established a robust foundation for the company, along with strategic endeavors, instills confidence in Sezzle to raise FY2024 GAAP Net Income forecast from $20.0 million to $30.0 million.
Empowering Consumer Financial Behavior
Sezzle introduced Payment Streaks, a novel feature aimed at incentivizing consumers for their consistent and timely payment practices. Users who regularly make payment deadlines can advance via the Payment Streaks loyalty tier program, which is provided by Sezzle at no cost. This calculated move demonstrates Sezzle’s unwavering commitment to improving user experience and encouraging financial responsibility within its community.
The Payment Streaks program revolutionizes Sezzle users’ payment habits by implementing a gamified approach. Each punctual payment made on or before its designated due date contributes to the user’s payment streak. Users can advance to higher loyalty tiers as long as they have a run of timely payments within a rolling 90-day period.
Enhancing Customer Value Proposition
Sezzle remains committed to amplifying customer experience and augmenting the value proposition for its users. The introduction of Payment Streaks, alongside the Loyalty Tiers program, epitomizes SEZL’s unwavering commitment to empowering customers and fostering financial well-being.
