The Sezzle Inc (ASX: SZL) share price could be a mover on Friday after the company released its third-quarter market update.
We take a look at how the buy now, pay later (BNPL) provider performed during the quarter ending 30 September 2021.
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Third-quarter highlights
Market watchers will be keeping a keen eye on the Sezzle share price after the company recapped its September quarter. It announced triple-digit year-on-year growth across most key performing metrics. Highlights include:
- Underlying merchant sales rose 101.9% to US$460.7 million;
- Total income grew 78.8% to US$28.5 million;
- Active merchants jumped 112.5% to 44,400;
- Active customers rose 77.9% to 3.2 million; and
- Launched Sezzle Capital for merchants.
On 20 July, Sezzle launched its Capital program via a partnership with Wayflyer. The program enables the funding of working capital for up to US$10 million for qualified merchants. The partnership enables qualified Sezzle merchants to apply and receive funding, without adding any credit risk or capital requirements to Sezzle.
Looking ahead, Sezzle said it was excited for the upcoming holiday season and the increase in consumer and merchant engagement it brings.
The company plans to promote several campaigns in the fourth quarter to help consumers shop for the best deals, drive traffic and consumer engagement for merchant partners.
However, it wasn't a great quarter for the Sezzle share price — it fell almost 35% between July 1 and September 30.
International markets
International markets have been the name of the game for many ASX-listed BNPL players, most notable Zip Co Ltd (ASX: Z1P).
Sezzle continued to see "promising activity" in its international markets, pointing to early-stage growth across Canada, Europe, and India.
Sezzle Canada reached a "key milestone" of 3,000 active merchants in its second year of operations. The company said Canada's underlying merchant sales run rate currently sits in excess of US$100 million annually. Additionally, consumer adoption remains strong, reaching nearly 190,000 active customers, a 232% year-on-year increase.
Elsewhere, Sezzle Europe and India are in very early stages following recent launches. The performance of both regions remains immaterial to the overall company but shows positive growth rates across key operating metrics.
Sezzle share price snapshot
The Sezzle share price is down 14.5% year-to-date, broadly consistent with the sluggish performance of the broader ASX-listed BNPL sector. It is also down 22.4% over the past 12 months.
