It's a good day so far for some ASX buy now, pay later (BNPL) shares. Many are charging well ahead of the 0.1% morning gains posted by the All Ordinaries Index (ASX: XAO) today.
But one ASX BNPL company is leading the pack, with its shares opening a whopping 24% higher and currently up 17% in morning trade.
Any guesses which one?
If you said Sezzle Inc (ASX: SZL), go to the front of the class.
Image source: Getty Images
What did the ASX BNPL share report?
The Sezzle share price is rocketing following the release of the company's December business update.
The company reported that revenue grew strongly over the month, which helped it deliver its second consecutive month of profitability. That will certainly come as welcome news to investors after Sezzle struggled with hefty losses for most of 2022.
Sezzle reported a 15.7% year-on-year boost (and a 1.7% month-on-month lift) in revenue, which reached $19.9 million in December.
With two months of profitability, net income in 4Q 2022 was positive, at US$500,000. That compares to a net loss of US$25.9 million in 4Q 2021.
As for the balance sheet, the ASX BNPL share reported capital and liquidity of US$69.7 million cash on hand and US$65 million drawn on its US$100 million credit facility. Management stated it did not foresee any near-term capital needs.
Sezzle will report its fourth-quarter results on 27 February.
What did management say?
Commenting on the December results driving the ASX BNPL share sharply higher today, Sezzle CEO Charlie Youakim said:
In 2022, we set out on a mission to become profitable by year end… We are excited, as we have shown investors that we are clearly on the path to profitability with a well-capitalised balance sheet that does not require additional capital.
Looking ahead, Youakim added:
We are now working on additional initiatives to build upon what we have started and achieve positive Net Income and Adjusted EBTDA for 2023. We look forward to updating investors and the market on our initiatives as part of our fourth quarter conference call in late February.
How has the ASX BNPL share been tracking?
2023 is shaping up to be a different year for the embattled buy now, pay later stock.
With today's big leap factored in, the Sezzle share price is up 59% since the opening bell on 3 January.
But as you can see in the chart below, the company still has a way to go to recoup last year's losses. Over the past 12 months, the Sezzle share price remains down 70%.
