It's shaping up to be a good end of the week for buy now, pay later stock (ASX BNPL share) Sezzle Inc (ASX: SZL).
Sezzle shares closed yesterday trading for $23.81. Shares are currently swapping hands for $23.98 apiece, up 0.71%. For some context, the All Ordinaries Index (ASX: XAO) is down 0.53% at this same time.
That's a nice turnaround from the beginning of the week, which saw the ASX BNPL share close down 7.4% on Monday.
Here's what's helping Sezzle outperform the benchmark today.
Image source: Getty Images
What's boosting the ASX BNPL share today?
The Sezzle share price is getting some support on Friday following the release of the company's May business update.
Among the highlights, the ASX BNPL share reported an 18.5% year-on-year increase in total income. Income in May reached US$11.6 million (AU$17.5 million). This represents 9.1% of underlying merchant sales (UMS).
Despite that lift, Sezzle still reported a net loss of US$100,000 for the month. The company said the main driver of this loss was the anticipated increase in the provision for credit losses from prior period lows.
However, Sezzle noted that it still posted positive adjusted earnings before taxes, depreciation and amortisation (EBTDA) in May.
As of 31 May, the ASX BNPL share had a strong balance sheet, with US$63.6 million of cash in hand and US$58.8 million drawn on its US$100 million credit facility.
May also saw Sezzle launch its Pay-in-2 option, which allows consumers to pay for their purchases in two equal instalments over two weeks. And this month has seen the company launch Pay Anywhere, a subscription-based service. This is expected to fully roll out in 3Q23.
Also potentially stirring investor interest today, Sezzle updated the market on its Nasdaq listing efforts. Management reported they believe the company is on track to go live on the Nasdaq Capital Market around the end of 2Q23.
Commenting on the results lifting the ASX BNPL share today, Sezzle CEO Charlie Youakim said he was "incredibly excited about the progress the team has made on several of our key initiatives for FY23".
Youakim added:
Our team has worked tirelessly to ensure the successful launch of Pay-in-2 and Pay Anywhere. Based on early indicators, we're confident our efforts will pay off and lead to meaningful growth periods ahead.
Sezzle share price snapshot
The ASX BNPL share has enjoyed a strong comeback run over the past 12 months. Since this time last year, the Sezzle share price is up 138%.
