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Dec 30, 2024
Sezzle Q4 2024 Earnings Report
Sezzle reported strong financial results for the fourth quarter and fiscal year ended December 31, 2024, with significant increases in revenue, net income, and GMV, driven by disciplined execution and strategic focus.
Key Takeaways
Sezzle achieved exceptional performance in Q4 2024, with total revenue doubling year-over-year to $98.2 million and net income reaching an all-time high of $25.4 million. Gross Merchandise Volume (GMV) also saw a substantial increase of 42.1% YoY, reaching $855.4 million, reflecting strong holiday season activity and an expanded subscriber base.
Gross Merchandise Volume (GMV) reached a new high of $855.4 million in 4Q24, up 42.1% YoY, driven by strong holiday season performance.
Total Revenue doubled YoY, rising 100.9% to $98.2 million, with Total Revenue as a percentage of GMV reaching 11.5%.
Net Income reached an all-time high of $25.4 million, equating to 25.8% of Total Revenue, and Net Income per Diluted Share jumped to $4.21.
Operating Income reached a new quarterly high of $30.9 million in 4Q24, up 302.6% YoY, with Operating Margin strengthening to 31.4%.
Forward Guidance
Sezzle is updating its FY2025 guidance, raising its Net Income per Diluted Share outlook and expecting significant growth in total revenue.
Positive Outlook
- Net Income is projected to be $80.4 million.
- Net Income per Diluted Share is expected to be $13.25, an increase from previous guidance.
- Total Revenue Growth is anticipated to be between 25% and 30%.
- Total Revenue Less Transaction Related Costs as a percentage of Total Revenue is expected to be between 55% and 60%.
- The company expects to transition to full corporate taxpayer status in 2025, with an anticipated effective tax rate of 25%.
Challenges Ahead
- The transition to full corporate taxpayer status in 2025 will result in an effective tax rate of 25%.
- The guidance is subject to various risks and uncertainties, including regulatory scrutiny in the BNPL industry.
- Macro-economic conditions could impact consumer spending.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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