Sezzle becomes latest BNPL player to eye off US listing
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Shares in BNPL platform Sezzle (ASX:SZL) rose strongly this morning, following the release of its quarterly 4C filing.
The company booked underlying merchant sales of $US375.1m in the March quarter, a gain of 30 per cent from December.
Underlying revenues came in at $US22.3m, reflecting a net transaction margin of 5.9 per cent which “remained steady” from previous quarters, SZL said.
Sezzle CEO Charlie Youakim said the results reflected the company’s ability to maintain its sales momentum as it seeks partnerships with larger US retailers.
And the market agreed, sending Sezzle shares around eight per cent higher in morning trade to around $9.60.
Accompanying its 4C filing, Sezzle also flagged its intentions to register with the US Securities & Exchange Commission (SEC) for an initial public offering (IPO) on a US exchange.
It follows a similar update from BNPL competitor Afterpay (ASX:APT) last week, which said it had enlisted Goldman Sachs to test the appetite for BNPL among American investors, given the US now represents its largest market.
Sezzle said the price point, issuance of shares and use of proceeds from its proposed US IPO hasn’t yet been determined.
Earlier this month, the company also filed a Form 10 – General Form for Registration of Securities – with the SEC which means it will be a reporting company with filing requirements for SEC purposes, in addition to its ASX obligations.
In its own quarterly trading update in mid-April, Zip Co (ASX:Z1P) also flagged its US-based Quadpay business as the division providing the strongest contribution to growth, as ASX-listed BNPL players compete for a slice of the US pie.
All players in the space currently have wholesale debt funding arrangements in place with US lenders to help finance their expansion.
Elsewhere in its March quarter numbers, Sezzle said its repeat usage rate among active users rose to 90.7pc — the 27th consecutive month of growth in retention rates.
Sezzle said it now has around 2.6m active customers on its platform, from a merchant base of 34,000 companies.
Active merchants rose by over 7,000 in the quarter, its largest q/q increase on record, the company said.