Underlying Merchant Sales (UMS) expected to reach an annualized pace of US$2.5 billion by the end of 2021.
- 2020 UMS and Total Income rose 250.8% and 272.1% YoY, respectively.
- Merchant Fees (80.9% of Total Income) for 2020 increased 266.9% YoY.
- Active Merchants reached 26.7K as of 31 December 2020, representing YoY increases of 166.6%.
- Strong positive trends continued in January 2021 with Active Merchants rising to 29.2K (9.5% MoM), and UMS of US$117.8M, representing a record month and 65.1% above the average monthly pace for 2020.
- Subsequent to 31 December 2020, the Company announced a new US$250 million receivables funding facility with Goldman Sachs Bank USA and Bastion Funding IV LLC to support the expansion of the business in the US and Canada. The 28-month facility expands the Company's funding capacity, while lowering the cost of borrowing and extending the maturity well into 2023.
MINNEAPOLIS, Feb. 26, 2021 /PRNewswire/ -- Sezzle Inc. (ASX: SZL) (Sezzle or Company) // - Installment payment platform, Sezzle, is pleased to provide its financial results for the year ended 31 December 2020 (FY2020).
"We are excited about the momentum in our business reflected in the velocity of signups for both consumers and merchants. 2021 is off to a good start, as January's UMS of US$117.8 million was a record and 65% above our average monthly pace in 2020," stated Sezzle Executive Chairman and CEO Charlie Youakim. "We are also pleased to provide UMS guidance for Sezzle to achieve an annualized run rate UMS of US$2.5 billion by the end of 2021."
UMS, Total Income, and NTM
2020 UMS increased 250.8% YoY with each quarter in 2020 representing a new record in performance. 2021 is off to a strong start with UMS of US$117.8 million in January – 65.1% above the average monthly performance in 2020 and the Company's best monthly performance on record.
Total Income performed similarly to UMS, increasing 272.1% YoY, and as a percentage of UMS, Total Income improved 39bps YoY to 6.9%. Total Income is driven primarily by Merchant Fees, which represented 80.9% of Total Income in 2020, 114bps lower than in 2019.
Top-Rated Buy Now, Pay Later Option
Sezzle leads the field in consumer approval with a consistent Trustpilot score of 4.8
2021 brings increased focus on green and social good initiatives, in line with Sezzle's status as a Public Benefit Corporation - a key market differentiator.
In 2020, the Company added over 1.3 million Active Consumers with 4Q20 representing a record in quarterly growth with over 438,000 additions. Another 126,000 Active Consumers were added in January 2021.
During 2020, 16,680 Active Merchants joined the Sezzle platform, with over 60% of the additions occurring in the second half of 2020. January 2021 represented a record month for Active Merchant additions with over 2,500 being onboarded. In 2019, over 70% of Active Merchant additions were led by in-bound inquiry, this rose to over 90% in 2020, signifying the strong momentum of the Sezzle brand with merchants.
Sezzle is a rapidly growing fintech company on a mission to financially empower the next generation. Sezzle's payment platform increases the purchasing power for 2.4 million Active Consumers by offering interest-free installment plans at online stores and select in-store locations. Sezzle's transparent, inclusive, and seamless payment option allows consumers to take control over the spending, be more responsible, and gain access to financial freedom. When consumers apply, approval is instant, and their credit scores are not impacted, unless the consumer elects to opt-in to a credit building feature, called Sezzle Up.
This increase in purchasing power for consumers leads to increased sales and basket sizes for the more than 29,200 Active Merchants that offer Sezzle.