Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, October 25, 2024

Article Excerpt

SEZZLE INC., $212.96, symbol SEZL on Nasdaq, provides a platform for merchants in the U.S. and Canada that lets customers pay for merchandise through installments, better known as BNPL or “buy now, pay later.” The company had 462,000 active subscribers as of June 30, 2024, up from 210,000 on September 30, 2023. The BNPL and point-of-sale financing market in North America accounts for less than 2% of the estimated $207-billion market for total commerce transaction value. In the U.S., BNPL has just 5% market penetration compared to 23% in places like Germany. That suggests the future growth potential is significant. Approximately 76% of Sezzle users are Generation Z or Millennials (18 to 46 years old). The company’s three main products are Pay-in-2 and Pay-in-4 installments along with long-term 12-month payment plans. One out of 3 BNPL users have improved their credit scores as a result of using installment payments. In 2022 and 2023, Sezzle implemented several initiatives to accelerate its pathway to profitability including workforce…