Fintech firm Sezzle soars after upgrading 2024 guidance

Shares of small-cap company Sezzle surged more than 20% early on Thursday, January 16. The fintech company runs an alternative payment platform offering buy now, pay later (BNPL) options. The driver of Thursday’s gains was the announcement by Sezzle that «exceptional holiday demand» would allow it to exceed its already-strong 2024 guidance, which had previously called for 55% revenue growth.
Details
Sezzle shares opened the day on Thursday with a bang, climbing 20% to $311.74 per share, the largest intraday percentage increase since November, according to Barron’s. In premarket trading, quotes briefly hit $334 per share, nearly 30% higher than the previous close. However, the stock could not hold onto the early gains and eventually closed up just over 1% on the day.
The day before, Sezzle announced upside to its full-year 2024 top- and bottom-line guidance.
«Exceptional holiday demand and the effective execution of our strategic initiatives fueled our fourth-quarter outperformance, and gives us confidence that we will exceed our prior 2024 guidance,» said CEO and Chair Charlie Youakim in the company update.
Sezzle did not provide updated numbers. Recall that its earlier guidance was for a 55% year-over-year increase in revenue versus last year’s $159.4 million performance. Adjusted net income per diluted share was previously guided at $9.80, for a nearly tenfold increase year over year. Analysts had expected adjsuted earnings per share of $9.77 for 2024, according to FactSet data cited by Barron’s.
Sezzle plans to publish its 2024 financial results in February.
About the company
Sezzle operates in the rapidly expanding BNPL market, offering customers the option to split payments into four installments. According to research firm Future Market Insights, the global BNPL market is projected to have grown to $11.6 billion in 2024. Over the next decade, it is expected to grow at a compound annual rate of nearly 22% to surpass $80.2 billion by 2034.
In the last six months, Sezzle shares have gained more than 200%. According to MarketWatch, both analysts covering the company rate it a «buy.» Their average target price is $366 per share, implying nearly 40% upside versus the Thursday closing price.