Sezzle Inc. reported significant financial growth in its latest 10-K filing for the fiscal year ending December 31, 2024, with total revenue reaching $271.1 million, a 70.1% increase from $159.4 million in 2023. The company achieved profitability for the first time, posting a net income of $78.5 million compared to a net income of $7.1 million in the previous year. This growth was driven by a substantial rise in subscription revenue, which surged by 176.7% to $82.2 million, and transaction income, which increased by 33.7% to $146.8 million. The increase in transaction income was attributed to higher consumer fees and a growing gross merchandise volume (GMV), which reflects the total value of sales made by merchants using the Sezzle platform.
In terms of operational metrics, Sezzle reported a 4.8% increase in active consumers, totaling 2.725 million as of December 31, 2024. The company also saw a significant rise in monthly on-demand users and subscribers, which grew by 129.9% to 707,000. The expansion of its subscription services, particularly Sezzle Anywhere and Sezzle Premium, contributed to this growth. The company is currently focusing on enhancing its product offerings and expanding its merchant network, which is crucial for sustaining its growth trajectory.
Strategically, Sezzle has made notable advancements, including the launch of new features such as Payment Streaks, which rewards consumers for timely payments, and Sezzle On-Demand, allowing consumers to use the platform at any merchant for a finance charge. The company also entered into a five-year strategic partnership with its originating bank partner, WebBank, to facilitate consumer loans, which is expected to enhance its lending capabilities. As of December 31, 2024, Sezzle had 408 employees, reflecting its commitment to scaling operations and improving service delivery.
Despite the positive financial performance, Sezzle faces challenges, including increased regulatory scrutiny in the buy-now, pay-later (BNPL) industry and potential impacts from macroeconomic conditions on consumer spending. The company has acknowledged the risks associated with credit losses, which increased significantly in 2024, and is actively managing its credit risk through enhanced underwriting processes. Looking ahead, Sezzle aims to maintain its growth momentum while navigating the evolving regulatory landscape and competitive pressures in the BNPL market.
About Sezzle Inc.
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