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Sezzle Inc. (SEZL-1.07%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a total revenue of $69,957,691, an increase from $40,844,201 in the same quarter the previous year. The increase is attributed to growth in subscription revenue and income from other services.
Transaction income for the quarter was $36,398,000, up from $27,046,000 the previous year. Subscription revenue increased significantly to $22,857,000 from $8,555,000.
Income from other services also rose to $10,703,000 from $5,243,000. This increase was driven by higher consumer fee income and increased marketing revenue.
Personnel expenses increased to $13,424,000 from $11,079,000, primarily due to increased headcount and accrued bonuses.
Transaction expenses rose to $12,761,000 from $9,937,000, driven by higher payment processing costs.
Provision for credit losses increased to $15,402,000 from $6,677,000, reflecting higher underlying merchant sales and changes in consumer underwriting.
Net interest expense decreased to $3,328,000 from $4,143,000, due to a lower interest rate on the new line of credit.
Sezzle reported a net income of $15,446,241 for the quarter, compared to $1,294,400 the previous year. The increase is attributed to higher revenue and a release of the valuation allowance on deferred tax assets.
Cash provided by operating activities was $39,928,625, while cash used in investing and financing activities was $1,058,150 and $21,213,116, respectively.
Sezzle had a working capital of $135,548,021 as of September 30, 2024. The company believes its existing cash and cash equivalents, along with its line of credit, will be sufficient to meet its requirements for the next 12 months.
The filing also discusses the company's focus on expanding its product suite and maintaining a sustainable business model by acquiring and retaining consumers and merchants.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sezzle Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.