Sezzle (ASX:SZL) share price fizzles 5% despite upbeat growth figures

Here’s the latest from the BNPL provider.

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The Sezzle Inc (ASX: SZL) share price is suffering this afternoon despite the company releasing a seemingly positive trading update.

The company’s underlying merchant sales (UMS) reached a record $2.5 billion over November and it engaged in a profitable 4-day period between Black Friday and Cyber Monday.

However, the market seemingly expected more from the company. Participants are bidding the Sezzle share price down 3.58% to trade at $3.77 at the time of writing.

Let’s take a closer look at today’s update from the buy now, pay later (BNPL) company.

Sezzle share price flops despite positive growth

The Sezzle share price is struggling despite the company reporting a stellar month for UMS growth.

Over the course of November, Sezzle’s UMS increased 83% on that of November 2020, bringing its annualised run rate to its new record high.

The growth was evident both online and in-store, particularly during the now-infamous weekend-long retail event.

Over the 4 days between the start of Black Friday and the end of Cyber Monday, Sezzle’s UMS in the United States and Canada was 53% higher than that of the same weekend of 2020.

Its instore UMS rose a massive 783% and that of its online merchants increased 46%.

Additionally, the number of active stores and customers using its platform rose by 84% and 60% respectively year-on-year last month.

Interestingly, the company experienced a surge in demand for hunting and fishing-related purchases.

Customers also increasingly used Sezzle to shop for food and drinks, vitamins and supplements, furniture, fine jewellery, and sporting and hobby equipment.

The company noted that the extra demand in the increasingly popular categories is likely a benefit of its push to diversify into broader verticals.

The company is now looking forward to the December holiday period. It is planning to give away more than 1,400 prizes during the season for its ‘Home 4 The Holidays’ campaign.

Right now, the Sezzle share price is 29% lower than it was this time last month. It has also fallen 39% since the start of 2021.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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