It’s been a rather pleasant day so far for most ASX shares this Tuesday. At the time of writing, the All Ordinaries Index (ASX: XAO) is up a solid 0.2% at around 7,340 points. But unfortunately, we can’t say the same for the Sezzle Inc (ASX: SZL) share price.
Sezzle shares are presently down by a nasty 3.6% at just 66.5 cents each. Not only that, but this ASX buy now, pay later (BNPL) share hit a new 52-week low of 65 cents a share earlier this morning. This is the lowest we have seen Sezzle since the depths of the COVID crash of 2020. It puts the 52-week high of $9.83 that we saw only back in July last year even further out of reach.
So what’s gotten Sezzle shares’ goat today?
Well, it’s likely that the quarterly update that Sezzle dropped this morning is playing a large role here. So let’s check out what this report said.
Sezzle share price drops on expanding losses
So Sezzle’s report was a 10-Q (US quarterly results report). It revealed that for the three months to 31 March 2022, Sezzle brought in US$27.63 million in total income, up from US$26.03 over the same quarter last year.
However, expenses also rose to US$53.78 million, up substantially from the US$32.86 million recorded last year. That drove Sezzle to a net loss of US$27.99 million for the quarter, a substantial decline from last year’s quarterly result of a US$11.34 million loss. This loss translates to a loss of 14 US cents per share. Last year’s March quarter saw a loss of 6 US cents per share.
So clearly investors have been disappointed with what Sezzle released this morning, judging by the sharp pullback to a new 52-week low that we have seen today.
At the current Sezzle share price, this ASX BNPL share has a market capitalisation of $138.47 million.