Sizzle, fizzle, pop! What’s with the Sezzle share price on Monday?

A man in his 30s holds his computer underneath and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

A man in his 30s holds his computer underneath and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

The Sezzle Inc (ASX: SZL) share price has seen some volatility so far on Monday, shooting 28% higher at one point before plunging again.

Sezzle shares opened at 82 cents apiece, fetching as high as $1.05 in early morning trade before settling to their current price of 84 cents a share, up 2.44%.

The ASX buy now, pay later share has certainly been on a wild ride lately. Since the beginning of 2022, the company’s share price remains down 70%. But, since 20 July, it has gained more than 300%.

And it seems the rollercoaster is continuing despite no news being released by the company today.

However, at the end of last week, Sezzle released its quarterly update for the three months to 30 June 2022.

Quarterly recap

Sezzle said that underlying merchant sales (UMS) for the second quarter were up 1.9% year on year to US$419.1 million. Total income grew by 6.8% year on year to US$29.3 million, representing 7% of underlying merchant service. Merchant fee income represented more than 80% of total income.

As a percentage of UMS, the provision for uncollectible accounts receivable declined to 1.9%, down from 3.4% in the prior corresponding period.

Active merchants rose 19% year on year, while active consumers went up 18.2% year on year to 3.4 million.

In a sign of ongoing customer loyalty, repeat usage improved for the 42nd consecutive month to 93.5%.

It seems the ongoing performance of the business could be buoying the Sezzle share price.

The company also outlined it has taken several actions aimed at reaping more than US$40 million in expected annualised revenue and cost savings to improve cash flow and accelerate its path to profitability.

These include:

  1. Offboarded or renegotiated rates with merchants
  2. Improved virtual card network revenue share
  3. Workforce reduction
  4. Scaled back efforts in Europe and Brazil
  5. Ceased payment processing in India
  6. Reduced third-party spend
  7. Launched the Sezzle premium subscription product

Certainly, each of these actions could boost the bottom line and help support investor confidence.

The post Sizzle, fizzle, pop! What’s with the Sezzle share price on Monday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Scott Phillips.

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