Sezzle FY19 report: customers up but losses widen

US buy now, pay later venture Sezzle has reported a 489% increase in customer numbers in its full-year results.

The company’s total income rose from $1.63 million to $16.1 million during the period ending 31st December 2019. It racked up an EBITDA loss of $10 million, compared with a $4 million loss the previous year. Active customers grew to 914,886 by FY19, compared to 155,257 at the prior year end, and surpassed one million in early February.

Sezzle has also unveiled a new brand identity, the result of canvassing consumers and retail partners to better understand how its offering impacts the lives of its users. Its new brand tagline is ‘The Way Forward’, with campaign messaging ‘Buy Now, Build Your Future’.

"Having recently surpassed the one million active user milestone we know we can make a real difference for all consumers through our mission-driven approach," says Charlie Youakim, Sezzle Co-Ffunder and CEO.

"We want a brand that represents what we believe in: transparency, diversity, and inclusivity. We stand for all consumers and want our new brand to reflect our goal to fundamentally change how people think about payments and their financial futures."

ASX

Last year, Sezzle made its Australian Securities Exchange (ASX) debut and laid claim to being “a formidable opponent for the likes of Afterpay and Klarna, particularly in the North American market”.

It said that the move would give it “the fuel required to scale our business, move into new verticals, invest in technology, and connect in a more meaningful way with our shoppers.” Further details here.

Klarna and Afterpay

Klarna recently reported a loss of $113 million on revenues of $740 million in 2019; ts first loss since the company was founded 15 years ago. Growth in new markets meant more first time customers who have proved less reliable with repayments.

Meanwhile, Afterpay has announced its results for the six-month period ended 31st December 2019. The company posted a $35 million loss, a 66% wider loss than the same period a year ago, as it pursued growth in the US and UK markets.