Q2 2024 Sezzle Inc Earnings Call Transcript
Key Points
- Q2 revenue rose 60.2% year on year, driven by strong growth in consumer purchase frequency and subscriber growth.
- Net income for the quarter came in at $29.7 million, including a one-time discrete income tax benefit of $16.8 million.
- Adjusted net income for the quarter was $13.1 million, reflecting strong underlying performance.
- Total subscriber count increased by 91,000 during the quarter to 462,000, indicating strong consumer engagement.
- Sezzle Inc (SEZL) continues to exceed the Rule of 40, demonstrating robust financial health and growth potential.
- The net income figure includes a one-time tax benefit, which may not be indicative of future performance.
- Provision for credit losses is expected to rise to mid-2% in the second half of the year, potentially impacting profitability.
- Gross margin fell just short of the 60% target, indicating room for improvement in cost management.
- The company is not providing specific guidance on future subscription growth, creating some uncertainty.
- Higher loss rates are anticipated in Q4 due to increased consumer spending during the holiday season, which could affect net income.
Good day and welcome to the Sezzle Inc. second quarter financial results conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Charlie Youakim. Please go ahead.
Thank you. Good afternoon, everyone, and welcome to Sezzle's 2024 second quarter earnings call. My name is Charlie Youakim, I'm the CEO and Executive Chairman of Sezzle. I'm joined today by our Chief Financial Officer, Karen Hartje; and our Head of Corp Dev and IR, Lee Brading.
In conjunction with this conference call, we filed our earnings announcement with the SEC and have posted it along with our earnings presentation on our Investor website on sezzle.com. If you have not already done so, please go to the Investor Relations section of our website. There you will find the press release and earnings presentation under quarterly earnings within the financial section.
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