Sezzle Inc (NASDAQ: SEZL) witnessed a remarkable 14.74% surge in its stock price during the pre-market trading session on Wednesday. This pre-market soar followed the fintech company's exceptional fourth quarter and fiscal year 2024 financial results, coupled with an upbeat outlook for 2025.
For the fourth quarter, Sezzle reported record revenue growth of 100% year-over-year, driven by a strong holiday season and the successful launch of its new OnDemand product. This innovative offering contributed to a staggering 130% year-over-year increase in monthly on-demand and subscriber users (mods).
The company's profitability also reached new heights, with net income skyrocketing more than tenfold compared to 2023. Sezzle's disciplined cost management strategies further bolstered its performance, leading to a significant increase in adjusted EBITDA, which surged to 33.1% of total revenue.
Moreover, Sezzle's partnership with Webbank allowed the company to unify its fee structure across the United States, resulting in increased revenue and trust margin. This strategic move, combined with the promising early results from the OnDemand product, fueled investor confidence in the company's growth prospects.
Looking ahead, Sezzle raised its 2025 earnings per share guidance, exceeding analysts' expectations. The company anticipates double-digit revenue growth and a minimum 55% increase in pre-tax net income compared to 2024. This robust outlook, coupled with Sezzle's exceptional financial performance, propelled the stock's pre-market surge as investors eagerly await the company's continued success.
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