Why did Sezzle stock price outperform on Wednesday?

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The Sezzle Inc. (ASX:SZL) The stock price is holding up well in early trading.

Shares of Sezzle closed yesterday at 59 cents and are currently trading at 59 cents each.

It comes after ASX stock buy now, pay later (BNPL) released its August trading update ahead of the market open this morning.

It also comes amid greater selling pressure ahead of tonight’s US Federal Reserve rate decision. This sees the Index of all ordinaries (ASX:XAO) down 0.93% at the same time, with rival ASX BNPL shares down significantly more.

So a fixed stock price is a win today.

What was reported for the month of August?

Sezzle stock price outperformed after the company reported that Underlying Merchant Sales (UMS) edged up 1.1% month-over-month to $142.8 million.

Despite this, BNPL stock recorded a 4.8% decline in total revenue in August from the previous month to $9.7 million. Although down from July, total revenue was up 1.7% year-on-year.

Sezzle stock price may receive tailwinds after the company announced that its major revenue and cost initiatives are continuing and are expected to generate US$40 million in annualized revenue and cost savings. While the company’s cash burn is down significantly, the average monthly burn in 3Q22 (through August 31) still stands at $1.9 million.

Commenting on the performance, Sezzle CEO Charlie Youakim said:

In 2022, we did not pursue growth for growth’s sake, and this was reflected in our recent monthly results, which showed year-over-year improvement in total revenue despite the decline in UMS. We have had opportunities to pursue significant growth that would not be profitable, but we believe this is not the right time or environment to pursue such activities.

Regarding Sezzle’s revenue and savings plans, Youakim added, “We’re just getting started and are thrilled to announce that we’re embarking on additional annual revenue and cost reduction initiatives of 20 million US dollars.”

Sezzle Stock Price Overview

There’s no beating around the bush on this one. It was an absolute horror year for Sezzle stock price, down 90% year-over-year. This compares to an 8% full-year loss recorded by the All Ordinaries.

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