The Sezzle Inc (ASX: SZL) share price has exploded in the past month.
Since market open on 22 July, the Sezzle share price has soared 128%. However, in today's trade, the Sezzle share price fell 6.16%. Meanwhile, the Zip Co Ltd (ASX: ZIP) share price also lost 6.12% today.
Let's take a look at what has been going on with Sezzle.
Image source: Getty Images
What is going on?
Sezzle's share price has lifted amid a positive outlook for the year ahead and improving market sentiment for the buy now, pay later (BNPL) sector.
Between market close on 26 of July and 28 July, the Sezzle share price rocketed 183% alone.
This sharp rise prompted the ASX to issue the company with a price query. In response, Sezzle said:
Investors led the increase in trading activity, because of the sector having been significantly down in recent weeks
Meanwhile, on 29 July, Sezzle provided a second quarter update. As my foolish colleague James reported at the time, underlying merchant sales lifted 1.9% to US$419.1 million. Meanwhile, total income lifted 6.8% to US$29.3 million.
Finally, on 18 August, Sezzle shares received a boost on news of the company's July business update and plan to return to profit.
Sezzle revealed underlying merchant sales in July had risen 9.5% compared to the previous month to $141.2 million. Sezzle said as of 16 August, it has 64,000 subscribers.
Sezzle also highlighted its progress on cost-saving initiatives. Sezzle plans to end payment processing in India, lower third party spend, pull back Brazil and Europe efforts and reduce the workforce.
The company's CEO Charlie Youakim, provided optimism that Sezzle would return to profit by the end of the year. He said:
We understand the impact these initiatives have on growth, so teams are moving expeditiously to achieve profitability before refocusing efforts back to growth
July's results demonstrate the progress and success of our initiatives in Sezzle's evolution to be a profitable and positive free cash flow business by year end.
Sezzle share price snapshot
The Sezzle share price has descended nearly 90% in the past year, while it has lost 77% year to date.
However, in the past week, Sezzle shares have lost nearly 17%.
Sezzle has a market capitalisation of about $140.7 million based on the current share price.
