Buy now pay later company Sezzle suffered another blow-out in the March quarter, with its losses growing three-fold compared with the previous corresponding period.
The company, which entered into a merger agreement with rival BNPL provider Zip Co in February, has announced that it will take steps to “improve free cash flow and accelerate its path to profitability”.
In a US Securities and Exchange Commission disclosure released yesterday, Sezzle reported a net loss of US$27.9 million in the December quarter – up from US$11.3 million in the previous corresponding period.
Income grew by 6.2 per cent year-on-year to US$27.6 million for the quarter, while expenses grew by 54.2 per cent to US$53.7 million.
The relatively modest growth in income was surprising, given a 31.6 per cent increase in active customer numbers and a 43.1 per cent increase in active merchants.
The provision for uncollectable accounts of US$10.5 million represented around 10 per cent of receivables.
The company said it will cut its headcount and scale back operations in Europe.
It is winding up a payment processing business in India and it will sell its Brazilian business to local management.