Sezzle Inc., a fintech company and a digital payment platform, announced that it has filed a lawsuit against Shopify Inc. in the U.S. District Court for the District of Minnesota asserting federal and state antitrust violations. The lawsuit alleges that Shopify has been engaging and continues to engage in monopolistic and anticompetitive business practices in order to stifle competition for “buy now, pay later” service options on Shopify’s e-commerce platform.
According to the Complaint, „Sezzle seeks to end Shopify’s monopolistic and anticompetitive business practices and restore competition and consumer choice in the increasingly popular markets for “dragand-drop” e-commerce platforms and online “buy-now, pay-later” payment services, and to recover potentially hundreds of millions of dollars of lost profits.”
Sezzle is seeking an injunction to prevent Shopify from continuing its anticompetitive conduct that limits consumer choice and stifles fair market competition. The suit filed by the Company seeks treble damages.
“Sezzle remains committed to fostering a competitive, transparent, and consumer-friendly payments ecosystem,” stated Charlie Youakim, Sezzle Chairman and CEO. “This action is an important step in ensuring that merchants and consumers have access to diverse and innovative payment solutions of their choice.”
The Company also shared the following business updates:
For the first quarter of 2025, revenue associated with gross merchandise volume attributable to Shopify’s e-commerce platform represented less than 5.0% of Sezzle’s total revenue.
The Company is reaffirming its fiscal 2025 guidance, which was provided in its 1Q25 earnings release on May 7, 2025.
__________
Sezzle – key financial metrics for the quarter ended March 31, 2025.
Gross Merchandise Volume (GMV) reached $808.7 million in 1Q25, rising 64.1% YoY, fueled by increased Subscriber and On-Demand user engagement. Overall consumer purchase frequency rose to 6.1 times, up from 4.5 times in the prior year’s comparable period.
Total Revenue grew 123.3% YoY to a new quarterly high of $104.9 million, benefiting from higher engagement and the sustained lift from the WebBank partnership. As a percentage of GMV, Total Revenue rose to 13.0%, surpassing the prior high of 11.5% in 4Q24.
As of March 31, 2025, Sezzle reported 658,000 Monthly On-Demand & Subscribers (MODS) (rounded to the nearest thousand). The sequential decline from 707,000 in 4Q24 is consistent with seasonal trends following the holiday shopping period.
In 1Q25, Net Income more than quadrupled YoY to $36.2 million — or 34.5% of Total Revenue —equating to Earnings per Diluted Share of $1.00, up from $0.22 in the prior comparable period.
Adjusted EBITDA2 came in at $51.4 million, representing a 243.7% YoY growth and 49.0% of Total Revenue – an 17.1-point expansion from 1Q24.
Continued growth in profitability fueled strong cash generation, with Cash Flow from Operations of $58.8 million in 1Q25, up from $38.6M in 1Q24.
Balance Sheet and Liquidity
As of March 31, 2025, Sezzle had $120.9 million of cash and cash equivalents, $32.0 million of which was restricted.
The Company had an outstanding principal balance of $70.8 million on its $150.0 million credit facility as of quarter end.
Updated FY2025 Guidance
The Company is increasing its FY2025 guidance to reflect the latest business trends:
Net Income and Adjusted Net Income: Raising both to $120.0 million from $80.4 million provided with 4Q24 earnings.
Total Revenue Growth: New guidance of 60-65% versus 25-30% provided with 4Q24 earnings.
Banking 4.0 – „how was the experience for you”
„To be honest I think that Sinaia, your conference, is much better then Davos.”
Many more interesting quotes in the video below:
